Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Waivers, 41472-41474 [E9-19572]

Download as PDF 41472 Federal Register / Vol. 74, No. 157 / Monday, August 17, 2009 / Notices choose to settle an arbitration claim (e.g., for business reasons) notwithstanding the desire of a subject person to contest the claim. In addition, both criminal charges and convictions that are reported subsequently may have a different disposition, which may significantly change the meaning of the matter as originally reported (for example, such charges or convictions may be dismissed or expunged). Finally, FINRA does not view reportable financial matters (e.g., bankruptcies and liens) as having the same degree of materiality as final regulatory actions such that they should continue to be disclosed on a permanent basis. FINRA will announce the effective date of the proposed rule change in a Regulatory Notice to be published no later than 60 days following Commission approval. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,11 which requires, among other things, that FINRA rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. The proposed rule change, among other things, would enhance investor protection by providing access through the BrokerCheck program to certain information about former associated persons of a member who were the subject of a final regulatory action as defined in Form U4 that has been reported to CRD on a uniform registration form. B. Self-Regulatory Organization’s Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. mstockstill on DSKH9S0YB1PROD with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 11 15 U.S.C. 78o–3(b)(6). VerDate Nov<24>2008 17:55 Aug 14, 2009 Jkt 217001 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve such proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. 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–FINRA–2009–050 on the subject line. should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–FINRA–2009–050 and should be submitted on or before September 8, 2009. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–19571 Filed 8–14–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60461; File No. SR–Phlx2009–66] Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Waivers August 7, 2009. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the Paper Comments ‘‘Act’’) 2 and Rule 19b-4 thereunder,3 notice is hereby given that, on July 31, • Send paper comments in triplicate 2009, NASDAQ OMX PHLX, Inc. to Elizabeth M. Murphy, Secretary, (‘‘Phlx’’ or the ‘‘Exchange’’) filed with Securities and Exchange Commission, the Securities and Exchange 100 F Street, NE., Washington, DC Commission (the ‘‘Commission’’) the 20549–1090. proposed rule change as described in All submissions should refer to File Number SR–FINRA–2009–050. This file Items I, II, and III below, which Items have been prepared by the selfnumber should be included on the subject line if e-mail is used. To help the regulatory organization. The Commission is publishing this notice to Commission process and review your solicit comments on the proposed rule comments more efficiently, please use only one method. The Commission will change from interested persons. post all comments on the Commission’s I. Self-Regulatory Organization’s Internet Web site (https://www.sec.gov/ Statement of the Terms of Substance of rules/sro.shtml). Copies of the the Proposed Rule Change submission, all subsequent The Exchange proposes to amend the amendments, all written statements NASDAQ OMX PHLX Fee Schedule to with respect to the proposed rule adopt, on a pilot basis, a waiver of the change that are filed with the Phlx XL II Options Routing PassCommission, and all written Through Fees for customer orders that communications relating to the are routed by the Exchange’s enhanced proposed rule change between the electronic trading platform for options, Commission and any person, other than Phlx XL II to away markets for those that may be withheld from the execution. public in accordance with the The proposed fee waiver pilot would provisions of 5 U.S.C. 552, will be apply to transactions settling on or after available for inspection and copying in July 1, 2009, and extend through the Commission’s Public Reference December 31, 2009. Room, 100 F Street, NE., Washington, The text of the proposed rule change DC 20549, on official business days is available on the Exchange’s Web site between the hours of 10 a.m. and 3 p.m. at https:// Copies of such filing also will be nasdaqomxphlx.cchwallstreet.com/ available for inspection and copying at NASDAQOMXPHLX/Filings/, at the the principal office of FINRA. All comments received will be posted 12 17 CFR 200.30–3(a)(12). without change; the Commission does 1 15 U.S.C.78s(b)(1). 2 15 U.S.C. 78a. not edit personal identifying 3 17 CFR 240.19b–4. information from submissions. You PO 00000 Frm 00107 Fmt 4703 Sfmt 4703 E:\FR\FM\17AUN1.SGM 17AUN1 Federal Register / Vol. 74, No. 157 / Monday, August 17, 2009 / Notices 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 mstockstill on DSKH9S0YB1PROD with NOTICES 1. Purpose The purpose of the proposed rule change is to amend the NASDAQ OMX PHLX Fee Schedule to adopt, on a pilot basis, a waiver of the Phlx XL II Options Routing Pass-Through Fee (the ‘‘fee’’).4 The Exchange recently adopted the fee for executions of options orders entered into the Phlx XL II system that are routed to away markets.5 The Exchange now proposes to waive the fee entirely for Phlx members and member organizations using the Phlx XL II system for routing standardized equity and index options to away markets for execution. The pilot would apply to transactions settling on or after July 1, 2009, and extend through December 31, 2009. In the filing that adopted the fee, the Exchange stated its belief that these routing fees are inherently competitive, fair and reasonable, and nondiscriminatory in that they replicate the fees assessed by away markets executing orders routed from the Phlx XL II system. As with all fees, the Exchange may adjust these routing fees in response to competitive conditions by filing a new proposed rule change. This proposal represents such a response. Competitive Conditions The routing fee applies today when the Phlx XL II system receives an order and there is a better bid or offer on an away market that the system can access 4 See e-mail from Richard S. Rudolph, Assistant General Counsel, NASDAQ OMX, to Christopher Chow, Special Counsel, Commission, dated August 5, 2009. 5 See Securities Exchange Act Release No. 60103 (June 11, 2009), 74 FR 29252 (June 19, 2009) (SR– Phlx 2009–47). VerDate Nov<24>2008 17:55 Aug 14, 2009 Jkt 217001 for the execution of such order. The order is routed via Nasdaq Options Services LLC (‘‘NOS’’), a member of the Exchange, as the Exchange’s exclusive order router. The sole use of NOS by the Phlx XL II system is to route orders in options listed and open for trading on the Phlx XL II system to destination markets. A particular destination market would charge NOS their applicable transaction fees, which are then passed through to Phlx, and ultimately to the initiating member. Similarly, clearing fees charged to NOS by the Options Clearing Corporation (‘‘OCC’’) are passed through in this manner. The Exchange is aware of at least one competing U.S options exchange that does not pass through away market transaction and routing fees to the originating member. The Exchange believes that, absent a waiver of its current fee, it could lose valuable option order flow, due to the fact that a competing exchange currently does not charge such a fee. The competition among the seven U.S options exchanges to attract order flow from market participants is fierce. In order to maintain its share of trading volume, the Exchange must be competitive in setting its fees for all services provided, including routing of options to better-priced away markets. In fact, the market participants that will pay routing pass-through fees often will be the same market participants from whom the Exchange must attract order flow. These market participants include broker-dealers that control the handling of a large volume of customer order flow. Given the portability of order flow from one exchange to another, an exchange that would charge routing fees, while at least one other competing market does not, would risk alienating many of the same market participants on whose orders it depends for competitive survival. The Exchange believes therefore that the proposed waiver of the fee is competitive, fair and reasonable, and non-discriminatory in that such waiver replicates the practice of at least one competing options exchange respecting routing pass-through fees. Applicability of Fee Waiver The proposal would apply on a pilot basis for transactions settling on or after July 1, 2009, and extending through December 31, 2009, at which time the pilot would expire. The purpose of the pilot is to give the Exchange the opportunity to review and analyze its competitive position and market share to determine the effectiveness of the fee waiver. PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 41473 The proposed waiver would apply to transactions that have taken place during the month of July, 2009. As of the filing of this proposal, the Exchange’s billing cycle for July, 2009 is not complete, and pass-through routing fees that would ordinarily be charged may still be waived before the July billing cycle expires. Therefore, the exchange believes that it is fair, reasonable and non-discriminatory to apply the fee waiver to transactions settling on or after July 1, 2009, and extending through the proposed December 31, 2009 pilot expiration. Members will be notified of the fee waiver by way of an Options Trader Alert (‘‘OTA’’) posted on the Exchange’s Web site. 2. Statutory Basis The Exchange believes that its proposal to amend its schedule of fees is consistent with Section 6(b) of the Act 6 in general, and furthers the objectives of Section 6(b)(4) of the Act 7 in particular, in that it is an equitable allocation of reasonable fees and other charges among Exchange members. The Phlx is one of seven options markets in the national market system for standardized options. Joining Phlx and electing to trade options is entirely voluntary. Under these circumstances, Phlx’s fees must be competitive and low in order for Phlx to attract order flow, execute orders, and grow as a market. At least one competing market does not charge these fees and it is reasonable for Phlx to waive its pass-through routing fees as described above. As such, Phlx believes that its fees are fair and reasonable and consistent with the Act. 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 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 8 and paragraph 6 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 8 15 U.S.C. 78s(b)(3)(A)(ii). 7 15 E:\FR\FM\17AUN1.SGM 17AUN1 41474 Federal Register / Vol. 74, No. 157 / Monday, August 17, 2009 / Notices (f)(2) of Rule 19b–4 9 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. available publicly. All submissions should refer to File Number SR–Phlx– 2009–66 and should be submitted on or before September 8, 2009. 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: BILLING CODE 8010–01–P mstockstill on DSKH9S0YB1PROD with NOTICES 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-2009–66 on the subject line. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–19572 Filed 8–14–09; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60468; File No. SR– NYSEArca–2009–52] Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving Proposed Rule Change To Amend the Schedule of Fees and Charges for Exchange Services August 10, 2009. I. Introduction On June 10, 2009, NYSE Arca, Inc. Paper Comments (‘‘NYSE Arca’’ or ‘‘Exchange’’) through its wholly-owned subsidiary, NYSE • Send paper comments in triplicate Arca Equities, Inc. (‘‘NYSE Arca to Elizabeth M. Murphy, Secretary, Equities’’), filed with the Securities and Commission, 100 F Street, NE., Exchange Commission (‘‘Commission’’), Washington, DC 20549–1090. pursuant to Section 19(b)(1) of the All submissions should refer to File Securities Exchange Act of 1934 Number SR–Phlx-2009–66. This file (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a number should be included on the proposed rule change amending its subject line if e-mail is used. To help the Schedule of Fees and Charges for Commission process and review your Exchange Services (‘‘Fee Schedule’’) to comments more efficiently, please use only one method. The Commission will revise the Listing Fees applicable to post all comments on the Commission’s Derivative Securities Products. The proposed rule change was published in Internet Web site (https://www.sec.gov/ the Federal Register on July 7, 2009.3 rules/sro.shtml). Copies of the The Commission received no comments submission, all subsequent on the proposal. This order approves the amendments, all written statements proposed rule change. with respect to the proposed rule change that are filed with the II. Description of the Proposal Commission, and all written The Exchange proposes amending its communications relating to the Fee Schedule to revise the Listing Fees proposed rule change between the Commission and any person, other than applicable to Derivative Securities Products listed under NYSE Arca Rules those that may be withheld from the 5.2(j)(3) (Investment Company Units), public in accordance with the 8.100 (Portfolio Depository Receipts), provisions of 5 U.S.C. 552, will be 8.200 (Trust Issued Receipts), 8.201 available for inspection and copying in (Commodity-Based Trust Shares), 8.202 the Commission’s Public Reference Room on official business days between (Currency Trust Shares), 8.203 (Commodity Index Trust Shares), 8.204 the hours of 10 a.m. and 3 p.m. Copies (Commodity Futures Trust Shares), of such filing also will be available for 8.300 (Partnership Units), 8.500 (Trust inspection and copying at the principal Units), and 8.600 (Managed Fund office of the Exchange. All comments received will be posted without change; Shares) on NYSE Arca, LLC, the equities the Commission does not edit personal 10 17 CFR 200.30–3(a)(12). identifying information from 1 15 U.S.C. 78s(b)(1). submissions. You should submit only 2 17 CFR 240.19b–4. information that you wish to make 3 See Securities Exchange Act Release No. 60184 9 17 (June 29, 2009), 74 FR 32209 (July 7, 2009) (hereinafter referred to as ‘‘Notice’’). CFR 240.19b–4(f)(2). VerDate Nov<24>2008 17:55 Aug 14, 2009 Jkt 217001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 facility of NYSE Arca Equities. Specifically, the Exchange proposes to add a new provision to the Fee Schedule which states that in the case where a sponsor, managing owner, general partner or equivalent (collectively, the ‘‘Sponsor’’) is listing a new Derivative Securities Product on the Exchange for the first time, the Sponsor will be charged a one time consultation fee in the amount of $20,000. The proposed consulting charge would apply to all new Sponsors listing a new Derivative Securities Product for the first time on the Exchange. Therefore, under the proposal Sponsors who have previously issued a new Derivative Securities Product would not be charged the proposed consulting fee. Moreover, the current Listing and Annual Fees applicable to Derivative Securities Products would remain unchanged and be applicable to all Sponsors of Derivative Securities Products. III. Discussion and Commission’s Findings After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange. Specifically, the Commission finds that the proposal is consistent with Sections 6(b)(4) and (b)(5) of the Act,4 which require, among other things, that the rules of an exchange (i) provide for the equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities, and (ii) are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. According to the Exchange, the imposition of the proposed one-time consulting charge to new Sponsors of new Derivative Securities Products is necessary to adequately compensate the Exchange for all of the additional resources dedicated to such new Sponsors, such as the additional legal and business resources required to properly advise novice Sponsors through the listing process.5 The Exchange believes that the proposed consulting fee would enable the Exchange to continue to provide new issuers with the level of service necessary to successfully navigate an initial launch of a Derivative Securities Product. Moreover, the Exchange has represented that the proposed new Sponsor Fee is substantially below the 4 15 U.S.C. 78f(b)(4) and (b)(5). Notice, supra note 3. 5 See E:\FR\FM\17AUN1.SGM 17AUN1

Agencies

[Federal Register Volume 74, Number 157 (Monday, August 17, 2009)]
[Notices]
[Pages 41472-41474]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-19572]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60461; File No. SR-Phlx-2009-66]


Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating to 
Fee Waivers

August 7, 2009.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on July 31, 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 self-regulatory 
organization. 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the NASDAQ OMX PHLX Fee Schedule to 
adopt, on a pilot basis, a waiver of the Phlx XL II Options Routing 
Pass-Through Fees for customer orders that are routed by the Exchange's 
enhanced electronic trading platform for options, Phlx XL II to away 
markets for execution.
    The proposed fee waiver pilot would apply to transactions settling 
on or after July 1, 2009, and extend through December 31, 2009.
    The text of the proposed rule change is available on the Exchange's 
Web site at https://nasdaqomxphlx.cchwallstreet.com/NASDAQOMXPHLX/Filings/, at the

[[Page 41473]]

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 NASDAQ OMX 
PHLX Fee Schedule to adopt, on a pilot basis, a waiver of the Phlx XL 
II Options Routing Pass-Through Fee (the ``fee'').\4\ The Exchange 
recently adopted the fee for executions of options orders entered into 
the Phlx XL II system that are routed to away markets.\5\ The Exchange 
now proposes to waive the fee entirely for Phlx members and member 
organizations using the Phlx XL II system for routing standardized 
equity and index options to away markets for execution. The pilot would 
apply to transactions settling on or after July 1, 2009, and extend 
through December 31, 2009.
---------------------------------------------------------------------------

    \4\ See e-mail from Richard S. Rudolph, Assistant General 
Counsel, NASDAQ OMX, to Christopher Chow, Special Counsel, 
Commission, dated August 5, 2009.
    \5\ See Securities Exchange Act Release No. 60103 (June 11, 
2009), 74 FR 29252 (June 19, 2009) (SR-Phlx 2009-47).
---------------------------------------------------------------------------

    In the filing that adopted the fee, the Exchange stated its belief 
that these routing fees are inherently competitive, fair and 
reasonable, and non-discriminatory in that they replicate the fees 
assessed by away markets executing orders routed from the Phlx XL II 
system. As with all fees, the Exchange may adjust these routing fees in 
response to competitive conditions by filing a new proposed rule 
change. This proposal represents such a response.

Competitive Conditions

    The routing fee applies today when the Phlx XL II system receives 
an order and there is a better bid or offer on an away market that the 
system can access for the execution of such order. The order is routed 
via Nasdaq Options Services LLC (``NOS''), a member of the Exchange, as 
the Exchange's exclusive order router. The sole use of NOS by the Phlx 
XL II system is to route orders in options listed and open for trading 
on the Phlx XL II system to destination markets. A particular 
destination market would charge NOS their applicable transaction fees, 
which are then passed through to Phlx, and ultimately to the initiating 
member. Similarly, clearing fees charged to NOS by the Options Clearing 
Corporation (``OCC'') are passed through in this manner.
    The Exchange is aware of at least one competing U.S options 
exchange that does not pass through away market transaction and routing 
fees to the originating member. The Exchange believes that, absent a 
waiver of its current fee, it could lose valuable option order flow, 
due to the fact that a competing exchange currently does not charge 
such a fee.
    The competition among the seven U.S options exchanges to attract 
order flow from market participants is fierce. In order to maintain its 
share of trading volume, the Exchange must be competitive in setting 
its fees for all services provided, including routing of options to 
better-priced away markets. In fact, the market participants that will 
pay routing pass-through fees often will be the same market 
participants from whom the Exchange must attract order flow. These 
market participants include broker-dealers that control the handling of 
a large volume of customer order flow. Given the portability of order 
flow from one exchange to another, an exchange that would charge 
routing fees, while at least one other competing market does not, would 
risk alienating many of the same market participants on whose orders it 
depends for competitive survival.
    The Exchange believes therefore that the proposed waiver of the fee 
is competitive, fair and reasonable, and non-discriminatory in that 
such waiver replicates the practice of at least one competing options 
exchange respecting routing pass-through fees.

Applicability of Fee Waiver

    The proposal would apply on a pilot basis for transactions settling 
on or after July 1, 2009, and extending through December 31, 2009, at 
which time the pilot would expire. The purpose of the pilot is to give 
the Exchange the opportunity to review and analyze its competitive 
position and market share to determine the effectiveness of the fee 
waiver.
    The proposed waiver would apply to transactions that have taken 
place during the month of July, 2009. As of the filing of this 
proposal, the Exchange's billing cycle for July, 2009 is not complete, 
and pass-through routing fees that would ordinarily be charged may 
still be waived before the July billing cycle expires. Therefore, the 
exchange believes that it is fair, reasonable and non-discriminatory to 
apply the fee waiver to transactions settling on or after July 1, 2009, 
and extending through the proposed December 31, 2009 pilot expiration.
    Members will be notified of the fee waiver by way of an Options 
Trader Alert (``OTA'') posted on the Exchange's Web site.
2. Statutory Basis
    The Exchange believes that its proposal to amend its schedule of 
fees is consistent with Section 6(b) of the Act \6\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \7\ in 
particular, in that it is an equitable allocation of reasonable fees 
and other charges among Exchange members. The Phlx is one of seven 
options markets in the national market system for standardized options. 
Joining Phlx and electing to trade options is entirely voluntary. Under 
these circumstances, Phlx's fees must be competitive and low in order 
for Phlx to attract order flow, execute orders, and grow as a market. 
At least one competing market does not charge these fees and it is 
reasonable for Phlx to waive its pass-through routing fees as described 
above. As such, Phlx believes that its fees are fair and reasonable and 
consistent with the Act.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 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 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 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 \8\ and paragraph

[[Page 41474]]

(f)(2) of Rule 19b-4 \9\ 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-2009-66 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2009-66. 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 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-2009-66 and should be submitted on or before September 8, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-19572 Filed 8-14-09; 8:45 am]
BILLING CODE 8010-01-P
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