Document ID: SEC-2013-0267-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Stock Exchange, Inc.
Posted Date: 2013-02-07T05:00Z

[Federal Register Volume 78, Number 26 (Thursday, February 7, 2013)]
[Notices]
[Pages 9094-9098]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-02708]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68807; File No. SR-NSX-2013-02]

Self-Regulatory Organizations; National Stock Exchange, Inc.; 
Notice of Filing of a Proposed Rule Change To Adopt a New Order Type 
Called the ``Auto-Ex Only'' Order

February 1, 2013.
    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 23, 2013, National Stock Exchange, Inc. (``NSX'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange. The 
Commission is publishing this notice to solicit comments on the

[[Page 9095]]

proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is proposing to: (1) add new definitions to clarify 
its Automatic Execution Mode of order interaction (``Auto-Ex''); and 
(2) implement a new order type called ``Auto-Ex Only,'' which would 
only interact with orders entered though Auto-Ex mode.
    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, and at the Commission's Public Reference Room.

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
    The Exchange is proposing to: (1) add new definitions to clarify 
Auto-Ex mode; and (2) implement a new order type called the ``Auto-Ex 
Only'' order under NSX Rule 11.11(c)(13), which would allow a User \3\ 
to submit an order that will only interact with orders entered through 
NSX's Auto-Ex mode.
---------------------------------------------------------------------------

    \3\ A ``User'' is any ETP Holder or Sponsored Participant who is 
authorized to obtain access to the System pursuant to Rule 11.9. See 
Exchange Rule 1.5(U).
---------------------------------------------------------------------------

Auto-Ex Only Order Type

    On August 31, 2006, the Securities and Exchange Commission (the 
``SEC'' or ``Commission'') approved amendments to NSX trading rules to 
provide for a price-time priority market with two modes of order 
interaction: (1) Auto-Ex and (2) Order Delivery.\4\ Every User of the 
Exchange's trading system, NSX BLADE[supreg] (``Blade''), is eligible 
to use the Auto-Ex mode, under which Blade matches and executes like-
priced orders (including against orders entered via Order Delivery 
mode) that are resting on the NSX Book \5\ in accordance with the 
process described in Exchange Rule 11.13(b)(1). Unlike Auto-Ex, a User 
must meet certain eligibility standards prior to submitting displayed 
and undisplayed orders using Order Delivery Mode (``Order Delivery 
Participant'').\6\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 54391 (August 31, 
2006), 71 FR 52836 (September 7, 2006) (SR-NSX-2006-08). The 
Exchange's two modes of order interaction are described in NSX Rule 
11.13(b).
    \5\ Exchange Rule 1.5 defines ``NSX Book'' as ``the System's 
electronic fie [sic] of orders.''
    \6\ See NSX Rule 11.13(b)(2) and the Interpretations and 
Policies thereto. Order Delivery Participants typically submit their 
orders as ``Post Only'' in order to preclude acting as a liquidity 
taker (in Auto-Ex) and to prevent the Exchange from routing the 
order away.
---------------------------------------------------------------------------

    An incoming marketable order would be executed immediately against 
contra-side orders entered via Auto-Ex mode resting in the NSX Book. 
However, that same incoming marketable order may experience a delay if 
matched against an order resting on the NSX Book that was entered by an 
Order Delivery Participant via Order Delivery mode. The potential 
delays are due to [sic] Exchange sending an Order Delivery Notification 
\7\ to the Order Delivery Participant that posted the order requiring 
them to execute a potential match. The Order Delivery Participant must 
respond within defined time frames set by the Exchange with a complete 
fill, a partial fill, or instruction to cancel in full.\8\
---------------------------------------------------------------------------

    \7\ An Order Delivery Notification refers to a message sent by 
the Exchange to the Order Delivery Participant communicating the 
details of the full or partial quantity of an inbound contra-side 
order that potentially may be matched within the System for 
execution against an order entered via Order Delivery mode.
    \8\ See NSX Rule 11.13(b)(2) and the Interpretations and 
Policies thereto.
---------------------------------------------------------------------------

    To avoid such delays, the Exchange proposes to implement the Auto-
Ex Only order, a new order type that would allow Users to submit an 
immediate-or-cancel (``IOC'') limit or market order with ``Auto-Ex 
Only'' handling instructions. Auto-Ex Only orders would be executed 
solely against orders with price-time priority entered via Auto-Ex mode 
and posted to the NSX Book. An Auto-Ex Only order would not interact 
with any orders resting on the NSX Book entered via Order Delivery Mode 
nor would it be routed away to another trading center. Like an IOC 
order,\9\ an unexecuted portion of an Auto-Ex Only order would be 
cancelled if not fully matched for execution against Auto-Ex orders 
with price/time priority on the NSX Book.
---------------------------------------------------------------------------

    \9\ Under NSX Rule 11.11(b)(1), an IOC order is a limit order 
that is to be executed in whole or in part as soon as such order is 
received, and the portion not so executed is to be treated as 
cancelled. An order designated as IOC is not eligible to be routed 
away pursuant to NSX Rule 11.15.
---------------------------------------------------------------------------

    The Exchange notes that its price/time priority and order execution 
rules \10\ would limit an Auto-Ex Only Order's ability to interact with 
certain undisplayed orders. In addition, orders entered via Order 
Delivery mode with price time priority may also inhibit an Auto-Ex Only 
order's ability to interact with undisplayed liquidity. Specifically, 
an Auto-Ex Only order would first execute against displayed orders on 
the NSX Book. An Auto-Ex Only order could be precluded from interacting 
with an undisplayed order (i.e., a Zero Display Reserve Order \11\) 
entered via Auto-Ex mode if the undisplayed order shares a price point 
with an order entered via Order Delivery mode.\12\ Similarly, an order 
entered via Order Delivery mode could also prevent an incoming Auto-Ex 
Only order from interacting with the undisplayed portion of a Reserve 
Order \13\ under circumstances in which the order entered via Order 
Delivery mode has price/time priority. Like displayed orders, the 
displayed portion of a Reserve Order will interact against incoming 
Auto-Ex Only orders only to the extent that there are no orders entered 
via Order Delivery mode in the NSX Book with price/time priority.
---------------------------------------------------------------------------

    \10\ See NSX Rule 11.14(a) and, with respect to Reserve Orders 
(including Zero Display Reserve Orders), NSX Rule 11.14(a)(4).
    \11\ See NSX Rule 11.11(c)(2)(A). A User may enter a Reserve 
Order with zero display quantity, in which case the Reserve Order 
will be known as a ``Zero Display Reserve Order.''
    \12\ An Auto-Ex Only order would interact with an undisplayed 
order where an order entered via Order Delivery mode is also 
undisplayed and has priority behind a displayed order not entered 
via Order Delivery mode. See Example 4 infra.
    \13\ Under Exchange Rule 11.11(c)(2), a Reserve Order is defined 
as a ``limit order with a portion of the quantity displayed 
(``displayed quantity'') and with a reserve portion of the quantity 
(``reserve quantity'') that is not displayed.''
---------------------------------------------------------------------------

    Lastly, the Exchange notes that Users may not rely on the Auto-Ex 
Only order for compliance with Rule 611 of Regulation NMS because the 
Auto-Ex Only order will not interact with orders entered via Order 
Delivery mode that may be deemed ``protected quotations'' on the 
Exchange.\14\
---------------------------------------------------------------------------

    \14\ Rule 611 of Regulation NMS, among other things, requires a 
trading center to establish, maintain, and enforce written policies 
and procedures reasonably designed to prevent ``trade-throughs''--
the execution of trades at prices inferior to protected quotations 
displayed by other trading centers. To be protected, a quotation 
must be immediately and automatically accessible. 17 CFR 242.611. An 
Auto-Ex-Only order cannot be used as an Inter-market Sweep Order.
---------------------------------------------------------------------------

    The following examples describe the functionality of the proposed 
Auto-Ex Only order. Each example lists orders

[[Page 9096]]

---------------------------------------------------------------------------
resting in the NSX Book in price/time priority.

    Example One: 
National Best Bid and Offer (``NBBO''): 134.50-134.51

    Bids on the NSX Book:

134.50 x 400 (Order Delivery)
134.50 x 200 (Auto-Ex)

    Incoming Order:
Limit Order to sell 400 at 134.50

    Result: Currently, the Exchange would match the incoming limit 
order to sell 400 shares at 134.50 against the order entered via Order 
Delivery mode and send an Order Delivery Notification to the Order 
Delivery Participant that posted the order. A potential delay may occur 
while awaiting the Order Delivery Participant's response with a 
complete fill, a partial fill, or instruction to cancel in full.
    If submitted as a proposed Auto-Ex Only order, the entire order 
will be cancelled (like an IOC order) because the order is not eligible 
to execute against the order entered via Order Delivery mode with 
price/time priority ahead of the Auto-Ex order resting on the NSX Book. 
A User sending an Auto-Ex Only order would receive an immediate 
cancellation and avoid the delay inherent in otherwise interacting with 
an order entered via Order Delivery.
    Example Two: 
NBBO: 134.50-134.51

    Bids on the Exchange Book:

134.50 x 400 (Auto-Ex mode)
134.50 x 200 (Order Delivery mode)

    Incoming Order:

Limit Order to sell 400 at 134.50

    Result: Currently, an incoming limit order to sell 400 shares at 
134.50 will be fully executed at 134.50 against the displayed Auto-Ex 
order of 400 shares that is resting at the top of the NSX Book. The 
system would operate the same under these circumstances, regardless of 
which order type was selected, because the only resting order that 
could interact with the incoming order was entered via Auto-Ex mode.
    Example Three: 
NBBO: 134.50-134.51

    Bids on the Exchange Book:

134.50 x 400 (Auto-Ex mode)
134.50 x 200 (Order Delivery mode)

    Incoming Order:

Limit Order to sell 600 at 134.50

    Result: Currently, an incoming limit order to sell 600 shares will 
execute at 134.50 against the 400 share Auto-Ex order resting at the 
top of the NSX Book. The Exchange would then match the remaining 200 
shares against the order entered via Order Delivery mode and send an 
Order Delivery Notification to the Order Delivery Participant that 
posted the order. A potential delay may occur while awaiting the Order 
Delivery Participant's response with a complete fill, a partial fill, 
or instruction to cancel in full.
    If submitted as a proposed Auto-Ex Only order, the incoming limit 
order to sell 600 shares will receive a partial fill of 400 shares at 
134.50 against the order entered via Auto-Ex mode at the top of the NSX 
Book, and the remaining balance will be cancelled because, as per its 
instructions, it could not interact with the resting order entered via 
Order Delivery mode with second-in-time priority.
    Example Four: 
NBBO: 134.50-134.51

    Bids on the Exchange Book:

Midpoint Peg x 500 (Auto-Ex mode/Dark)
134.50 x 400 (Order Delivery mode)
134.50 x 200 (Auto-Ex mode)
    Incoming Order:

Limit Order to sell 1000 at 134.50

    Result: Currently, an incoming limit order to sell 1000 shares 
priced at 134.50 would execute against the Midpoint Peg Dark Auto-Ex 
order of 500 shares at 134.505.
    The Exchange would then match the 400 shares at a price of 134.50 
against the order entered via Order Delivery mode and send an Order 
Delivery Notification to the Order Delivery Participant that posted the 
order. A potential delay may occur while awaiting the Order Delivery 
Participant's response with a complete fill, a partial fill, or 
instruction to cancel in full. The 100 shares at a price of 134.50 
would then execute against the 200 share order ender [sic] via Auto-Ex 
mode with third-in-time priority.
    If submitted as an Auto-Ex Only order, the incoming limit order to 
sell 1000 shares will receive a partial fill of 500 shares at 134.505 
against the Midpoint Peg Dark Auto-Ex order with first price priority 
on the NSX Book and the remaining balance of 500 shares will be 
canceled because, as per its instructions, it cannot interact with the 
order entered via Order Delivery mode that has next price/time 
priority. The Midpoint Peg Dark Auto-Ex order executes first because, 
even though it is a Dark order, it is an Auto-Ex order with first 
(price) priority.
    Example Five: 
NBBO: 134.51-134.52

    Bids on the Exchange Book:
134.50 x 400 (Auto-Ex mode)

134.50 x 200 (Order Delivery mode)
    Incoming Order:

Limit Order to sell 1000 at 134.50

    Result: Currently, an incoming limit order to sell 1000 shares at 
134.50 would be routed to the away market to be matched against the 
protected NBBO. If submitted as an Auto-Ex Only order, an incoming 
limit order to sell any amount, will be cancelled because it would 
otherwise trade through the NBBO in violation of Rule 611 of Regulation 
NMS \15\ and Auto-Ex Only orders, as per their instructions, are not to 
be routed away to another market center.
---------------------------------------------------------------------------

    \15\ 17 CFR 242.611.
---------------------------------------------------------------------------

    Example Six: 
NBBO: 134.50-134.51

    Bids on the Exchange Book:

134.50 x 400 (Auto-Ex mode)
134.50 x 800 (Auto-Ex mode)
134.50 x 600 (Auto-Ex mode)
134.50 x 200 (Order Delivery mode)
134.50 x 400 (Auto-Ex mode)
    Incoming Order:

Limit Order to sell 5000 shares at 134.50

    Result: Currently, an incoming limit order to sell 5000 shares at 
134.50 would execute 2200 shares in the NSX Book at 134.50. The 
Exchange would then match 200 shares at a price of 134.50 against the 
order entered via Order Delivery mode and send an Order Delivery 
Notification to the Order Delivery Participant that posted the order. A 
potential delay may occur while awaiting the Order Delivery 
Participant's response with a complete fill, a partial fill, or 
instruction to cancel in full. The remaining 2600 shares would route to 
an away market to be matched against the protected NBBO in compliance 
with Rule 611 of Regulation NMS.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 242.611.
---------------------------------------------------------------------------

    If submitted as an Auto-Ex Only order, an incoming limit order to 
sell 5000 shares at 134.50 will receive a partial fill for 1800 shares 
at 134.50 by being matched against the top three orders on NSX Book, 
each of which was entered via Auto-Ex mode. The remaining shares will 
be canceled because the order, as per its instructions, is not eligible 
for execution against the order entered via Order Delivery that is next 
in priority.
    Example Seven: 
NBBO: 134.50-134.52

    Bids on the NSX Book:

134.50 x 400 (Auto-Ex mode)
134.50 x 200 (Order Delivery mode)

    Incoming Order:

Market Order to sell 600 shares at 134.50

    Result: Currently, an incoming market order to sell 600 shares at 
134.50 would execute 400 shares against the order

[[Page 9097]]

entered via Auto-Ex mode resting in the NSX Book at 134.50. The 
Exchange would then match the remaining 200 shares at a price of 134.50 
against the order entered via Order Delivery mode and send an Order 
Delivery Notification to the Order Delivery Participant that posted the 
order. A potential delay may occur while awaiting the Order Delivery 
Participant's response with a complete fill, a partial fill, or 
instruction to cancel in full.
    If submitted as an Auto-Ex Only order, an incoming market order to 
sell 600 shares will execute only against the Auto-Ex order for 400 
shares at 134.50. The remaining unexecuted shares will cancelled 
because the order, as per its instructions, is not eligible for 
execution against the order entered via Order Delivery mode that is 
next in priority.
    Example Eight: 
NBBO: 134.50-134.51

    Bids on the Exchange Book:

134.50 x 100/500 (Auto-Ex mode/Reserve Order showing 100 displayed and 
500 undisplayed)
134.50 x 200 (Auto-Ex mode)
134.50 x 400 (Order Delivery mode)

    Incoming Order:

Limit Order to sell 1000 at 134.50

    Result: Currently, an incoming limit order to sell 1000 shares 
priced at 134.50 would execute 100 shares at 134.50 against the Reserve 
Order's displayed quantity; would execute 200 at 134.50 against the 
second-priority Auto-Ex order. The Exchange would then match 400 shares 
at a price of 134.50 against the order entered via Order Delivery mode 
and send an Order Delivery Notification to the Order Delivery 
Participant that posted the order. A potential delay may occur while 
awaiting the Order Delivery Participant's response with a complete 
fill, a partial fill, or instruction to cancel in full. On the next 
three passes through the NSX Book (and assuming a fill of 400 shares 
against the order entered via Order Delivery mode), the balance of the 
incoming order of 300 shares would be filled (in 100 lot increments on 
each pass/refresh) at 134.50 against the refreshed, displayed portion 
of the Reserve Order.
    If submitted as An Auto-Ex Only order, an incoming limit order to 
sell 1000 shares will receive a fill of 100 shares at 134.50 against 
the displayed portion of the Auto-Ex Reserve Order; a fill of 200 
shares at 134.50 against the next Auto-Ex order with second-in-time 
priority; and the remaining balance of 700 shares will cancelled 
because, as per its instructions, it cannot interact with the order 
entered via Order Delivery mode that has next price/time priority. The 
displayed portion only of the Auto-Ex Reserve Order executes first 
because it has first time priority, but the balance of the Reserve 
Order is not matched for execution because the remaining portions of 
the Reserve Order would refresh and become displayed with a time 
priority after the resting order entered via Order Delivery mode, the 
presence of which cancels the unfilled balance of the Auto-Ex Only 
order before it can be matched against the refreshed portions of the 
Reserve Order.

Rationale for Auto-Ex Only Order

    The proposed Auto-Ex Only order will benefit Users by allowing them 
to interact only with orders entered via Auto-Ex mode, thereby avoiding 
the delays associated with interacting with orders entered via Order 
Delivery mode. Currently, when an incoming Auto-Ex order is matched 
against an order entered via Order Delivery mode, the Exchange sends an 
Order Delivery Notification to the Order Delivery Participant that 
posted the order. The incoming Auto-Ex order may experience a potential 
delay while awaiting the Order Delivery Participant's response with a 
complete fill, a partial fill, or instruction to cancel in full. 
Conversely, an Auto-Ex Only order would provide Users with a quicker 
response by avoiding the processing time associated with potential 
interaction with [sic] resting order entered via Order Delivery mode.

Proposed Definitions

    Lastly, the Exchange proposes to amend NSX Rule 1.5 and 11.11 to 
include definitions for Auto-Ex Mode and Auto-Ex Orders. First, the 
Exchange proposes to define ``Automatic Execution Mode'' under Exchange 
Rule 1.5 as ``[t]he mode of order interaction on the Exchange as 
described in Rule 11.13(b)(1).'' Second, the Exchange proposes to 
define ``Auto-Ex Order'' under Exchange Rule 11.11(c)(11) as ``[a] 
limit or market order that is automatically executed by the System 
against any marketable contra side order as in the manner described in 
Rule 11.13(b)(1).'' As discussed earlier, the Commission approved in 
2006 amendments to NSX trading rules to provide for a price-time 
priority market with two modes of order interaction: (1) Auto-Ex and 
(2) Order Delivery.\17\ These definitions are meant to add clarity to 
Exchange Rules and improve the ability to reference Auto-Ex mode 
elsewhere in future amendments to Exchange rules.
---------------------------------------------------------------------------

    \17\ See Exchange Act Release No. 54391, supra note 4.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed Auto-Ex Only order is consistent 
with Section 6 of the Act,\18\ and the rules and regulations thereunder 
and, in particular, the requirements of Section 6(b) of the Act.\19\ 
Specifically, the Exchange believes the proposed Auto-Ex Only order 
furthers the objective of Section 6(b)(5) of the Act \20\ because it 
promotes just and equitable principles of trade, removes impediments 
to, and perfects the mechanism of a free and open market and a national 
market system. The proposed Auto-Ex Only order allows Users to choose 
to only interact with orders entered via Auto-Ex mode, thereby avoiding 
the delays associated with interacting with orders entered via Order 
Delivery mode. Currently, when an incoming Auto-Ex order is matched 
against an order entered via Order Delivery mode, the Exchange sends an 
Order Delivery Notification to the Order Delivery Participant who 
posted the order alerting them of a potential match. The incoming Auto-
Ex order may experience a potential delay while awaiting the Order 
Delivery Participant's response with a complete fill, a partial fill, 
or instruction to cancel in full. On the contrary, an Auto-Ex Only 
order would provide Users with a quicker response by interacting only 
with orders entered via Auto-Ex mode, thereby avoiding the processing 
delays associated with [sic] potential interaction with [sic] resting 
order entered via Order Delivery mode. Therefore, the Exchange believes 
the quicker response times resulting from the use of the Auto-Ex Only 
order promotes just and equitable principles of trade, removes 
impediments to, and perfects the mechanism of a free and open market 
and a national market system.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f.
    \19\ 15 U.S.C. 78f(b).
    \20\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Lastly, the Exchange believes the proposed definitions under 
Exchange Rules 1.5 and 11.11 are consistent with Section 6(b) \21\ of 
the Act, in general, and furthers the objectives of Section 6(b)(5) 
\22\ in that they are designed to promote just and equitable principles 
of trade, to remove impediments to, and perfect the mechanism of a free 
and open market and a national market system. The Exchange believes 
that adding these definitions will add clarity to the Exchange's Rules 
and, therefore,

[[Page 9098]]

promotes just and equitable principles of trade, removes impediments 
to, and perfects the mechanism of a free and open market and a national 
market system.
---------------------------------------------------------------------------

    \21\ 15 U.S.C. 78f(b).
    \22\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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. The proposed Auto-Ex Only 
order will benefit Users by allowing them to interact only with orders 
entered via Auto-Ex mode, thereby avoiding the delays associated with 
interacting with orders entered via Order Delivery mode. The proposed 
definitions under Exchange Rules 1.5 and 11.11 are meant to simply add 
clarity to Exchange rules. Therefore, the Exchange believes the 
proposed Auto-Ex Only Order and definitions under Exchange Rules 1.5 
and 11.11 do not 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

    Written comments on the proposed rule change were neither solicited 
nor received.

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-2013-02 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-2013-02. 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 
10:00 a.m. and 3:00 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-NSX-2013-02 and should be 
submitted on or before February 28, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
---------------------------------------------------------------------------

    \23\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-02708 Filed 2-6-13; 8:45 am]
BILLING CODE 8011-01-P