Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Order Approving a Proposed Rule Change Relating to Collection of Exchange Fees, 4888-4889 [2010-1848]
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Federal Register / Vol. 75, No. 19 / Friday, January 29, 2010 / Notices
opportunity for potential relief to a
party affected by an obvious error. The
Exchange believes that for these reasons
the proposed rule change 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, because
it is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system. The proposed rule change will
incorporate a uniform approach in
determining obvious errors that is
consistent with other national options
exchanges.
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
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 7 and Rule
19b–4(f)(6) thereunder.8 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 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, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 9 and Rule 19b–4(f)(6)(iii)
thereunder.10
jlentini on DSKJ8SOYB1PROD with NOTICES
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
7 15 U.S.C. 78s(b)(3)(A)(iii).
8 17 CFR 240.19b–4(f)(6).
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change along with a brief
description and text of the proposed rule change,
6 15
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16:49 Jan 28, 2010
Jkt 220001
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.
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
No. SR–NYSEArca–2010–03 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 No.
SR–NYSEArca–2010–03. 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,11 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
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 pre-filing requirement.
11 The text of the proposed rule change is
available on the Commission’s Web site at
https://www.sec.gov.
PO 00000
Frm 00120
Fmt 4703
Sfmt 4703
the principal office of NYSE Arca. 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 No.
SR–NYSEArca–2010–03 and should be
submitted on or before February 19,
2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–1844 Filed 1–28–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61405; File No. SR–Phlx–
2009–101]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Order
Approving a Proposed Rule Change
Relating to Collection of Exchange
Fees
January 21, 2010.
I. Introduction
On December 8, 2009, NASDAQ OMX
PHLX, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to amend Exchange Rule 909,
Security for Exchange Fees and Other
Claims, to require member organizations
to provide a clearing account number at
the National Securities Clearing
Corporation (‘‘NSCC’’) for purposes of
permitting the Exchange to debit any
undisputed or final fees, fines, charges
and/or other monetary sanctions or
monies owed to the Exchange.3 The
proposed rule change was published for
comment in the Federal Register on
December 17, 2009.4 The Commission
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(l).
2 17 CFR 240.19b–4.
3 This includes, among other things, fines which
result from: Violation of Rule 60, Order and
Decorum; violations of the Minor Rule Plan
pursuant to Rule 970; monetary sanctions imposed
by the Business Conduct Committee relating to a
Letter of Caution; and monetary sanctions imposed
by a Hearing Panel in connection with Disciplinary
Violations. See also Notice, infra note 4, for further
information regarding disciplinary and nondisciplinary sanctions.
4 See Securities Exchange Act Release No. 61141
(December 10, 2009), 74 FR 67003 (December 17,
2009) (‘‘Notice’’).
1 15
E:\FR\FM\29JAN1.SGM
29JAN1
Federal Register / Vol. 75, No. 19 / Friday, January 29, 2010 / Notices
received no comments on the proposal.
This order approves the proposed rule
change.
II. Description of the Proposal
jlentini on DSKJ8SOYB1PROD with NOTICES
Currently, Phlx Rule 909 requires
member organizations and applicants
for registration to provide and maintain
a security deposit, unless the member
organization maintains excess net
capital of at least the amount
established by the Exchange. The
Exchange proposes to eliminate the
requirement to provide and maintain a
security deposit and would instead
require member organizations and
applicants to provide a clearing account
number for an account at NSCC in order
to permit the Exchange to debit
undisputed or final fees, fines, charges
and/or other monetary sanctions or
monies owed to the Exchange or other
charges related to Rule 924.5
Additionally, the Exchange proposes to
amend the title of Rule 909 from
‘‘Security for Exchange Fees and Other
Claims’’ to ‘‘Collection of Exchange Fees
and Other Claims’’ in order to more
accurately describe the proposed rule.
Under the proposal, the Exchange
would send a monthly invoice to each
member organization on approximately
the fourth through sixth business day of
the month following the month in
which the charges were incurred.6 In
addition, the Exchange would send a
file to the member’s clearing firm which
will indicate the amounts to be debited
from each member. If a member is selfclearing, no such file would be sent,
since the member would receive the
invoice indicating the amount to be
debited. If a member disputes an invoice
in writing to the Exchange’s designated
staff by the fifteenth of the month, and
the amount in dispute is at least $10,000
or greater, the Exchange would not
include the disputed amount in the
debit.7
The Exchange then would send a file
to NSCC on approximately the twentythird of the month following the month
in which the charges were incurred to
initiate the debit of the appropriate
amount. Once NSCC receives the file
from the Exchange, NSCC would debit
5 Phlx Rule 924 (Obligations of Members and
Member Organizations to the Exchange) states,
among other things, that members and member
organizations shall be liable for such fees, fines,
dues, penalties and other amounts imposed by the
Exchange.
6 For example, invoices for the month of October
might be sent on November 5.
7 If the fifteenth day is not a business day, then
the member would have until the following
business day.
VerDate Nov<24>2008
16:49 Jan 28, 2010
Jkt 220001
the amount indicated from the clearing
members’ account.8
The Exchange would provide
members with a thirty-day period, upon
Commission approval of this proposal,
to provide an NSCC number to the Phlx
Membership Department if the member
has not already provided one in the
past.9
III. Discussion and Commission
Findings
The Commission has carefully
reviewed the proposed rule change and
finds that it is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.10 In
particular, the Commission finds that
the proposed rule change is consistent
with Section 6(b)(5) of the Act,11 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.
The Commission notes that Phlx
would only initiate a debit for an
undisputed or final fee, fine, charge, or
other monetary sanction or money owed
to the Exchange. In addition, because
members would receive invoices
approximately two weeks before any
funds are debited, members would have
a means to monitor the accuracy of their
invoices and, if necessary, would have
time to contact the Exchange staff prior
to amounts being debited.
Further, the Exchange has informed
the Commission that the vast majority of
the Exchange’s members already
voluntarily participate in the automaticdebit program, which the proposed rule
would make mandatory. Those members
that do not currently participate will
have thirty days from approval of this
proposal to provide the NSCC number
to the Exchange. Finally, the
Commission notes that no comments
were received regarding the proposal.
8 If the member clears through an Exchange
clearing member, the estimated transactions fees
owed to the Exchange are typically debited by the
clearing member on a daily basis using daily
transaction detail reports provided by the Exchange
to the clearing member in order to ensure adequate
funds have been escrowed.
9 The Exchange noted that many of its members
have already provided voluntarily the Exchange
with an NSCC clearing account number, and those
members’ accounts are currently being debited on
a monthly basis. See Notice, supra note 4, at note
10.
10 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
11 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00121
Fmt 4703
Sfmt 4703
4889
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,12 that the
proposed rule change, (SR–Phlx–2009–
101), be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–1848 Filed 1–28–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61409; File No. SR–NYSE–
2010–04]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Extend for
12 Months the Pilot Program
Permitting the Exchange’s Ownership
Interest in BIDS Holdings L.P. (BIDS)
and the Affiliation of BIDS With the
New York Block Exchange LLC
January 22, 2010.
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 January
11, 2010, New York Stock Exchange
LLC (‘‘NYSE’’ 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
Exchange filed this proposal pursuant to
Rule 19b–4(f)(6) under the Act 3 and
requested that the Commission waive
the 30-day pre-operative waiting period
contained in Rule 19b–4(f)(6)(iii).4 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
an additional 12 months the January 22,
2010 expiration date of the pilot
program that provides an exception to
NYSE Rule 2B by permitting the
Exchange’s equity ownership interest in
BIDS Holdings L.P. (‘‘BIDS’’), which is
the parent company of a member of the
Exchange, and BIDS’s affiliation with
12 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
4 17 CFR 240.19b–4(f)(6)(iii).
13 17
E:\FR\FM\29JAN1.SGM
29JAN1
]]>Agencies
[Federal Register Volume 75, Number 19 (Friday, January 29, 2010)]
[Notices]
[Pages 4888-4889]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-1848]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61405; File No. SR-Phlx-2009-101]
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Order
Approving a Proposed Rule Change Relating to Collection of Exchange
Fees
January 21, 2010.
I. Introduction
On December 8, 2009, NASDAQ OMX PHLX, Inc. (``Phlx'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend Exchange Rule 909, Security for Exchange
Fees and Other Claims, to require member organizations to provide a
clearing account number at the National Securities Clearing Corporation
(``NSCC'') for purposes of permitting the Exchange to debit any
undisputed or final fees, fines, charges and/or other monetary
sanctions or monies owed to the Exchange.\3\ The proposed rule change
was published for comment in the Federal Register on December 17,
2009.\4\ The Commission
[[Page 4889]]
received no comments on the proposal. This order approves the proposed
rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(l).
\2\ 17 CFR 240.19b-4.
\3\ This includes, among other things, fines which result from:
Violation of Rule 60, Order and Decorum; violations of the Minor
Rule Plan pursuant to Rule 970; monetary sanctions imposed by the
Business Conduct Committee relating to a Letter of Caution; and
monetary sanctions imposed by a Hearing Panel in connection with
Disciplinary Violations. See also Notice, infra note 4, for further
information regarding disciplinary and non-disciplinary sanctions.
\4\ See Securities Exchange Act Release No. 61141 (December 10,
2009), 74 FR 67003 (December 17, 2009) (``Notice'').
---------------------------------------------------------------------------
II. Description of the Proposal
Currently, Phlx Rule 909 requires member organizations and
applicants for registration to provide and maintain a security deposit,
unless the member organization maintains excess net capital of at least
the amount established by the Exchange. The Exchange proposes to
eliminate the requirement to provide and maintain a security deposit
and would instead require member organizations and applicants to
provide a clearing account number for an account at NSCC in order to
permit the Exchange to debit undisputed or final fees, fines, charges
and/or other monetary sanctions or monies owed to the Exchange or other
charges related to Rule 924.\5\ Additionally, the Exchange proposes to
amend the title of Rule 909 from ``Security for Exchange Fees and Other
Claims'' to ``Collection of Exchange Fees and Other Claims'' in order
to more accurately describe the proposed rule.
---------------------------------------------------------------------------
\5\ Phlx Rule 924 (Obligations of Members and Member
Organizations to the Exchange) states, among other things, that
members and member organizations shall be liable for such fees,
fines, dues, penalties and other amounts imposed by the Exchange.
---------------------------------------------------------------------------
Under the proposal, the Exchange would send a monthly invoice to
each member organization on approximately the fourth through sixth
business day of the month following the month in which the charges were
incurred.\6\ In addition, the Exchange would send a file to the
member's clearing firm which will indicate the amounts to be debited
from each member. If a member is self-clearing, no such file would be
sent, since the member would receive the invoice indicating the amount
to be debited. If a member disputes an invoice in writing to the
Exchange's designated staff by the fifteenth of the month, and the
amount in dispute is at least $10,000 or greater, the Exchange would
not include the disputed amount in the debit.\7\
---------------------------------------------------------------------------
\6\ For example, invoices for the month of October might be sent
on November 5.
\7\ If the fifteenth day is not a business day, then the member
would have until the following business day.
---------------------------------------------------------------------------
The Exchange then would send a file to NSCC on approximately the
twenty-third of the month following the month in which the charges were
incurred to initiate the debit of the appropriate amount. Once NSCC
receives the file from the Exchange, NSCC would debit the amount
indicated from the clearing members' account.\8\
---------------------------------------------------------------------------
\8\ If the member clears through an Exchange clearing member,
the estimated transactions fees owed to the Exchange are typically
debited by the clearing member on a daily basis using daily
transaction detail reports provided by the Exchange to the clearing
member in order to ensure adequate funds have been escrowed.
---------------------------------------------------------------------------
The Exchange would provide members with a thirty-day period, upon
Commission approval of this proposal, to provide an NSCC number to the
Phlx Membership Department if the member has not already provided one
in the past.\9\
---------------------------------------------------------------------------
\9\ The Exchange noted that many of its members have already
provided voluntarily the Exchange with an NSCC clearing account
number, and those members' accounts are currently being debited on a
monthly basis. See Notice, supra note 4, at note 10.
---------------------------------------------------------------------------
III. Discussion and Commission Findings
The Commission has carefully reviewed the proposed rule change and
finds that it is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\10\ In particular, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act,\11\ 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.
---------------------------------------------------------------------------
\10\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission notes that Phlx would only initiate a debit for an
undisputed or final fee, fine, charge, or other monetary sanction or
money owed to the Exchange. In addition, because members would receive
invoices approximately two weeks before any funds are debited, members
would have a means to monitor the accuracy of their invoices and, if
necessary, would have time to contact the Exchange staff prior to
amounts being debited.
Further, the Exchange has informed the Commission that the vast
majority of the Exchange's members already voluntarily participate in
the automatic-debit program, which the proposed rule would make
mandatory. Those members that do not currently participate will have
thirty days from approval of this proposal to provide the NSCC number
to the Exchange. Finally, the Commission notes that no comments were
received regarding the proposal.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\12\ that the proposed rule change, (SR-Phlx-2009-101), be, and
hereby is, approved.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(2).
\13\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-1848 Filed 1-28-10; 8:45 am]
BILLING CODE 8011-01-P
