Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Options Regulatory Fee, 47874-47875 [2010-19528]
Download as PDF
47874
Federal Register / Vol. 75, No. 152 / Monday, August 9, 2010 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–19606 Filed 8–6–10; 8:45 am]
BILLING CODE 8010–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62619; File No. SR–Phlx–
2010–100]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to the
Options Regulatory Fee
July 30, 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 July 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 reduce its
Options Regulatory Fee.
While changes to the Fee Schedule
pursuant to this proposal are effective
upon filing, the Exchange has
designated these changes to be operative
August 2, 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.
sroberts on DSKD5P82C1PROD with NOTICES
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
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
17:01 Aug 06, 2010
Jkt 220001
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.
1. Purpose
The purpose of the proposed rule
change is to amend the Options
Regulatory Fee (‘‘ORF’’) to decrease the
current $.0035 per contract fee to each
member for all options transactions
executed or cleared by the member that
are cleared by The Options Clearing
Corporation (‘‘OCC’’) in the customer
range (i.e., that clear in the customer
account of the member’s clearing firm at
OCC). The Exchange proposes instead to
assess a $.0030 per contract ORF. The
Exchange monitors the amount of
revenue collected from the ORF to
ensure that it, in combination with its
other regulatory fees and fines, does not
exceed regulatory costs. The purpose of
the proposed rule change is to ensure
that the ORF would not exceed costs.
The ORF is imposed upon all such
transactions executed by a member,
even if such transactions do not take
place on the Exchange.3 The ORF also
includes options transactions that are
not executed by an Exchange member
but are ultimately cleared by an
Exchange member.4 The ORF is not
charged for member options
transactions because members incur the
costs of owning memberships and
through their memberships are charged
transaction fees, dues and other fees that
are not applicable to non-members. The
3 The ORF would apply to all ‘‘C’’ account origin
code orders executed by a member on the Exchange.
Exchange rules require each member to record the
appropriate account origin code on all orders at the
time of entry in order to allow the Exchange to
properly prioritize and route orders and assess
transaction fees pursuant to the rules of the
Exchange and report resulting transactions to the
OCC. See Exchange Rule 1063, Responsibilities of
Floor Brokers, and Options Floor Procedure Advice
F–4, Orders Executed as Spreads, Straddles,
Combinations or Synthetics and Other Order Ticket
Marking Requirements. The Exchange represents
that it has surveillances in place to verify that
members mark orders with the correct account
origin code.
4 In the case where one member both executes a
transaction and clears the transaction, the ORF is
assessed to the member only once on the execution.
In the case where one member executes a
transaction and a different member clears the
transaction, the ORF is assessed only to the member
who executes the transaction and is not assessed to
the member who clears the transaction. In the case
where a non-member executes a transaction and a
member clears the transaction, the ORF is assessed
to the member who clears the transaction.
PO 00000
Frm 00120
Fmt 4703
Sfmt 4703
dues and fees paid by members go into
the general funds of the Exchange, a
portion of which is used to help pay the
costs of regulation. The ORF is collected
indirectly from members through their
clearing firms by OCC on behalf of the
Exchange.
The ORF is designed to recover a
portion of the costs to the Exchange of
the supervision and regulation of its
members, including performing routine
surveillances, investigations,
examinations, financial monitoring, and
policy, rulemaking, interpretive, and
enforcement activities. The Exchange
believes that revenue generated from the
ORF, when combined with all of the
Exchange’s other regulatory fees, will
cover a material portion, but not all, of
the Exchange’s regulatory costs. The
Exchange will continue to monitor the
amount of revenue collected from the
ORF to ensure that it, in combination
with its other regulatory fees and fines,
do not exceed regulatory costs. If the
Exchange determines regulatory
revenues exceed regulatory costs, the
Exchange will adjust the ORF by
submitting a fee change filing to 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
August 2, 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 the fee change is
reasonable because the Exchange desires
to ensure that the revenue collected
from the ORF does not exceed
regulatory costs. The Exchange believes
that this fee proposal is equitable
because the reduction of the ORF to
$.0030 per contract will apply to all
market participants who are being
assessed the ORF.
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.
5 15
6 15
E:\FR\FM\09AUN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
09AUN1
Federal Register / Vol. 75, No. 152 / Monday, August 9, 2010 / 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 such
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:
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 No. SR–Phlx–2010–
100 and should be submitted on or
before August 30, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–19528 Filed 8–6–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–2010–100 on the
subject line.
[Release No. 34–62615; File No. SR–BX–
2010–052]
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–2010–100. 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
July 30, 2010.
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Add 75
Classes to the Penny Pilot Program
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1, and Rule 19b–4 2 thereunder,
notice is hereby given that on July 21,
2010, NASDAQ OMX BX, Inc. (the
‘‘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 self-regulatory organization. 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 OMX BX, Inc. (the
‘‘Exchange’’) proposes to designate 75
options classes to be added to the Penny
Pilot Program, as referenced in Chapter
V, Section 33 of the Rules of the Boston
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
7 15
U.S.C. 78s(b)(3)(A)(ii).
8 17 CFR 240.19b–4(f)(2).
VerDate Mar<15>2010
17:01 Aug 06, 2010
1 15
Jkt 220001
PO 00000
Frm 00121
Fmt 4703
47875
Options Exchange Group, LLC (‘‘BOX’’).
The Exchange intends to notify BOX
Options Participants of the classes to be
added to the Penny Pilot Program via
Regulatory Circular.
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 these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization 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
On October 19, 2009 the Exchange
submitted a proposed rule change 3 with
the Securities and Exchange
Commission (‘‘Commission’’) to, among
other things, expand the number of
classes included in the Penny Pilot
Program over four successive quarters,
with 75 classes added in each of
November 2009, February 2010, May
2010, and August 2010.4 Options classes
with high premiums will be excluded
for the quarterly additions.5
3 See Securities and Exchange Act Release No.
60886 (Oct. 27, 2009), 74 FR 56897 (Nov. 3, 2009)
(SR–BX–2009–067). This proposal was effective
immediately upon filing.
4 The quarterly additions will be effective on
November 2, 2009, February 1, 2010, May 3, 2010
and August 2, 2010, respectively. For purposes of
identifying the classes to be added per quarter, the
Exchange shall use data from the prior six calendar
months preceding the implementation month,
except that the month immediately preceding their
addition to the Pilot would not be utilized for
purposes of the six month analysis. For example,
the quarterly additions to be added on May 3, 2010
shall be determined using data from the six month
period ending March 31, 2010. The Exchange has
filed three (3) previous proposals similar to the
present proposal, for the November 2, 2009,
February 1, 2010 and May 3, 2010 expansions of 75
classes, respectively. See Securities and Exchange
Act Release No. 60950 (Nov. 6, 2009), 74 FR 58666
(Nov. 6, 2009) [sic] (SR–BX–2009–069); Securities
and Exchange Act Release No. 61456 (Feb. 1, 2010),
75 FR 6235 (Feb. 8, 2010) (SR–BX–2010–011); and
62039 (May 5, 2010), 75 FR 26313 (May 11, 2010)
(SR–BX–2010–032). These proposals were effective
immediately upon filing.
5 The threshold for designation as ‘‘high priced’’
at the time of selection of new classes to be
included in the Penny Pilot Program is $200 per
share or a calculated index value of 200. The
determination of whether a security is trading above
$200 or above a calculated index value of 200 shall
Continued
Sfmt 4703
E:\FR\FM\09AUN1.SGM
09AUN1
Agencies
[Federal Register Volume 75, Number 152 (Monday, August 9, 2010)]
[Notices]
[Pages 47874-47875]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-19528]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62619; File No. SR-Phlx-2010-100]
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
the Options Regulatory Fee
July 30, 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 July 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 reduce its Options Regulatory Fee.
While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative August 2, 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 amend the Options
Regulatory Fee (``ORF'') to decrease the current $.0035 per contract
fee to each member for all options transactions executed or cleared by
the member that are cleared by The Options Clearing Corporation
(``OCC'') in the customer range (i.e., that clear in the customer
account of the member's clearing firm at OCC). The Exchange proposes
instead to assess a $.0030 per contract ORF. The Exchange monitors the
amount of revenue collected from the ORF to ensure that it, in
combination with its other regulatory fees and fines, does not exceed
regulatory costs. The purpose of the proposed rule change is to ensure
that the ORF would not exceed costs.
The ORF is imposed upon all such transactions executed by a member,
even if such transactions do not take place on the Exchange.\3\ The ORF
also includes options transactions that are not executed by an Exchange
member but are ultimately cleared by an Exchange member.\4\ The ORF is
not charged for member options transactions because members incur the
costs of owning memberships and through their memberships are charged
transaction fees, dues and other fees that are not applicable to non-
members. The dues and fees paid by members go into the general funds of
the Exchange, a portion of which is used to help pay the costs of
regulation. The ORF is collected indirectly from members through their
clearing firms by OCC on behalf of the Exchange.
---------------------------------------------------------------------------
\3\ The ORF would apply to all ``C'' account origin code orders
executed by a member on the Exchange. Exchange rules require each
member to record the appropriate account origin code on all orders
at the time of entry in order to allow the Exchange to properly
prioritize and route orders and assess transaction fees pursuant to
the rules of the Exchange and report resulting transactions to the
OCC. See Exchange Rule 1063, Responsibilities of Floor Brokers, and
Options Floor Procedure Advice F-4, Orders Executed as Spreads,
Straddles, Combinations or Synthetics and Other Order Ticket Marking
Requirements. The Exchange represents that it has surveillances in
place to verify that members mark orders with the correct account
origin code.
\4\ In the case where one member both executes a transaction and
clears the transaction, the ORF is assessed to the member only once
on the execution. In the case where one member executes a
transaction and a different member clears the transaction, the ORF
is assessed only to the member who executes the transaction and is
not assessed to the member who clears the transaction. In the case
where a non-member executes a transaction and a member clears the
transaction, the ORF is assessed to the member who clears the
transaction.
---------------------------------------------------------------------------
The ORF is designed to recover a portion of the costs to the
Exchange of the supervision and regulation of its members, including
performing routine surveillances, investigations, examinations,
financial monitoring, and policy, rulemaking, interpretive, and
enforcement activities. The Exchange believes that revenue generated
from the ORF, when combined with all of the Exchange's other regulatory
fees, will cover a material portion, but not all, of the Exchange's
regulatory costs. The Exchange will continue to monitor the amount of
revenue collected from the ORF to ensure that it, in combination with
its other regulatory fees and fines, do not exceed regulatory costs. If
the Exchange determines regulatory revenues exceed regulatory costs,
the Exchange will adjust the ORF by submitting a fee change filing to
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 August 2, 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
the fee change is reasonable because the Exchange desires to ensure
that the revenue collected from the ORF does not exceed regulatory
costs. The Exchange believes that this fee proposal is equitable
because the reduction of the ORF to $.0030 per contract will apply to
all market participants who are being assessed the ORF.
---------------------------------------------------------------------------
\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.
[[Page 47875]]
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 such 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-2010-100 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-2010-100. 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 No. SR-Phlx-2010-100 and should be
submitted on or before August 30, 2010.
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19528 Filed 8-6-10; 8:45 am]
BILLING CODE 8010-01-P