Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Sponsored Access, 6931-6933 [E9-2858]
Download as PDF
<![CDATA[
Federal Register / Vol. 74, No. 27 / Wednesday, February 11, 2009 / Notices
decision.40 Finally, FINRA noted that
the proposed rule change also specifies
that arbitrators would not be required to
provide an explained decision in cases
resolved under the simplified or default
arbitration rules.41
FINRA concluded by stating that the
proposal will increase investor
confidence in the fairness of the
arbitration process, and should be
approved.42
mstockstill on PROD1PC66 with NOTICES
IV. Discussion and Findings
After careful review of the proposed
rule change, the comments, and
FINRA’s response to the comments, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act, and the rules
and regulations thereunder that are
applicable to a national securities
association.43 In particular, the
Commission believes the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,44 which
requires among other things, that FINRA
rules must be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, and, in general, to
protect investors and the public interest.
The proposed rule change should
address complaints that FINRA has
received from non-prevailing parties
regarding the absence of explanations in
arbitration awards, by providing a
framework through which parties could
jointly require arbitrators to write an
explained decision.
In general, the Commission believes
that FINRA has responded to the
comments adequately and
appropriately, and has explained how
the proposed rule change is consistent
with the requirements of the Act, and
the rules and regulations thereunder
that are applicable to a national
securities association.
The Commission’s oversight of the
securities arbitration process is directed
at ensuring that it is fair and efficient.
The Commission shares the concerns
expressed by a commenter that the
proposal may not increase investors’
perceptions of fairness in circumstances
in which an industry party does not
agree to an investor’s request for an
explained decision. Nevertheless, the
Commission believes that the evenhanded approach of providing parties a
means of jointly requesting a decision
represents a reasonable compromise
between the status quo, whereby the
Codes offer parties no formal means of
requesting an explained decision, and
the original proposal, whereby
claimants alone would have the right to
request an explained decision. Further,
the Commission believes that the
procedures set forth in FINRA’s
proposed rule (including, procedures
related to: Deadlines for submitting a
request; designating the chairperson as
the writer of explained decisions;
compensation for writing explained
decisions; substance of the explained
decision; and eligibility of cases for
explained decisions) will contribute to
the efficiency of the securities
arbitration process by setting forth clear
guidelines for parties and arbitrators in
instances where parties have jointly
requested an explained decision.
At the same time, the Commission is
concerned that it may be difficult for
parties to mutually agree to request an
explained decision, because the
decision of whether to request an
explained decision (or whether to refuse
to request an explained decision) may
ultimately be a strategic decision. In
order to gauge the effectiveness of the
proposal, the Commission has requested
that FINRA gather statistics for a period
of one year from the effective date of
this proposal, on the number of joint
requests for explained decisions made
in arbitration. Further, the Commission
has asked FINRA to report on any
anecdotal evidence it receives during
this one-year period that may shed light
on how often parties are unable to agree
to request an explained decision.
V. Conclusions
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,45 that the
proposed rule change (SR–FINRA–
2008–051) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.46
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–2775 Filed 2–10–09; 8:45 am]
BILLING CODE 8011–01–P
41 Id.
42 Id.
VerDate Nov<24>2008
17:58 Feb 10, 2009
Jkt 217001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59362; File No. SR–Phlx–
2009–10]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Relating to
Sponsored Access
February 5, 2009.
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 January
29, 2009, NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’ 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 Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to adopt a
sponsored access rule for a pilot period
ending on July 29, 2009. The text of the
proposed rule change is available on the
Exchange’s Website at https://
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
self-regulatory organization 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 those 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to attract additional business
by adopting a sponsored access rule
40 Id.
43 In approving this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 17c(f).
44 15 U.S.C. 78o–3(b)(6).
6931
45 15
46 17
PO 00000
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
Frm 00077
Fmt 4703
Sfmt 4703
1 15
2 17
E:\FR\FM\11FEN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
11FEN1
mstockstill on PROD1PC66 with NOTICES
6932
Federal Register / Vol. 74, No. 27 / Wednesday, February 11, 2009 / Notices
similar to that of other exchanges. A
Sponsored Participant is a non-member
of the Exchange, such as an institutional
investor, that gains access to the
Exchange and trades under a
Sponsoring Member’s execution and
clearing identity pursuant to a
sponsorship arrangement between such
non-member and a member
organization. Specifically, the Exchange
proposes to permit Sponsored
Participants to be sponsored by
Sponsoring Member Organizations, and
thereby access the Exchange, subject to
certain requirements. These
requirements are intended to confirm
that the Sponsored Participant is
required to and had procedures in place
to comply with Exchange rules, and that
the Sponsoring Member Organization
takes responsibility for the Sponsored
Participant’s activity on the Exchange.
First, the Sponsored Participant and
its Sponsoring Member Organization
must have entered into and maintained
an Access Agreement with the
Exchange. The Sponsoring Member
Organization must designate the
Sponsored Participant by name in an
addendum to the Access Agreement.
Second, there must be a Sponsored
Participant Agreement between the
Sponsoring Member Organization and
the Sponsored Participant that contains
the following sponsorship provisions,
enumerated in full in Rule 1094(b)(ii):
(i) The orders of the Sponsored
Participant are binding in all respects on
the Sponsoring Member Organization;
(ii) The Sponsoring Member
Organization is responsible for the
actions of the Sponsored Participant;
(iii) In addition to the Sponsoring
Member Organization being required to
comply with the Exchange Certificate of
Incorporation, By-laws, Rules and
procedures of the Exchange, the
Sponsored Participant shall do so as if
such Sponsored Participant were an
Exchange member organization;
(iv) The Sponsored Participant shall
maintain, keep current and provide to
the Sponsoring Member Organization a
list of individuals authorized to obtain
access to the Exchange on behalf of the
Sponsored Participant;
(v) The Sponsored Participant shall
familiarize its authorized individuals
with all of the Sponsored Participant’s
obligations under this Rule and will
assure that they receive appropriate
training prior to any use or access to the
Exchange;
(vi) The Sponsored Participant may
not permit anyone other than authorized
VerDate Nov<24>2008
17:58 Feb 10, 2009
Jkt 217001
individuals to use or obtain access to
the Exchange; 3
(vii) The Sponsored Participant shall
take reasonable security precautions to
prevent unauthorized use or access to
the Exchange, including unauthorized
entry of information into the Exchange,
and agrees that it is responsible for any
and all orders, trades and other
messages and instructions entered,
transmitted or received under
identifiers, passwords and security
codes of authorized individuals, and for
the trading and other consequences
thereof;
(viii) The Sponsored Participant
acknowledges its responsibility to
establish adequate procedures and
controls that permit it to effectively
monitor its employees’, agents’ and
Participants’ use and access to the
Exchange for compliance with the terms
of this agreement;
(ix) The Sponsored Participant shall
pay when due all amounts, if any,
payable to Sponsoring Member
Organization, the Exchange, or any
other third parties that arise from the
Sponsored Participant’s access to and
use of the Exchange. Such amounts
include, but are not limited to
applicable exchange and regulatory fees.
Third, the Sponsoring Member
Organization must provide the
Exchange with a Sponsored Participant
Addendum to its Access Agreement
acknowledging its responsibility for the
orders, executions and actions of its
Sponsored Participant at issue.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 4 in general, and furthers the
objectives of Section 6(b)(5) of the Act 5
in particular, in that it is designed 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 by
helping market participants seeking
access to a marketplace.
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 not
3 If the Exchange determines that an authorized
individual has caused a Member Organization to
violate the Exchange’s Rules, the Exchange could
direct the Member Organization to suspend or
withdraw the person’s status as an authorized
individual.
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
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 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 6 and Rule 19b–
4(f)(6) thereunder.7
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.8 However, Rule 19b–
4(f)(6)(iii) 9 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 Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest because such waiver would
permit the Exchange to immediately
begin to accommodate requests from its
members regarding sponsored access.
The Commission notes that the proposal
is substantially similar to the rules of
other national securities exchanges.10
Accordingly, the Commission hereby
grants the Exchange’s request and
designates the proposal operative upon
filing.11
At any time within 60 days of the
filing of such proposed rule change the
6 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
8 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 the fiveday pre-filing notice requirement.
9 Id.
10 See, e.g., International Securities Exchange,
LLC Rule 706 and NYSE Arca, Inc. Rule 7.29.
11 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).
7 17
E:\FR\FM\11FEN1.SGM
11FEN1
Federal Register / Vol. 74, No. 27 / Wednesday, February 11, 2009 / Notices
Commission may summarily abrogate
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:
mstockstill on PROD1PC66 with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Phlx–2009–10 on the
subject line.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–2858 Filed 2–10–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59321; File No. SR–NSCC–
2008–08]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Order Granting Approval
of a Proposed Rule Change To Amend
Rules To Add an Agreement From
Fund Members That Submit Mutual
Fund Profile Information
January 30, 2009.
I. Introduction
On September 30, 2008, the National
Paper Comments
Securities Clearing Corporation
• Send paper comments in triplicate
(‘‘NSCC’’) filed with the Securities and
to Elizabeth M. Murphy, Secretary,
Exchange Commission (‘‘Commission’’)
Securities and Exchange Commission,
proposed rule change SR–NSCC–2008–
100 F Street, NE., Washington, DC
08 pursuant to Section 19(b)(1) of the
20549–1090.
Securities Exchange Act of 1934
(‘‘Act’’).1 Notice of the proposal was
All submissions should refer to File
published in the Federal Register on
Number SR–Phlx–2009–10. This file
December 29, 2008.2 For the reasons
number should be included on the
subject line if e-mail is used. To help the discussed below, the Commission is
granting approval of the proposed rule
Commission process and review your
change.
comments more efficiently, please use
only one method. The Commission will II. Description
post all comments on the Commission’s
The Mutual Fund Profile Service
Internet Web site (https://www.sec.gov/
(‘‘Profile’’) is a central data source for
rules/sro.shtml). Copies of the
comprehensive fund prospectus and
submission, all subsequent
operational information relating to
amendments, all written statements
mutual funds. The repository is a
with respect to the proposed rule
recognized industry standard for
change that are filed with the
information critical to the distribution
Commission, and all written
of mutual funds in the third-party
communications relating to the
market.
proposed rule change between the
Profile is organized into three
Commission and any person, other than
databases: (1) Security Issue Database
those that may be withheld from the
(containing information such as
public in accordance with the
Security ID number, security name, fee
provisions of 5 U.S.C. 552, will be
structure, investment objectives,
available for inspection and copying in
breakpoint schedule data, and blue sky
the Commission’s Public Reference
eligibility); (2) Participant Database
Room, on official business days between
(containing contact information, NSCC
the hours of 10 a.m. and 3 p.m. Copies
processing capabilities and restrictions
of the filing also will be available for
or requirements); and (3) Distribution
inspection and copying at the principal
Database (containing projected or actual
office of the Exchange. All comments
distributions, capital gains and dividend
received will be posted without change;
amounts and details, and commission
the Commission does not edit personal
information). NSCC fund members
identifying information from
input data regarding their mutual funds
submissions. You should submit only
into the Security Issue and Participant
information that you wish to make
available publicly. All submissions
12 17 CFR 200.30–3(a)(12).
should refer to File Number SR–Phlx–
1 15 U.S.C. 78s(b)(1).
2009–10 and should be submitted on or
2 Securities Exchange Act Release No. 59105
(December 16, 2008), 73 FR 79530.
before March 4, 2009.
VerDate Nov<24>2008
17:58 Feb 10, 2009
Jkt 217001
PO 00000
Frm 00079
Fmt 4703
Sfmt 4703
6933
Profile databases. Profile is then
accessed by the NSCC members that are
mutual fund distributors.
NSCC has recently enhanced the
Security Issue Database in Profile to
include new data fields needed by
distributors and to re-engineer the
structure of the data hierarchy to be
easier for fund members to populate
their data. Some of the enhancements to
the Profile database were initiated in
response to a recommendation in the
Report (‘‘Report’’) of The Joint NASD/
Industry Task Force on Breakpoints
(‘‘Task Force’’).3 NSCC has also adopted
measures to assist funds members in
validating their data once it is in the
Profile database by developing reports
that note probable inconsistencies
among related data fields, by arranging
for free access by fund members to a
vendor tool that verifies Profile data,
and by reaching out to fund members in
the form of personal contacts and an online web demonstration on populating
data into the Profile database.
Consistent with its efforts to expand
Profile’s capabilities as a comprehensive
and accurate source for the mutual fund
distribution industry, NSCC is now
amending its rules to add an agreement
that requires NSCC fund members to
have taken reasonable steps to validate
the accuracy of their data they submit to
the Profile database. This agreement is
not intended to be either a basis for
independent legal rights against the
fund member or is any third party
intended or permitted to rely upon it as
a representation to a third party or upon
which a third-party can base any legal
rights. NSCC requires similar
agreements from its members elsewhere
in its rules and in its membership
agreement, such as the agreement
required of a fund member in Section 2
of Rule 51 to not submit a transaction
through NSCC’s Mutual Fund Services
in contravention of any applicable
regulatory requirements.
3 The Task Force was formed in 2003 by the
National Association of Securities Dealers
(‘‘NASD’’, now ‘‘FINRA’’) with the participation of
major fund companies, broker-dealers, NSCC, the
Securities Industries Association and the
Investment Company Institute, in response to the
NASD examination findings in which it was
discovered that investors frequently failed to
receive appropriate breakpoint discounts in frontend sales load mutual fund transactions.
Recommendation (B) of the report stated that
NSCC’s Profile database should be expanded to
include breakpoint aggregation terms and rules for
all fund families and should include identification
of both link-eligible products (for example,
retirement plans, annuities, and insurance products
and college savings plans with mutual fund
holdings). The Report also noted that for this
database to be effective, it must also be
comprehensive. Accordingly, mutual funds must
fully and accurately populate the database and must
update the database on a timely basis.
E:\FR\FM\11FEN1.SGM
11FEN1
]]>Agencies
[Federal Register Volume 74, Number 27 (Wednesday, February 11, 2009)]
[Notices]
[Pages 6931-6933]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-2858]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59362; File No. SR-Phlx-2009-10]
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
to Sponsored Access
February 5, 2009.
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 January 29, 2009, NASDAQ OMX PHLX, Inc. (``Phlx'' 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 Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to adopt a sponsored access rule for a pilot
period ending on July 29, 2009. The text of the proposed rule change is
available on the Exchange's Website at https://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 self-regulatory organization
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 those 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to attract additional
business by adopting a sponsored access rule
[[Page 6932]]
similar to that of other exchanges. A Sponsored Participant is a non-
member of the Exchange, such as an institutional investor, that gains
access to the Exchange and trades under a Sponsoring Member's execution
and clearing identity pursuant to a sponsorship arrangement between
such non-member and a member organization. Specifically, the Exchange
proposes to permit Sponsored Participants to be sponsored by Sponsoring
Member Organizations, and thereby access the Exchange, subject to
certain requirements. These requirements are intended to confirm that
the Sponsored Participant is required to and had procedures in place to
comply with Exchange rules, and that the Sponsoring Member Organization
takes responsibility for the Sponsored Participant's activity on the
Exchange.
First, the Sponsored Participant and its Sponsoring Member
Organization must have entered into and maintained an Access Agreement
with the Exchange. The Sponsoring Member Organization must designate
the Sponsored Participant by name in an addendum to the Access
Agreement.
Second, there must be a Sponsored Participant Agreement between the
Sponsoring Member Organization and the Sponsored Participant that
contains the following sponsorship provisions, enumerated in full in
Rule 1094(b)(ii):
(i) The orders of the Sponsored Participant are binding in all
respects on the Sponsoring Member Organization;
(ii) The Sponsoring Member Organization is responsible for the
actions of the Sponsored Participant;
(iii) In addition to the Sponsoring Member Organization being
required to comply with the Exchange Certificate of Incorporation, By-
laws, Rules and procedures of the Exchange, the Sponsored Participant
shall do so as if such Sponsored Participant were an Exchange member
organization;
(iv) The Sponsored Participant shall maintain, keep current and
provide to the Sponsoring Member Organization a list of individuals
authorized to obtain access to the Exchange on behalf of the Sponsored
Participant;
(v) The Sponsored Participant shall familiarize its authorized
individuals with all of the Sponsored Participant's obligations under
this Rule and will assure that they receive appropriate training prior
to any use or access to the Exchange;
(vi) The Sponsored Participant may not permit anyone other than
authorized individuals to use or obtain access to the Exchange; \3\
---------------------------------------------------------------------------
\3\ If the Exchange determines that an authorized individual has
caused a Member Organization to violate the Exchange's Rules, the
Exchange could direct the Member Organization to suspend or withdraw
the person's status as an authorized individual.
---------------------------------------------------------------------------
(vii) The Sponsored Participant shall take reasonable security
precautions to prevent unauthorized use or access to the Exchange,
including unauthorized entry of information into the Exchange, and
agrees that it is responsible for any and all orders, trades and other
messages and instructions entered, transmitted or received under
identifiers, passwords and security codes of authorized individuals,
and for the trading and other consequences thereof;
(viii) The Sponsored Participant acknowledges its responsibility to
establish adequate procedures and controls that permit it to
effectively monitor its employees', agents' and Participants' use and
access to the Exchange for compliance with the terms of this agreement;
(ix) The Sponsored Participant shall pay when due all amounts, if
any, payable to Sponsoring Member Organization, the Exchange, or any
other third parties that arise from the Sponsored Participant's access
to and use of the Exchange. Such amounts include, but are not limited
to applicable exchange and regulatory fees.
Third, the Sponsoring Member Organization must provide the Exchange
with a Sponsored Participant Addendum to its Access Agreement
acknowledging its responsibility for the orders, executions and actions
of its Sponsored Participant at issue.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \4\ in general, and furthers the objectives of Section
6(b)(5) of the Act \5\ in particular, in that it is designed 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 by
helping market participants seeking access to a marketplace.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 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
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 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 \6\ and Rule 19b-4(f)(6) thereunder.\7\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\8\ However,
Rule 19b-4(f)(6)(iii) \9\ 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 Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest because such waiver would permit the Exchange to
immediately begin to accommodate requests from its members regarding
sponsored access. The Commission notes that the proposal is
substantially similar to the rules of other national securities
exchanges.\10\ Accordingly, the Commission hereby grants the Exchange's
request and designates the proposal operative upon filing.\11\
---------------------------------------------------------------------------
\8\ 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 the five-day pre-filing
notice requirement.
\9\ Id.
\10\ See, e.g., International Securities Exchange, LLC Rule 706
and NYSE Arca, Inc. Rule 7.29.
\11\ 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).
---------------------------------------------------------------------------
At any time within 60 days of the filing of such proposed rule
change the
[[Page 6933]]
Commission may summarily abrogate 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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-Phlx-2009-10 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-Phlx-2009-10. 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 (https://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 inspection and
copying in the Commission's Public Reference Room, 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-
Phlx-2009-10 and should be submitted on or before March 4, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-2858 Filed 2-10-09; 8:45 am]
BILLING CODE 8011-01-P
