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, 32989-32990 [E9-16178]
Download as PDF
<![CDATA[
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
rmajette on DSK29S0YB1 with NOTICES
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
E:\FR\FM\09JYN1.SGM
09JYN1
32990
Federal Register / Vol. 74, No. 130 / Thursday, July 9, 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
Number SR–Phlx–2009–53 and should
be submitted on or before July 30, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–16178 Filed 7–8–09; 8:45 am]
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:
BILLING CODE 8010–01–P
Electronic Comments
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Rule 960NY–
Trading Differentials
rmajette on DSK29S0YB1 with NOTICES
• 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–2009–53 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60225; File No. SR–
NYSEAmex–2009–35]
July 1, 2009.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’),2 and Rule 19b–4 thereunder,3
Paper Comments
notice is hereby given that on June 29,
• Send paper comments in triplicate
2009, NYSE Amex LLC (‘‘NYSE Amex’’
to Elizabeth M. Murphy, Secretary,
or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission,
Securities and Exchange Commission
100 F Street, NE., Washington, DC
(‘‘Commission’’) the proposed rule
20549–1090.
change as described in Items I and II
below, which Items have been prepared
All submissions should refer to File
by the self-regulatory organization. The
Number SR–Phlx–2009–53. This file
Commission is publishing this notice to
number should be included on the
subject line if e-mail is used. To help the solicit comments on the proposed rule
change from interested persons.
Commission process and review your
comments more efficiently, please use
I. Self-Regulatory Organization’s
only one method. The Commission will Statement of the Terms of Substance of
post all comments on the Commission’s the Proposed Rule Change
Internet Web site (https://www.sec.gov/
The Exchange proposes to amend its
rules/sro.shtml). Copies of the
option trading rules in order to extend
submission, all subsequent
the Penny Pilot in options classes in
amendments, all written statements
certain issues (‘‘Pilot Program’’)
with respect to the proposed rule
previously approved by the Securities
change that are filed with the
and Exchange Commission
Commission, and all written
(‘‘Commission’’) through October 31,
communications relating to the
2009. The text of the proposed rule
proposed rule change between the
Commission and any person, other than change is attached as Exhibit 5 to the
19b–4 form. A copy of this filing is
those that may be withheld from the
available on the Exchange’s Web site at
public in accordance with the
https://www.nyse.com, at the Exchange’s
provisions of 5 U.S.C. 552, will be
principal office and at the Commission’s
available for inspection and copying in
Public Reference Room.
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
II. Self-Regulatory Organization’s
DC 20549, on official business days
Statement of the Purpose of, and
between the hours of 10 a.m. and 3 p.m. Statutory Basis for, the Proposed Rule
Copies of such filing also will be
Change
available for inspection and copying at
In its filing with the Commission, the
the principal office of the Exchange. All
self-regulatory organization included
comments received will be posted
statements concerning the purpose of,
without change; the Commission does
and basis for, the proposed rule change
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
VerDate Nov<24>2008
15:49 Jul 08, 2009
Jkt 217001
PO 00000
12 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
Frm 00115
Fmt 4703
Sfmt 4703
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 Exchange hereby proposes to
extend the time period of the Pilot
Program 4 which is currently scheduled
to expire on July 3, 2009 through
October 31, 2009. This filing does not
propose any substantive changes to the
Pilot Program: All classes currently
participating will remain the same and
all minimum increments will remain
unchanged. The Exchange believes the
benefits to public customers and other
market participants who will be able to
express their true prices to buy and sell
options have been demonstrated to
outweigh the increase in quote traffic.
The Exchange agrees to submit a
report to the Commission that includes
data and written analysis of information
collected from May 1, 2009 through
August 31, 2009 which will be
submitted by the close of September
2009. The report will analyze the impact
of the Pilot Program on market quality
and options systems capacity. This
report will include, but is not limited to:
(1) Data and written analysis on the
number of quotations generated for
options selected for the Pilot Program;
(2) an assessment of the quotation
spreads for the options selected for the
Pilot Program; (3) an assessment of the
impact of the Pilot Program on the
capacity of the NYSE Amex’s automated
systems; (4) any capacity problems or
other problems that arose related to the
operation of the Pilot Program and how
the Exchange addressed them; and (5)
an assessment of trade through
complaints that were sent by the
Exchange during the operation of the
Pilot Program and how they were
addressed.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 5 of the
Securities Exchange Act of 1934 (the
‘‘Act’’), in general, and furthers the
4 See Securities Exchange Act Release No. 34–
55162 (January 24, 2007), 72 FR 4738 (February 1,
2007); Securities Exchange Act Release No. 34–
56567 (September 27, 2007), 72 FR 56396 (October
7, 2007).
5 15 U.S.C. 78f(b).
E:\FR\FM\09JYN1.SGM
09JYN1
]]>Agencies
[Federal Register Volume 74, Number 130 (Thursday, July 9, 2009)]
[Notices]
[Pages 32989-32990]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-16178]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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 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 plan is scheduled to expire July 31,
2009.\6\
---------------------------------------------------------------------------
\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 (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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the
[[Page 32990]]
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-2009-53 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-2009-53. 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 such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-2009-53 and should be
submitted on or before July 30, 2009.
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-16178 Filed 7-8-09; 8:45 am]
BILLING CODE 8010-01-P
