Document ID: SEC-2010-0205-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX BX, Inc.
Posted Date: 2010-02-08T05:00Z

[Federal Register: February 8, 2010 (Volume 75, Number 25)]
[Notices]               
[Page 6232-6233]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08fe10-94]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61452; File No. SR-BX-2010-010]

 
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Describing 
the BX Ouch BBO Feed

February 1, 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 January 22, 2010, NASDAQ OMX BX, Inc. (``BX'' or 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 BX. BX has designated the proposed rule change as 
constituting a rule change under Rule 19b-4(f)(6) under the Act,\3\ 
which renders the proposal effective upon filing with the Commission. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    BX submits this proposal regarding the availability of the BX Ouch 
BBO Feed, a data feed that represents BX's internal view of the best 
bid and offer among all market centers other than BX (the ``BBO''), 
which is provided at no cost.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, BX 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. BX 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
    BX submits this proposal regarding the availability of the BX Ouch 
BBO Feed, a data feed that represents BX's internal view of the best 
bid and offer among all market centers other than BX. The BX Ouch BBO 
Feed is available to all BX members equally at no charge, and offers 
all firms transparent, real-time data concerning BX's internal view of 
the BBO. This data feed reflects BX's view of the BBO, at any given 
time, based on orders executed on BX and updated quote information from 
the SIPs. BX makes the BX Ouch BBO Feed available to all market 
participants via subscription through an established connection to BX 
through extranets, direct connection, and Internet-based virtual 
private networks.
    The BX Ouch BBO Feed contains the following data elements: symbol, 
bid price, and ask price.\4\ Unlike the BX TotalView feed, the Ouch BBO 
feed does not contain information about individual orders, either those 
residing within the BX system or those executed or routed by BX. Unlike 
the SIP feeds containing the National Best Bid and Offer (``NBBO''), 
the Ouch BBO Feed does not identify either the market center quoting 
the BBO or the size of the BBO quotes. It merely contains the symbol 
and bid and offer prices.
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    \4\ BX also provides a time stamp and message type field for 
reference.
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    By making the BX Ouch BBO Feed data available, BX enhances market 
transparency and fosters competition among orders and markets. Member 
firms may use the BX Ouch BBO Feed to more accurately price their 
orders based on BX's view of what the BBO is at any point in time, 
which may not be reflected in the official NBBO due to latencies 
inherent in the NBBO's dissemination. As a consequence, member firms 
may more accurately price their orders on BX, thus avoiding price 
adjustments by BX based on a quote that is no longer available. 
Additionally, members can price orders more aggressively to narrow the 
NBBO and provide better reference prices for investors.
    At this time, BX does not have plans to charge an additional fee 
associated with the receipt of the BX Ouch BBO Feed. Should BX 
determine to charge fees associated with the BX Ouch BBO Feed, BX will 
submit a proposed rule change to the Commission in order to implement 
those fees.
2. Statutory Basis
    BX believes that the proposed rule change is consistent with the 
provisions of Section 6 of the Act,\5\ in general and with Sections 
6(b)(5) of the Act,\6\ in particular in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, 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 of a 
free and open market and a national market system, and, in general, to 
protect investors and the public interest. BX believes that this 
proposal is in keeping with those principles by promoting increased 
transparency through the dissemination of BX Ouch BBO Feed data and by 
clarifying its availability.
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    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    BX does not believe that the proposed rule change will result in 
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 either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change 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, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-
4(f)(6) thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give 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. 
BX has satisfied this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \9\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6) \10\

[[Page 6233]]

permits the Commission to designate a shorter time if such action is 
consistent with the protection of investors and the public interest. BX 
requests that the Commission waive the 30-day operative delay because 
it would permit BX to immediately provide the information regarding the 
BX Ouch BBO Feed access requirements to market participants. The 
Commission believes that waiving the 30-day operative delay \11\ is 
consistent with the protection of investors and the public interest and 
designates the proposal operative upon filing.
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    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate 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 rule-comments@sec.gov. Please include 
File Number SR-BX-2010-010 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-2010-010. 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 inspection and 
copying 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 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 publicly available. All 
submissions should refer to File Number SR-BX-2010-010 and should be 
submitted on or before March 1, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-2581 Filed 2-5-10; 8:45 am]
BILLING CODE 8011-01-P