[Federal Register Volume 75, Number 240 (Wednesday, December 15, 2010)]
[Notices]
[Pages 78296-78297]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-31454]
[[Page 78296]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63492; File No. SR-Phlx-2010-172]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating
To Changing the Starting Time for NASDAQ OMX PSX
December 9, 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 December 3, 2010, NASDAQ OMX PHLX LLC (``Phlx'' 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 the self-regulatory organization. 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 proposes to amend certain rules of NASDAQ OMX PSX, the
Exchange's equity trading facility (``PSX''), to change the starting
time from 9 a.m. Eastern Time (``ET'') to 8 a.m. ET. The Exchange
proposes to amend provisions of PSX Rules 3100, 3217, 3301, 3302 and
3306 to reflect the proposed amended starting time.
The text of the proposed rule change is available on the Exchange's
Web site at http://www.nasdaqtrader.com/micro.aspx?id=PHLXRulefilings,
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 aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to amend certain rules
of PSX to change the starting time from 9 a.m. ET to 8 a.m. ET. More
specifically, the Exchange proposes to amend the following PSX rules in
the following manner:
i. PSX Rule 3100 (b)(4)(B) to reflect that the trading session
begins at 8 a.m. instead of 9 a.m.
ii. PSX Rule 3217 to reflect that the normal business hours for the
automated system for order execution and trade reporting owned and
operated by the Exchange for the purpose of trading securities on PSX
(``System'') operates from 8 a.m. ET instead of 9 a.m. ET.
iii. PSX Rule 3301(h)(1) to reflect that System Hours Immediate or
Cancel \3\ orders must be will be available for entry and execution
from 8 a.m. ET instead of 9 a.m. ET.
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\3\ ``System Hours Immediate or Cancel'' shall mean, for orders
so designated, that if after entry into the System the order (or a
portion thereof) is not marketable, the order (or unexecuted portion
thereof) shall be canceled and returned to the entering Participant.
See PSX Rule 3301(h)(1).
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iv. PSX Rule 3301(h)(2) to reflect that System Hours Day \4\ orders
must remain available for potential display and/or execution from 8
a.m. ET instead of 9 a.m. ET.
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\4\ ``System Hours Day'' shall mean, for orders so designated,
that if after entry into the System, the order is not fully
executed, the order (or the unexecuted portion thereof) shall remain
available for potential display and/or execution from 9 a.m. until 5
p.m. Eastern Time on the day it was submitted unless cancelled by
the entering party. See PSX Rule 3301(h)(2).
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v. PSX Rule 3301(h)(4) to reflect that System Hours Expire Time \5\
orders must remain for entry and execution from 8 a.m. ET instead of 9
a.m. ET.
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\5\ ``System Hours Expire Time'' or ``SHEX'' shall mean, for
orders so designated, that if after entry into the System, the order
is not fully executed, the order (or the unexecuted portion thereof)
shall remain available for potential display and/or execution for
the amount of time specified by the entering Participant (up to 5
p.m. on the day entered) unless canceled by the entering
Participant. See PSX Rule 3301(h)(4).
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vi. PSX Rule 3301(h)(8) to reflect that ``good-til-market close''
\6\ orders must be available for entry and potential execution from 8
a.m. ET instead of 9 a.m. ET.
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\6\ ``Good-til-market close'' shall mean for orders so
designated, that if after entry into the System, the order is not
fully executed, the order (or unexecuted portion thereof) shall
remain available for potential display and/or execution until
cancelled by the entering party, or until 4 p.m., after which it
shall be returned to the entering party. See PSX Rule 3301(h)(8).
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vii. PSX Rule 3302 to reflect that the System will be opened for
order entry at 8 a.m. instead of 9 a.m.
viii. PSX Rule 3306(a)(3) to reflect that orders can be entered
into the System (or previously entered orders cancelled) from 8 a.m. ET
instead of 9 a.m. ET.
PSX is a fully electronic system that accommodates diverse business
models and trading preferences. PSX utilizes technology to aggregate
and display liquidity and make it available for execution of orders.
PSX is proposing to expand its operational hours to open the System
earlier so that firms can enter orders and execute beginning at 8 a.m.
rather than 9 a.m.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\7\ in general, and with
Sections 6(b)(1) and 6(b)(5) of the Act,\8\ in particular, in that the
proposal enables the Exchange to be so organized as to have the
capacity to be able to carry out the purposes of the Act and to comply
with and enforce compliance by members, member organizations, and
persons associated with members and member organizations with
provisions of the Act, the rules and regulations thereunder, and the
rules of the Exchange. The proposal is also consistent with Section 6
of the Act in that the proposal 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. An earlier open will enhance
the national market system by providing market participants increased
opportunity to more effectively carryout the execution of orders in the
manner addressed by PSX rules. Such improvements will enhance the
protection of investors and the public interest.
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\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(1), (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
result in any burden on competition not
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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 after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the Exchange Act \9\ and Rule 19b-
4(f)(6) \10\ thereunder.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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.
The Exchange has satisfied this requirement.
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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.\11\
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.\12\ The Exchange has requested that
the Commission waive the 30-day operative delay. The Commission notes
that Phlx's proposal is substantially similar to the rules of other
national securities exchanges and does not raise any new substantive
issues. In addition, Phlx notes that other exchanges open their markets
for entry of orders prior to 9 a.m.,\13\ and, in order to be
competitive, the Exchange would like to extend the same opportunity to
its market participants. The Exchange would like to implement this
proposed rule on December 13, 2010. 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.\14\
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\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ Id.
\13\ See The NASDAQ Stock Market LLC Rule 4617 (opens at 7 a.m.
EST). See also NASDAQ OMX BX Rule 4617 (opens at 8 a.m. EST), and
NYSE Arca Equities Rule 7.34 (opens at 1 a.m. Pacific Time).
\14\ 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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or 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 e-mail to [email protected]. Please include
File Number SR-Phlx-2010-172 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-Phlx-2010-172. 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 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 Number SR-Phlx-2010-172 and should be submitted on
or before January 5, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-31454 Filed 12-14-10; 8:45 am]
BILLING CODE 8011-01-P