Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing of Proposed Rule Change Relating to Quoting Requirements for Streaming Quote Traders, Remote Streaming Quote Traders and Specialists, 21037-21039 [E9-10447]
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Federal Register / Vol. 74, No. 86 / Wednesday, May 6, 2009 / Notices
In light of the Exchange’s proposal to
make the Pilot permanent, the Exchange
also proposes to amend endnote 30 of
the Exchange’s fee schedule to remove
the following language: ‘‘[t]he payment
for order flow fees will remain in effect
as a pilot program that is scheduled to
expire on May 27, 2009.’’ The Exchange
is not making any other changes to the
Pilot at this time.
2. Statutory Basis
The Exchange believes that its
proposal to amend its schedule of fees
is consistent with Section 6(b) of the
Act,23 in general, and furthers the
objectives of Section 6(b)(4) of the Act 24
in particular, in that it is an equitable
allocation of reasonable fees and other
charges among Exchange members. In
particular, the Exchange believes that
continuing the payment for order flow
program and making it permanent
should allow the Exchange to remain
competitive.
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 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
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 25 and
paragraph (f)(2) of Rule 19b–4 26
thereunder. At any time within 60 days
of the filing of the proposed rule change,
the 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.
mstockstill on PROD1PC66 with NOTICES
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.
23 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
25 15 U.S.C. 78s(b)(3)(A)(ii).
26 17 CFR 240.19b–4(f)(2).
18:36 May 05, 2009
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–2009–38 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.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59842; File No. SR–Phlx–
2009–37]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing of Proposed Rule Change
Relating to Quoting Requirements for
Streaming Quote Traders, Remote
Streaming Quote Traders and
Specialists
April 29, 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 April 21,
2009, NASDAQ OMX PHLX, Inc.
All submissions should refer to File
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Number SR–Phlx–2009–38. This file
Securities and Exchange Commission
number should be included on the
subject line if e-mail is used. To help the (‘‘Commission’’) the proposed rule
change as described in Items I, II, and
Commission process and review your
III below, which Items have been
comments more efficiently, please use
prepared by the Exchange. The
only one method. The Commission will
Commission is publishing this notice to
post all comments on the Commission’s
solicit comments on the proposed rule
Internet Web site (https://www.sec.gov/
change from interested persons.
rules/sro.shtml). Copies of the
submission, all subsequent
I. Self-Regulatory Organization’s
amendments, all written statements
Statement of the Terms of Substance of
with respect to the proposed rule
the Proposed Rule Change
change that are filed with the
The Exchange proposes to make
Commission, and all written
specified technical adjustments to the
communications relating to the
quoting requirements for streaming
proposed rule change between the
Commission and any person, other than quote traders, remote streaming quote
traders and specialists contained in
those that may be withheld from the
Exchange Rule 1014.
public in accordance with the
The text of the proposed rule change
provisions of 5 U.S.C. 552, will be
is available on the Exchange’s Web site
available for inspection and copying in
at https://
the Commission’s Public Reference
nasdaqomxphlx.cchwallstreet.com/
Room, 100 F Street, NE., Washington,
NASDAQOMXPHLX/Filings/, at the
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. principal office of the Exchange, and at
Copies of the filing also will be available the Commission’s Public Reference
Room.
for inspection and copying at the
principal office of the Exchange. All
II. Self-Regulatory Organization’s
comments received will be posted
Statement of the Purpose of, and
without change; the Commission does
Statutory Basis for, the Proposed Rule
not edit personal identifying
Change
information from submissions. You
should submit only information that
In its filing with the Commission, the
you wish to make available publicly. All Exchange included statements
submissions should refer to File
concerning the purpose of and basis for
Number SR–Phlx–2009–38 and should
the proposed rule change and discussed
be submitted on or before May 27, 2009. any comments it received on the
proposed rule change. The text of these
For the Commission, by the Division of
statements may be examined at the
Trading and Markets, pursuant to delegated
places specified in Item IV below. The
authority.27
Exchange has prepared summaries, set
Elizabeth M. Murphy,
forth in sections A, B, and C below, of
Secretary.
the most significant aspects of such
[FR Doc. E9–10446 Filed 5–5–09; 8:45 am]
statements.
BILLING CODE 8010–01–P
24 15
VerDate Nov<24>2008
Comments may be submitted by any of
the following methods:
1 15
27 17
Jkt 217001
21037
PO 00000
CFR 200.30–3(a)(12).
Frm 00139
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2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
E:\FR\FM\06MYN1.SGM
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Federal Register / Vol. 74, No. 86 / Wednesday, May 6, 2009 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
mstockstill on PROD1PC66 with NOTICES
1. Purpose
The purpose of the proposed rule
change is to make minor adjustments to
the quoting requirements for Streaming
Quote Traders (‘‘SQTs’’), Remote
Streaming Quote Traders (‘‘RSQTs’’)
and specialists contained in Exchange
Rule 1014.3 Currently, Rule 1014
requires an SQT and an RSQT (other
than a DSQT or a DRSQT) to quote
continuous, two-sided markets in not
less than 60% of the series in each
option in which such SQT or RSQT is
assigned. The same rule requires a
DSQT and a DRSQT on any given day
to quote continuous, two-sided markets
in not less than 99% of the series listed
on the Exchange in at least 60% of the
options in which such DSQT or DRSQT
is assigned. Moreover, whenever on a
given trading day a DSQT or DRSQT
enters a quotation in an option in which
such DSQT or DRSQT is assigned, the
DSQT or DRSQT must maintain
continuous quotations for not less than
99% of the series of the option listed on
the Exchange until the close of that
trading day. Finally, Rule 1014 requires
each specialist to quote continuous,
two-sided markets in not less than 99%
of the series in each option in which
such specialist is assigned.
Currently, any of the ‘‘continuous’’
quoting requirements referenced above
may be deemed unsatisfied whenever
there is an interruption in quoting
during the trading day, no matter how
brief in duration. The Exchange is,
therefore, proposing to replace the
continuous quoting requirement with a
reference to the portion of the trading
day when a quote must be available.
Specifically, a market participant that is
currently subject to any of the abovedescribed continuous quoting
obligations would, instead, be required
to maintain a two-sided quote in a series
for a total time equal to at least 90% (or
higher, if so announced by the Exchange
in advance) of the duration of the
trading day. For example, on a normal
trading day, which lasts 390 minutes
(from 9:30 a.m. to 4 p.m.), quoting in a
series would need to be maintained for
3 The terms SQTs and RSQTs are defined in Rule
1014(b)(ii)(A) and (B) and generally connote
participants who have received permission from the
Exchange to trade in options for their own accounts
and to generate and submit option quotations
electronically. The terms Directed SQTs (‘‘DSQTs’’)
and Directed RSQTs (‘‘DRSQTs’’) are defined in
Rule 1080(l)(i)(c) and refer to SQTs and RSQTs that
receive certain customer orders (known as
‘‘Directed Orders’’) that have been directed
specifically to them.
VerDate Nov<24>2008
18:36 May 05, 2009
Jkt 217001
the total of at least 351 minutes in order
to meet the 90%-of-the-trading-day
threshold.
In a shortened trading session, the
total number of minutes the quote must
be maintained would be lowered
proportionately (and the same
percentage threshold would apply). If a
technical failure or limitation of a
system of the Exchange prevents a
participant from maintaining, or
prevents a participant from
communicating to the Exchange, timely
and accurate quotes, the duration of
such failure or limitation would also not
be included in any of the calculations
with respect to the affected quotes. The
Exchange would have the ability to
consider other exceptions to the quoting
requirements based on demonstrated
legal or regulatory requirements or other
mitigating circumstances.4
Under the proposal, the Exchange
would also have the discretion to set the
threshold above 90% by publishing an
appropriate advance announcement,
which would then be available on the
Exchange’s Web site. In the illustration
above, if the Exchange set the threshold,
for example, at 99% (rather than 90%),
then on a normal trading day, quoting
would need to be maintained for 386
(rather than 351) minutes out of the total
of 390 minutes.
The Exchange is also proposing to
make a minor adjustment to the 99%-ofthe-series provisions. As explained
above, on a given trading day, each
DSQT and DRSQT is required to
maintain two-sided quotations for at
least 99% of the listed series: (a) in at
least 60% of its total option
assignments, and (b) in any assignment
after entering a quotation in it. A
specialist must maintain quotes in at
least 99% of the series in each of its
option assignments. The proposed
adjustment would replace the 99%
requirement in all of these instances
with the lesser of two alternatives: 99%
of the series, or 100% minus a single
call-and-put ‘‘pair.’’ The eligible pair in
this case would consist of two
individual options, one call and one
put, which cover the same underlying
instrument and have the same
expiration date and exercise price.
Failure to maintain a qualifying (90% of
the trading day or higher, as discussed
above) quote in just one call, one put,
4 Another exchange recently modified its rules to
set its market makers’ quoting obligation at 90% of
the time that the exchange is open for business.
That exchange also provided for similar automatic
exceptions for technical failures and discretionary
exceptions based on demonstrated legal or
regulatory requirements or other mitigating
circumstances. Securities Exchange Act Release No.
57186 (Jan. 22, 2008), 73 FR 4931 (Jan. 28, 2008)
(approving SR–NYSEArca–2007–121).
PO 00000
Frm 00140
Fmt 4703
Sfmt 4703
or in one call and one ‘‘paired’’ put,
would not by itself (assuming all other
series of a given option are being quoted
as required) constitute a violation of the
99%-of-the-series requirement. The
purpose of this particular modification
is to make the rules more flexible with
respect to those assignments that
contain relatively fewer series and to
avoid situations when failure to quote
90% of the trading day in merely one
individual option or one pair breaches
the 99% requirement.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 5 in general, and furthers the
objectives of Section 6(b)(5) of the Act 6
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
removing unnecessary rigidity from the
existing quotation requirements,
reducing the associated burdens on the
affected market participants, and
ultimately making the Exchange more
competitive.
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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(a) By order approve such proposed
rule change, or
(b) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
5 15
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
E:\FR\FM\06MYN1.SGM
06MYN1
Federal Register / Vol. 74, No. 86 / Wednesday, May 6, 2009 / Notices
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–10447 Filed 5–5–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–2009–37 on the
subject line.
Paper Comments
[Release No. 34–59845; File No. SR–OCC–
2009–08]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Order Granting
Accelerated Approval of Proposed
Rule Change Relating to Stock as
Margin
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
April 29, 2009.
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–
2009–37 and should be submitted on or
before May 27, 2009.
In its filing with the Commission,
OCC 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. OCC has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
mstockstill on PROD1PC66 with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934,1 notice
is hereby given that on April 14, 2009,
The Options Clearing Corporation
(‘‘OCC’’) filed with the Securities and
Exchange Commission the proposed
All submissions should refer to File
rule change as described in Items I, II
Number SR–Phlx–2009–37. This file
and III below, which Items have been
number should be included on the
subject line if e-mail is used. To help the prepared primarily by OCC. The
Commission is publishing this notice to
Commission process and review your
solicit comments on the proposed rule
comments more efficiently, please use
only one method. The Commission will change from interested persons and to
post all comments on the Commission’s grant accelerated approval of the
proposed rule change.
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
I. Self-Regulatory Organization’s
submission, all subsequent
Statement of the Terms of the Substance
amendments, all written statements
of the Proposed Rule Change
with respect to the proposed rule
The proposed rule change will revise
change that are filed with the
OCC’s eligibility requirements for the
Commission, and all written
deposit of stocks as margin.
communications relating to the
II. Self-Regulatory Organization’s
proposed rule change between the
Commission and any person, other than Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
those that may be withheld from the
Change
public in accordance with the
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
OCC is proposing to amend its rules
to facilitate the deposit of common
7 17
1 15
VerDate Nov<24>2008
18:36 May 05, 2009
Jkt 217001
PO 00000
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
Frm 00141
Fmt 4703
Sfmt 4703
21039
stocks as margin collateral by: (1)
Reducing the minimum price for stocks
from $10 to $3 and (2) eliminating the
10% concentration test for certain
Exchange-Traded Funds (‘‘ETFs’’).
1. Minimum Price Test
Prior to this rule change, OCC Rule
604(b)(4) required that all stocks
(‘‘Valued Securities’’) including
common and preferred stocks,
submitted as margin collateral had to
have a market value greater than $10 per
share. The dramatic fall in equity prices
over the last several months has led to
a significant increase in the number of
stocks that are priced below $10.
Approximately one year ago, eleven
stocks in the S&P 500 were priced below
$10. As of April 13, 2009, sixty-six
stocks were priced below $10. Although
OCC’s $10 minimum price requirement
for stock collateral was intended to
exclude stocks that might be volatile,
illiquid, close to delisting, etc., it did so
at the expense of excluding many stocks
that if looked at individually would be
deemed appropriate for margin
collateral purposes.
Under this filing, OCC will reduce the
minimum market value for stocks from
$10 to $3. OCC has performed an
analysis of the impact of reducing the
minimum share price for common stock
and has concluded that such a change
can be implemented for both option and
non-option securities without materially
increasing risk to OCC. OCC states that
its approach to valuing Valued
Securities is conservative because the
current 30% haircut is high relative to
the haircuts that will be applied upon
implementation of its Collateral in
Margins project.2 Moreover, OCC has
examined the member accounts that
hold the most volatile Valued Securities
and found no instance where the
amount of such holdings in any
particular account was excessive. OCC
nevertheless intends to closely monitor
any account with a large amount of
2 Securities Exchange Act Release No. 58158 (July
15, 2008), 73 FR 42646 (July 15, 2008). Under the
Collateral in Margins filing, OCC will be updating
its margin requirement methodology and risk
management system known as ‘‘STANS’’ to more
accurately measure the risk in clearing members’
accounts. Some of the changes include providing
OCC with greater flexibility to determine the
amount of replacement collateral when securities
deposited as margin are withdrawn and eliminating
certain concentration limits and minimum share
prices.
OCC expects to fully implement the new
Collateral in Margins methodology in the second
quarter of 2010. In order to address current market
conditions, OCC is proposing changes now to
reduce the impact of the minimum price
requirement and the 10% concentration test, both
of which will be eliminated altogether for options
securities when Collateral in Margins is
implemented.
E:\FR\FM\06MYN1.SGM
06MYN1
]]>Agencies
[Federal Register Volume 74, Number 86 (Wednesday, May 6, 2009)]
[Notices]
[Pages 21037-21039]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-10447]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59842; File No. SR-Phlx-2009-37]
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of
Filing of Proposed Rule Change Relating to Quoting Requirements for
Streaming Quote Traders, Remote Streaming Quote Traders and Specialists
April 29, 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 April 21, 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, II, and III 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 make specified technical adjustments to
the quoting requirements for streaming quote traders, remote streaming
quote traders and specialists contained in Exchange Rule 1014.
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaqomxphlx.cchwallstreet.com/NASDAQOMXPHLX/Filings/, 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.
[[Page 21038]]
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 make minor
adjustments to the quoting requirements for Streaming Quote Traders
(``SQTs''), Remote Streaming Quote Traders (``RSQTs'') and specialists
contained in Exchange Rule 1014.\3\ Currently, Rule 1014 requires an
SQT and an RSQT (other than a DSQT or a DRSQT) to quote continuous,
two-sided markets in not less than 60% of the series in each option in
which such SQT or RSQT is assigned. The same rule requires a DSQT and a
DRSQT on any given day to quote continuous, two-sided markets in not
less than 99% of the series listed on the Exchange in at least 60% of
the options in which such DSQT or DRSQT is assigned. Moreover, whenever
on a given trading day a DSQT or DRSQT enters a quotation in an option
in which such DSQT or DRSQT is assigned, the DSQT or DRSQT must
maintain continuous quotations for not less than 99% of the series of
the option listed on the Exchange until the close of that trading day.
Finally, Rule 1014 requires each specialist to quote continuous, two-
sided markets in not less than 99% of the series in each option in
which such specialist is assigned.
---------------------------------------------------------------------------
\3\ The terms SQTs and RSQTs are defined in Rule 1014(b)(ii)(A)
and (B) and generally connote participants who have received
permission from the Exchange to trade in options for their own
accounts and to generate and submit option quotations
electronically. The terms Directed SQTs (``DSQTs'') and Directed
RSQTs (``DRSQTs'') are defined in Rule 1080(l)(i)(c) and refer to
SQTs and RSQTs that receive certain customer orders (known as
``Directed Orders'') that have been directed specifically to them.
---------------------------------------------------------------------------
Currently, any of the ``continuous'' quoting requirements
referenced above may be deemed unsatisfied whenever there is an
interruption in quoting during the trading day, no matter how brief in
duration. The Exchange is, therefore, proposing to replace the
continuous quoting requirement with a reference to the portion of the
trading day when a quote must be available. Specifically, a market
participant that is currently subject to any of the above-described
continuous quoting obligations would, instead, be required to maintain
a two-sided quote in a series for a total time equal to at least 90%
(or higher, if so announced by the Exchange in advance) of the duration
of the trading day. For example, on a normal trading day, which lasts
390 minutes (from 9:30 a.m. to 4 p.m.), quoting in a series would need
to be maintained for the total of at least 351 minutes in order to meet
the 90%-of-the-trading-day threshold.
In a shortened trading session, the total number of minutes the
quote must be maintained would be lowered proportionately (and the same
percentage threshold would apply). If a technical failure or limitation
of a system of the Exchange prevents a participant from maintaining, or
prevents a participant from communicating to the Exchange, timely and
accurate quotes, the duration of such failure or limitation would also
not be included in any of the calculations with respect to the affected
quotes. The Exchange would have the ability to consider other
exceptions to the quoting requirements based on demonstrated legal or
regulatory requirements or other mitigating circumstances.\4\
---------------------------------------------------------------------------
\4\ Another exchange recently modified its rules to set its
market makers' quoting obligation at 90% of the time that the
exchange is open for business. That exchange also provided for
similar automatic exceptions for technical failures and
discretionary exceptions based on demonstrated legal or regulatory
requirements or other mitigating circumstances. Securities Exchange
Act Release No. 57186 (Jan. 22, 2008), 73 FR 4931 (Jan. 28, 2008)
(approving SR-NYSEArca-2007-121).
---------------------------------------------------------------------------
Under the proposal, the Exchange would also have the discretion to
set the threshold above 90% by publishing an appropriate advance
announcement, which would then be available on the Exchange's Web site.
In the illustration above, if the Exchange set the threshold, for
example, at 99% (rather than 90%), then on a normal trading day,
quoting would need to be maintained for 386 (rather than 351) minutes
out of the total of 390 minutes.
The Exchange is also proposing to make a minor adjustment to the
99%-of-the-series provisions. As explained above, on a given trading
day, each DSQT and DRSQT is required to maintain two-sided quotations
for at least 99% of the listed series: (a) in at least 60% of its total
option assignments, and (b) in any assignment after entering a
quotation in it. A specialist must maintain quotes in at least 99% of
the series in each of its option assignments. The proposed adjustment
would replace the 99% requirement in all of these instances with the
lesser of two alternatives: 99% of the series, or 100% minus a single
call-and-put ``pair.'' The eligible pair in this case would consist of
two individual options, one call and one put, which cover the same
underlying instrument and have the same expiration date and exercise
price. Failure to maintain a qualifying (90% of the trading day or
higher, as discussed above) quote in just one call, one put, or in one
call and one ``paired'' put, would not by itself (assuming all other
series of a given option are being quoted as required) constitute a
violation of the 99%-of-the-series requirement. The purpose of this
particular modification is to make the rules more flexible with respect
to those assignments that contain relatively fewer series and to avoid
situations when failure to quote 90% of the trading day in merely one
individual option or one pair breaches the 99% requirement.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \5\ in general, and furthers the objectives of Section
6(b)(5) of the Act \6\ 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 removing unnecessary rigidity from the existing quotation
requirements, reducing the associated burdens on the affected market
participants, and ultimately making the Exchange more competitive.
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\5\ 15 U.S.C. 78f(b).
\6\ 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 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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(a) By order approve such proposed rule change, or
(b) Institute proceedings to determine whether the proposed rule
change should be disapproved.
[[Page 21039]]
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-2009-37 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-2009-37. 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-2009-37 and should be submitted on or before May 27, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
Elizabeth M. Murphy,
Secretary.
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\7\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-10447 Filed 5-5-09; 8:45 am]
BILLING CODE 8010-01-P
