[Federal Register Volume 75, Number 99 (Monday, May 24, 2010)]
[Notices]
[Pages 28833-28834]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-12413]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62122; File No. SR-EDGA-2010-01]
Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of
Filing of Proposed Rule Change To Amend EDGA Rule 11.14, Entitled
``Trading Halts Due to Extraordinary Market Volatility''
May 19, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on May 19, 2010, EDGA Exchange, Inc. (the ``Exchange'' or
``EDGA'') 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 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to amend EDGA Rule 11.14, entitled
``Trading Halts Due to Extraordinary Market Volatility.''
The text of the proposed rule change is available at the Exchange's
Web site at http://www.directedge.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 primary listing markets for U.S. stocks are in the process of
amending their rules so that they may, from time to time, issue a
trading pause for an individual security if the price of such security
moves 10% or more from a sale in a preceding five-minute period. The
Exchange is proposing the rule change described below in consultation
with other markets and Commission staff to provide for uniform market-
wide trading pause standards for individual securities in the S&P
500[supreg] Index that experience rapid price movement, as set forth
below. The Exchange is not currently the primary listing market for any
securities, and thus, will not be issuing any trading pauses pursuant
to its rules.
The Exchange proposes to add a new paragraph to EDGA Rule 11.14 to
allow
[[Page 28834]]
the Exchange to pause trading in an individual stock when the primary
listing market for such stock issues a trading pause in any Circuit
Breaker Securities, as defined below and in proposed Interpretation and
Policy .05 of Rule 11.14. If, however, trading has not resumed on the
primary listing market and ten minutes have passed since the individual
stock trading pause message has been received from the responsible
single plan processor, the Exchange may resume trading in such stock.
The proposed rule would apply to trading pauses issued by primary
listing markets in ``Circuit Breaker Securities'', as defined in
proposed Interpretation and Policy .05. Specifically, on a pilot basis,
set to end on December 10, 2010, Circuit Breaker Securities would mean
the securities included in the S&P 500[supreg] Index.
In addition to adding a new paragraph to Rule 11.14 as paragraph
(d), and renaming existing paragraph (d) as paragraph (e), the Exchange
has also proposed minor changes to Rule 11.14. To make clear that the
existing trading halt described in Rule 11.14 applies to all stocks
traded on the Exchange, the Exchange has added the word ``all'' to the
text of paragraphs (a) and (b) of Rule 11.14. Finally, the Exchange has
proposed certain minor changes to the references in its rules,
specifically: (1) Deleting references to the number of the Rule to
avoid inaccurate cross-references in the event there are other changes
to the Exchange's Rules; and (2) renaming sections .01 to .04 and
proposed section .05 of the Rule as ``Interpretations and Policies''
rather than ``Commentary'' to be consistent with the rest of the
Exchange's rules.
2. Statutory Basis
Approval of the rule change proposed in this submission is
consistent with the requirements of the Act and the rules and
regulations thereunder that are applicable to a national securities
exchange, and, in particular, with the requirements of Section 6(b) of
the Act.\3\ In particular, the proposed change is consistent with
Section 6(b)(5) of the Act,\4\ because it would promote just and
equitable principles of trade, remove impediments to, and perfect the
mechanism of, a free and open market and a national market system, and,
in general, protect investors and the public interest. The proposed
rule change is also designed to support the principles of Section
11A(a)(1) \5\ of the Act in that it seeks to assure fair competition
among brokers and dealers and among exchange markets. The Exchange
believes that the proposed rule meets these requirements in that it
promotes transparency and uniformity across markets concerning
decisions to pause trading in a security when there are significant
price movements.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
\5\ 15 U.S.C. 78k-1(a)(1).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change imposes
any burden on competition.
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 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date 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 the proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.\6\
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\6\ The Commission notes that the Exchange has requested
accelerated approval of the filing.
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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 Exchange 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 [email protected]. Please include
File Number SR-EDGA-2010-01 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-EDGA-2010-01. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Room, 100 F
Street, NE., Washington, DC 20549, on official business days between
the hours of 10 a.m. and 3 p.m. Copies of the filing also will be
available for inspection and copying at the principal office of the
Exchange. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
EDGA-2010-01 and should be submitted on or before June 3, 2010.\7\
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\7\ The Commission believes that a 10-day comment period is
reasonable, given the urgency of the matter. It will provide
adequate time for comment.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-12413 Filed 5-21-10; 8:45 am]
BILLING CODE 8010-01-P