[Federal Register Volume 75, Number 149 (Wednesday, August 4, 2010)]
[Notices]
[Pages 47039-47040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-19217]
[[Page 47039]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62582; File No. SR-OC-2010-03]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change by OneChicago, Amending Rule
419(a), Regulatory Halts
July 28, 2010.
Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-7 under the Act,\2\ notice is hereby given
that on July 13, 2010, OneChicago, LLC (``OneChicago'' or ``OCX'')
filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the proposed rule change described in Items I, II, and
III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
OneChicago also has filed the proposed rule change with the Commodity
Futures Trading Commission (``CFTC'') under Section 5c(c) of the
Commodity Exchange Act \3\ on July 12, 2010.
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\1\ 15 U.S.C. 78s(b)(7).
\2\ 17 CFR 240.19b-7.
\3\ 7 U.S.C. 7a-2(c).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
OneChicago is proposing to amend its Rule 419(a) and the
Interpretation thereto, to make it clear that a ``regulatory
halt''applies not only to the suspending of all trading in equity
securities in the underlying national securities exchange but also to a
trading pause on an individual underlying equity security that has been
imposed by the rules of the national securities exchange. OneChicago
filed a similar rule change on June 15, 2010. However, after further
discussion with the staffs of both the Commission and the CFTC it has
agreed to make this additional amendment. These changes will make the
provisions [sic] Rule 419 consistent with the Order Granting
Accelerated Approval to Proposed Rule Changes Relating to Trading
Pauses Due to Extraordinary Market Volatility, issued by the Commission
on June 10, 2010 (Release No. 34-62252).
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
OneChicago has prepared statements concerning the purpose of, and
basis for, the proposed rule change, burdens on competition, and
comments received from members, participants, and others. The text of
these statements may be examined at the places specified in Item IV
below. These statements are set forth in Sections A, B, and C below.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this proposed rule change is [sic] make it clear
that a trading pause imposed by a national securities exchange to an
equity security underlying a single stock future will also be subject
to a trading pause by the Exchange pursuant to Rule 419. Presently, it
is not clear that this is the case because of the language of Commodity
Futures Trading Commission Regulation Sec. 41.1(l)(2). This change
will clarify any possible confusion.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b)(5) of the
Act \4\ in that it is designed to prevent fraudulent and manipulative
acts and practices, to promote just and equitable principles of trade,
to protect investors and the public interest, and to remove impediments
to and perfect the mechanism for a free and open market and a national
market system. Accordingly, under Section 6(h)(3)(C) the requirements
for listing standards and conditions for trading for security futures
must ``be no less restrictive than comparable listing standards for
options traded on a national securities exchange * * *''.
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\4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
OneChicago does not believe that the proposed rule change will have
an impact on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Comments on the OneChicago proposed rule change have not been
solicited and none have been received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change will become effective on July 14, 2010.
Within 60 days of the date of effectiveness of the proposed rule
change, the Commission, after consultation with the CFTC, may summarily
abrogate the proposed rule change and require that the proposed rule
change be refiled in accordance with the provisions of Section 19(b)(1)
of the Act.\5\
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\5\ 15 U.S.C. 78s(b)(1).
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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 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-OC-2010-03 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-OC-2010-03. 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 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
available publicly. All submissions should refer to File
[[Page 47040]]
Number SR-OC-2010-03 and should be submitted on or before August 25,
2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19217 Filed 8-3-10; 8:45 am]
BILLING CODE 8010-01-P