Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Extension of Sponsored Access Pilot Program, 40862-40864 [E9-19407]
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40862
Federal Register / Vol. 74, No. 155 / Thursday, August 13, 2009 / Notices
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSEAmex–2009–54. 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–NYSEAmex–2009–54 and
should be submitted on or before
September 3, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–19375 Filed 8–12–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
erowe on DSK5CLS3C1PROD with NOTICES
[Release No. 34–60456; File No. SR–Phlx–
2009–63]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Relating to
Extension of Sponsored Access Pilot
Program
August 7, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
8 17
CFR 200.30–3(a)(12).
VerDate Nov<24>2008
15:29 Aug 12, 2009
Jkt 217001
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 29,
2009, NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to renew its
sponsored access rule for a pilot period
ending on October 29, 2009. The
program expires on July 29, 2009.3 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
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to attract additional business
by renewing its sponsored access rule,
which is similar to that of other
exchanges. During the previous pilot
program, no member organizations
availed themselves of the program, but
the Exchange seeks to make another
attempt to institute the program, for a
pilot period expiring October 29, 2009.
The Exchange will evaluate whether to
continue the sponsored access program
or not.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Release No. 59362
(February 5, 2009), 74 FR 6931 (February 11, 2009)
(SR–Phlx–2009–10).
2 17
PO 00000
Frm 00056
Fmt 4703
Sfmt 4703
A Sponsored Participant is a nonmember of the Exchange, such as an
institutional investor, that gains access
to the Exchange and trades under a
Sponsoring Member’s execution and
clearing identity pursuant to a
sponsorship arrangement between such
non-member and a member
organization. Specifically, the Exchange
proposes to permit Sponsored
Participants to be sponsored by
Sponsoring Member Organizations, and
thereby access the Exchange, subject to
certain requirements. These
requirements are intended to confirm
that the Sponsored Participant is
required to and had procedures in place
to comply with Exchange rules, and that
the Sponsoring Member Organization
takes responsibility for the Sponsored
Participant’s activity on the Exchange.
First, the Sponsored Participant and
its Sponsoring Member Organization
must have entered into and maintained
an Access Agreement with the
Exchange. The Sponsoring Member
Organization must designate the
Sponsored Participant by name in an
addendum to the Access Agreement.
Second, there must be a Sponsored
Participant Agreement between the
Sponsoring Member Organization and
the Sponsored Participant that contains
the following sponsorship provisions,
enumerated in full in Rule 1094(b)(ii):
(i) The orders of the Sponsored
Participant are binding in all respects on
the Sponsoring Member Organization;
(ii) The Sponsoring Member
Organization is responsible for the
actions of the Sponsored Participant;
(iii) In addition to the Sponsoring
Member Organization being required to
comply with the Exchange Certificate of
Incorporation, By-laws, Rules and
procedures of the Exchange, the
Sponsored Participant shall do so as if
such Sponsored Participant were an
Exchange member organization;
(iv) The Sponsored Participant shall
maintain, keep current and provide to
the Sponsoring Member Organization a
list of individuals authorized to obtain
access to the Exchange on behalf of the
Sponsored Participant;
(v) The Sponsored Participant shall
familiarize its authorized individuals
with all of the Sponsored Participant’s
obligations under this Rule and will
assure that they receive appropriate
training prior to any use or access to the
Exchange;
(vi) The Sponsored Participant may
not permit anyone other than authorized
individuals to use or obtain access to
the Exchange; 4
4 If the Exchange determines that an authorized
individual has caused a Member Organization to
E:\FR\FM\13AUN1.SGM
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Federal Register / Vol. 74, No. 155 / Thursday, August 13, 2009 / Notices
(vii) The Sponsored Participant shall
take reasonable security precautions to
prevent unauthorized use or access to
the Exchange, including unauthorized
entry of information into the Exchange,
and agrees that it is responsible for any
and all orders, trades and other
messages and instructions entered,
transmitted or received under
identifiers, passwords and security
codes of authorized individuals, and for
the trading and other consequences
thereof;
(viii) The Sponsored Participant
acknowledges its responsibility to
establish adequate procedures and
controls that permit it to effectively
monitor its employees’, agents’ and
Participants’ use and access to the
Exchange for compliance with the terms
of this agreement;
(ix) The Sponsored Participant shall
pay when due all amounts, if any,
payable to Sponsoring Member
Organization, the Exchange, or any
other third parties that arise from the
Sponsored Participant’s access to and
use of the Exchange. Such amounts
include, but are not limited to
applicable exchange and regulatory fees.
Third, the Sponsoring Member
Organization must provide the
Exchange with a Sponsored Participant
Addendum to its Access Agreement
acknowledging its responsibility for the
orders, executions and actions of its
Sponsored Participant at issue.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 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
helping market participants seeking
access to a marketplace.
erowe on DSK5CLS3C1PROD with NOTICES
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.
violate the Exchange’s Rules, the Exchange could
direct the Member Organization to suspend or
withdraw the person’s status as an authorized
individual.
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
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15:29 Aug 12, 2009
Jkt 217001
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
does not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 7 and Rule 19b–
4(f)(6) thereunder.8
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.9 However, Rule 19b–
4(f)(6)(iii) 10 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay so that the proposal may become
operative upon filing. The Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest because such waiver would
allow the pilot program to continue
uninterrupted. The Commission notes
that the proposal is substantially similar
to the rules of other national securities
exchanges.11 Accordingly, the
Commission hereby grants the
Exchange’s request and designates the
proposal operative upon filing.12
At any time within 60 days of the
filing of such 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
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
9 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires that a self-regulatory
organization submit to the Commission written
notice of its intent to file the proposed rule change,
along with a brief description and text of the
proposed rule change, at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied the fiveday pre-filing notice requirement.
10 Id.
11 See, e.g., International Securities Exchange,
LLC Rule 706 and NYSE Arca, Inc. Rule 7.29.
12 For the purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
8 17
PO 00000
Frm 00057
Fmt 4703
Sfmt 4703
40863
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 rulecomments@sec.gov. Please include File
Number SR–Phlx–2009–63 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–2009–63. 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–
2009–63 and should be submitted on or
before September 3, 2009.
E:\FR\FM\13AUN1.SGM
13AUN1
40864
Federal Register / Vol. 74, No. 155 / Thursday, August 13, 2009 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–19407 Filed 8–12–09; 8:45 am]
BILLING CODE 8010–01–P
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
[Docket No. USTR–2009–0022]
Implementation of the U.S.-EC Beef
Hormones Memorandum of
Understanding
erowe on DSK5CLS3C1PROD with NOTICES
AGENCY: Office of the United States
Trade Representative.
ACTION: Notice, delay of action, and
request for comments.
SUMMARY: On May 13, 2009, the United
States and the European Communities
(‘‘EC’’) announced the signing of a
Memorandum of Understanding (MOU)
in the Beef Hormones dispute. Under
the first phase of the agreement, the EC
is obligated to open a new beef tariffrate quota (TRQ) in the amount of
20,000 metric tons at zero rate of duty.
The United States in turn is obligated
not to increase additional duties above
those in effect as of March 23, 2009. The
EC opened the new beef TRQ on August
1, 2009. This notice undertakes the
process necessary to implement U.S.
obligations under the first phase of the
MOU and to pursue additional market
access under subsequent phases of the
MOU.
DATES: Effective Date: A modified list of
products subject to additional duties in
connection with the Beef Hormones
dispute (announced on January 15,
2009) had been scheduled to be effective
with respect to products that are
entered, or withdrawn from warehouse,
for consumption on or after August 15,
2009. In order to meet U.S. obligations
under the MOU, the United States Trade
Representative (‘‘Trade Representative’’)
has now changed this effective date to
September 19, 2009. Moreover, as
explained below, the Trade
Representative will take additional steps
before that time in order to continue to
implement U.S. obligations under the
MOU.
FOR FURTHER INFORMATION CONTACT:
Roger Wentzel, Director, Agricultural
Affairs, (202) 395–6127 or David
Weiner, Director for the European
Union, (202) 395–4620 for questions
concerning the EC–Beef Hormones
dispute; or William Busis, Associate
13 17
CFR 200.30–3(a)(12).
VerDate Nov<24>2008
15:29 Aug 12, 2009
Jkt 217001
General Counsel and Chair of the
Section 301 Committee, (202) 395–3150,
for questions concerning procedures
under Section 301.
SUPPLEMENTARY INFORMATION:
A. Background
On January 15, 2009, the Trade
Representative announced
modifications (‘‘January 15
modifications’’) to the action taken in
July 1999 in connection with the World
Trade Organization (‘‘WTO’’)
authorization of the United States in the
EC–Beef Hormones dispute to suspend
concessions and related obligations with
respect to the European Communities
(‘‘EC’’). See 74 FR 4265 (Jan. 23, 2009).
The January 15 modifications initially
had an effective date of March 23, 2009.
The Trade Representative subsequently
delayed the effective date of the
additional duties imposed under the
January 15 modifications to April 23,
2009; to May 9, 2009; and then to
August 15, 2009. The effective date of
the removal of duties under the January
15 modifications remained March 23,
2009. See 74 FR 11613 (March 18,
2009); 74 FR 12402 (March 24, 2009); 74
FR 19263 (April 28, 2009). As a result
of removal of duties on March 23, 2009,
a reduced list of products subject to
additional duties (at a rate of 100
percent ad valorem) has been in place
since that time. This reduced list is set
out in the Annex to this notice. Under
the first phase of the MOU, the United
States maintains the right to impose
these additional duties, and is obligated
not to impose additional duties on any
other products in connection with the
EC–Beef Hormones WTO dispute.
The first phase of the MOU concludes
on August 3, 2012. Under a possible
second phase of the MOU, the EC would
expand the beef TRQ to 45,000 metric
tons, and the United States would
suspend all of the additional duties
imposed in connection with the EC–
Beef Hormones WTO dispute.
For additional background concerning
the EC–Beef Hormones WTO dispute;
the January 15 modifications; and the
prior delays in the effective date of the
modifications, see 73 FR 66066 (Nov. 6,
2008); 74 FR 4265 (Jan. 23, 2009), 74 FR
11613 (March 18, 2009), 74 FR 12402
(March 24, 2009), 74 FR 19263 (April
28, 2009), and 74 FR 22626 (May 13,
2009). Further information on the May
13, 2009 U.S.-EC MOU may be found on
USTR=s Web site, https://www.ustr.gov.
B. Delay of Action
Pursuant to Section 305 of the Trade
Act of 1974, the Trade Representative
has determined that a further delay in
implementation of the January 15
PO 00000
Frm 00058
Fmt 4703
Sfmt 4703
modifications would be desirable to
obtain a satisfactory solution with
respect to the EC’s ban on U.S. beef.
Accordingly, the Trade Representative
has decided to delay the effective date
of the additional duties imposed under
the January 15 modifications from
August 15, 2009 to September 19, 2009.
The actions to be delayed are: (i) The
imposition of increased duties on
additional products, (ii) the application
to products of additional EC member
States of the increased duties on
currently covered products, and (iii) the
increase in the level of duties on one of
the products that is being maintained on
the product list. These are the same
actions that were previously delayed
until August 15, 2009.
The increased duties under the
January 15 modifications are set out in
Annex II of the notice published at 74
FR 12402 (March 24, 2009), as modified
by the notice published at 74 FR 19263
(April 28, 2009). In order to delay the
effective date of the increased duties
until September 19, 2009, the Trade
Representative has decided that the
modifications to the Harmonized Tariff
Schedule of the United States that are
contained in Parts A and B of Annex II
shall be effective with respect to articles
entered, or withdrawn from warehouse
for consumption, on or after September
19, 2009. As explained below, however,
further steps are contemplated before
that time. In addition, any merchandise
covered under Part B of Annex II of the
notice published at 74 FR 12402 that is
admitted to a U.S. foreign-trade zone on
or after September 19, 2009 must be
admitted in ‘‘privileged foreign status’’
as defined in 19 CFR 146.41. Questions
concerning customs matters may be
directed to Renee Chovanec,
International Coordination, Office of
International Trade, U.S. Customs and
Border Protection, (202) 863–6384.
C. Opportunity for Public Comments
Prior to September 19, 2009, the
Trade Representative intends to take
further steps under the Trade Act to
implement U.S. obligations under the
first phase of the MOU and to pursue
additional market access under
subsequent phases of the MOU. The
Section 301 Committee seeks comments
on these matters, including with regard
to the imposition of 100 percent duties
on the products currently subject to
such duties throughout the remainder of
the first phase of the MOU. (The list of
products currently subject to 100
percent duties in connection with EC–
Beef Hormones WTO dispute is set out
in the Annex to this notice.) As noted
above, the United States maintains the
right to impose these additional duties
E:\FR\FM\13AUN1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 155 (Thursday, August 13, 2009)]
[Notices]
[Pages 40862-40864]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-19407]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60456; File No. SR-Phlx-2009-63]
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
to Extension of Sponsored Access Pilot Program
August 7, 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 July 29, 2009, NASDAQ OMX PHLX, Inc. (``Phlx'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to renew its sponsored access rule for a
pilot period ending on October 29, 2009. The program expires on July
29, 2009.\3\ 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.
---------------------------------------------------------------------------
\3\ See Securities Exchange Release No. 59362 (February 5,
2009), 74 FR 6931 (February 11, 2009) (SR-Phlx-2009-10).
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to attract additional
business by renewing its sponsored access rule, which is similar to
that of other exchanges. During the previous pilot program, no member
organizations availed themselves of the program, but the Exchange seeks
to make another attempt to institute the program, for a pilot period
expiring October 29, 2009. The Exchange will evaluate whether to
continue the sponsored access program or not.
A Sponsored Participant is a non-member of the Exchange, such as an
institutional investor, that gains access to the Exchange and trades
under a Sponsoring Member's execution and clearing identity pursuant to
a sponsorship arrangement between such non-member and a member
organization. Specifically, the Exchange proposes to permit Sponsored
Participants to be sponsored by Sponsoring Member Organizations, and
thereby access the Exchange, subject to certain requirements. These
requirements are intended to confirm that the Sponsored Participant is
required to and had procedures in place to comply with Exchange rules,
and that the Sponsoring Member Organization takes responsibility for
the Sponsored Participant's activity on the Exchange.
First, the Sponsored Participant and its Sponsoring Member
Organization must have entered into and maintained an Access Agreement
with the Exchange. The Sponsoring Member Organization must designate
the Sponsored Participant by name in an addendum to the Access
Agreement.
Second, there must be a Sponsored Participant Agreement between the
Sponsoring Member Organization and the Sponsored Participant that
contains the following sponsorship provisions, enumerated in full in
Rule 1094(b)(ii):
(i) The orders of the Sponsored Participant are binding in all
respects on the Sponsoring Member Organization;
(ii) The Sponsoring Member Organization is responsible for the
actions of the Sponsored Participant;
(iii) In addition to the Sponsoring Member Organization being
required to comply with the Exchange Certificate of Incorporation, By-
laws, Rules and procedures of the Exchange, the Sponsored Participant
shall do so as if such Sponsored Participant were an Exchange member
organization;
(iv) The Sponsored Participant shall maintain, keep current and
provide to the Sponsoring Member Organization a list of individuals
authorized to obtain access to the Exchange on behalf of the Sponsored
Participant;
(v) The Sponsored Participant shall familiarize its authorized
individuals with all of the Sponsored Participant's obligations under
this Rule and will assure that they receive appropriate training prior
to any use or access to the Exchange;
(vi) The Sponsored Participant may not permit anyone other than
authorized individuals to use or obtain access to the Exchange; \4\
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\4\ If the Exchange determines that an authorized individual has
caused a Member Organization to violate the Exchange's Rules, the
Exchange could direct the Member Organization to suspend or withdraw
the person's status as an authorized individual.
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[[Page 40863]]
(vii) The Sponsored Participant shall take reasonable security
precautions to prevent unauthorized use or access to the Exchange,
including unauthorized entry of information into the Exchange, and
agrees that it is responsible for any and all orders, trades and other
messages and instructions entered, transmitted or received under
identifiers, passwords and security codes of authorized individuals,
and for the trading and other consequences thereof;
(viii) The Sponsored Participant acknowledges its responsibility to
establish adequate procedures and controls that permit it to
effectively monitor its employees', agents' and Participants' use and
access to the Exchange for compliance with the terms of this agreement;
(ix) The Sponsored Participant shall pay when due all amounts, if
any, payable to Sponsoring Member Organization, the Exchange, or any
other third parties that arise from the Sponsored Participant's access
to and use of the Exchange. Such amounts include, but are not limited
to applicable exchange and regulatory fees.
Third, the Sponsoring Member Organization must provide the Exchange
with a Sponsored Participant Addendum to its Access Agreement
acknowledging its responsibility for the orders, executions and actions
of its Sponsored Participant at issue.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \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
helping market participants seeking access to a marketplace.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change does not: (1) Significantly
affect the protection of investors or the public interest; (2) impose
any significant burden on competition; and (3) become operative for 30
days after the date of this filing, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\9\ However,
Rule 19b-4(f)(6)(iii) \10\ permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay so that the proposal may
become operative upon filing. The Commission believes that waiving the
30-day operative delay is consistent with the protection of investors
and the public interest because such waiver would allow the pilot
program to continue uninterrupted. The Commission notes that the
proposal is substantially similar to the rules of other national
securities exchanges.\11\ Accordingly, the Commission hereby grants the
Exchange's request and designates the proposal operative upon
filing.\12\
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\9\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to
the Commission written notice of its intent to file the proposed
rule change, along with a brief description and text of the proposed
rule change, at least five business days prior to the date of filing
of the proposed rule change, or such shorter time as designated by
the Commission. The Exchange has satisfied the five-day pre-filing
notice requirement.
\10\ Id.
\11\ See, e.g., International Securities Exchange, LLC Rule 706
and NYSE Arca, Inc. Rule 7.29.
\12\ For the purposes only of waiving the 30-day operative
delay, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of such 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.
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-2009-63 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-2009-63. 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-2009-63 and should be submitted on or before September 3, 2009.
[[Page 40864]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-19407 Filed 8-12-09; 8:45 am]
BILLING CODE 8010-01-P
