Document ID: SEC-2012-0524-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BATS Exchange, Inc.
Posted Date: 2012-04-04T04:00Z

[Federal Register Volume 77, Number 65 (Wednesday, April 4, 2012)]
[Notices]
[Pages 20451-20452]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-8060]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66680; File Nos. SR-BATS-2011-038; SR-BYX-2011-025; SR-
BX-2011-068; SR-CBOE-2011-087; SR-C2-2011-024; SR-CHX-2011-30; SR-EDGA-
2011-31; SR-EDGX-2011-30; SR-FINRA-2011-054; SR-ISE-2011-61; SR-NASDAQ-
2011-131; SR-NSX-2011-11; SR-NYSE-2011-48; SR-NYSEAmex-2011-73; SR-
NYSEArca-2011-68; SR-Phlx-2011-129]

Self-Regulatory Organizations; BATS Exchange, Inc.; BATS Y-
Exchange, Inc.; NASDAQ OMX BX, Inc.; Chicago Board Options Exchange, 
Incorporated; C2 Options Exchange, Incorporated; Chicago Stock 
Exchange, Inc.; EDGA Exchange, Inc.; EDGX Exchange, Inc.; Financial 
Industry Regulatory Authority, Inc.; International Securities Exchange 
LLC; The NASDAQ Stock Market LLC; New York Stock Exchange LLC; NYSE 
Amex LLC; NYSE Arca, Inc.; National Stock Exchange, Inc.; NASDAX OMX 
PHLX LLC; Notice of Designation of Longer Period for Commission Action 
on Proceedings To Determine Whether To Disapprove Proposed Rule Changes 
Relating to Trading Halts Due to Extraordinary Market Volatility

March 29, 2012.
    On September 27, 2011, each of BATS Exchange, Inc. (``BATS''), BATS 
Y-Exchange, Inc. (``BYX''), NASDAQ OMX BX, Inc. (``BX''), Chicago Board 
Options Exchange, Incorporated (``CBOE''), C2 Options Exchange, 
Incorporated (``C2''), Chicago Stock Exchange, Inc. (``CHX''), EDGA 
Exchange, Inc. (``EDGA''), EDGX Exchange, Inc. (``EDGX''), Financial 
Industry Regulatory Authority, Inc. (``FINRA''), International 
Securities Exchange LLC (``ISE''), The NASDAQ Stock Market LLC 
(``Nasdaq''), National Stock Exchange, Inc. (``NSX''), New York Stock 
Exchange LLC (``NYSE''), NYSE Amex LLC (``NYSE Amex''), NYSE Arca, Inc. 
(``NYSE Arca''), and NASDAQ OMX PHLX LLC (``Phlx'') filed with the 
Securities and Exchange Commission (``Commission''), pursuant to 
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ 
and Rule 19b-4 thereunder,\2\ proposed rule changes (the ``SRO 
Proposals'') to amend certain of their respective rules relating to 
trading halts due to extraordinary market volatility. The SRO Proposals 
were published for comment in the Federal Register on October 4, 
2011.\3\ The Commission received seven comment letters on the SRO 
Proposals.\4\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release Nos. 65437 (September 
28, 2011), 76 FR 61466; 65428 (September 28, 2011), 76 FR 61435; 
65429 (September 28, 2011), 76 FR 61432; 65433 (September 28, 2011), 
76 FR 61453; 65438 (September 28, 2011), 76 FR 61447; 65426 
(September 28, 2011), 76 FR 61460; 65431 (September 28, 2011), 76 FR 
61425; 65440 (September 28, 2011), 76 FR 61444; 65430 (September 28, 
2011), 76 FR 61429; 65425 (September 28, 2011), 76 FR 61438; 65435 
(September 28, 2011), 76 FR 61416 ; 65436 (September 28, 2011), 76 
FR 61450; 65427 (September 28, 2011), 76 FR 61457; 65432 (September 
28, 2011), 76 FR 61422; 65439 (September 28, 2011), 76 FR 61463; 
65434 (September 28, 2011), 76 FR 61419 (collectively, the 
``Notices'').
    \4\ See Letter to Elizabeth M. Murphy, Secretary, Commission, 
from Ann L. Vlcek, Managing Director and Associate General Counsel, 
the Securities Industry and Financial Markets Association, dated 
October 27, 2011; Letter to Commission, from James J. Angel, Ph.D., 
CFA, Associate Professor of Finance, Georgetown University, 
McDonough School of Business, dated October 25, 2011; Letter to 
Elizabeth M. Murphy, Secretary, Commission, from Craig S. Donohue, 
CME Group, Inc., dated October 25, 2011; Letter to Elizabeth M. 
Murphy, Secretary, Commission, from Commissioner Bart Chilton, 
Commodity Futures Trading Commission, dated October 25, 2011; Letter 
to Elizabeth M. Murphy, Secretary, Commission, from Richard H. 
Baker, President and CEO, Managed Funds Association, dated October 
25, 2011; Letter from Suzanne H. Shatto, dated October 20, 2011; 
Letter from Mark Roszak, dated October 4, 2011.
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    On November 17, 2011, the Commission extended the time period in 
which to either approve the SRO Proposals, disapprove the SRO 
Proposals, or to institute proceedings to determine whether to 
disapprove the SRO Proposals, to December 30, 2011.\5\ On December 28, 
2011, the Commission instituted proceedings to determine whether to 
approve or disapprove the SRO Proposals.\6\ The Commission thereafter 
received an additional three comment letters on the SRO Proposals.\7\
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    \5\ See Securities Exchange Act Release No. 65770 (November 17, 
2011), 76 FR 72492 (November 23, 2011).
    \6\ See Securities Exchange Act Release No. 66065 (December 28, 
2011), 77 FR 316 (January 4, 2012) (``Order Instituting 
Proceedings'').
    \7\ See letters to Elizabeth Murphy, Secretary, Commission, from 
Timothy Quast, Managing Director, ModernIR, dated January 20, 2012; 
Craig S. Donohue, Chief Executive Officer, CME Group, Inc., dated 
January 25, 2012, and Ann L. Vlcek, Managing Director and Associate 
General Counsel, the Securities Industry and Financial Markets 
Association, dated February 7, 2012.
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    Section 19(b)(2) of the Act \8\ provides that, after initiating 
disapproval proceedings, the Commission shall issue an order approving 
or disapproving the

[[Page 20452]]

SRO Proposals not later than 180 days after the date of publication of 
notice of the filing of the proposed rule change. The Commission may 
extend the period for issuing an order approving or disapproving the 
SRO Proposals, however, by not more than 60 days if the Commission 
determines that a longer period is appropriate and publishes the 
reasons for such determination. The SRO Proposals were published for 
notice and comment in the Federal Register on October 4, 2011. April 1, 
2012 is 180 days from that date, and May 31, 2012 is an additional 60 
days from that date.
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    \8\ 15 U.S.C. 78s(b)(2).
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    The Commission finds it appropriate to designate a longer period 
within which to issue an order approving or disapproving the SRO 
Proposals so that it has sufficient time to consider the SRO Proposals 
and the issues raised in the comment letters that have been submitted 
in connection with the SRO Proposals. Specifically, as the Commission 
noted in the Order Instituting Proceedings, the SRO Proposals raise 
issues including the potential interaction between the mechanisms for 
moderating volatility in individual securities and those for moderating 
volatility market-wide. In addition, the Commission is also considering 
commenters' concerns with the details of the SRO Proposals, including 
whether only the Level III circuit breaker should halt trading after 
3:25 p.m. and whether the market-wide circuit breakers should be 
triggered if a significant number of volatility moderators for 
individual securities are triggered.\9\
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    \9\ See Order Instituting Proceedings, supra note 6 at 318, 319.
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    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\10\ designates May 31, 2012, as the date by which the Commission 
shall either approve or disapprove the SRO Proposals.
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    \10\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(57).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-8060 Filed 4-3-12; 8:45 am]
BILLING CODE 8011-01-P