[Federal Register Volume 76, Number 71 (Wednesday, April 13, 2011)]
[Notices]
[Pages 20768-20770]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-8850]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64250; File No. SR-EDGX-2011-08]
Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule To Amend EDGX Rule
11.9 To Introduce Additional Routing Options to the Rule
April 7, 2011.
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 April 1, 2011, EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') 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 proposes to amend Rule 11.9 to introduce additional
routing options to the rule. The text of the proposed rule change is
attached as Exhibit 5 and is available on the Exchange's Web site at
http://www.directedge.com, at the Exchange's principal office, on the
Commission's Web site at http://www.sec.gov, and at the Public
Reference Room of the Commission.
[[Page 20769]]
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 self-regulatory organization 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange's current list of routing options are codified in Rule
11.9(b)(3). In this filing, the Exchange proposes to amend Rule
11.9(b)(3) to add two new additional strategies.
In Rule 11.9(b)(3), the Exchange describes that its system
(``System'') provides a variety of routing options. Routing options may
be combined with all available order types and times-in-force, with the
exception of order types and times-in-force whose terms are
inconsistent with the terms of a particular routing option. The System
will consider the quotations only of accessible markets. The term
``System routing table'' refers to the proprietary process for
determining the specific trading venues to which the System routes
orders and the order in which it routes them. The Exchange reserves the
right to maintain a different System routing table for different
routing options and to modify the System routing table at any time
without notice. The new System routing options are described in more
detail below.
The Exchange proposes to describe the ROUQ routing strategy and add
it to Rule 11.9(b)(3)(c)(iv). ROUQ is a routing option under which an
order checks the System for available shares and then is sent to
destinations on the System routing table.
The Exchange proposes to describe the ROUZ routing strategy and add
it to Rule 11.9(b)(3)(c)(v). ROUZ is a routing option under which an
order checks the System for available shares and then is sent to
destinations on the System routing table.
The differences between the latter two strategies lies in the
differences in the System routing tables for the ROUQ/ROUZ strategies.
The ROUQ routing strategy goes to fewer low cost destinations than does
the ROUZ routing strategy.
The Exchange also proposes to move the existing descriptions of
ROUE, ROUT, and ROUX into Rule 11.9(b)(3)(c)(i)-(iii), respectively.
Formerly, the descriptions were in Rules 11.9(b)(3)(c) for ROUE,
11.9(b)(3)(h) for ROUT, and 11.9(b)(3)(i) for ROUX.
The Exchange proposes to make conforming changes to the rest of the
rule to re-letter the sections accordingly.
The Exchange believes that the proposed introduction of these
routing options, described above, will provide market participants with
greater flexibility in routing orders, without having to develop their
own complicated routing strategies.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b)(5) of the Act,\3\ which requires the rules of an
exchange 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. The proposed change to introduce the routing options
described above will provide market participants with greater
flexibility in routing orders without developing complicated order
routing strategies on their own.
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\3\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does 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
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.
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 from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \4\ and Rule 19b-
4(f)(6)(iii) thereunder.\5\
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\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(f)(6)(iii).
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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.\6\
However, Rule 19b-4(f)(6) \7\ 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 so that the proposal may
become operative upon filing. The Exchange notes that waiver of this
requirement will allow the Exchange to immediately offer Exchange users
new routing strategies, and the inability to immediately offer the new
routing strategies would put the Exchange at a competitive
disadvantage. The Commission believes that waiving the 30-day operative
delay is consistent with the protection of investors and the public
interest because such waiver would allow the new routing strategies to
become immediately available to Exchange users. For this reason, the
Commission designates the proposed rule change to be operative upon
filing with the Commission.\8\
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\6\ 17 CFR 240.19b-4(f)(6)(iii).
\7\ Id.
\8\ 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.
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-EDGX-2011-08 on the subject line.
[[Page 20770]]
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-EDGX-2011-08. 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 Number SR-
EDGX-2011-08 and should be submitted on or before May 4, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-8850 Filed 4-12-11; 8:45 am]
BILLING CODE 8011-01-P