Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Certain Exchange Fees, 13187-13189 [2010-5910]

Download as PDF Federal Register / Vol. 75, No. 52 / Thursday, March 18, 2010 / Notices participant whose order or quote was executed as part of the Phlx disseminated Best Bid and/or Offer. The Exchange also proposes to amend the Fee Schedule to make technical amendments such as changing the name of the category of fees and other clarifying amendments to make reference to other fees, and to options affected by these fees. 2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6(b) of the Act 12 in general, and furthers the objectives of Section 6(b)(4) of the Act 13 in particular, in that it is an equitable allocation of reasonable fees and other charges among Exchange members. The impact of the proposal upon the net fees paid by a particular market participant will depend on a number of variables, including its monthly volumes, the order types it uses, and the prices of its quotes and orders (i.e., its propensity to add or remove liquidity). The rate increase to Firms for adding liquidity in the various symbols including the additional Symbols is the same rate that is currently being assessed on BrokerDealers. Accordingly, the Exchange also believes that the addition of the options to this portion of the Fee Schedule is equitable in that it will apply to all categories of participants in the same manner. 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. sroberts on DSKD5P82C1PROD with NOTICES 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 14 and paragraph (f)(2) of Rule 19b–4 15 thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily 12 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 14 15 U.S.C. 78s(b)(3)(A)(ii). 15 17 CFR 240.19b–4(f)(2). 13 15 VerDate Nov<24>2008 17:08 Mar 17, 2010 Jkt 220001 13187 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. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Florence E. Harmon, Deputy Secretary. 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 8011–01–P 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–2010–41 on the subject line. [FR Doc. 2010–5911 Filed 3–17–10; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61685; File No. SR–Phlx– 2010–39] Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Certain Exchange Fees March 10, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Paper Comments notice is hereby given that on March 1, 2010, NASDAQ OMX PHLX, Inc. • Send paper comments in triplicate (‘‘Phlx’’ or ‘‘Exchange’’) filed with the to Secretary, Securities and Exchange Commission, Station Place, 100 F Street, Securities and Exchange Commission (‘‘Commission’’) the proposed rule NE., Washington, DC 20549–1090. change as described in Items I, II and III All submissions should refer to File below, which Items have been prepared Number SR–Phlx–2010–41. This file by the Exchange. Phlx has designated number should be included on the subject line if e-mail is used. To help the this proposal as one establishing or changing a member due, fee, or other Commission process and review your charge imposed under Section comments more efficiently, please use 3 only one method. The Commission will 19(b)(3)(A)(ii) of the Act and Rule 19b– 4(f)(2) thereunder,4 which renders the post all comments on the Commission’s proposal effective upon filing with the Internet Web site (https://www.sec.gov/ Commission. The Commission is rules/sro.shtml). Copies of the publishing this notice to solicit submission, all subsequent comments on the proposed rule change amendments, all written statements from interested persons. with respect to the proposed rule change that are filed with the I. Self-Regulatory Organization’s Commission, and all written Statement of the Terms of Substance of communications relating to the the Proposed Rule Change proposed rule change between the The Exchange proposes to: (i) Increase Commission and any person, other than the options transaction charge for those that may be withheld from the Registered Options Traders (‘‘ROTs’’) public in accordance with the and Specialists to $.22; (ii) increase the provisions of 5 U.S.C. 552, will be Options Surcharge in options on the available for Web site viewing and Russell 2000® Index (the ‘‘Full Value printing in the Commission’s Public Russell Index’’ or ‘‘RUT’’), options on the Reference Room, 100 F Street, NE., one-tenth value Russell 2000® Index 5 Washington, DC 20549, on official business days between the hours of 10 16 17 CFR 200.30–3(a)(12). a.m. and 3 p.m. Copies of such filing 1 15 U.S.C. 78s(b)(1). also will be available for inspection and 2 17 CFR 240.19b–4. copying at the principal office of the 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). Exchange. All comments received will 5 Russell 2000® is a trademark and service mark be posted without change; the of the Frank Russell Company, used under license. Commission does not edit personal Neither Frank Russell Company’s publication of the identifying information from Russell Indexes nor its licensing of its trademarks submissions. You should submit only for use in connection with securities or other financial products derived from a Russell Index in information that you wish to make any way suggests or implies a representation or publicly available. All submissions opinion by Frank Russell Company as to the should refer to File Number SR–Phlx– attractiveness of investment in any securities or 2010–41 and should be submitted on or other financial products based upon or derived Continued before April 8, 2010. PO 00000 Frm 00116 Fmt 4703 Sfmt 4703 E:\FR\FM\18MRN1.SGM 18MRN1 13188 Federal Register / Vol. 75, No. 52 / Thursday, March 18, 2010 / Notices (the ‘‘Reduced Value Russell Index’’ or ‘‘RMN’’), options on the Nasdaq 100 Index 6 traded under the symbol NDX (‘‘NDX’’) and options on the one-tenth value of the Nasdaq 100 Index traded under the symbol MNX (‘‘MNX’’) to $.15 for ROTs, Specialists, Firms and BrokerDealers; (iii) amend its Monthly Cap on equity options transaction fees to $650,000; (iv) amend the Firm Related Equity Option Cap to $75,000; (v) increase the U.S. Dollar-Settled Foreign Currency Options transaction charges to $.30 per contract; and (vi) increase the Real-Time Risk Management Fee to $.003 per contract. While changes to the Exchange’s Fee Schedule pursuant to this proposal are effective upon filing, the Exchange has designated this proposal to be operative for trades settling on or after March 1, 2010. 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 sroberts on DSKD5P82C1PROD with NOTICES 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. from any Russell Index. Frank Russell Company is not the issuer of any such securities or other financial products and makes no express or implied warranties of merchantability or fitness for any particular purpose with respect to any Russell Index or any data included or reflected therein, nor as to results to be obtained by any person or any entity from the use of the Russell Index or any data included or reflected therein. 6 NASDAQ(R), NASDAQ–100(R) and NASDAQ– 100 Index(R) are registered trademarks of The NASDAQ OMX Group, Inc. (which with its affiliates are the ‘‘Corporations’’) and are licensed for use by NASDAQ OMX PHLX, Inc. in connection with the trading of options products based on the NASDAQ–100 Index(R). The options products have not been passed on by the Corporations as to their legality or suitability. The options products are not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the options products. VerDate Nov<24>2008 17:08 Mar 17, 2010 Jkt 220001 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change U.S. Dollar-Settled Foreign Currency Option Fees 1. Purpose Generally, the purpose of the proposed rule change is to update the Exchange’s Fee Schedule by amending existing fees. The Exchange believes that the increases are necessary for the Exchange to remain competitive. The Exchange proposes to increase the Options Transaction Charge in U.S. Dollar-Settled Foreign Currency Options Fees for ROTs (on-floor), specialists and Firms from $.24 to $.30. Real-Time Risk Management Fee Equity Options Fees The Exchange proposes increasing the options transaction charge for Registered Options Traders (‘‘ROTs’’) and specialists to $.22. Currently, the Exchange assesses a per contract fee of $.21 on ROTs (on-floor) and specialists.7 The Exchange also proposes amending the Options Surcharge in RUT, RMN, MNX and NDX to increase the current fee of $.10 per contract to $.15 per contract for ROTs (on-floor), specialists, Firms and Broker-Dealers. The Exchange proposes to decrease the current Monthly Cap on equity options transactions from $750,000 to $650,000. The Monthly Cap is currently applicable to ROTs 8 and specialists.9 The Exchange believes that by reducing the Monthly Cap, a greater number of members may benefit from the Monthly Cap and the Exchange will attract additional order flow.10 The Exchange also proposes to decrease the Firm Related Equity Option Cap from $85,000 to $75,000 per month. The Exchange recently increased the Firm Related Equity Option Cap.11 Similarly, the Exchange believes that by reducing the Firm Related Equity Option Cap additional members will benefit from the cap.12 7 This fee is subject to a Monthly Cap of $750,000. ROT is a regular member or a foreign currency options participant of the Exchange located on the trading floor who has received permission from the Exchange to trade in options for his own account. 9 This Monthly Cap is not applicable to electronic trading in Standard and Poor’s Depositary Receipts/ SPDRs (‘‘SPY’’), PowerShares QQQ Trust (‘‘QQQQ’’)®; Ishares Russell 2000 (‘‘IWM’’) and Citigroup Inc. (‘‘C’’). 10 The Exchange recently amended the calculation of the Monthly Cap by aggregating the trading activity of separate ROTs and specialist member organizations if there is at least 75% common ownership between the member organizations as reflected on each member organizations’ Form BD, Schedule A. See Securities Exchange Act Release N. 61558 (February 22, 2010) (SR–Phlx–2010–16). 11 See SR–Phlx–2010–25. 12 This Firm Related Equity Option Cap is not applicable to electronic trading in Standard and Poor’s Depositary Receipts/SPDRs (‘‘SPY’’), PowerShares QQQ Trust (‘‘QQQQ’’)®; Ishares Russell 2000 (‘‘IWM’’) and Citigroup Inc. (‘‘C’’). 8A PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 The Exchange proposes to increase the Real-Time Risk Management Fee to $.003 per contract. The current fee is $.0025 per contract. This fee is assessed on members who receive information on a real-time basis. The proposed changes to the Fee Schedule will be effective for transactions settling on or after March 1, 2010. 2. Statutory Basis The Exchange believes that its proposal to amend its schedule of fees is consistent with Section 6(b) of the Act 13 in general, and furthers the objectives of Section 6(b)(4) of the Act 14 in particular, in that it is an equitable allocation of reasonable fees and other charges among Exchange members. The Exchange believes the increases to the Equity Options Fees are equitable in that ROTs, specialists, Firms and Broker Dealers will be charged the same rate with respect to the Options Surcharge. The increase to the Options Transaction Charge for ROTs and specialists is offset by other amendments to reduce caps. The Exchange believes that members will benefit from the reduced Monthly Cap and Firm Related Equity Option Cap. The amendments to the U.S. Dollar-Settled Foreign Currency Options Fees are consistent for ROTs (on-floor), Specialists and Firms. Also, the RealTime Risk Management fee will apply to all members alike. 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. 13 15 14 15 E:\FR\FM\18MRN1.SGM U.S.C. 78f(b). U.S.C. 78f(b)(4). 18MRN1 Federal Register / Vol. 75, No. 52 / Thursday, March 18, 2010 / Notices 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 15 and paragraph (f)(2) of Rule 19b–4 16 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: sroberts on DSKD5P82C1PROD 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–2010–39 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–Phlx–2010–39. 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 15 15 U.S.C. 78s(b)(3)(A)(ii). 16 17 CFR 240.19b–4(f)(2). VerDate Nov<24>2008 17:08 Mar 17, 2010 Jkt 220001 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 publicly available. All submissions should refer to File Number SR–Phlx– 2010–39 and should be submitted on or before April 8, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–5910 Filed 3–17–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61684; File No. SR–Phlx2010–33] Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Fees and Rebates for Adding and Removing Liquidity March 10, 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 26, 2010, NASDAQ OMX PHLX, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II and III below, which Items have been prepared substantially by the Exchange. Phlx has designated this proposal as one establishing or changing a member due, fee, or other charge imposed under Section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–4(f)(2) thereunder,4 which renders the proposal effective upon filing with the Commission. 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 the Exchange’s Fee Schedule by adopting per contract transaction fees for options 17 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). 13189 overlying Standard and Poor’s Depositary Receipts/SPDRs (‘‘SPY’’), 5 the PowerShares QQQ Trust (‘‘QQQQ’’)®; Ishares Russell 2000 (‘‘IWM’’) and Citigroup Inc. (‘‘C’’). The fees would apply to: (i) Transaction sides that remove liquidity from the Exchange’s disseminated market, and (ii) Firm and broker-dealer quotes and orders that are included in the Exchange’s disseminated market. Additionally, the Exchange proposes to offer a transaction rebate to certain liquidity providers, as described more fully below. 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 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 increase liquidity and to attract order flow in SPY, QQQQ, IWM and C options on the Exchange. Transaction Charges for Removing Liquidity: The Exchange proposes to assess a per-contract transaction charge in SPY, QQQQ, IWM and C options on five different categories of market participants that submit orders and/or quotes that remove, or ‘‘take,’’ liquidity from the Exchange. The per-contract transaction charge would depend on the category of market participant submitting an order or quote to the Exchange that removes liquidity. The proposed amendments to the Exchange’s Fee Schedule would break 1 15 PO 00000 Frm 00118 Fmt 4703 Sfmt 4703 5 SPY options are based on the SPDR exchangetraded fund (‘‘ETF’’), which is designed to track the performance of the S&P 500 Index. E:\FR\FM\18MRN1.SGM 18MRN1

Agencies

[Federal Register Volume 75, Number 52 (Thursday, March 18, 2010)]
[Notices]
[Pages 13187-13189]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-5910]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61685; File No. SR-Phlx-2010-39]


Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Relating 
to Certain Exchange Fees

March 10, 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 March 1, 2010, NASDAQ OMX PHLX, Inc. (``Phlx'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II and III below, which 
Items have been prepared by the Exchange. Phlx has designated this 
proposal as one establishing or changing a member due, fee, or other 
charge imposed under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 
19b-4(f)(2) thereunder,\4\ which renders the proposal effective upon 
filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to: (i) Increase the options transaction 
charge for Registered Options Traders (``ROTs'') and Specialists to 
$.22; (ii) increase the Options Surcharge in options on the Russell 
2000[reg] Index (the ``Full Value Russell Index'' or ``RUT''), options 
on the one-tenth value Russell 2000[reg] Index \5\

[[Page 13188]]

(the ``Reduced Value Russell Index'' or ``RMN''), options on the Nasdaq 
100 Index \6\ traded under the symbol NDX (``NDX'') and options on the 
one-tenth value of the Nasdaq 100 Index traded under the symbol MNX 
(``MNX'') to $.15 for ROTs, Specialists, Firms and Broker-Dealers; 
(iii) amend its Monthly Cap on equity options transaction fees to 
$650,000; (iv) amend the Firm Related Equity Option Cap to $75,000; (v) 
increase the U.S. Dollar-Settled Foreign Currency Options transaction 
charges to $.30 per contract; and (vi) increase the Real-Time Risk 
Management Fee to $.003 per contract.
---------------------------------------------------------------------------

    \5\ Russell 2000[supreg] is a trademark and service mark of the 
Frank Russell Company, used under license. Neither Frank Russell 
Company's publication of the Russell Indexes nor its licensing of 
its trademarks for use in connection with securities or other 
financial products derived from a Russell Index in any way suggests 
or implies a representation or opinion by Frank Russell Company as 
to the attractiveness of investment in any securities or other 
financial products based upon or derived from any Russell Index. 
Frank Russell Company is not the issuer of any such securities or 
other financial products and makes no express or implied warranties 
of merchantability or fitness for any particular purpose with 
respect to any Russell Index or any data included or reflected 
therein, nor as to results to be obtained by any person or any 
entity from the use of the Russell Index or any data included or 
reflected therein.
    \6\ NASDAQ(R), NASDAQ-100(R) and NASDAQ-100 Index(R) are 
registered trademarks of The NASDAQ OMX Group, Inc. (which with its 
affiliates are the ``Corporations'') and are licensed for use by 
NASDAQ OMX PHLX, Inc. in connection with the trading of options 
products based on the NASDAQ-100 Index(R). The options products have 
not been passed on by the Corporations as to their legality or 
suitability. The options products are not issued, endorsed, sold, or 
promoted by the Corporations. The Corporations make no warranties 
and bear no liability with respect to the options products.
---------------------------------------------------------------------------

    While changes to the Exchange's Fee Schedule pursuant to this 
proposal are effective upon filing, the Exchange has designated this 
proposal to be operative for trades settling on or after March 1, 2010.
    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 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
    Generally, the purpose of the proposed rule change is to update the 
Exchange's Fee Schedule by amending existing fees. The Exchange 
believes that the increases are necessary for the Exchange to remain 
competitive.
Equity Options Fees
    The Exchange proposes increasing the options transaction charge for 
Registered Options Traders (``ROTs'') and specialists to $.22. 
Currently, the Exchange assesses a per contract fee of $.21 on ROTs 
(on-floor) and specialists.\7\ The Exchange also proposes amending the 
Options Surcharge in RUT, RMN, MNX and NDX to increase the current fee 
of $.10 per contract to $.15 per contract for ROTs (on-floor), 
specialists, Firms and Broker-Dealers.
---------------------------------------------------------------------------

    \7\ This fee is subject to a Monthly Cap of $750,000.
---------------------------------------------------------------------------

    The Exchange proposes to decrease the current Monthly Cap on equity 
options transactions from $750,000 to $650,000. The Monthly Cap is 
currently applicable to ROTs \8\ and specialists.\9\ The Exchange 
believes that by reducing the Monthly Cap, a greater number of members 
may benefit from the Monthly Cap and the Exchange will attract 
additional order flow.\10\
---------------------------------------------------------------------------

    \8\ A ROT is a regular member or a foreign currency options 
participant of the Exchange located on the trading floor who has 
received permission from the Exchange to trade in options for his 
own account.
    \9\ This Monthly Cap is not applicable to electronic trading in 
Standard and Poor's Depositary Receipts/SPDRs (``SPY''), PowerShares 
QQQ Trust (``QQQQ'')[reg]; Ishares Russell 2000 (``IWM'') and 
Citigroup Inc. (``C'').
    \10\ The Exchange recently amended the calculation of the 
Monthly Cap by aggregating the trading activity of separate ROTs and 
specialist member organizations if there is at least 75% common 
ownership between the member organizations as reflected on each 
member organizations' Form BD, Schedule A. See Securities Exchange 
Act Release N. 61558 (February 22, 2010) (SR-Phlx-2010-16).
---------------------------------------------------------------------------

    The Exchange also proposes to decrease the Firm Related Equity 
Option Cap from $85,000 to $75,000 per month. The Exchange recently 
increased the Firm Related Equity Option Cap.\11\ Similarly, the 
Exchange believes that by reducing the Firm Related Equity Option Cap 
additional members will benefit from the cap.\12\
---------------------------------------------------------------------------

    \11\ See SR-Phlx-2010-25.
    \12\ This Firm Related Equity Option Cap is not applicable to 
electronic trading in Standard and Poor's Depositary Receipts/SPDRs 
(``SPY''), PowerShares QQQ Trust (``QQQQ'')[reg]; Ishares Russell 
2000 (``IWM'') and Citigroup Inc. (``C'').
---------------------------------------------------------------------------

U.S. Dollar-Settled Foreign Currency Option Fees
    The Exchange proposes to increase the Options Transaction Charge in 
U.S. Dollar-Settled Foreign Currency Options Fees for ROTs (on-floor), 
specialists and Firms from $.24 to $.30.
Real-Time Risk Management Fee
    The Exchange proposes to increase the Real-Time Risk Management Fee 
to $.003 per contract. The current fee is $.0025 per contract. This fee 
is assessed on members who receive information on a real-time basis.
    The proposed changes to the Fee Schedule will be effective for 
transactions settling on or after March 1, 2010.
2. Statutory Basis
    The Exchange believes that its proposal to amend its schedule of 
fees is consistent with Section 6(b) of the Act \13\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \14\ in 
particular, in that it is an equitable allocation of reasonable fees 
and other charges among Exchange members. The Exchange believes the 
increases to the Equity Options Fees are equitable in that ROTs, 
specialists, Firms and Broker Dealers will be charged the same rate 
with respect to the Options Surcharge. The increase to the Options 
Transaction Charge for ROTs and specialists is offset by other 
amendments to reduce caps. The Exchange believes that members will 
benefit from the reduced Monthly Cap and Firm Related Equity Option 
Cap. The amendments to the U.S. Dollar-Settled Foreign Currency Options 
Fees are consistent for ROTs (on-floor), Specialists and Firms. Also, 
the Real-Time Risk Management fee will apply to all members alike.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b).
    \14\ 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.

[[Page 13189]]

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 \15\ and paragraph (f)(2) of Rule 19b-4 \16\ 
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.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \16\ 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-2010-39 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, Station Place, 100 F Street, NE., Washington, 
DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2010-39. 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 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 publicly available. All 
submissions should refer to File Number SR-Phlx-2010-39 and should be 
submitted on or before April 8, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-5910 Filed 3-17-10; 8:45 am]
BILLING CODE 8011-01-P
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