Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Cancellation Fee, 32987-32989 [E9-16172]
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Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices
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BILLING CODE 7710–12– P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60188; File No. SR–Phlx–
2009–48]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to the
Cancellation Fee
June 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 June 19,
2009, NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Board Votes To Close July 15, 2009,
Meeting
VerDate Nov<24>2008
CONTACT PERSON FOR MORE INFORMATION:
The Exchange proposes to aggregate
options orders within a specified time
period for the purpose of assessing the
Cancellation Fee. In addition, the
Exchange purposes several technical
amendments to delete obsolete language
and further clarify the Fee Schedule.
While changes to the Exchange’s fee
schedule pursuant to this proposal are
effective upon filing, the Exchange has
designated this proposal to be effective
on July 1, 2009.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nasdaqtrader.com/
micro.aspx?id=PHLXRulefilings, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
PO 00000
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00112
Fmt 4703
32987
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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to amend the manner in
which the Cancellation Fee is assessed
on members. In order to calculate the
Cancellation Fee, the Exchange
proposes to aggregate and count as one
executed customer 3 option order all
customer orders from the same member
organization that are executed in the
same series on the same side of the
market at the same price within a 300
second period. The Exchange believes
the level of cancelled orders remains
high. Some customers are seeking to
avoid the fee by executing large
quantities of small orders in out-of-themoney options to offset their
cancellation activity in more actively
traded options. The Exchange believes
this modification to the calculation of
the Cancellation Fee is necessary for the
Exchange to recover costs associated
with system congestion.
Currently, the Exchange assesses a
Cancellation Fee of $ 2.10 per order on
member organizations for each
cancelled electronically 4 delivered
3 See e.g., Exchange Rule 1080(b)(i)(A) which
defines customer order as [sic] ‘‘* * * is any order
entered on behalf of a public customer, and does
not include any order entered for the account of a
broker-dealer, or any account in which a brokerdealer or an associated person of a broker-dealer has
any direct or indirect interest.’’
4 The Exchange previously referred to the
electronic order delivery, routing, execution and
reporting system as AUTOM. This system provided
for the automatic entry and routing of equity option
and index option orders to the Exchange trading
floor. See Exchange Rule 1080. The Exchange filed
a rule change which replaced the terms AUTOM
and AUTO–X with the Phlx XL System, such that
references to both terms refer to Phlx XL. See
Securities Exchange Act Release No. 59995 (May
28, 2009), 74 FR 26750 (June 3, 2009) (SR–Phlx–
2009–32). Therefore, in light of the rule change
references to AUTOM have been replaced with the
Continued
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32988
Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices
rmajette on DSK29S0YB1 with NOTICES
customer order in excess of the number
of customer orders executed on the
Exchange by that member organization
in a given month. The Exchange
calculates the Cancellation Fee by
aggregating all customer orders and
cancels received by the Exchange and
totaling those orders by member
organization. At least 500 customer
cancellations must be made in a given
month by a member organization in
order for a member organization to be
assessed the Cancellation Fee. The
Cancellation Fee is not assessed in a
month in which fewer than 500
electronically delivered customer orders
are cancelled. Simple cancels and
cancel-replacement orders are the types
of orders that are counted when
calculating the number of electronically
delivered orders.5 The following order
activity is exempt from the Cancellation
Fee: (i) Pre-market cancellations; 6 (ii)
Complex Orders 7 that are submitted
electronically; (iii) unfilled Immediateor-Cancel 8 customer orders; and (iv)
cancelled customer orders that
improved the Exchange’s prevailing bid
or offer (PBBO) market at the time the
customer orders were received by the
Exchange.
Additionally, the Exchange proposes
to amend the Fee Schedule at endnote
5 to replace the current language: ‘‘Firm
Proprietary Options Transaction Charge
applies to firm proprietary orders (‘‘F’’
account type) in all products’’ to state
instead that it applies to ‘‘* * * equity
option products.’’ The language in the
Fee Schedule was amended by a
previous rule change 9 and was
inadvertently omitted from the
corresponding endnote. The Exchange
also proposes to make a technical
words electronically delivered in describing the
Cancellation Fee.
5 A cancel-replacement order is a contingency
order consisting of two or more parts which require
the immediate cancellation of a previously received
order prior to the replacement of a new order with
new terms and conditions. If the previously placed
order is already filled partially or in its entirety the
replacement order is automatically canceled or
reduced by such number. See Exchange Rule
1066(c)(7).
6 See Securities Exchange Act Release Nos. 53226
(February 3, 2006), 71 FR 7602 (February 13,
2006)(SR–Phlx–2005–92); and 53670 (April 18,
2006), 71 FR 21087 (April 24, 2006) (SR–Phlx–
2006–21). See also Securities Exchange Act Release
No. 60046 (June 4, 2009), 74 FR 28083 (June 12,
2009) (SR–Phlx–2009–44).
7 A Complex Order is composed of two or more
option components and is priced as a single order
(a ‘‘Complex Order Strategy’’) on a net debit or net
credit basis.
8 An Immediate-or-Cancel (IOC) order is a limit
order that is to be executed in whole or in part upon
receipt. Any portion not so executed shall be
cancelled.
9 See Securities Exchange Act Release No. 59545
(March 9, 2009); 74 FR 11158 (March 16, 2009) (SR–
Phlx–2009–20).
VerDate Nov<24>2008
15:49 Jul 08, 2009
Jkt 217001
amendment to the Fee Schedule to
replace all references to AUTOM with
the words ‘‘electronically delivered.’’ As
previously stated herein, the Exchange
has modified Rule 1080 to replace the
terms AUTOM and AUTO–X with the
Phlx XL System, such that references to
both terms refer to Phlx XL. Therefore,
in light of the rule change the Exchange
proposes to replace references to
AUTOM with the words ‘‘electronically
delivered’’ to correspond with Exchange
Rule 1080.
2. Statutory Basis
The Exchange believes that its
proposal to amend its schedule of fees
is consistent with Section 6(b) of the
Act 10 in general, and furthers the
objectives of Section 6(b)(4) of the Act 11
in particular, in that it is an equitable
allocation of reasonable fees and other
charges among Exchange members. The
Exchange believes that the proposed
amendments to the Cancellation Fee
will continue to fairly allocate costs
among members according to system
use as well as ease system congestion.
Additionally, the proposed technical
amendments will clarify the Fee
Schedule.
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
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 12 and
paragraph (f)(2) of Rule 19b–4 13
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.
PO 00000
10 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
12 15 U.S.C. 78s(b)(3)(A)(ii).
13 17 CFR 240.19b–4(f)(2).
11 15
Frm 00113
Fmt 4703
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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 rulecomments@sec.gov. Please include File
Number SR–Phlx–2009–48 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–2009–48. 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, 100 F Street, NE., Washington,
DC 20549, 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–2009–48 and should
be submitted on or before July 30, 2009.
E:\FR\FM\09JYN1.SGM
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Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–16172 Filed 7–8–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60210; File No. SR–Phlx–
2009–53]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to the
Extension of a Pilot Program Relating
to Fees Applicable to ‘‘P’’ and ‘‘P/A’’
Orders
July 1, 2009.
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 June 29,
2009, NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend for
a one-year period until July 31, 2010, a
pilot program relating to transaction fees
applicable to the execution of Principal
Acting as Agent Orders (‘‘P/A Orders’’) 3
and Principal Orders (‘‘P Orders’’) 4 sent
to the Exchange via the Intermarket
Option Linkage (‘‘Linkage’’) under the
Plan for the Purpose of Creating and
Operating an Intermarket Option
Linkage (the ‘‘Plan’’).5 The current pilot
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 A P/A order is an order for the principal account
of a specialist (or equivalent entity on another
participant exchange that is authorized to represent
public customer orders), reflecting the terms of a
related unexecuted Public Customer order for
which the specialist is acting as agent. See
Exchange Rule 1083(k)(i).
4 A Principal Order is an order for the principal
account of an Eligible Market Maker and is not a
P/A Order. See Exchange Rule 1083(k)(ii).
5 See Securities Exchange Act Release Nos. 44482
(July [sic] 27, 2001), 66 FR 35470 (July 5, 2001)
(Amendment to Plan to Conform to the
Requirements of Securities Exchange Act Rule
11Acl–7); 43573 (November 16, 2000), 65 FR 70851
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1 15
VerDate Nov<24>2008
15:49 Jul 08, 2009
Jkt 217001
plan is scheduled to expire July 31,
2009.6
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 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 parts 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 extend the current pilot
program for one year, through July 31,
2010. No substantive changes are being
made to the pilot as it currently operates
other than to extend the pilot through
July 31, 2010.
Currently, the Exchange charges $0.45
per option contract for P Orders sent to
the Exchange and $0.30 per option
contract for P/A Orders.7
By extending the current pilot
program, the Exchange should remain
competitive with other exchanges that
charge fees for P Orders and P/A Orders.
Consistent with current practice, the
Exchange will charge the clearing
member organization of the sender of P
Orders and P/A Orders. Also, consistent
with current practice, the Exchange will
not charge for the execution of
(November 28, 2000) (Notice [sic] of Phlx Joining
the Plan); and 43086 (July 28, 2000), 65 FR 48023
(August 4, 2000) (Approval of the Plan).
6 See Securities Exchange Act Release No. 58144
(July 11, 2008), 73 FR 41394 (July 18, 2008) (SR–
Phlx–2008–49).
7 In May 2009, the Exchange increased its
transaction fees for P/A Orders from $0.15 per
option contract to $0.30 per option contract, and for
P Orders from $0.25 per option contract to $0.45 per
contract. The fee increase was made part of the
current pilot program, which is scheduled to expire
July 31, 2009. See Securities Exchange Act Release
No. 59891 (May 8, 2009), 74 FR 22990 (May 15,
2009) (SR–Phlx–2009–24).
PO 00000
Frm 00114
Fmt 4703
Sfmt 4703
32989
Satisfaction Orders sent through
Linkage.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) of the Act,8 in general, and furthers
the objectives of Section 6(b)(4) 9 of the
Act in particular, in that it is designed
to provide for the equitable allocation of
reasonable dues, fees, and other charges
among Exchange members and other
persons using its facilities. The
Exchange believes that its proposal to
extend the pilot program relating to
transaction fees for Linkage P and P/A
Orders provides for the equitable
allocation of reasonable dues, fees, and
other charges among its members by
charging the same fees to all such
members using the Exchange’s facilities
for transaction services relating to
Linkage P Orders, and by charging the
same fees to all such members using the
Exchange’s facilities for transaction
services relating to Linkage P/A Orders.
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
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change: (i) Does not significantly affect
the protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) by its terms, does not become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, if
consistent with the protection of
investors and the public interest, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 10 and Rule
19b–4(f)(6) thereunder.11
At any time within 60 days of the
filing of the proposed rule change, the
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the self-regulatory organization
to 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 this requirement.
9 15
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]]>Agencies
[Federal Register Volume 74, Number 130 (Thursday, July 9, 2009)]
[Notices]
[Pages 32987-32989]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-16172]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60188; File No. SR-Phlx-2009-48]
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
the Cancellation Fee
June 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 June 19, 2009, NASDAQ OMX PHLX, Inc. (``Phlx'' or ``Exchange'')
filed with the Securities and Exchange Commission (``SEC'' or
``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 aggregate options orders within a
specified time period for the purpose of assessing the Cancellation
Fee. In addition, the Exchange purposes several technical amendments to
delete obsolete language and further clarify the Fee Schedule.
While changes to the Exchange's fee schedule pursuant to this
proposal are effective upon filing, the Exchange has designated this
proposal to be effective on July 1, 2009.
The text of the proposed rule change is available on the Exchange's
Web site 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 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to amend the manner in
which the Cancellation Fee is assessed on members. In order to
calculate the Cancellation Fee, the Exchange proposes to aggregate and
count as one executed customer \3\ option order all customer orders
from the same member organization that are executed in the same series
on the same side of the market at the same price within a 300 second
period. The Exchange believes the level of cancelled orders remains
high. Some customers are seeking to avoid the fee by executing large
quantities of small orders in out-of-the-money options to offset their
cancellation activity in more actively traded options. The Exchange
believes this modification to the calculation of the Cancellation Fee
is necessary for the Exchange to recover costs associated with system
congestion.
---------------------------------------------------------------------------
\3\ See e.g., Exchange Rule 1080(b)(i)(A) which defines customer
order as [sic] ``* * * is any order entered on behalf of a public
customer, and does not include any order entered for the account of
a broker-dealer, or any account in which a broker- dealer or an
associated person of a broker-dealer has any direct or indirect
interest.''
---------------------------------------------------------------------------
Currently, the Exchange assesses a Cancellation Fee of $ 2.10 per
order on member organizations for each cancelled electronically \4\
delivered
[[Page 32988]]
customer order in excess of the number of customer orders executed on
the Exchange by that member organization in a given month. The Exchange
calculates the Cancellation Fee by aggregating all customer orders and
cancels received by the Exchange and totaling those orders by member
organization. At least 500 customer cancellations must be made in a
given month by a member organization in order for a member organization
to be assessed the Cancellation Fee. The Cancellation Fee is not
assessed in a month in which fewer than 500 electronically delivered
customer orders are cancelled. Simple cancels and cancel-replacement
orders are the types of orders that are counted when calculating the
number of electronically delivered orders.\5\ The following order
activity is exempt from the Cancellation Fee: (i) Pre-market
cancellations; \6\ (ii) Complex Orders \7\ that are submitted
electronically; (iii) unfilled Immediate-or-Cancel \8\ customer orders;
and (iv) cancelled customer orders that improved the Exchange's
prevailing bid or offer (PBBO) market at the time the customer orders
were received by the Exchange.
---------------------------------------------------------------------------
\4\ The Exchange previously referred to the electronic order
delivery, routing, execution and reporting system as AUTOM. This
system provided for the automatic entry and routing of equity option
and index option orders to the Exchange trading floor. See Exchange
Rule 1080. The Exchange filed a rule change which replaced the terms
AUTOM and AUTO-X with the Phlx XL System, such that references to
both terms refer to Phlx XL. See Securities Exchange Act Release No.
59995 (May 28, 2009), 74 FR 26750 (June 3, 2009) (SR-Phlx-2009-32).
Therefore, in light of the rule change references to AUTOM have been
replaced with the words electronically delivered in describing the
Cancellation Fee.
\5\ A cancel-replacement order is a contingency order consisting
of two or more parts which require the immediate cancellation of a
previously received order prior to the replacement of a new order
with new terms and conditions. If the previously placed order is
already filled partially or in its entirety the replacement order is
automatically canceled or reduced by such number. See Exchange Rule
1066(c)(7).
\6\ See Securities Exchange Act Release Nos. 53226 (February 3,
2006), 71 FR 7602 (February 13, 2006)(SR-Phlx-2005-92); and 53670
(April 18, 2006), 71 FR 21087 (April 24, 2006) (SR-Phlx-2006-21).
See also Securities Exchange Act Release No. 60046 (June 4, 2009),
74 FR 28083 (June 12, 2009) (SR-Phlx-2009-44).
\7\ A Complex Order is composed of two or more option components
and is priced as a single order (a ``Complex Order Strategy'') on a
net debit or net credit basis.
\8\ An Immediate-or-Cancel (IOC) order is a limit order that is
to be executed in whole or in part upon receipt. Any portion not so
executed shall be cancelled.
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Additionally, the Exchange proposes to amend the Fee Schedule at
endnote 5 to replace the current language: ``Firm Proprietary Options
Transaction Charge applies to firm proprietary orders (``F'' account
type) in all products'' to state instead that it applies to ``* * *
equity option products.'' The language in the Fee Schedule was amended
by a previous rule change \9\ and was inadvertently omitted from the
corresponding endnote. The Exchange also proposes to make a technical
amendment to the Fee Schedule to replace all references to AUTOM with
the words ``electronically delivered.'' As previously stated herein,
the Exchange has modified Rule 1080 to replace the terms AUTOM and
AUTO-X with the Phlx XL System, such that references to both terms
refer to Phlx XL. Therefore, in light of the rule change the Exchange
proposes to replace references to AUTOM with the words ``electronically
delivered'' to correspond with Exchange Rule 1080.
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\9\ See Securities Exchange Act Release No. 59545 (March 9,
2009); 74 FR 11158 (March 16, 2009) (SR-Phlx-2009-20).
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2. Statutory Basis
The Exchange believes that its proposal to amend its schedule of
fees is consistent with Section 6(b) of the Act \10\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \11\ in
particular, in that it is an equitable allocation of reasonable fees
and other charges among Exchange members. The Exchange believes that
the proposed amendments to the Cancellation Fee will continue to fairly
allocate costs among members according to system use as well as ease
system congestion. Additionally, the proposed technical amendments will
clarify the Fee Schedule.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4).
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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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \12\ and paragraph (f)(2) of Rule 19b-4 \13\
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.
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\12\ 15 U.S.C. 78s(b)(3)(A)(ii).
\13\ 17 CFR 240.19b-4(f)(2).
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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-2009-48 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-2009-48. 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, 100 F Street, NE.,
Washington, DC 20549, 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-2009-48 and should be
submitted on or before July 30, 2009.
[[Page 32989]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Elizabeth M. Murphy,
Secretary.
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\14\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-16172 Filed 7-8-09; 8:45 am]
BILLING CODE 8010-01-P
