Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Fees for FLEX Equity Options, 38163-38164 [2010-15996]
Download as PDF
Federal Register / Vol. 75, No. 126 / Thursday, July 1, 2010 / Notices
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act.8
The Commission has reviewed the
proposal using the approach set forth by
the Commission for non-core market
data fees, and finds that the proposal
meets the criteria for approval. Because
Nasdaq was subject to significant
competitive forces in setting the terms
of the proposal, the Commission will
approve the proposal in the absence of
a substantial countervailing basis to find
that the terms of the proposal fail to
meet the applicable requirements of the
Act or the rules thereunder. An analysis
of the proposal does not provide such a
basis.
Nasdaq has represented that the
Service is a voluntary one, and that the
information provided is not comprised
of data that Nasdaq receives because of
Nasdaq’s status as a self-regulatory
organization. Because the Service is
voluntary, Nasdaq has met the statutory
standard by pricing the Service
according to free market principles;
indeed, if Nasdaq priced the Service too
high, those in the marketplace could
simply opt not to purchase the Service.
The Commission believes that Nasdaq’s
fees for the Service are reasonable and
equitably allocated.
IV. Conclusion
jlentini on DSKJ8SOYB1PROD with NOTICES
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 9, that the
proposed rule change (SR–NASDAQ–
2010–052), as modified by Amendment
No. 1, be, and it hereby is, approved.
8 The proposal meets the criteria, formulated by
the Commission in connection with the petition
filed by NetCoalition, for approval of proposed rule
changes concerning the distribution of non-core
market data. See Securities Exchange Act Release
Nos. 59039 (December 2, 2008), 73 FR 74770
(December 9, 2008) (SR–NYSEArca–2006–21) and
55011 (December 27, 2006) (order granting petition
for review of SR–NYSEArca–2006–021). In its order
issued in connection with the NetCoalition petition,
the Commission stated that ‘‘reliance on competitive
forces is the most appropriate and effective means
to assess whether the terms for the distribution of
non-core data are equitable, fair and reasonable, and
not unreasonably discriminatory.’’ 73 FR at 74781–
82. As such, the ‘‘existence of significant
competition provides a substantial basis for finding
that the terms of an exchange’s fee proposal are
equitable, fair, reasonable, and not unreasonably or
unfairly discriminatory.’’ Id. at 74782. If an
exchange ‘‘was subject to significant competitive
forces in setting the terms of a proposal,’’ a proposal
will be approved unless the Commission
determines that ‘‘there is a substantial
countervailing basis to find that the terms
nevertheless fail to meet an applicable requirement
of the Exchange Act or the rules thereunder.’’ Id. at
74781.
9 15 U.S.C. 78s(b)(2).
10 17 CFR 200.30–3(a)(12).
VerDate Mar<15>2010
16:02 Jun 30, 2010
Jkt 220001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–15997 Filed 6–30–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62379; File No. SR–Phlx–
2010–87]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Relating to
Fees for FLEX Equity Options
June 25, 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 June 21,
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 assess a
transaction charge for members trading
Flexible Exchange® Options (‘‘FLEX
Options’’).3
While changes to the Exchange’s Fee
Schedule pursuant to this proposal are
effective upon filing, the Exchange has
designated this proposal to be effective
for trades settling on or after July 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.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 A FLEX option is a customized option that
provides parties to the transaction with the ability
to fix terms including the exercise style, expiration
date, and certain exercise prices. See Exchange Rule
1079. FLEX Options are a trademark of the Chicago
Board Options Exchange.
2 17
PO 00000
Frm 00092
Fmt 4703
Sfmt 4703
38163
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 establish a new fee for
equity options transactions executed
pursuant to Exchange Rule 1079 (‘‘FLEX
equity options’’). The Exchange believes
that the proposed fee reduction for
trading FLEX equity options will
encourage members to trade additional
FLEX equity options contracts on the
Exchange, resulting in additional order
flow to the Exchange. Currently, the fees
which members are assessed when
trading FLEX equity options are the
standard equity option fees.
Currently, members who trade FLEX
equity options are assessed the standard
equity options fees delineated in
Section II of the Fee Schedule. The
Exchange is proposing to reduce
transaction fees to $0.10 per contract
side for FLEX equity options for all
participants, except Customers.4
Specifically, the Exchange proposes to
assess a $.10 transaction charge on
Professionals 5, Specialists 6, Registered
Options Traders 7, Streaming Quote
4 At this time the Exchange is not proposing to
otherwise amend its equity option fees.
5 Rule 1000(b)(14) provides in relevant part: ‘‘The
term ‘‘professional’’ means any person or entity that
(i) is not a broker or dealer in securities, and (ii)
places more than 390 orders in listed options per
day on average during a calendar month for its own
beneficial account(s).
6 A Specialist is an Exchange member who is
registered as an options specialist pursuant to Rule
1020(a).
7 A Registered Option Trader is defined in
Exchange Rule 1014(b) as 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. A ROT includes a
SQT, a RSQT and a Non-SQT, which by definition
is neither a SQT or a RSQT. See Exchange Rule
1014 (b)(i) and (ii).
E:\FR\FM\01JYN1.SGM
01JYN1
38164
Federal Register / Vol. 75, No. 126 / Thursday, July 1, 2010 / Notices
Traders (‘‘SQT’’) 8, Remote Streaming
Quote Traders (‘‘RSQT’’) 9, BrokerDealers and Firms. Customers would
continue to remain free in FLEX equity
options as they currently are in equity
option products.
The Exchange currently waives the
Firm equity options transaction fees for
members executing facilitation orders
pursuant to Exchange Rule 1064 when
such members are trading in their own
proprietary account.10 Similar to the
equity option fees, which are currently
subject to the aforementioned waiver,
the Exchange would continue to apply
the waiver to members executing
facilitation orders pursuant to Exchange
Rule 1064 to FLEX equity option
transactions.
While changes to the Exchange’s Fee
Schedule pursuant to this proposal are
effective upon filing, the Exchange has
designated this proposal to be effective
for trades settling on or after July 1,
2010.
2. Statutory Basis
The Exchange believes that its
proposal to amend its Fee Schedule is
consistent with Section 6(b) of the Act 11
in general, and furthers the objectives of
Section 6(b)(4) of the Act 12 in
particular, in that it is an equitable
allocation of reasonable fees and other
charges among Exchange members. The
Exchange believes that the proposed
fees for FLEX options are equitable and
reasonable because all participants will
equally be assessed $.10 per contract
and Customers will continue to remain
free for equity options transactions
executed pursuant to Exchange Rule
1079.
Additionally, the Exchange’s proposal
to extend the current waiver for
members executing facilitation orders
pursuant to Exchange Rule 1064 to
FLEX equity options is reasonable and
jlentini on DSKJ8SOYB1PROD with NOTICES
8 An
SQT is an Exchange Registered Options
Trader (‘‘ROT’’) who has received permission from
the Exchange to generate and submit option
quotations electronically through an electronic
interface with AUTOM via an Exchange approved
proprietary electronic quoting device in eligible
options to which such SQT is assigned. See
Exchange Rule 1014(b)(ii)(A).
9 An RSQT is an ROT that is a member or member
organization with no physical trading floor
presence who has received permission from the
Exchange to generate and submit option quotations
electronically through AUTOM in eligible options
to which such RSQT has been assigned. An RSQT
may only submit such quotations electronically
from off the floor of the Exchange. See Exchange
Rule 1014(b)(ii)(B).
10 The waiver does not apply to orders where a
member is acting as agent on behalf of a nonmember. See Securities Exchange Act Release No.
60477 (August 11, 2009), 74 FR 41777 (August 18,
2009) (SR–Phlx–2009–67).
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(4).
VerDate Mar<15>2010
16:02 Jun 30, 2010
Jkt 220001
equitable because it would continue to
allow members the benefit of a waiver
they receive today.
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 13 and
paragraph (f)(2) of Rule 19b–4 14
thereunder. At any time within 60 days
of the filing of the proposed rule change,
the Commission may summarily
abrogate such rule change if it appears
to the Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Phlx–2010–87 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–Phlx-2010–87. 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–
2010–87 and should be submitted on or
before July 22, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–15996 Filed 6–30–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62382; File No. SR–CBOE–
2010–058]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Conforming
Changes in Connection With
Demutualization
June 25, 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 June 18,
2010, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
15 17
13 15
U.S.C. 78s(b)(3)(A)(ii).
14 17 CFR 240.19b–4(f)(2).
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\01JYN1.SGM
01JYN1
Agencies
[Federal Register Volume 75, Number 126 (Thursday, July 1, 2010)]
[Notices]
[Pages 38163-38164]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-15996]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62379; File No. SR-Phlx-2010-87]
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
to Fees for FLEX Equity Options
June 25, 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 June 21, 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 assess a transaction charge for members
trading Flexible Exchange[reg] Options (``FLEX Options'').\3\
---------------------------------------------------------------------------
\3\ A FLEX option is a customized option that provides parties
to the transaction with the ability to fix terms including the
exercise style, expiration date, and certain exercise prices. See
Exchange Rule 1079. FLEX Options are a trademark of the Chicago
Board Options Exchange.
---------------------------------------------------------------------------
While changes to the Exchange's Fee Schedule pursuant to this
proposal are effective upon filing, the Exchange has designated this
proposal to be effective for trades settling on or after July 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
The purpose of the proposed rule change is to establish a new fee
for equity options transactions executed pursuant to Exchange Rule 1079
(``FLEX equity options''). The Exchange believes that the proposed fee
reduction for trading FLEX equity options will encourage members to
trade additional FLEX equity options contracts on the Exchange,
resulting in additional order flow to the Exchange. Currently, the fees
which members are assessed when trading FLEX equity options are the
standard equity option fees.
Currently, members who trade FLEX equity options are assessed the
standard equity options fees delineated in Section II of the Fee
Schedule. The Exchange is proposing to reduce transaction fees to $0.10
per contract side for FLEX equity options for all participants, except
Customers.\4\ Specifically, the Exchange proposes to assess a $.10
transaction charge on Professionals \5\, Specialists \6\, Registered
Options Traders \7\, Streaming Quote
[[Page 38164]]
Traders (``SQT'') \8\, Remote Streaming Quote Traders (``RSQT'') \9\,
Broker-Dealers and Firms. Customers would continue to remain free in
FLEX equity options as they currently are in equity option products.
---------------------------------------------------------------------------
\4\ At this time the Exchange is not proposing to otherwise
amend its equity option fees.
\5\ Rule 1000(b)(14) provides in relevant part: ``The term
``professional'' means any person or entity that (i) is not a broker
or dealer in securities, and (ii) places more than 390 orders in
listed options per day on average during a calendar month for its
own beneficial account(s).
\6\ A Specialist is an Exchange member who is registered as an
options specialist pursuant to Rule 1020(a).
\7\ A Registered Option Trader is defined in Exchange Rule
1014(b) as 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. A ROT includes a SQT, a RSQT and a Non-SQT, which by
definition is neither a SQT or a RSQT. See Exchange Rule 1014 (b)(i)
and (ii).
\8\ An SQT is an Exchange Registered Options Trader (``ROT'')
who has received permission from the Exchange to generate and submit
option quotations electronically through an electronic interface
with AUTOM via an Exchange approved proprietary electronic quoting
device in eligible options to which such SQT is assigned. See
Exchange Rule 1014(b)(ii)(A).
\9\ An RSQT is an ROT that is a member or member organization
with no physical trading floor presence who has received permission
from the Exchange to generate and submit option quotations
electronically through AUTOM in eligible options to which such RSQT
has been assigned. An RSQT may only submit such quotations
electronically from off the floor of the Exchange. See Exchange Rule
1014(b)(ii)(B).
---------------------------------------------------------------------------
The Exchange currently waives the Firm equity options transaction
fees for members executing facilitation orders pursuant to Exchange
Rule 1064 when such members are trading in their own proprietary
account.\10\ Similar to the equity option fees, which are currently
subject to the aforementioned waiver, the Exchange would continue to
apply the waiver to members executing facilitation orders pursuant to
Exchange Rule 1064 to FLEX equity option transactions.
---------------------------------------------------------------------------
\10\ The waiver does not apply to orders where a member is
acting as agent on behalf of a non-member. See Securities Exchange
Act Release No. 60477 (August 11, 2009), 74 FR 41777 (August 18,
2009) (SR-Phlx-2009-67).
---------------------------------------------------------------------------
While changes to the Exchange's Fee Schedule pursuant to this
proposal are effective upon filing, the Exchange has designated this
proposal to be effective for trades settling on or after July 1, 2010.
2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \11\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \12\ in
particular, in that it is an equitable allocation of reasonable fees
and other charges among Exchange members. The Exchange believes that
the proposed fees for FLEX options are equitable and reasonable because
all participants will equally be assessed $.10 per contract and
Customers will continue to remain free for equity options transactions
executed pursuant to Exchange Rule 1079.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
Additionally, the Exchange's proposal to extend the current waiver
for members executing facilitation orders pursuant to Exchange Rule
1064 to FLEX equity options is reasonable and equitable because it
would continue to allow members the benefit of a waiver they receive
today.
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 \13\ and paragraph (f)(2) of Rule 19b-4 \14\
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.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(3)(A)(ii).
\14\ 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-2010-87 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-Phlx-2010-87. 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-2010-87 and should be
submitted on or before July 22, 2010.
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-15996 Filed 6-30-10; 8:45 am]
BILLING CODE 8010-01-P