[Federal Register Volume 75, Number 153 (Tuesday, August 10, 2010)]
[Notices]
[Pages 48402-48404]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-19652]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62643; File No. SR-NSX-2010-10]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Extend Post Regular Trading Hours Trading Session
August 4, 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 July 30, 2010, National Stock Exchange, Inc. (``NSX[supreg]''
or ``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 the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comment 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\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 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
NSX proposes to extend the Exchange's post regular trading hours
session.
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.
[[Page 48403]]
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
With this rule change, the Exchange is proposing to extend the
Exchange's post regular trading hours trading session from 6:30 p.m.
Eastern Time (``ET'') until 8 p.m. ET.
Currently, the Exchange's Regular Trading Hours, as such term is
defined in NSX Rule 1(R)(1), are from 9:30 a.m. until 4 p.m. ET. The
pre-Regular Trading Hours trading session is from 8 a.m. until 9:30
a.m. ET, and the post-Regular Trading Hours trading session is from 4
p.m. until 6:30 p.m. ET. Pursuant to Rule 11.1(a), the Board of
Directors of the Exchange has determined to extend the post-Regular
Trading Hours trading session until 8 p.m. ET.\5\ Pursuant to Rule
11.1(a), the Board's determination to extend the Exchange's post-
Regular Trading Hours to 8:00 p.m. ET will be noticed to ETP Holders
pursuant to Regulatory Circular. In addition, the text of Rule 11.1(a)
is supplemented to reflect proposed Exchange business hours.
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\5\ Each of Nasdaq, Arca, ISE, and DirectEdge (A and X) operate
extended trading sessions until 8 p.m. ET.
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The Exchange's surveillance programs and resources presently in
force with respect to the Exchange's current post-Regular Trading Hours
trading session, which (prior to the proposed operative date of August
2, 2010 of the instant rule filing) closes at 6:30 p.m. ET, will be
utilized to effectively surveil activities on the Exchange during the
additional hour and a half of post-Regular Trading Hours proposed under
the instant rule filing. The Exchange believes that its current
surveillance and other regulatory programs are sufficiently robust and
capable of fulfilling the Exchange's regulatory obligations with
respect to the proposed extended post-Regular Trading Hours. The
Exchange will continue to monitor its market to identify any need for,
and to implement, such regulatory enhancements and additional actions
as may be necessary from time to time.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) of the Act,\6\ in general, and
furthers the objectives of Section 6(b)(5) \7\ in particular in that it
is designed, among other things, to promote clarity, transparency and
full disclosure, in so doing, to prevent fraudulent and manipulative
acts and practices, 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, and, in general, to protect
investors and the public interest. Moreover, the proposed rule change
is not discriminatory in that all ETP Holders are eligible to
participate (or elect to not participate) in effectuating transactions
on the Exchange outside of Regular Trading Hours on the same terms and
conditions.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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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 Exchange Act.
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
Because the foregoing rule change does not: (1) Significantly
affect the protection of investors or the public interest; (2) impose
any significant burden on competition; and (3) become operative for 30
days after the date of this filing, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.\10\
However, Rule 19b-4(f)(6)(iii) permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay. The Commission notes that
the Exchange's proposal is substantially similar to the rules of other
national securities exchanges and does not raise any new substantive
issues.\11\ Based on the foregoing, the Commission believes that
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest and hereby designates the proposal
operative upon filing.\12\
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\10\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to
the Commission written notice of its intent to file the proposed
rule change, along with a brief description and text of 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. The Exchange has satisfied this requirement.
\11\ See supra note 5. The Commission previously has waived the
operative delay for similar rule change proposals of other exchanges
under Rule 19b-4(f)(6) on the same basis. See, e.g., Securities
Exchange Act Release No. 59136 (December 22, 2008), 73 FR 80484
(December 31, 2008) (SR-ISE-2008-95) (wherein the Commission waived
the 30-day operative delay of a rule filing extending ISE's post
regular trading hours from 5 p.m. to 8:00 p.m. ET). See also
Securities Exchange Act Release No. 59963 (May 21, 2009), 74 FR
25787 (May 29, 2009) (SR-BATS-2009-012) and Securities Exchange Act
Release No. 58685 (September 30, 2008), 73 FR 58277 (October 6,
2008) (SR-ISE-2008-73) (in each case, the Commission waived the 30-
day operative delay of rule filings establishing post-regular
trading hours sessions until 5 p.m. ET).
\12\ For the 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 summarily may temporarily suspend 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.\13\
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\13\ 15 U.S.C. 78s(b)(3)(C).
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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
[[Page 48404]]
Send an e-mail to [email protected]. Please include
File Number SR-NSX-2010-10 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-2010-10. 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 will also be available for
inspection and copying at the principal office of the self-regulatory
organization. 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-
2010-10 and should be submitted on or before August 31, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19652 Filed 8-9-10; 8:45 am]
BILLING CODE 8010-01-P