Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating to the Options Regulatory Fee, 8421-8423 [2010-3546]
Download as PDF
<![CDATA[
Federal Register / Vol. 75, No. 36 / Wednesday, February 24, 2010 / Notices
and Section 6(b)(8) requires CBOE’s
rules to ‘‘not impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of’’ the Exchange Act.25 CBOE
believes that its act of making the
Payment should not be viewed as
treating an Eligible CBOE Temporary
Member differently from a non-Eligible
CBOE Temporary Member. Rather,
CBOE believes that its act of making the
Payment should be viewed as an
undertaking to give full effect to the
business decision it made to resolve the
CBOT Lawsuit.
2. Statutory Basis
For the reasons described above, the
Exchange believes that this proposed
rule change is not inconsistent with its
obligations under Section 6(b) of the
Exchange Act.26 In particular, CBOE
believes that its act of making the
Payment does not implicate its
obligations under Sections 6(b)(4),
6(b)(5) and 6(b)(8) of the Exchange
Act,27 or other obligations it has under
Section 6(b) of the Exchange Act.28
Rather, CBOE believes that its act of
making the Payment should be viewed
as an undertaking to give full effect to
the business decision it made to resolve
the CBOT Lawsuit.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE 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.
pwalker on DSK8KYBLC1PROD with NOTICES
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 foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(iii) of the Act 29 and
subparagraph (f)(3) of Rule 19b–4
thereunder.30 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
25 Id.
26 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4), (b)(5) and (b)(8).
28 15 U.S.C. 78f(b).
29 15 U.S.C. 78s(b)(3)(A)(iii).
30 17 CFR 240.19b–4(f)(3).
27 15
VerDate Nov<24>2008
16:49 Feb 23, 2010
Jkt 220001
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
8421
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.31
Florence E. Harmon,
Deputy Secretary.
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:
[FR Doc. 2010–3641 Filed 2–23–10; 8:45 am]
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–CBOE–2010–014 on the
subject line.
[Release No. 34–61529; File No. SR–Phlx–
2010–17]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NASDAQ
OMX PHLX, Inc. Relating to the
Options Regulatory Fee
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–CBOE–2010–014. 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 Web site viewing and
printing 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
self-regulatory organization. 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–CBOE–2010–014 and
should be submitted on or before March
17, 2010.
PO 00000
Frm 00128
Fmt 4703
Sfmt 4703
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
February 17, 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 February
4, 2010, NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III, below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Options Regulatory Fee.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaqtrader.com/
micro.aspx?id=PHLXfilings, at the
principal office of the Exchange, at the
Commission’s Public Reference Room,
and on the Commission’s Web site at
https://www.sec.gov.
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
31 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\24FEN1.SGM
24FEN1
8422
Federal Register / Vol. 75, No. 36 / Wednesday, February 24, 2010 / Notices
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
pwalker on DSK8KYBLC1PROD with NOTICES
1. Purpose
The purpose of the proposed rule
change is to amend the Options
Regulatory Fee to eliminate the
minimum one-cent charge per trade.
The Exchange notes that the total
monthly charges to be assessed in a
given month will be rounded to the
nearest $0.01. The Exchange believes
that by eliminating the one-cent charge
per trade this should reduce fees related
to the ORF for members.
Currently, the Exchange assesses
$.0035 per contract to each member for
all options transactions executed or
cleared by the member that are cleared
by The Options Clearing Corporation
(‘‘OCC’’) in the customer range (i.e., that
clear in the customer account of the
member’s clearing firm at OCC),
excluding P/A Orders as defined in the
Options Intermarket Linkage Plan
(‘‘Linkage’’).3 The ORF is imposed upon
all such transactions executed by a
member, even if such transactions do
not take place on the Exchange.4 The
ORF also includes options transactions
that are not executed by an Exchange
member but are ultimately cleared by an
Exchange member. The Exchange
charges members $.0035 per contract for
all options transactions executed or
cleared by the member that are cleared
by OCC in the customer range,
excluding Linkage P/A Orders,
regardless of the marketplace of
execution. In the case where one
member both executes a transaction and
clears the transaction, the ORF is
assessed to the member only once on
the execution. In the case where one
member executes a transaction and a
different member clears the transaction,
the ORF is assessed only to the member
3 See Securities Exchange Act Release Nos. 60405
(July 30, 2009), 74 FR 39362 (August 6, 2009)
(National Market System Plan Relating to Options
Order Protection and Locked/Crossed Markets).
4 The ORF would apply to all ‘‘C’’ account origin
code orders executed by a member on the Exchange.
Exchange rules require each member to record the
appropriate account origin code on all orders at the
time of entry in order to allow the Exchange to
properly prioritize and route orders and assess
transaction fees pursuant to the rules of the
Exchange and report resulting transactions to the
OCC. See Exchange Rule 1063, Responsibilities of
Floor Brokers, and Options Floor Procedure Advice
F–4, Orders Executed as Spreads, Straddles,
Combinations or Synthetics and Other Order Ticket
Marking Requirements. The Exchange represents
that it has surveillances in place to verify that
members mark orders with the correct account
origin code.
VerDate Nov<24>2008
16:49 Feb 23, 2010
Jkt 220001
who executes the transaction and is not
assessed to the member who clears the
transaction. In the case where a nonmember executes a transaction and a
member clears the transaction, the ORF
is assessed to the member who clears
the transaction. The ORF is not charged
for member options transactions
because members incur the costs of
owning memberships and through their
memberships are charged transaction
fees, dues and other fees that are not
applicable to non-members.5 The dues
and fees paid by members go into the
general funds of the Exchange, a portion
of which is used to help pay the costs
of regulation. The ORF is collected
indirectly from members through their
clearing firms by OCC on behalf of the
Exchange. Currently, there is a
minimum one-cent charge per trade.6
The ORF is designed to recover a
portion of the costs to the Exchange of
the supervision and regulation of its
members, including performing routine
surveillances, investigations,
examinations, financial monitoring, and
policy, rulemaking, interpretive, and
enforcement activities. The Exchange
believes that revenue generated from the
ORF, when combined with all of the
Exchange’s other regulatory fees, will
cover a material portion, but not all, of
the Exchange’s regulatory costs. The
Exchange monitors the amount of
revenue collected from the ORF to
ensure that it, in combination with its
other regulatory fees and fines, do not
exceed regulatory costs. If the Exchange
determines regulatory revenues would
exceed regulatory costs, the Exchange
would adjust the ORF by submitting a
fee change filing to the Commission.
Presently, the Exchange, in
monitoring its revenue, has determined
that regulatory revenues may exceed
regulatory costs on an annual basis. The
Exchange is proposing to adjust the ORF
to ensure that it, in combination with its
other regulatory fees and fines, does not
exceed regulatory costs. The Exchange
will continue to monitor the amount of
revenue collected from the ORF.
2. Statutory Basis
The Exchange believes that its
proposal to amend its schedule of fees
is consistent with Section 6(b) of the
Act7 in general, and furthers the
objectives of Section 6(b)(4) of the Act8
in particular, in that it is an equitable
5 For example, non-broker-dealer customers
generally are not charged transaction fees to trade
equity options on the Exchange.
6 See Securities and Exchange Act Release No.
61133 (December 9, 2009), 74 FR 66715 (December
16, 2009) (SR–Phlx–2009–100).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00129
Fmt 4703
Sfmt 4703
allocation of reasonable fees and other
charges among Exchange members. The
Exchange believes that this fee proposal
is equitable because it eliminates the
minimum one-cent charge per trade and
reduces the monthly ORF charge for all
members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act9 and paragraph
(f)(2) of Rule 19b–410 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.
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–2010–17 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–2010–17. This file
9 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
10 17
E:\FR\FM\24FEN1.SGM
24FEN1
Federal Register / Vol. 75, No. 36 / Wednesday, February 24, 2010 / Notices
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 Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–Phlx–
2010–17 and should be submitted on or
before March 17, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–3546 Filed 2–23–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61514; File No. SR–BX–
2010–013]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
of Proposed Rule Change To Modify
Fees for Members Using the NASDAQ
OMX BX Equities System
pwalker on DSK8KYBLC1PROD with NOTICES
February 12, 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
29, 2010, NASDAQ OMX BX, Inc.
(‘‘BX’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b-4.
1 15
VerDate Nov<24>2008
16:49 Feb 23, 2010
Jkt 220001
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 from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
BX is filing a proposed rule change to
modify pricing for BX members using
the NASDAQ OMX BX Equities System.
BX will implement the proposed rule
change on February 1, 2010. The text of
the proposed rule change is attached as
Exhibit 5 3and is available at https://
nasdaqomxbx.cchwallstreet.com.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, BX
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. BX 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
BX is proposing to modify its fees to
execute transactions on the NASDAQ
OMX BX Equities System. BX is
modifying its fee structure for securities
that execute at prices below $1. For
these securities, BX currently charges
members accessing liquidity a fee equal
to 0.1% (10 basis points) of the total
transaction cost and provides no credit
to members providing liquidity. Under
the new fee structure, members
accessing liquidity will be charged 0.3%
(30 basis points) of the total transaction
cost, and members providing liquidity
will be provided a credit equal to 0.25%
(25 basis points) of the total transaction
cost. The change is intended to provide
a competitive response to another
trading venue that has adopted a similar
‘‘maker-taker’’ pricing structure for
securities priced below $1.4 The
proposal is consistent with the
3 The Commission notes that Exhibit 5 is not
attached to this Notice which is being published in
the Federal Register, however it will be posted on
the Commission’s Web site.
4 See https://www.directedge.com/SubscriberInfo/
FeeSchedule.aspx.
PO 00000
Frm 00130
Fmt 4703
Sfmt 4703
8423
provisions of Rule 610 under Regulation
NMS5 that govern access fees.
2. Statutory Basis
BX believes that the proposed rule
change is consistent with the provisions
of Section 6 of the Act,6 in general, and
with Section 6(b)(4) of the Act,7 in
particular, in that it provides for the
equitable allocation of reasonable dues,
fees and other charges among members
and issuers and other persons using any
facility or system which BX operates or
controls. BX is adapting the ‘‘makertaker’’ pricing model that is prevalent
across most U.S. transaction venues for
securities priced at $1 or higher and
applying it [sic] securities priced below
$1. This change is a competitive
response to another trading venue that
has already introduced this pricing
model for low-priced securities. The
change will result in a fee increase for
firms when they access liquidity in
these securities and a fee reduction for
firms when they provide liquidity in
these stocks. The proposed fee change
applies uniformly to all BX members.
The impact of the changes upon the
net fees paid by a particular market
participant will depend upon the types
of stocks that it trades, the order types
that it uses, and the prices of its quotes
and orders (i.e., its propensity to add or
remove liquidity). BX notes that it
operates in a highly competitive market
in which market participants can
readily direct order flow to competing
venues if they deem fee levels at a
particular venue to be excessive. BX
believes that its fees remain competitive
with other venues and are reasonable
and equitably allocated to those
members on the basis of whether they
opt to direct orders to BX.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
BX 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, as amended.
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.
5 17
CFR 242.610.
U.S.C. 78f.
7 15 U.S.C. 78f(b)(4).
6 15
E:\FR\FM\24FEN1.SGM
24FEN1
]]>Agencies
[Federal Register Volume 75, Number 36 (Wednesday, February 24, 2010)]
[Notices]
[Pages 8421-8423]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-3546]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61529; File No. SR-Phlx-2010-17]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating
to the Options Regulatory Fee
February 17, 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 February 4, 2010, NASDAQ OMX PHLX, Inc. (``Phlx'' or ``Exchange'')
filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the proposed rule change as described in Items I, II,
and III, below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its Options Regulatory Fee.
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaqtrader.com/micro.aspx?id=PHLXfilings, at the
principal office of the Exchange, at the Commission's Public Reference
Room, and on the Commission's Web site at https://www.sec.gov.
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
[[Page 8422]]
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 Options
Regulatory Fee to eliminate the minimum one-cent charge per trade. The
Exchange notes that the total monthly charges to be assessed in a given
month will be rounded to the nearest $0.01. The Exchange believes that
by eliminating the one-cent charge per trade this should reduce fees
related to the ORF for members.
Currently, the Exchange assesses $.0035 per contract to each member
for all options transactions executed or cleared by the member that are
cleared by The Options Clearing Corporation (``OCC'') in the customer
range (i.e., that clear in the customer account of the member's
clearing firm at OCC), excluding P/A Orders as defined in the Options
Intermarket Linkage Plan (``Linkage'').\3\ The ORF is imposed upon all
such transactions executed by a member, even if such transactions do
not take place on the Exchange.\4\ The ORF also includes options
transactions that are not executed by an Exchange member but are
ultimately cleared by an Exchange member. The Exchange charges members
$.0035 per contract for all options transactions executed or cleared by
the member that are cleared by OCC in the customer range, excluding
Linkage P/A Orders, regardless of the marketplace of execution. In the
case where one member both executes a transaction and clears the
transaction, the ORF is assessed to the member only once on the
execution. In the case where one member executes a transaction and a
different member clears the transaction, the ORF is assessed only to
the member who executes the transaction and is not assessed to the
member who clears the transaction. In the case where a non-member
executes a transaction and a member clears the transaction, the ORF is
assessed to the member who clears the transaction. The ORF is not
charged for member options transactions because members incur the costs
of owning memberships and through their memberships are charged
transaction fees, dues and other fees that are not applicable to non-
members.\5\ The dues and fees paid by members go into the general funds
of the Exchange, a portion of which is used to help pay the costs of
regulation. The ORF is collected indirectly from members through their
clearing firms by OCC on behalf of the Exchange. Currently, there is a
minimum one-cent charge per trade.\6\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release Nos. 60405 (July 30,
2009), 74 FR 39362 (August 6, 2009) (National Market System Plan
Relating to Options Order Protection and Locked/Crossed Markets).
\4\ The ORF would apply to all ``C'' account origin code orders
executed by a member on the Exchange. Exchange rules require each
member to record the appropriate account origin code on all orders
at the time of entry in order to allow the Exchange to properly
prioritize and route orders and assess transaction fees pursuant to
the rules of the Exchange and report resulting transactions to the
OCC. See Exchange Rule 1063, Responsibilities of Floor Brokers, and
Options Floor Procedure Advice F-4, Orders Executed as Spreads,
Straddles, Combinations or Synthetics and Other Order Ticket Marking
Requirements. The Exchange represents that it has surveillances in
place to verify that members mark orders with the correct account
origin code.
\5\ For example, non-broker-dealer customers generally are not
charged transaction fees to trade equity options on the Exchange.
\6\ See Securities and Exchange Act Release No. 61133 (December
9, 2009), 74 FR 66715 (December 16, 2009) (SR-Phlx-2009-100).
---------------------------------------------------------------------------
The ORF is designed to recover a portion of the costs to the
Exchange of the supervision and regulation of its members, including
performing routine surveillances, investigations, examinations,
financial monitoring, and policy, rulemaking, interpretive, and
enforcement activities. The Exchange believes that revenue generated
from the ORF, when combined with all of the Exchange's other regulatory
fees, will cover a material portion, but not all, of the Exchange's
regulatory costs. The Exchange monitors the amount of revenue collected
from the ORF to ensure that it, in combination with its other
regulatory fees and fines, do not exceed regulatory costs. If the
Exchange determines regulatory revenues would exceed regulatory costs,
the Exchange would adjust the ORF by submitting a fee change filing to
the Commission.
Presently, the Exchange, in monitoring its revenue, has determined
that regulatory revenues may exceed regulatory costs on an annual
basis. The Exchange is proposing to adjust the ORF to ensure that it,
in combination with its other regulatory fees and fines, does not
exceed regulatory costs. The Exchange will continue to monitor the
amount of revenue collected from the ORF.
2. Statutory Basis
The Exchange believes that its proposal to amend its schedule of
fees is consistent with Section 6(b) of the Act\7\ in general, and
furthers the objectives of Section 6(b)(4) of the Act\8\ in particular,
in that it is an equitable allocation of reasonable fees and other
charges among Exchange members. The Exchange believes that this fee
proposal is equitable because it eliminates the minimum one-cent charge
per trade and reduces the monthly ORF charge for all members.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 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 either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act\9\ and paragraph (f)(2) of Rule 19b-4\10\
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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 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-2010-17 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-2010-17. This file
[[Page 8423]]
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 Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-2010-17 and should be
submitted on or before March 17, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-3546 Filed 2-23-10; 8:45 am]
BILLING CODE 8011-01-P
