Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Controller Space Fee, 13638-13639 [2010-6181]

Download as PDF pwalker on DSK8KYBLC1PROD with NOTICES 13638 Federal Register / Vol. 75, No. 54 / Monday, March 22, 2010 / Notices Because the deadline for options holders to make a decision to exercise or not exercise an expiring option that would otherwise either expire or be automatically exercised is not changing, the Commission also believes that proposal will not compromise one key goal of the rule, which is to prevent individuals from taking improper advantage of late-breaking news. The Commission also notes that the time for submission of CEAs for noncustomer accounts on a manual basis will remain at 5:30 p.m. The Commission continues to believe that this time difference for manual submissions is warranted given the potential difficulties in monitoring compliance with a manual procedure, as noted by the Exchange.10 The Commission also believes that the Exchange’s proposal to change the deadline for submitting CEAs to the Exchange to 7:30 p.m. on days when there is a modified close of trading is appropriate. A uniform deadline for submitting CEAs, irrespective of the closing time, will eliminate any possibility for error when determining what the submission deadline is on a modified close expiration day. As described above, current rules set the deadline on modified close expiration day at 2 hours and 30 minutes after the close. Since the modified close time does vary on these modified days, the CEA times could vary as well, which may have proved confusing to Exchange members. Thus, the change to a 7:30 p.m. cut-off for all electronic submission of CEAs, irrespective of the market’s closing time, should help to avoid confusion and reduce the potential for errors. Finally, the Commission also finds that the Exchange’s nonsubstantive changes to the text of Rule 1100 to more clearly present the existing requirements and to eliminate duplicative language is appropriate. Based on the above, the Commission believes that the proposed rule change is consistent with Section 6(b)(5) of the Act 11 in that it will prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, protect investors and the public interest. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,12 that the proposed rule change (SR–ISE–2010– 002) be, and it hereby is, approved. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Florence E. Harmon, Deputy Secretary. 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. [FR Doc. 2010–6204 Filed 3–19–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61711; File No. SR–Phlx– 2010–37] Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Controller Space Fee March 15, 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 (‘‘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 offer the Controller Space storage service at no charge. While changes to the Fee Schedule pursuant to this proposal are effective upon filing, the Exchange has designated these changes to be operative on March 1, 2010. The text of the proposed rule change is available on the Exchange’s Web site at https:// nasdaqomxphlx.cchwallstreet.com/ NASDAQOMXPHLX/Filings/, on the Commission’s Web site at https:// www.sec.gov, at the principal office of the Exchange, and at the Commission’s Public Reference Room. 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. footnote 5 and accompanying text. 11 15 U.S.C. 78f(b)(5). VerDate Nov<24>2008 16:41 Mar 19, 2010 Jkt 220001 1. Purpose The purpose of the proposed rule change is to offer the Controller Space service at no charge. Currently, the Exchange assesses a Controller Space storage fee of $250.00 per month on Members, Member Organizations, participants and participant organizations on the options and foreign currency trading floors. The Controller Space storage refers to space near the Exchange’s trading floor that stores Member equipment that is used by Members, Member Organizations, participants and participant organizations to support their floor operations. Previously, NASDAQ OMX PHLX’s match infrastructure was located at 1900 Market Street in Philadelphia, PA, the location of the NASDAQ OMX PHLX trading floor. The NASDAQ OMX PHLX match infrastructure was relocated to the New York City area. As a result of this relocation, NASDAQ OMX PHLX now only offers a storage facility at the 1900 Market Street location for member equipment. The Controller Space storage services being offered to Members by NASDAQ OMX PHLX have been subsumed by co-location services which are currently being offered by NASDAQ Technology Services LLC (‘‘NTS’’) pursuant to agreements with the owner/operator of its data center where both the Exchange’s quoting and trading facilities and co-located customer equipment are housed.3 A recent proposed rule change proposes to codify fees for these existing co-location 12 15 13 17 10 See A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change PO 00000 Frm 00156 Fmt 4703 Sfmt 4703 3 Currently, the Exchange provides its current colocation services through data centers located in the New York City and Mid-Atlantic areas. E:\FR\FM\22MRN1.SGM 22MRN1 Federal Register / Vol. 75, No. 54 / Monday, March 22, 2010 / Notices services in a single uniform fee schedule.4 Exchange members may subscribe to co-location services provided by NTS. These co-location services are generally available to all qualified market participants who desire them. The Exchange will continue to offer the storage service to its Members at no charge. If the Exchange determines at a later date to charge a fee for this service, it will file a proposed rule change with the Commission. While changes to the Fee Schedule pursuant to this proposal are effective upon filing, the Exchange has designated these changes to be operative 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 5 in general, and furthers the objectives of Section 6(b)(4) of the Act 6 in particular, in that it is an equitable allocation of reasonable fees and other charges among Exchange members. The Exchange believes that Members benefit in that the Exchange will continue to offer all Members the ability to store equipment at the Exchange’s facility at no charge. 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. 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 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 7 and paragraph (f)(2) of Rule 19b–4 8 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 4 See Securities Exchange Act Release No. 61486 (February 3, 2010), 75 FR 6426 (February 9, 2010) (SR–Phlx–2010–18). 5 15 U.S.C. 78f(b). 6 15 U.S.C. 78f(b)(4). 7 15 U.S.C. 78s(b)(3)(A)(ii). 8 17 CFR 240.19b–4(f)(2). VerDate Nov<24>2008 16:41 Mar 19, 2010 Jkt 220001 appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments 13639 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–6181 Filed 3–19–10; 8:45 am] 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–2010–37 on the subject line. BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61704; File No. SR– NYSEArca-2010–11] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending Rule 9.1(f) March 15, 2010. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Paper Comments notice is hereby given that, on March 1, 2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ or • Send paper comments in triplicate the ‘‘Exchange’’) filed with the Securities to Elizabeth M. Murphy, Secretary, and Exchange Commission (the Securities and Exchange Commission, ‘‘Commission’’) the proposed rule 100 F Street, NE., Washington, DC change as described in Items I and II, 20549–1090. below, which Items have been prepared All submissions should refer to File by the self-regulatory organization. The Number SR–Phlx–2010–37. This file Commission is publishing this notice to number should be included on the subject line if e-mail is used. To help the solicit comments on the proposed rule change from interested persons. Commission process and review your comments more efficiently, please use I. Self-Regulatory Organization’s only one method. The Commission will Statement of the Terms of Substance of post all comments on the Commission’s the Proposed Rule Change Internet Web site (https://www.sec.gov/ The Exchange proposes to modify its rules/sro.shtml). Copies of the sharing in accounts rule to harmonize submission, all subsequent its requirements with the Financial amendments, all written statements Industry Regulatory Authority with respect to the proposed rule (‘‘FINRA’’). A copy of this filing is change that are filed with the available on the Exchange’s Web site at Commission, and all written https://www.nyse.com, at the Exchange’s communications relating to the principal office and at the Commission’s proposed rule change between the Commission and any person, other than Public Reference Room. The text of the proposed rule change is below. those that may be withheld from the Proposed new language is in italics and public in accordance with the proposed deletions are in [brackets]. provisions of 5 U.S.C. 552, will be available for Web site viewing and Rules of NYSE Arca Equities, Inc. printing in the Commission’s Public * * * * * Reference Room, 100 F Street, NE., Rule 9.1(f). [Sharing Profits—Losses] Washington, DC 20549, on official Sharing in Accounts; Extent Permissible business days between the hours of 10 [No registered employee shall directly a.m. and 3 p.m. Copies of such filing also will be available for inspection and or indirectly take or receive a share in the profits of any customer’s account or copying at the principal office of the share in any losses sustained in any Exchange. All comments received will such account.] be posted without change; the (1)(A) Except as provided in Commission does not edit personal paragraph (2) no member or person identifying information from associated with a member shall share submissions. You should submit only directly or indirectly in the profits or information that you wish to make available publicly. All submissions 9 17 CFR 200.30–3(a)(12). should refer to File Number SR–Phlx– 1 15 U.S.C.78s(b)(1). 2010–37 and should be submitted on or 2 15 U.S.C. 78a. before April 12, 2010. 3 17 CFR 240.19b–4. PO 00000 Frm 00157 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM 22MRN1

Agencies

[Federal Register Volume 75, Number 54 (Monday, March 22, 2010)]
[Notices]
[Pages 13638-13639]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-6181]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61711; File No. SR-Phlx-2010-37]


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

March 15, 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 (``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 offer the Controller Space storage service 
at no charge. While changes to the Fee Schedule pursuant to this 
proposal are effective upon filing, the Exchange has designated these 
changes to be operative on March 1, 2010.
    The text of the proposed rule change is available on the Exchange's 
Web site at https://nasdaqomxphlx.cchwallstreet.com/NASDAQOMXPHLX/Filings/, on the Commission's Web site at https://www.sec.gov, at the 
principal office of the Exchange, and at the Commission's Public 
Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the 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 offer the Controller 
Space service at no charge. Currently, the Exchange assesses a 
Controller Space storage fee of $250.00 per month on Members, Member 
Organizations, participants and participant organizations on the 
options and foreign currency trading floors. The Controller Space 
storage refers to space near the Exchange's trading floor that stores 
Member equipment that is used by Members, Member Organizations, 
participants and participant organizations to support their floor 
operations.
    Previously, NASDAQ OMX PHLX's match infrastructure was located at 
1900 Market Street in Philadelphia, PA, the location of the NASDAQ OMX 
PHLX trading floor. The NASDAQ OMX PHLX match infrastructure was 
relocated to the New York City area. As a result of this relocation, 
NASDAQ OMX PHLX now only offers a storage facility at the 1900 Market 
Street location for member equipment. The Controller Space storage 
services being offered to Members by NASDAQ OMX PHLX have been subsumed 
by co-location services which are currently being offered by NASDAQ 
Technology Services LLC (``NTS'') pursuant to agreements with the 
owner/operator of its data center where both the Exchange's quoting and 
trading facilities and co-located customer equipment are housed.\3\ A 
recent proposed rule change proposes to codify fees for these existing 
co-location

[[Page 13639]]

services in a single uniform fee schedule.\4\
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    \3\ Currently, the Exchange provides its current co-location 
services through data centers located in the New York City and Mid-
Atlantic areas.
    \4\ See Securities Exchange Act Release No. 61486 (February 3, 
2010), 75 FR 6426 (February 9, 2010) (SR-Phlx-2010-18).
---------------------------------------------------------------------------

    Exchange members may subscribe to co-location services provided by 
NTS. These co-location services are generally available to all 
qualified market participants who desire them. The Exchange will 
continue to offer the storage service to its Members at no charge. If 
the Exchange determines at a later date to charge a fee for this 
service, it will file a proposed rule change with the Commission.
    While changes to the Fee Schedule pursuant to this proposal are 
effective upon filing, the Exchange has designated these changes to be 
operative 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 \5\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \6\ in 
particular, in that it is an equitable allocation of reasonable fees 
and other charges among Exchange members. The Exchange believes that 
Members benefit in that the Exchange will continue to offer all Members 
the ability to store equipment at the Exchange's facility at no charge.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 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 \7\ and paragraph (f)(2) of Rule 19b-4 \8\ 
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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 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-2010-37 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-2010-37. 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 available publicly. All 
submissions should refer to File Number SR-Phlx-2010-37 and should be 
submitted on or before April 12, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-6181 Filed 3-19-10; 8:45 am]
BILLING CODE 8011-01-P
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