Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Order Granting Approval of Proposed Rule Change Relating to Quoting Requirements for Streaming Quote Traders, Remote Streaming Quote Traders and Specialists, 28745 [E9-14169]

Download as PDF Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Notices proposed rule change (SR–FINRA– 2009–023) be, and hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–14148 Filed 6–16–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60084; File No. SR–Phlx2009–37] Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Order Granting Approval of Proposed Rule Change Relating to Quoting Requirements for Streaming Quote Traders, Remote Streaming Quote Traders and Specialists dwashington3 on PROD1PC60 with NOTICES June 10, 2009. On April 21, 2009, NASDAQ OMX PHLX, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to modify the quoting requirements for Streaming Quote Traders (‘‘SQTs’’), Remote Streaming Quote Traders (‘‘RSQTs’’), and specialists. The proposed rule change was published for comment in the Federal Register on May 6, 2009.3 The Commission received no comments on the proposed rule change. This order approves the proposed rule change. The Exchange proposes to replace its continuous quoting requirement for SQTs, RSQTs, and specialists 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 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. 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 not be included in any of the calculations with respect to the affected quotes. The 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 59842 (April 29, 2009), 74 FR 21037. 1 15 VerDate Nov<24>2008 15:33 Jun 16, 2009 Jkt 217001 Exchange would have the ability to consider other exceptions to the quoting requirements based on demonstrated legal or regulatory requirements or other mitigating circumstances. The Exchange also proposes to modify the requirement applicable to Directed SQTs (‘‘DSQTs’’), Directed RSQTs (‘‘DRSQTs’’), and specialists to quote 99% of their assigned series. Specifically, the Exchange proposes to 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. The Commission notes that the Exchange’s proposal would make minor adjustments to the quoting requirements of SQTs, RSQTs, DSQTs, DRSQTs, and specialists. 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 exchange.4 In particular, the Commission believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,5 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. In addition, the Commission notes that it has approved similar quoting requirements applicable to market makers on other options exchanges.6 It is therefore ordered, pursuant to Section 19(b)(2) of the Act,7 that the proposed rule change (SR–Phlx–2009– 37) be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–14169 Filed 6–16–09; 8:45 am] BILLING CODE 8010–01–P 4 In approving this rule, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 5 15 U.S.C. 78f(b)(5). 6 See, e.g., Securities Exchange Act Release Nos. 57109 (January 7, 2008), 73 FR 2295 (January 14, 2008) (SR–CBOE–2007–134); and 57186 (January 22, 2008), 73 FR 4931 (January 28, 2008) (SR– NYSEArca-2007–121). 7 15 U.S.C. 78s(b)(2). 8 17 CFR 200.30–3(a)(12). PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 28745 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60096; File No. SR–DTC– 2009–10] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish the Web Inquiry Notification System June 11, 2009. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on May 22, 2009, The Depository Trust Company (‘‘DTC’’) 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 primarily by DTC. DTC filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 2 and Rule 19b–4(f)(4) thereunder 3 so that the proposal was effective upon filing with the Commission. 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 proposed rule change will replace DTC’ Participant Inquiry Notification System (‘‘PINS’’) with a new Web Inquiry Notification System (‘‘WINS’’) as a means for participants and DTC to communicate with each other about records pertaining to various services such as dividends, corporate reorganizations, custody services, and securities processing. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, DTC 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. DTC has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. 1 15 U.S.C. 78s(b)(1). U.S.C. 78s(b)(3)(A)(iii). 3 17 CFR 240.19b–4(f)4). 2 15 E:\FR\FM\17JNN1.SGM 17JNN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 74, Number 115 (Wednesday, June 17, 2009)]
[Notices]
[Page 28745]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-14169]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60084; File No. SR-Phlx-2009-37]


Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Order 
Granting Approval of Proposed Rule Change Relating to Quoting 
Requirements for Streaming Quote Traders, Remote Streaming Quote 
Traders and Specialists

June 10, 2009.
    On April 21, 2009, NASDAQ OMX PHLX, Inc. (``Phlx'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
modify the quoting requirements for Streaming Quote Traders (``SQTs''), 
Remote Streaming Quote Traders (``RSQTs''), and specialists. The 
proposed rule change was published for comment in the Federal Register 
on May 6, 2009.\3\ The Commission received no comments on the proposed 
rule change. This order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 59842 (April 29, 
2009), 74 FR 21037.
---------------------------------------------------------------------------

    The Exchange proposes to replace its continuous quoting requirement 
for SQTs, RSQTs, and specialists 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 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. 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 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.
    The Exchange also proposes to modify the requirement applicable to 
Directed SQTs (``DSQTs''), Directed RSQTs (``DRSQTs''), and specialists 
to quote 99% of their assigned series. Specifically, the Exchange 
proposes to 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.
    The Commission notes that the Exchange's proposal would make minor 
adjustments to the quoting requirements of SQTs, RSQTs, DSQTs, DRSQTs, 
and specialists. 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 
exchange.\4\ In particular, the Commission believes that the proposed 
rule change is consistent with Section 6(b)(5) of the Act,\5\ 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. In addition, the Commission notes 
that it has approved similar quoting requirements applicable to market 
makers on other options exchanges.\6\
---------------------------------------------------------------------------

    \4\ In approving this rule, the Commission notes that it has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ See, e.g., Securities Exchange Act Release Nos. 57109 
(January 7, 2008), 73 FR 2295 (January 14, 2008) (SR-CBOE-2007-134); 
and 57186 (January 22, 2008), 73 FR 4931 (January 28, 2008) (SR-
NYSEArca-2007-121).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-Phlx-2009-37) be, and it 
hereby is, approved.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-14169 Filed 6-16-09; 8:45 am]
BILLING CODE 8010-01-P

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.