Document ID: SEC-2011-1865-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Stock Exchange, Inc.
Posted Date: 2011-12-02T05:00Z

[Federal Register Volume 76, Number 232 (Friday, December 2, 2011)]
[Notices]
[Pages 75586-75593]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-30997]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65842; File No. SR-NSX-2011-14]

Self-Regulatory Organizations; National Stock Exchange, Inc.; 
Notice of Filing of Proposed Rule Change Relating to the Proposed Rule 
Change in Connection With the Proposed Purchase and Sale of the 
National Stock Exchange, Inc. to CBOE Stock Exchange, Inc.

November 28, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') 15 U.S.C. 78s(b)(1), notice is hereby given that on 
November 28, 2011, the National Stock Exchange, Inc. 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 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[supreg]'' or the ``Exchange'') 
is submitting this rule filing in connection with the proposed purchase 
and sale of the Exchange (the ``Transaction'') to CBOE Stock Exchange, 
LLC (``CBSX''). If the Transaction is completed, NSX will become a 
wholly owned subsidiary of CBSX. The proposed rule change, if approved, 
will not be operative until consummation of the Transaction.
    The Exchange is proposing that, pursuant to the Transaction, NSX 
will become a wholly owned subsidiary of CBSX. In addition, the 
Exchange is proposing that in connection with the Transaction, the 
Securities and Exchange Commission (the ``Commission'') approve certain 
amendments to the organizational documents of NSX and CBSX.
    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, at the Commission's Public Reference Room, and on the 
Commission's Web site at http://www.sec.gov.

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

Description of the Transaction

    Currently, the Exchange is wholly and directly owned by NSX 
Holdings, Inc., a Delaware corporation (``Holdings''). Under a Purchase 
Agreement (the ``Purchase Agreement'') dated September 28, 2011 by and 
between the Exchange, Holdings and CBOE Stock Exchange, LLC, a Delaware 
limited

[[Page 75587]]

liability company (``CBSX''), all of the outstanding capital stock of 
NSX is proposed to be acquired by CBSX on the date of or after all 
conditions precedent to closing \1\ have been satisfied or waived, 
including approval by the Commission of the instant rule filing. The 
post-closing corporate structure of NSX and CBSX, respectively, are 
described below.
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    \1\ Conditions precedent to closing the Transaction are formal 
requirements set forth in the Purchase Agreement and include, 
without limitation, delivery of certain documents (such as officers' 
certificates, legal opinions, and agreements), compliance by each 
party with specified representations, warranties and covenants, and 
receipt of necessary approvals by each party.
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a. NSX
    Following the Transaction, NSX would be a wholly owned subsidiary 
of CBSX. NSX would remain a Delaware for-profit stock corporation, with 
the authority to issue 1,000 shares of common stock, 100 shares of 
which would be held by CBSX. At all times, all of the outstanding stock 
of NSX would be owned by CBSX.\2\ NSX would remain an entity registered 
as a national securities exchange under Section 6 of the Securities 
Exchange Act of 1934 (the ``Act'') \3\ and, accordingly, NSX would 
remain a self-regulatory organization (``SRO'').\4\
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    \2\ See proposed NSX Amended and Restated Certificate of 
Incorporation, Article Fourth, which deletes reference to NSX 
Holdings, Inc. and provides ``At all times, all of the outstanding 
stock of the Corporation shall be owned by CBOE Stock Exchange, LLC, 
a Delaware limited liability company.''
    \3\ 15 U.S.C. 78f.
    \4\ NSX would continue to adhere to the undertakings in the 
Order Instituting Administrative and Cease-and-Desist Proceedings 
Pursuant to Sections 19(b) and 21C of the Securities Exchange Act of 
1934, Making Findings and Imposing Sanctions, entered by the 
Commission on May 19, 2005 (see Securities Exchange Act Release No. 
51714, May 19, 2005) (the ``Order''). The Order provides for certain 
structural protections to ensure that the regulatory functions are 
independent from the commercial interests of the Exchange, 
including, among other things, that the Chief Regulatory Officer 
reports directly to the NSX Board and the Regulatory Oversight 
Committee; see section IIIF2.a of the Order.
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i. Governing Documents
    The proposed Amended and Restated NSX Certificate of Incorporation 
(the ``A&R Certificate'') and Second Amended and Restated NSX By-Laws 
(the ``A&R By-Laws''), amended as described below, and NSX Rules (which 
are proposed to remain unchanged) would continue to govern the 
activities of NSX. These rules and governance documents would reflect, 
among other things, NSX's status as a wholly owned subsidiary of CBSX, 
continued management of NSX by the NSX Board of Directors (``NSX 
Board'') and designated officers, and the Exchange's continuing 
discharge of its self-regulatory responsibilities pursuant to NSX's 
registration under Section 6 of the Act. NSX's proposed governance 
structure is designed to be consistent with its current governance 
structure, with certain changes as described below.
ii. Board of Directors
    Currently, the NSX Board consists of 13 director positions, of 
which seven are Independent, three are ETP Holder, two are At Large, 
and one is the Exchange Chief Executive Officer. The Transaction 
contemplates that all current Exchange directors and committee members, 
including the Chief Executive Officer, will resign from the Board and 
committees, as applicable, effective upon closing. At such time, the 
vacancies on the Board and committees of the Board will be filled in 
accordance with applicable procedures contained in the A&R By-Laws. 
Candidates with the necessary qualifications will be appointed in 
accordance with Sections 3 or 5, as applicable, of the A&R By-Laws to 
fulfill the expired portion of any vacancies created by the 
resignation. Thereafter, directors and committee members will be 
nominated and elected in accordance with the A&R By-Laws.
b. CBSX
    In 2007, the Commission approved the establishment of the CBOE 
Stock Exchange as a facility, as defined in Section 3(a)(2) of the 
Act,\5\ of the Chicago Board Options Exchange, Incorporated 
(``CBOE'').\6\ As the SRO for CBSX, CBOE has regulatory responsibility 
for the activities of CBSX. CBSX administers a fully automated trading 
platform for securities other than options (the ``Facility''). As a 
limited liability company, the governance structure and operating 
authority of CBSX are set forth in the Second Amended and Restated 
Operating Agreement of CBSX (``Operating Agreement'') and the CBSX 
Certificate of Formation. In connection with the establishment of the 
Facility, CBOE adopted Rule 3.32 pertaining to ownership concentration 
and affiliation limitations.\7\
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    \5\ 15 U.S.C. 78c(a)(2).
    \6\ See Securities Exchange Act Release No. 55389 (March 2, 
2007), 72 FR 10575 (March 8, 2007) (SR-CBOE-2006-110) (the ``CBSX 
Approval Order''). See also Securities Exchange Act Release No. 
55172 (January 25, 2007), 72 FR 4745 (February 1, 2007) (SR-CBOE-
2006-110) (the ``CBSX Notice of Filing''). All information contained 
herein with respect to the corporate structure, governance, 
ownership and operations of CBSX and CBOE is based on the Exchange's 
information and belief as disclosed in the CBSX Approval Order and 
CBSX Notice of Filing and pursuant to communications with CBSX 
personnel prior to the submission of this filing.
    \7\ See CBSX Approval Order. CBOE Rule 3.32 provides, in part:
    ``For as long as CBSX LLC operates as a facility of the 
Exchange, no Trading Permit Holder, either alone or together with 
its Affiliates, at any time, may own, directly or indirectly, of 
record or beneficially, an aggregate amount of Shares that would 
result in a greater than twenty percent (20%) Percentage Interest in 
CBSX LLC (the ``Concentration Limitation'').''
    In addition, the Certificate of Incorporation of CBOE Holdings, 
Inc., the owner of CBOE, provides that no person (either alone or 
together with its related persons) may beneficially own more than 
20% of the total outstanding shares of CBOE Holdings stock. See 
Article Sixth (b) of the Amended and Restated Certificate of 
Incorporation of CBOE Holdings, Inc.; see also Securities Exchange 
Act Release No. 62158 (May 24, 2010), 75 FR 30082 (May 28, 2010) 
(SR-CBOE-2008-88).
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    As a limited liability company, ownership of CBSX is represented by 
limited liability membership interests. The holders of such interests 
are referred to as ``Owners.'' CBOE is one of the Owners of CBSX, and 
owns all outstanding ``Series A'' Voting Shares \8\ of CBSX, 
representing just under 50% of all outstanding shares of CBSX.\9\ The 
outstanding ``Series B'' Voting Shares of CBSX are held by nine broker-
dealers.
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    \8\ ``Voting Shares'' means those Shares entitled to vote on 
matters submitted to the Owners, which Voting Shares are held by the 
Voting Owners. See Section 2.1(a)(28) of the Operating Agreement.
    \9\ As noted in Section 3.2 of the Operating Agreement, it is 
the intention of the Owners that no other members of CBSX (other 
than Affiliates of CBOE) be owners of Series A Voting Shares, and 
that no additional Series A Voting Shares be authorized, created or 
issued for such purpose; provided however, that this provision is 
not intended to limit or restrict any rights of CBOE to transfer any 
of its Series A Voting Shares with the prior approval of the 
Commission as provided for in Article VI, including Section 6.14, of 
the Operating Agreement, or any other provision thereof, or any 
rights to be acquired by a transferee of those Shares as provided 
therein.
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    As provided in Section 8.9 of the Operating Agreement, the 
outstanding Series A Voting Shares, in the aggregate (and without being 
deemed to be a voting trust), are entitled to a number of votes equal 
to 50% of the total number of Voting Shares outstanding, on each matter 
submitted to a vote of the Owners. Each outstanding Series B Voting 
Share is entitled to one vote on each matter submitted to a vote of the 
Owners.\10\
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    \10\ The Operating Agreement also creates a Series C Non-Voting 
Restricted Shares; however, these Shares are not entitled to vote on 
any matter submitted to a vote of the Owners, and there are 
currently no Series C shares outstanding. See Section 8.9 of the 
Operating Agreement.
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    The CBSX Approval Order and the CBSX Notice of Filing describe 
various characteristics of CBSX, including the relationship between 
CBSX and CBOE; changes in control of CBSX; the regulatory jurisdiction 
of the

[[Page 75588]]

Commission and CBOE over the controlling parties and the Owners; and 
the ownership and voting restrictions on Owners.\11\ These provisions, 
as contained in the Operating Agreement and applicable CBOE rules, will 
remain unchanged after the Transaction except as otherwise described 
below.
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    \11\ Section 6.12(a) of the Operating Agreement provides that no 
person (other than CBOE), either alone or together with its 
Affiliates, may directly or indirectly own more than a 20% 
Percentage Interest in CBSX (``Concentration Limitation''). In 
addition, Section 8.10 provides that if an Owner of Voting Shares, 
alone or together with any Related Persons, owns more than 20% of 
the Outstanding Voting Shares (``Excess Shares''), such Owner and 
Related Persons shall have no voting rights with respect to the 
Excess Shares.
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Summary of Proposed Rule Change

    Except as described below, the Exchange's governing documents, 
rules and manner of operation, restrictions on ownership and transfer, 
registration as a national securities exchange under Section 6 of the 
Act and the continuance of the Exchange as an SRO \12\ are proposed to 
remain unchanged.\13\ The instant rule change proposes changes to the 
Exchange's Certificate of Incorporation and By-Laws as described below 
to reflect the change of ownership due to the Transaction. In addition, 
several other amendments are proposed to the Exchange governance 
documents in order to enhance governance mechanisms and generally make 
them generally consistent with the parallel provisions of the current 
governance documents of other SROs. Certain provisions of the current 
NSX By-Laws that are historic in nature are also proposed to be deleted 
as no longer applicable. In addition, certain amendments, as described 
below and in conjunction with a contemporaneous rule filing submitted 
by CBOE, are proposed to the CBSX Operating Agreement in connection 
with the Transaction. In the aggregate, the proposed amendments are 
intended to enable NSX to continue to have the authority and ability to 
effectively fulfill its self-regulatory duties pursuant to the Act and 
the rules promulgated thereunder. The proposed amendments will also 
enhance the ownership and voting limitations applicable to SROs in 
order to preclude undue influence over or interference with the SROs' 
regulatory functions and fulfillment of regulatory duties under the 
Act.
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    \12\ See 15 U.S.C. 78c(a)(26).
    \13\ As described in the Commission's order approving the 
Exchange's demutualization; see Securities Exchange Act Release No. 
53963 (June 8, 2006), 71 FR 34660 (June 15, 2006) (SR-NSX-2006-03).
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a. Amended and Restated Certificate of Incorporation of NSX
    Under the proposed rule change, the requirement that the Exchange 
be at all times wholly owned by Holdings is proposed to be changed to 
allow for the consummation of the Transaction and acquisition of all of 
the outstanding NSX stock by CBSX. To make clear that NSX will be 
entirely owned by CBSX (regardless of whether outstanding NSX stock is 
voting or non-voting), the proposed A&R Certificate would be modified 
in Article IV to provide that, at all times, all of the outstanding 
stock of the Exchange shall be owned by CBSX.
    In addition, new language is proposed to be added to Articles VII 
and XI of the NSX Certificate of Incorporation designed to enable the 
Exchange Board and the Commission to continue to exercise appropriate 
oversight of the Exchange. In conformity with similar language in the 
recently approved charter documents of other exchanges,\14\ a provision 
is proposed to be added to each of Articles VII and XI to make clear 
that before any amendment to, or repeal of, any provision of the 
Exchange By-Laws and/or Certificate of Incorporation shall be 
effective, those changes shall be submitted to the Exchange Board and, 
if such amendment or repeal must be filed with or filed with and 
approved by the Commission, then the proposed changes shall not become 
effective until filed with or filed with and approved by the 
Commission.\15\ For purposes of clarity regarding Commission approval 
of Exchange rule filings, specific reference to Section 19 of the Act 
and the rules promulgated thereunder is also introduced to Articles VII 
and XI.
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    \14\ See Article 6 of the Certificate of Incorporation of EDGA 
Exchange, Inc.; and Article 9 of Certificate of Incorporation of C2 
Options Exchange, Inc.
    \15\ See A&R Certificate of Incorporation, Articles Seventh and 
Eleventh.
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    Finally, consistent with similar provisions in the charter 
documents of other exchanges,\16\ the proposed A&R Certificate in 
Article V is amended to allow directors (other than ETP Holder 
Directors) to be removed with or without cause by a majority vote of 
stockholders. This amendment is intended to promote more efficient 
Exchange governance while continuing to preserve the fair 
representation of ETP Holders through the ETP Holder Director election 
process contained in the Exchange's By-Laws.
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    \16\ See A&R Certificate of Incorporation, Article Fifth, (b); 
see also Article II, Section 7(a) of the Amended and Restated By-
Laws of BATS Exchange, Inc.; and Article II, Section 7(a) of the 
Amended and Restated Bylaws of EDGA Exchange, Inc.
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b. Second Amended and Restated By-Laws of NSX
    Under the proposed rule change, due to the transfer of ownership of 
the Exchange from Holdings to CBSX, references in the Exchange By-Laws 
specific to Holdings are proposed to be replaced with references to 
CBSX. Specifically, Section 3.2(c) is proposed to be modified to 
provide that no two or more directors of NSX may be partners, officers 
or directors of the same person or be affiliated with the same person, 
unless such affiliation is with a national securities exchange or CBSX. 
In addition, Section 10.2 is proposed to be modified to provide that in 
no event shall members of the CBSX Board who are not also members of 
the NSX Board, or any officers, staff, counsel or advisors of CBSX who 
are not also officers, staff, counsel or advisors of NSX (or any 
committees of NSX), be allowed to participate in any meetings of the 
NSX Board (or any committee of NSX) pertaining to the self-regulatory 
function of NSX (including disciplinary matters). These amendments 
recognize CBSX as direct owner of the Exchange while preserving a 
mechanism to prevent undue influence over the Exchange's self-
regulatory functions.
    In connection with the ownership of NSX by CBSX, an additional 
Section 10.1(b) is proposed to be added to provide that, for so long as 
CBSX controls NSX, NSX shall promptly inform the CBSX board of 
directors, in writing, in the event that NSX has, or experiences, a 
deficiency related to its ability to carry out its obligations as a 
national securities exchange under the Act, including if NSX does not 
have or is not appropriately allocating such financial, technological, 
technical and personnel resources as may be necessary or appropriate 
for NSX to meet its obligations under the Act.
    In addition, in conformity with the board composition provisions of 
other more recent approvals involving other market centers,\17\ certain 
NSX Board composition changes are proposed in order to streamline and 
promote the efficiency and effectiveness of NSX Board governance. 
Specifically, By-Law provisions regarding the number of directors on 
the NSX Board are proposed to be amended to allow any number between 
(and including) seven (7) and twenty-five (25). In addition, the 
requirement that at least 50% of NSX

[[Page 75589]]

Board members be ``Independent'' Directors is proposed to be replaced 
with a requirement that at least 50% of NSX Board members be ``Non-
Industry'' Directors, at least one of whom must qualify as 
Independent.\18\ The category of ``At Large'' Directors, which under 
current By-Laws means directors who are not Independent, is eliminated 
as unnecessary.\19\ Finally, the category of CBOE Director, and 
corresponding provisions discussing CBOE ownership of Class B stock and 
related Board representation, are proposed to be deleted as 
obsolete.\20\
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    \17\ See Third Amended and Restated Bylaws of the C2 Options 
Exchange, Inc.; Second Amended and Restated By-Laws of CBOE; Amended 
and Restated By-Laws of BATS Exchange, Inc.; and the Amended and 
Restated Bylaws of EDGA Exchange, Inc.
    \18\ See A&R By-Laws Section 3.2 (Board composition 
requirements) and 1.1 (definitions of ``Industry Director'' and 
``Non-Industry Director''). See also Third Amended and Restated 
Bylaws of the C2 Options Exchange, Inc., Article III, Section 1; 
Second Amended and Restated Bylaws of the CBOE Article III, Section 
1; and the Amended and Restated By-Laws of BATS Exchange, Inc., 
Article I.
    \19\ See A&R By-Laws Section 1.5 (definitions) and deletions to 
current By-Laws in Sections 3.2(b) and 3.4(e).
    \20\ See deletions to current By-Laws in Sections 1.5, 3.2(b), 
3.3, 3.4(d), 3.5(g) and 3.7.
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    As a result, the proposed NSX Board composition after the closing 
of the Transaction will consist of not fewer than seven (7) and not 
more than twenty-five (25) directors \21\ and at all times shall 
include the Chief Executive Officer of the Exchange; at least 50% Non-
Industry Directors (at least one of whom shall be an Independent 
Director); and such number of ETP Holder Directors as is necessary to 
comprise at least 20% of the NSX Board.\22\ For purposes of calculating 
the percentage of Non-Industry Directors, the Chief Executive Officer 
of the Exchange shall be excluded.\23\
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    \21\ See A&R By-Laws Section 3.2(a).
    \22\ See A&R By-Laws Section 3.2(b). See also Third Amended and 
Restated Bylaws of the C2 Options Exchange, Inc. Article III, 
Section 3.1; Second Amended and Restated Bylaws of CBOE Section III, 
Article 3.1; and the Amended and Restated By-Laws of BATS Exchange, 
Inc., Article III, Section 2.
    \23\ See Third Amended and Restated Bylaws of the C2 Options 
Exchange, Inc., Article III, Section 3.1; and Second Amended and 
Restated Bylaws of the CBOE. Section III, Article 3.1.
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    By-Law provisions relating to the terms of office of each type of 
director is also amended from staggered three year terms to one year 
terms (other than the CEO Director, which individual's term expires 
upon ceasing to be Exchange Chief Executive Officer).\24\ The Exchange 
believes that the change to annual from staggered three year director 
terms, which amendment is consistent with the parallel provisions of 
the current governance documents of other SROs,\25\ promotes more 
efficient Exchange governance and effective ETP Holder representation.
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    \24\ See A&R By-Laws Section 3.4(a) through (e).
    \25\ See Third Amended and Restated Bylaws of the C2 Options 
Exchange, Inc., Article III, Section 3.1; Second Amended and 
Restated Bylaws of the CBOE Article III, Section 3.1.
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    With respect to the filling of vacancies on the NSX Board,\26\ the 
A&R By-Laws are proposed to be amended to differentiate the procedure 
depending on whether the vacancy is of an ETP Holder Director or 
another type of director. Under current Exchange By-Laws, no such 
distinction is made. The Exchange believes a distinction is necessary 
in order to promote, in the event of a vacancy of an ETP Holder 
Director, the fair representation of ETP Holders on the NSX Board. For 
non-ETP Holder Directors, the A&R By-Laws provide, consistent with 
current Exchange By-Laws, that any vacancy may be filled by vote of a 
majority of the directors then in office, although less than a quorum, 
or by a sole remaining director, provided such new director qualifies 
for the category in which the vacancy exists. A director elected to 
fill a vacancy shall hold office until the next annual meeting of 
stockholders, subject to the election and qualification of his or her 
successor and to his or her earlier death, resignation, 
disqualification or removal.\27\ Regarding the filling of vacancies of 
ETP Holder Directors, the ETP Holder Director Nominating Committee 
shall either recommend an individual to the NSX Board to be elected to 
fill such vacancy or provide a list of recommended individuals to the 
NSX Board from which the NSX Board shall elect the individual to fill 
such vacancy. The NSX Board shall elect only individuals recommended by 
the ETP Holder Director Nominating Committee. The proposed amendments 
conform to the more recently approved analogous provisions of the 
governance documents of another exchange.\28\
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    \26\ See A&R By-Laws Section 3.7. See also Third Amended and 
Restated Bylaws of the C2 Options Exchange, Inc., Article III, 
Section 3.5; Second Amended and Restated Bylaws of the CBOE Section 
III, Article 3.5; Amended and Restated By-Laws of BATS Exchange, 
Inc., Article III, Section 6; and Amended and Restated Bylaws of 
EDGA Exchange, Inc., Article III, Section 6.
    \27\ See A&R By-Laws Section 3.7(a)(i).
    \28\ See Third Amended and Restated Bylaws of the C2 Options 
Exchange, Inc., Article III, Section 3.5.
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    Certain other edits are proposed to the current Exchange By-Laws to 
promote clarity and efficient governance mechanisms. Such edits conform 
to the analogous provisions of the charter documents of other more 
recently approved exchanges. Specifically, edits are proposed with 
respect to the procedures for election of ETP Holder Directors.\29\ In 
order to promote fair representation among all ETP Holders, A&R By-Laws 
Section 3.5(d) is proposed to be amended to provide that no ETP Holder, 
together with its affiliates, may account for more than fifty percent 
(50%) of the signatures endorsing a particular candidate, and any 
signatures of such ETP Holder, together with its affiliates, in excess 
of fifty percent (50%) limitation shall be disregarded. Similarly, in 
order to promote fair representation among all ETP Holders, in an 
election among ETP Holders of candidates for ETP Holder Director, A&R 
By-Laws Section 3.5(e) is proposed to be amended to provide that any 
vote must be cast for a person duly nominated on the list of candidates 
and that no ETP Holder, together with its affiliates, may account for 
more than twenty percent (20%) of the votes cast for a candidate, and 
any votes cast by such ETP Holder, together with its affiliates, in 
excess of such twenty percent (20%) limitation shall be disregarded.
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    \29\ See A&R By-Laws Section 3.5(d) and (e). See also the 
Amended and Restated By-Laws of BATS Exchange, Inc., Article III, 
Section 4.
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    In addition, the A&R By-Laws are amended to include a fuller 
description of the composition and authority of Exchange 
committees.\30\ These edits are intended to promote transparency and 
efficient governance. The description of the Executive Committee, which 
has authority to act on behalf of the full NSX Board under certain 
circumstances, is amended to clarify that the composition requirements 
of such committee mirror the requirements applicable to the full 
Board.\31\ Regarding other Exchange committees, descriptions of the 
duties and composition requirements are included for each of the ETP 
Holder Director Nominating Committee, the Executive Compensation 
Committee, the Audit Committee, the Governance and Nominating 
Committee, the Appeals Committee and the Business Conduct Committee. 
Reference to a Securities Committee is deleted as obsolete.
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    \30\ See A&R By-Laws Sections 5.5 through 5.13. See also Amended 
and Restated By-Laws of BATS Exchange, Inc., Article V, Section 6, 
and Article VI, Section 2.
    \31\ See A&R By-Laws Section 5.5(a), which provides, in part, 
that the Executive Committee at all times shall include the Chief 
Executive Officer of the Exchange, at least 50% Non-Industry 
Directors, at least one Independent Director and such number of ETP 
Holder Directors as is necessary to comprise at least 20% of the 
Executive Committee; see also Amended and Restated By-Laws of BATS 
Exchange, Inc., Article V, Section 6(e).
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    Consistent with analogous provisions of recently approved 
governance documents of other exchanges, the

[[Page 75590]]

procedures for amendments to the Exchange's By-Laws are also proposed 
to be amended to provide for NSX Board review and, as necessary, 
Commission approval prior to the effectiveness of any amendments to 
Exchange By-Laws.\32\
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    \32\ See A&R By-Laws Section 8.1. See also Amended and Restated 
By-Laws of BATS Exchange, Inc., Article IX, Section 1.
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    Consistent with the proposed edits to the A&R Certificate and 
similar provisions in the charter documents of other exchanges,\33\ the 
proposed A&R By-Laws are further proposed to be modified to allow 
directors (other than ETP Holder Directors) to be removed with or 
without cause by a majority vote of stockholders. This amendment, 
consistent with a parallel proposed amendment to the NSX A&R 
Certificate, is intended to promote more efficient Exchange governance 
while maintaining the fair representation of ETP Holders through the 
ETP Holder Director election process as set forth in the A&R By-Laws.
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    \33\ See A&R By-Laws Section 3.8; see also Article II, Section 
7(a) of the Amended and Restated By-Laws of BATS Exchange, Inc.; and 
Article II, Section 7(a) of the Amended and Restated Bylaws of EDGA 
Exchange, Inc.
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    In addition, to clarify that the confidentiality provisions of 
Section 10.3 may not be interpreted to limit Commission jurisdiction 
over NSX books and records, a clarifying statement is proposed to be 
added to A&R By-Laws Section 10.3 to provide that nothing in Section 
10.3 shall be interpreted as to limit or impede the rights of the 
Commission to access and examine Exchange confidential information 
pursuant to the Federal securities laws and the rules and regulations 
thereunder, or to limit or impede the ability of any officers, 
directors, employees or agents of the Exchange to disclose such 
confidential information to the Commission.\34\
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    \34\ See A&R By-Laws Section 10.3.
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    Finally, the proposed A&R By-Laws contain several other non-
substantive, conforming edits to the A&R By-Laws that are consistent 
with the principles outlined above, the Act and the rules promulgated 
thereunder.\35\
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    \35\ Non-substantive, conforming edits to the A&R By-Laws are 
reflected in the following Sections of the A&R By-Laws: 3.2(d) 
(clarifying that directors may not serve if subject to statutory 
disqualification as such term is defined in the Act); 3.7(c) 
(providing that any grace periods for re-qualification of a director 
must be for only a reasonable length of time); 3.17(clarifying that 
NSX Board authority to interpret Exchange By-Laws remains subject to 
the Act); 5.2(clarifying that the composition requirements set forth 
in description of each committee in Article V control, and that 
responsibility for maintenance of committee composition in 
connection with new committee appointments resides with the 
Chairman); 5.6 (specifying that the Regulatory Oversight Committee 
shall at all times be comprised entirely of Non-Industry Directors); 
and 6.3 (clarifying that officer disqualification will terminate an 
officer's term of office). Relevant definitions are also added to 
Section 1.1.
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c. CBSX Operating Agreement
i. CBSX's Ownership of NSX
    The proposed rule change (for purposes of this Section IIC, as 
described in conjunction with a parallel rule filing submitted by CBOE) 
includes several amendments related to CBSX's ownership of NSX. These 
amendments address the fact that CBSX will become a holding company of 
NSX after the Transaction to the extent related to CBSX's control of 
NSX and clarify CBSX's rights and responsibilities related to its role 
as a holding company of a registered national securities exchange 
(amendments related to such responsibilities are further discussed 
below). For example, the proposed rule change amends Operating 
Agreement Section 1.6 to provide that CBSX's purposes (and any other 
lawful purposes related to those purposes) will be (1) to act as a 
trading market for securities other than options and (2) to act as a 
holding company of NSX. The proposed rule change also amends several 
Operating Agreement provisions to clarify that certain references to 
CBSX include its subsidiaries, including NSX.\36\
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    \36\ See proposed Sections 1.6, 9.15(a)(9) and (1) of the 
Operating Agreement.
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    In addition, the proposal amends Section 6.12 to provide that the 
Concentration Limitation described in that section does not apply to 
CBOE or CBOE Holdings, and to expand applicability of the Concentration 
Limitation to persons and their Related Persons \37\ rather than to 
persons and their Affiliates.\38\ The proposal also amends Operating 
Agreement Section 6.12(c) and (e) to impose on NSX equity trading 
permit holders the Concentration Limitation prohibitions described in 
those paragraphs, which are currently only imposed on CBOE Trading 
Permit Holders. The proposal makes similar amendments to Operating 
Agreement Section 8.10 to expand applicability of the voting 
restriction described in that section to persons and their Related 
Persons and to provide that if any person and its Related Persons, not 
just a CBOE Trading Permit Holder, exceed the Concentration Limitation 
set forth in Section 6.12 of the Agreement, then the Owner and its 
Related Persons will have no voting rights with respect to the shares 
in excess of such limitation unless such Owner satisfies certain 
requirements set forth in proposed Section 8.10(b) through (d), which 
are similar to the requirements set forth in Section 6.12(b), (c) and 
(e). The proposed rule change also extends the applicability of the 
voting restriction in Section 8.10 to voting agreements, plans and 
arrangements.
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    \37\ Proposed Rule 2.1(a)(23) of the Operating Agreement defines 
``Related Person'' as (A) with respect to any person, all 
``affiliates'' as such term is defined in Rule 12b-2 of the Exchange 
Act); (B) any person associated with a member (as the phrase 
``person associated with a member'' is defined under Section 
3(a)(21) of the Exchange Act); (C) any two or more persons that have 
any agreement, arrangement or understanding (whether or not in 
writing) to act together for the purpose of acquiring, voting, 
holding or disposing of shares of CBSX; (D) in the case of a person 
that is a company, corporation or similar entity, any executive 
officer (as defined under Rule 3b-7 of the Exchange Act) or director 
of such person and, in the case of a person that is a partnership or 
a limited liability company, any general partner, managing member of 
manager of such person, as applicable; (E) in the case of a person 
that is a natural person, any relative or spouse of such natural 
person, or any relative of such spouse who has the same home as such 
natural person or who is a director or officer of CBSX or any of 
CBSX's parents or subsidiaries; (F) in the case of a person that is 
an executive officer (as defined under Rule 3b-7 of the Exchange 
Act) or a director of a company, corporation or similar entity, such 
company, corporation or entity, as applicable; and (G) in the case 
of a person that is a general partner, managing member or manager of 
a partnership or limited liability company, such partnership or 
limited liability company, as applicable. Under this definition, 
Related Persons include Affiliates and thus extends the 
Concentration Limitation imposed by proposed Rule 6.12 to a broader 
group of persons.
    \38\ Rule 2.1(a)(1) of the Operating Agreement defines 
``Affiliate'' as, with respect to any person, any other person that 
directly, or indirectly through one or more intermediaries, 
controls, is controlled by, or is under common control with, such 
person. As used in this definition, ``control'' means the 
possession, directly or indirectly, of the power to direct or cause 
the direction of management and policies of a person, whether 
through the ownership of voting securities, by contract or otherwise 
with respect to such person.
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    The proposal also amends Operating Agreement Section 9.15(a)(9) to 
clarify that with respect to a sale of material assets or ownership 
interests that requires approval pursuant to Section 9.15, ``material 
assets or ownership interests'' include subsidiaries of CBSX. In 
addition, the proposed rule change adds Operating Agreement Section 
15.19 to the Operating Agreement, which obligates CBSX, when voting as 
NSX's sole shareholder in an election of the NSX board of directors, to 
vote in favor of ETP Holder Directors (as defined in the NSX By-Laws) 
that were nominated in accordance with the procedures set forth in 
NSX's Certificate of Incorporation and By-Laws.
ii. Self-Regulatory Function of NSX
    The proposed rule change adds various provisions designed to 
protect the independence of the self-regulatory

[[Page 75591]]

function of NSX and to clarify NSX's jurisdiction with respect to CBSX, 
but only to the extent related to CBSX's control of NSX.\39\ For 
example, the proposed rule change adds Operating Agreement Section 
5.7(b), which, among other things:
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    \39\ See also, infra, footnote 45.
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     For so long as CBSX controls NSX, only to the extent 
related to the activities of NSX, requires CBSX Owners, board of 
directors, officers and employees to give due regard to the 
preservation of the independence of the self-regulatory function of NSX 
and to its obligations under the Act;
     Prohibits these persons from taking any actions that would 
interfere with the effectuation of any decisions by the NSX board of 
directors relating to NSX's regulatory functions, including 
disciplinary matters, or with NSX's ability to carry out its 
responsibilities under the Act; and
     Requires CBSX to comply with Federal securities laws and 
the rules and regulations thereunder, and requires CBSX and its 
officers, directors, employees and agents to cooperate with the 
Commission and NSX pursuant to and to the extent of their regulatory 
authority.
    In addition, the proposed rule change amends Operating Agreement 
Section 6.15 to clarify possession of CBSX's and its Owners books and 
records by the Facility and NSX in connection with their oversight 
pursuant to the Act. The proposed rule change amends Operating 
Agreement Section 6.15(a): \40\
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    \40\ Section 6.15(a) of the Operating Agreement currently 
provides: ``The Owners acknowledge that to the extent they are 
related to [CBSX's] activities, the books, records, premises, 
officers, directors, agents, and employees of the Owners shall be 
deemed to be the books, records, premises, officers, directors, 
agents, and employees of CBOE for the purpose of and subject to 
oversight pursuant to the Exchange Act.''
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     To clarify that the Owners acknowledge that the books, 
records, premises, officers, directors, agents, and employees of the 
Owners will be deemed to be the books, records, premises, officers, 
directors, agents, and employees of CBOE for the purpose of and subject 
to oversight pursuant to the Act, but only to the extent they are 
related to the Facility; and
     To add the provision that the Owners acknowledge that the 
books, records, premises, officers, directors, agents, and employees of 
the Owners will be deemed to be the books, records, premises, officers, 
directors, agents, and employees of NSX for the purpose of and subject 
to oversight pursuant to the Act, but only to the extent they are 
related to the activities of NSX.
    Similarly, the proposed rule change amends Operating Agreement 
Section 6.15(b): \41\
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    \41\ Section 6.15(b) of the Operating Agreement currently 
provides: ``The books, records, premises, officers, directors, 
agents, and employees of [CBSX] shall be deemed to be the books, 
records, premises, officers, directors, agents, and employees of 
CBOE for the purpose of and subject to oversight pursuant to the 
Exchange Act.''
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     To clarify that the books, records, premises, officers, 
directors, agents, and employees of CBSX will be deemed to be the 
books, records, premises, officers, directors, agents, and employees of 
CBSX for the purpose of and subject to oversight pursuant to the Act, 
but only to the extent related to the Facility; and
     To add the provision that the books, records, premises, 
officers, directors, agents, and employees of CBSX will be deemed to be 
the books, records, premises, officers, directors, agents, and 
employees of NSX for the purpose of and subject to oversight pursuant 
to the Act, but only to the extent related to the activities of 
NSX.\42\
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    \42\ CBSX's complete records and books of account must be 
subject at all times to inspection and examination by CBOE (to the 
extent related to the Facility), NSX (to the extent related to 
CBSX's control of NSX), and the Commission at no additional charge 
to CBOE, NSX and the Commission, as applicable. See proposed Section 
13.2 of the Operating Agreement.
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    The proposal also amends Operating Agreement Section 6.15(c) to 
provide that CBSX and the Owners and their respective officers, 
directors, agents, and employees,\43\ irrevocably submit to the 
jurisdiction of the U.S. Federal courts, the Commission, CBOE and NSX 
for the purposes of any suit, action, or proceeding pursuant to U.S. 
Federal securities laws or the rules or regulations thereunder, 
commenced or initiated by the Commission arising out of, or relating 
to, the Facility or the Company's control of NSX, as applicable.
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    \43\ Proposed Operating Agreement Section 6.15(c) (consent to 
jurisdiction) and (d) (consent in writing to applicability) also 
extend the requirements of these provisions to all agents and 
employees of the Company and its Owners, rather than only agents and 
employees whose principal place of business and residence is outside 
of the United States.
---------------------------------------------------------------------------

    In addition, the proposed rule change amends Operating Agreement 
Sections 9.15(c) and 9.16 to provide that CBSX directors agree to 
comply with the Federal securities laws and the rules and regulations 
thereunder, and to cooperate with the Commission, CBOE, and NSX 
pursuant to their regulatory authority, as applicable, and the 
provisions of the Operating Agreement. The proposal also amends 
Operating Agreement Section 9.15(c) to provide that CBSX directors will 
take into consideration whether any actions taken or proposed to be 
taken as a director for or on behalf of CBSX, or any failure or refusal 
to act, would constitute interference with CBOE's or NSX's regulatory 
functions and responsibilities, as applicable, in violation of the 
Operating Agreement or the Act.\44\
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    \44\ Interference with respect to the Facility will be 
determined by the CBSX board designees of CBOE. See proposed Section 
9.15(c) of the Operating Agreement.
---------------------------------------------------------------------------

    Additionally, the proposal amends Operating Agreement Section 
14.1(a) to provide that, for so long as CBSX controls NSX, before any 
amendment, alteration or repeal of any provision of the Operating 
Agreement, to the extent related to CBSX's control of NSX, will be 
effective, such amendment, alteration or repeal must be submitted to 
the NSX board of directors, and if CBOE and the NSX board of directors 
determine that such amendment, alteration or repeal must be filed with 
or filed with and approved by the Commission, then such amendment, 
alteration or repeal will not become effective until filed with or 
filed with and approved by the Commission, as the case may be. The 
proposal also adds a 10-day notice provision for any amendment, 
alteration, or repeal of the Operating Agreement made pursuant to 
Operating Agreement Section 14.1(a) to provide CBOE and NSX with 
sufficient opportunity to review any potential regulatory impacts of 
such amendment, alteration, or repeal before it becomes effective.
    The proposal also amends Operating Agreement Section 15.2 to 
provide that nothing in the Operating Agreement will be interpreted to 
limit or impede the rights of the Commission, CBOE, or NSX to access 
and examine any Confidential Information (as defined in the Operating 
Agreement) pursuant to the U.S. Federal securities laws and the rules 
thereunder, or to limit or impede the ability of an Owner or an 
officer, director, agent or employee of an Owner to disclose any 
Confidential Information to the Commission, CBOE, or NSX. Proposed 
Operating Agreement Section 15.2 also provides that the obligation of 
Owners not to disclose Confidential Information described in that 
section does not apply to CBOE's or NSX's communications with the 
Commission with respect to the conduct of the Facility's business or 
NSX's business, respectively. In addition, the proposal amends the 
representation being made by Owners in Operating Agreement Section 
15.17(a) with respect to the validity and enforceability of the 
Operating Agreement by excepting the requirement, as applicable to the 
Facility or NSX (with respect to CBSX's

[[Page 75592]]

control of NSX), that the portions of the Operating Agreement that 
constitute rules of a facility of an exchange or rules of a self-
regulatory organization, as applicable, be filed for public comment and 
approval by the Commission from that representation.\45\
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    \45\ The rule change submitted by CBOE in connection with its 
partial ownership interest in CBSX adds a new rule, CBOE Rule 2.50, 
to further preserve the self-regulatory function of NSX. For 
example, among other things, CBOE Rule 2.50 proposes a policy that 
CBOE, as a partial owner of CBSX, will not take any action related 
to NSX's activities that would interfere with NSX's efforts to carry 
out its self-regulatory obligations under the Act and the rules and 
regulations thereunder.
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iii. Facility of CBOE
    The proposed rule change amends various provisions to clarify that 
the part of CBSX that constitutes the Facility is a facility of CBOE 
under the Act, while the part of CBSX that relates to its control of 
NSX will not be a facility of CBOE. For example, the proposal amends 
Operating Agreement Section 1.7 to clarify that the Facility (and not 
CBSX to the extent it will act as a holding company for NSX) is a 
facility of CBOE under the Act, and therefore the Facility will be 
subject to self-regulation by CBOE and oversight by the Commission. The 
proposal also amends Operating Agreement Section 1.8 to clarify that 
only the Facility is a facility of CBOE.\46\
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    \46\ See also proposed Sections 6.2(e), 6.15(c) and (d), 9.2(d), 
9.15(a)(14) and 14.1(a) for additional such clarifications.
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iv. Additional Changes
    Finally, the proposed rule change makes several non-substantive 
technical and conforming changes throughout the Operating Agreement, 
including: Updating the name and date of the Operating Agreement; 
updating the current Owners and their current percentage interests and 
CBSX shares owned; \47\ replacing references to CBOE members with CBOE 
trading permit holders; \48\ updating the table of contents and section 
references; and adding new defined terms and renumbering the defined 
terms as necessary.\49\
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    \47\ See proposed Section 3.2(d) of and signature page and 
Exhibit A to the Operating Agreement.
    \48\ See proposed Sections 6.12(c) and (e) and 8.10 of the 
Operating Agreement.
    \49\ See proposed Section 2.1 of the Operating Agreement. 
Certain other governance amendments not directly related to the 
Transaction are also proposed to the Operating Agreement, as further 
described in the CBOE rule filing filed in connection herewith.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6 of the Act,\50\ and the rules and regulations thereunder and, 
in particular, the requirements of Section 6(b) of the Act.\51\ 
Specifically, the Exchange believes the amendments to the CBSX 
Operating Agreement further the objective of Section 6(b)(1) of the Act 
because they preserve the independence of each of CBOE's and NSX's 
self-regulatory functions and allow each SRO to fulfill its self-
regulatory duties. In particular, the addition of Operating Agreement 
Section 5.7(b) described above is intended to preserve the independence 
of NSX's self-regulatory function and ensure that NSX is able to obtain 
any information it needs from the specified parties to detect and deter 
any fraudulent and manipulative acts in its marketplace and carry out 
its regulatory responsibilities under the Act.\52\ Similarly, the 
amendments to Operating Agreement Section 6.15(a) and (b) as described 
above (that clarify that CBSX's books and records with respect to the 
Facility and NSX's activities will be subject to the necessary 
oversight of the Act) are consistent with Section 6(b)(5) of the Act in 
that they provide the Commission, CBOE and NSX with access to necessary 
information that will allow CBOE and NSX to efficiently and effectively 
enforce compliance with the Act and their respective rules, as well as 
allow the Commission to provide proper oversight, which will ultimately 
promote just and equitable principles of trade and protect investors. 
The amendment to Operating Agreement Section 14.1(a) as described above 
is intended to make sure that NSX receives notice of any amendment to 
the Operating Agreement so that NSX can make any filings with the 
Commission necessary for NSX to fulfill its regulatory duties under the 
Act.
---------------------------------------------------------------------------

    \50\ 15 U.S.C. 78f.
    \51\ 15 U.S.C. 78f(b).
    \52\ See also, supra, footnote 45.
---------------------------------------------------------------------------

    The Exchange also believes that this proposed rule change furthers 
the objectives of Section 6(b)(5) \53\ of the Act because the 
amendments summarized in this filing will enable that CBSX and NSX 
continue to have governance and regulatory structures designed to 
promote just and equitable principles of trade, to remove impediments, 
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 instant rule filing enables NSX to continue to have the 
authority and ability to effectively fulfill its self-regulatory duties 
pursuant to the Act and the rules promulgated thereunder. The proposed 
amendments to the Exchange's charter documents and the CBSX Operating 
Agreement are further intended to enhance the ownership and voting 
limitations applicable to SROs in order to preclude undue influence 
over or interference with SRO regulatory functions and fulfillment of 
regulatory duties under the Act. The proposed rule changes are intended 
to protect and maintain the integrity of the self-regulatory functions 
of NSX, and to allow it to carry out its regulatory responsibilities 
under the Act while allowing CBOE to maintain its regulatory 
jurisdiction and authority over the Facility.
---------------------------------------------------------------------------

    \53\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange represents that it remains committed to its role as a 
national securities exchange and does not believe that the proposed 
change of ownership will undermine its responsibilities for regulating 
its marketplace. The proposed rule change provides transparency and 
certainty, and promotes efficiency, with respect to the governance and 
corporate structure of the Exchange and the status of CBSX as both a 
facility of CBOE and the holding company of NSX. In so doing, the 
proposed rule change promotes the maintenance of a fair and orderly 
market, the protection of investors and the protection of the public 
interest.
    Moreover, the Exchange is not proposing any significant changes to 
its existing operational and trading structure in connection with the 
change in ownership. Instead, NSX represents that the proposed rule 
change consists of changes to the NSX Certificate of Incorporation and 
By-Laws, and to the CBSX Operating Agreement, to allow for ownership of 
NSX by CBSX, to enhance the governance structure of NSX, and to enhance 
the ability of NSX and CBOE to fulfill their regulatory functions under 
the Act. With respect to the proposed amendments to the NSX charter 
documents, the proposed edits are generally consistent with parallel 
provisions of other more recently approved SRO governance documents. 
The Exchange believes that the proposed rule change allows CBOE to 
maintain its regulatory jurisdiction and authority over the Facility 
and NSX to remain an independent self-regulatory organization and is 
consistent with the Act, the rules promulgated thereunder and the 
principles articulated by the Commission.\54\
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    \54\ See Securities Exchange Act Release No. 50699 (November 18, 
2004), 69 FR 71126 (December 8, 2004) (File No. S7-39-04).

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[[Page 75593]]

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

    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 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 the 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 email to rule-comments@sec.gov. Please include 
File Number SR-NSX-2011-14 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-NSX-2011-14. This file 
number should be included on the subject line if email 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 will also be available for 
inspection and copying at the Exchange's principal office. 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-NSX-2011-14 and should be 
submitted on or before December 23, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\55\
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    \55\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-30997 Filed 12-1-11; 8:45 am]
BILLING CODE 8011-01-P