Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Extension of Sponsored Access Pilot Program, 16219-16221 [2010-7109]
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Federal Register / Vol. 75, No. 61 / Wednesday, March 31, 2010 / Notices
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–NYSEArca–2010–17 on the
subject line.
Paper Comments
should be submitted on or before
April 21, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–7110 Filed 3–30–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61776; File No. SR–Phlx–
2010–44]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Extension of Sponsored Access Pilot
Program
March 24, 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 17,
2010, NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
All submissions should refer to File
Securities and Exchange Commission
Number SR–NYSEArca–2010–17. This
(‘‘SEC’’ or ‘‘Commission’’) the proposed
file number should be included on the
rule change as described in Items I and
subject line if e-mail is used. To help the II below, which Items have been
Commission process and review your
prepared by the Exchange. The
comments more efficiently, please use
Commission is publishing this notice to
only one method. The Commission will solicit comments on the proposed rule
post all comments on the Commission’s change from interested persons.
Internet Web site (https://www.sec.gov/
I. Self-Regulatory Organization’s
rules/sro.shtml). Copies of the
Statement of the Terms of Substance of
submission, all subsequent
the Proposed Rule Change
amendments, all written statements
The Exchange proposes to extend its
with respect to the proposed rule
sponsored access rule for a pilot period
change that are filed with the
ending on September 15, 2010. The
Commission, and all written
current pilot expires on March 15, 2010.
communications relating to the
The text of the proposed rule change
proposed rule change between the
Commission and any person, other than is available on the Exchange’s Web site
at https://
those that may be withheld from the
nasdaqomxphlx.cchwallstreet.com/
public in accordance with the
NASDAQOMXPHLX/Filings/, at the
provisions of 5 U.S.C. 552, will be
principal office of the Exchange, and at
available for Web site viewing and
the Commission’s Public Reference
printing in the Commission’s Public
Room.
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
II. Self-Regulatory Organization’s
business days between the hours of
Statement of the Purpose of, and
10 a.m. and 3 p.m. Copies of such filing Statutory Basis for, the Proposed Rule
also will be available for inspection and Change
copying at the principal office of the
In its filing with the Commission, the
Exchange. All comments received will
Exchange included statements
be posted without change; the
concerning the purpose of and basis for
Commission does not edit personal
the proposed rule change and discussed
identifying information from
any comments it received on the
submissions. You should submit only
proposed rule change. The text of these
information that you wish to make
jlentini on DSKJ8SOYB1PROD with NOTICES
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
available publicly.
All submissions should refer to File
Number SR–NYSEArca–2010–17 and
VerDate Nov<24>2008
19:40 Mar 30, 2010
Jkt 220001
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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16219
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 attract additional business
by extending its sponsored access rule,
which is similar to that of other
exchanges. During the previous pilot
program, very few member
organizations availed themselves of the
program, but the Exchange seeks to
make it available for an additional pilot
period expiring September 15, 2010.
A Sponsored Participant is a nonmember of the Exchange, such as an
institutional investor, that gains access
to the Exchange and trades under a
Sponsoring Member’s execution and
clearing identity pursuant to a
sponsorship arrangement between such
non-member and a member
organization. Specifically, the Exchange
proposes to permit Sponsored
Participants to be sponsored by
Sponsoring Member Organizations, and
thereby access the Exchange, subject to
certain requirements. These
requirements are intended to confirm
that the Sponsored Participant is
required to and had procedures in place
to comply with Exchange rules, and that
the Sponsoring Member Organization
takes responsibility for the Sponsored
Participant’s activity on the Exchange.
First, the Sponsored Participant and
its Sponsoring Member Organization
must have entered into and maintained
an Access Agreement with the
Exchange. The Sponsoring Member
Organization must designate the
Sponsored Participant by name in an
addendum to the Access Agreement.
Second, there must be a Sponsored
Participant Agreement between the
Sponsoring Member Organization and
the Sponsored Participant that contains
the following sponsorship provisions,
enumerated in full in Rule 1094(b)(ii):
(i) The orders of the Sponsored
Participant are binding in all respects on
the Sponsoring Member Organization;
(ii) The Sponsoring Member
Organization is responsible for the
actions of the Sponsored Participant;
(iii) In addition to the Sponsoring
Member Organization being required to
comply with the Exchange Certificate of
Incorporation, By-laws, Rules and
procedures of the Exchange, the
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16220
Federal Register / Vol. 75, No. 61 / Wednesday, March 31, 2010 / Notices
jlentini on DSKJ8SOYB1PROD with NOTICES
Sponsored Participant shall do so as if
such Sponsored Participant were an
Exchange member organization;
(iv) The Sponsored Participant shall
maintain, keep current and provide to
the Sponsoring Member Organization a
list of individuals authorized to obtain
access to the Exchange on behalf of the
Sponsored Participant;
(v) The Sponsored Participant shall
familiarize its authorized individuals
with all of the Sponsored Participant’s
obligations under this Rule and will
assure that they receive appropriate
training prior to any use or access to the
Exchange;
(vi) The Sponsored Participant may
not permit anyone other than authorized
individuals to use or obtain access to
the Exchange; 3
(vii) The Sponsored Participant shall
take reasonable security precautions to
prevent unauthorized use or access to
the Exchange, including unauthorized
entry of information into the Exchange,
and agrees that it is responsible for any
and all orders, trades and other
messages and instructions entered,
transmitted or received under
identifiers, passwords and security
codes of authorized individuals, and for
the trading and other consequences
thereof;
(viii) The Sponsored Participant
acknowledges its responsibility to
establish adequate procedures and
controls that permit it to effectively
monitor its employees’, agents’ and
Participants’ use and access to the
Exchange for compliance with the terms
of this agreement;
(ix) The Sponsored Participant shall
pay when due all amounts, if any,
payable to Sponsoring Member
Organization, the Exchange, or any
other third parties that arise from the
Sponsored Participant’s access to and
use of the Exchange. Such amounts
include, but are not limited to
applicable exchange and regulatory fees.
Third, the Sponsoring Member
Organization must provide the
Exchange with a Sponsored Participant
Addendum to its Access Agreement
acknowledging its responsibility for the
orders, executions and actions of its
Sponsored Participant at issue.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 4 in general, and furthers the
3 If the Exchange determines that an authorized
individual has caused a Member Organization to
violate the Exchange’s Rules, the Exchange could
direct the Member Organization to suspend or
withdraw the person’s status as an authorized
individual.
4 15 U.S.C. 78f(b).
VerDate Nov<24>2008
19:40 Mar 30, 2010
Jkt 220001
objectives of Section 6(b)(5) of the Act 5
in particular, 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 by
helping market participants seeking
access to a marketplace.
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
Because the foregoing 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 for 30 days after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 6 and Rule 19b–
4(f)(6) 7 thereunder.
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.8 However, Rule 19b–
4(f)(6)(iii) 9 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay so that the proposal may become
operative upon filing. The Exchange
filed the proposed rule change on March
17, 2010. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because such waiver would allow the
Exchange to extend and continue its
5 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A).
7 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change 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. Phlx has satisfied this requirement.
8 17 CFR 240.19b–4(f)(6)(iii).
9 Id.
6 15
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Sfmt 4703
pilot program without delay.
Accordingly, the Commission hereby
grants the Exchange’s request and
designates the proposal operative upon
filing.10
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–2010–44 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–2010–44. 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
10 For the purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
E:\FR\FM\31MRN1.SGM
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Federal Register / Vol. 75, No. 61 / Wednesday, March 31, 2010 / Notices
information that you wish to make
available publicly. All submissions
should refer to File Number SR–Phlx–
2010–44 and should be submitted on or
before April 21, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–7109 Filed 3–30–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61766; File No. SR–
NASDAQ–2010–035]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing of Proposed Rule Change To
Establish Strike Price Intervals and
Trading Hours for Options on IndexLinked Securities
March 23, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that
on March 11, 2010, The NASDAQ Stock
Market LLC (‘‘NASDAQ’’ 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.
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
NASDAQ is filing with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) a proposal for the
NASDAQ Options Market (‘‘NOM’’ or
‘‘Exchange’’) to amend: Chapter IV,
Section 6 (Series of Options Contracts
Open for Trading) to establish strikeprice intervals for options on IndexLinked Securities; 3 and Chapter VI,
jlentini on DSKJ8SOYB1PROD with NOTICES
11 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Index-Linked Securities, also known as
exchange-traded notes, are long-term notes that are
the non-convertible debt of an issuer with a term
of at least one year but not greater than thirty years.
These exchange-traded securities are designed for
investors who desire to participate in a specific
market segment by providing exposure to one or
more identifiable underlying securities,
commodities, currencies, derivative instruments or
market indexes. The Exchange’s listing standards
for options on Index-Linked Securities were
established in May 2009. See Securities Exchange
VerDate Nov<24>2008
19:40 Mar 30, 2010
Jkt 220001
Section 2 (Days and Hours of Business)
to establish trading hours for these
products. The text of the proposed rule
change is available on NASDAQ’s Web
site at https://nasdaq.cchwallstreet.com/
Filings/, on the Commission’s Web site
at https://www.sec.gov, at NASDAQ, 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
self-regulatory organization 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 those 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 parts 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 this proposal is to
amend Chapter IV, Section 6 and
Chapter VI, Section 2 to establish strike
price intervals and trading hours for
options on Index-Linked Securities
(‘‘ILS’’), also known as exchange-traded
notes (‘‘ETN’’), prior to the Exchange
proposing to list and trade these new
products.
The Commission has approved the
Exchange’s proposal, as well as the
proposals of other options exchanges, to
enable the listing and trading of options
on ILS (ETN).4 Options trading has not
commenced to date and is contingent
upon the Commission’s approval of The
Options Clearing Corporation’s (‘‘OCC’’)
proposed supplement to the Options
Disclosure Document (‘‘ODD’’) that will
provide disclosure regarding options on
Index-Linked Securities.5
Act Release No. 59923 (May 14, 2009), 74 FR 23902
(May 21, 2009) (SR–NASDAQ–2009–046) (notice of
filing and immediate effectiveness). Other
exchanges have established similar listing
standards. See Securities Exchange Act Release
Nos. 58571 (September 17, 2008), 73 FR 55188
(September 24, 2008) (SR–Phlx–2008–60) (notice of
filing and immediate effectiveness); 58204 (July 22,
2008), 73 FR 43807 (July 28, 2008) (SR–CBOE–
2008–64) (approval order); 58203 (July 22, 2008), 73
FR 43812 (July 28, 2008) (SR–NYSEArca–2008–57)
(approval order); and 58985 (November 20, 2008),
73 FR 72538 (November 28, 2008) (SR–ISE–2008–
86) (notice of filing and immediate effectiveness).
4 See supra note 3.
5 OCC previously received Commission approval
to clear options based on Index-Linked Securities.
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16221
$1 Strikes for ILS (ETN) Options
Prior to the commencement of trading
options on Index-Linked Securities, the
Exchange is proposing to establish that
strike price intervals of $1 will be
permitted where the strike price is less
than $200. Where the strike price is
greater than $200, $5 strikes will be
permitted. These proposed changes are
reflected by the addition of Chapter IV,
Section 6, Supplementary Material
.01(c) to Section 6.
The Exchange is seeking to establish
$1 strikes for ILS (ETN) options where
the strike price is less than $200 because
the Exchange believes the marketplace
and investors will be expecting these
types of options to trade in a similar
manner to options on exchange-traded
funds (‘‘ETFs’’).6 Strike prices for ETF
options are permitted in $1 or greater
intervals where the strike price is $200
or less and $5 or greater where the strike
price is greater than $200.7 Accordingly,
the Exchange believes that the rationale
for permitting $1 strikes for ETF options
equally applies to permitting $1 strikes
for ILS (ETN) options, and that investors
will be better served if $1 strike price
intervals are available for ILS (ETN)
options where the strike price is less
than $200. The Exchange believes that
$1 strike price intervals for options on
Index-Linked Securities will provide
investors with greater flexibility by
allowing them to establish positions that
are better tailored to meet their
investment objectives.
Trading Hours for ILS (ETN) Options
The Exchange proposes to amend
Chapter VI, Section 2(b) to provide that
options contracts on exchange-traded
notes including Index-Linked
Securities, as defined in Chapter IV,
Section 3(l), may be traded on the
Exchange until 4:15 p.m. each business
day. This will establish similar trading
hours for ILS (ETN) options as the
currently-established trading hours for
ETF options.8
The Exchange has analyzed its
capacity and believes the Exchange and
the Options Price Reporting Authority
(‘‘OPRA’’) have the necessary systems
capacity to handle the additional traffic
associated with the listing and trading
See Securities Exchange Act Release No. 60872
(October 23, 2009), 74 FR 55878 (October 29, 2009)
(SR–OCC–2009–14) (approval order).
6 ETFs may also be known in the rules as
Exchange Traded Funds or Fund Shares. See, for
example, Chapter IV, Section 6(g) and Chapter 6,
Section 2(b).
7 See proposed Chapter IV, Section 6,
Supplementary Material .01(b) to Section 6, which,
like subsection (c), is renumbered for internal
consistency.
8 See Chapter VI, Section 2.
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]]>Agencies
[Federal Register Volume 75, Number 61 (Wednesday, March 31, 2010)]
[Notices]
[Pages 16219-16221]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-7109]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61776; File No. SR-Phlx-2010-44]
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Extension of Sponsored Access Pilot Program
March 24, 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 17, 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 and II
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 extend its sponsored access rule for a
pilot period ending on September 15, 2010. The current pilot expires on
March 15, 2010.
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaqomxphlx.cchwallstreet.com/NASDAQOMXPHLX/Filings/, 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 attract additional
business by extending its sponsored access rule, which is similar to
that of other exchanges. During the previous pilot program, very few
member organizations availed themselves of the program, but the
Exchange seeks to make it available for an additional pilot period
expiring September 15, 2010.
A Sponsored Participant is a non-member of the Exchange, such as an
institutional investor, that gains access to the Exchange and trades
under a Sponsoring Member's execution and clearing identity pursuant to
a sponsorship arrangement between such non-member and a member
organization. Specifically, the Exchange proposes to permit Sponsored
Participants to be sponsored by Sponsoring Member Organizations, and
thereby access the Exchange, subject to certain requirements. These
requirements are intended to confirm that the Sponsored Participant is
required to and had procedures in place to comply with Exchange rules,
and that the Sponsoring Member Organization takes responsibility for
the Sponsored Participant's activity on the Exchange.
First, the Sponsored Participant and its Sponsoring Member
Organization must have entered into and maintained an Access Agreement
with the Exchange. The Sponsoring Member Organization must designate
the Sponsored Participant by name in an addendum to the Access
Agreement.
Second, there must be a Sponsored Participant Agreement between the
Sponsoring Member Organization and the Sponsored Participant that
contains the following sponsorship provisions, enumerated in full in
Rule 1094(b)(ii):
(i) The orders of the Sponsored Participant are binding in all
respects on the Sponsoring Member Organization;
(ii) The Sponsoring Member Organization is responsible for the
actions of the Sponsored Participant;
(iii) In addition to the Sponsoring Member Organization being
required to comply with the Exchange Certificate of Incorporation, By-
laws, Rules and procedures of the Exchange, the
[[Page 16220]]
Sponsored Participant shall do so as if such Sponsored Participant were
an Exchange member organization;
(iv) The Sponsored Participant shall maintain, keep current and
provide to the Sponsoring Member Organization a list of individuals
authorized to obtain access to the Exchange on behalf of the Sponsored
Participant;
(v) The Sponsored Participant shall familiarize its authorized
individuals with all of the Sponsored Participant's obligations under
this Rule and will assure that they receive appropriate training prior
to any use or access to the Exchange;
(vi) The Sponsored Participant may not permit anyone other than
authorized individuals to use or obtain access to the Exchange; \3\
---------------------------------------------------------------------------
\3\ If the Exchange determines that an authorized individual has
caused a Member Organization to violate the Exchange's Rules, the
Exchange could direct the Member Organization to suspend or withdraw
the person's status as an authorized individual.
---------------------------------------------------------------------------
(vii) The Sponsored Participant shall take reasonable security
precautions to prevent unauthorized use or access to the Exchange,
including unauthorized entry of information into the Exchange, and
agrees that it is responsible for any and all orders, trades and other
messages and instructions entered, transmitted or received under
identifiers, passwords and security codes of authorized individuals,
and for the trading and other consequences thereof;
(viii) The Sponsored Participant acknowledges its responsibility to
establish adequate procedures and controls that permit it to
effectively monitor its employees', agents' and Participants' use and
access to the Exchange for compliance with the terms of this agreement;
(ix) The Sponsored Participant shall pay when due all amounts, if
any, payable to Sponsoring Member Organization, the Exchange, or any
other third parties that arise from the Sponsored Participant's access
to and use of the Exchange. Such amounts include, but are not limited
to applicable exchange and regulatory fees.
Third, the Sponsoring Member Organization must provide the Exchange
with a Sponsored Participant Addendum to its Access Agreement
acknowledging its responsibility for the orders, executions and actions
of its Sponsored Participant at issue.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \4\ in general, and furthers the objectives of Section
6(b)(5) of the Act \5\ in particular, 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 by
helping market participants seeking access to a marketplace.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
Because the foregoing 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 for 30 days after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the Act \6\ and Rule 19b-4(f)(6) \7\
thereunder.
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change 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.
Phlx has satisfied this requirement.
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A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\8\ However,
Rule 19b-4(f)(6)(iii) \9\ permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The Exchange has requested that the Commission
waive the 30-day operative delay so that the proposal may become
operative upon filing. The Exchange filed the proposed rule change on
March 17, 2010. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest because such waiver would allow the Exchange to extend
and continue its pilot program without delay. Accordingly, the
Commission hereby grants the Exchange's request and designates the
proposal operative upon filing.\10\
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\8\ 17 CFR 240.19b-4(f)(6)(iii).
\9\ Id.
\10\ For the purposes only of waiving the 30-day operative
delay, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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-2010-44 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-2010-44. 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
[[Page 16221]]
information that you wish to make available publicly. All submissions
should refer to File Number SR-Phlx-2010-44 and should be submitted on
or before April 21, 2010.
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\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-7109 Filed 3-30-10; 8:45 am]
BILLING CODE 8011-01-P
