Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating to Making Permanent the Sponsored Access Pilot Program, 48388-48390 [2010-19605]

Download as PDF 48388 Federal Register / Vol. 75, No. 153 / Tuesday, August 10, 2010 / Notices and CBSX members and trading permit holders in that the same fees and fee waivers are applicable to all users of the PULSe workstation. B. Self-Regulatory Organization’s Statement on Burden on Competition CBOE does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of 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 solicited or received with respect to the proposed rule change. 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) of the Act 8 and subparagraph (f)(2) of Rule 19b–4 9 thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend 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–CBOE–2010–072 on the subject line. sroberts on DSKB9S0YB1PROD with NOTICES 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–CBOE–2010–072. 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 CBOE. 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–CBOE–2010–072 and should be submitted on or before August 31, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–19646 Filed 8–9–10; 8:45 am] BILLING CODE 8010–01–P [Release No. 34–62628; File No. SR–Phlx2010–107] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating to Making Permanent the Sponsored Access Pilot Program August 3, 2010. 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 28, 2010, NASDAQ OMX PHLX, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. U.S.C. 78s(b)(3)(A). 9 17 CFR 240.19b–4(f)(2). VerDate Mar<15>2010 16:26 Aug 09, 2010 1 15 Jkt 220001 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to make permanent its sponsored access rule, Rule 1094. The current pilot expires on September 15, 2010. The text of the proposed rule change is available on the Exchange’s Web site at https://www.nasdaqtrader.com/ micro.aspx?id=PHLXRulefilings, 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 SECURITIES AND EXCHANGE COMMISSION 10 17 8 15 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. PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 The purpose of the proposed rule change is to attract additional business by making permanent its sponsored access rule, which is similar to that of other exchanges. Since the inception of the rule as a pilot, many member organizations have now availed themselves of the program. The Exchange believes that making the program permanent should help attract even more users, especially because other exchanges’ similar rules are not pilot programs. 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 E:\FR\FM\10AUN1.SGM 10AUN1 sroberts on DSKB9S0YB1PROD with NOTICES Federal Register / Vol. 75, No. 153 / Tuesday, August 10, 2010 / Notices 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 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, 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. VerDate Mar<15>2010 18:03 Aug 09, 2010 Jkt 220001 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. Given that it is substantially similar to the rules of several other exchanges and has been in effect for several prior pilot periods,6 the proposal to make permanent this pilot program does not appear to raise any novel regulatory issues.7 Because 4 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 6 See Securities Exchange Release Nos. 59362 (February 5, 2009), 74 FR 6931 (February 11, 2009) (SR–Phlx-2009–10); 60456 (August 7, 2009), 74 FR 40862 (August 13, 2009) (SR–Phlx-2009–63); 60942 (November 4, 2009), 74 FR 58350 (November 12, 2009) (SR–Phlx-2009–93); 61372 (January 15, 2010), 75 FR 4132 (January 26, 2010) (SR–Phlx-2010–04); and 61776 (March 24, 2010), 75 FR 16219 (March 31, 2010) (SR–Phlx-2010–44). 7 The Exchange understands that the Commission has proposed for comment new Rule 15c3–5 under the Exchange Act that would govern access to trading venues. Securities Exchange Act Release No. 61379 (January 19, 2010), 75 FR 4007 (January 26, 2010) (File No. S7–03–10). Of course, once such a rule becomes effective, the Exchange would comply with it and modify its rules accordingly. In the interim, the Exchange believes that making its Rule 1094 permanent sends a message to its users that the Exchange’s sponsored access program is 5 15 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 48389 the sponsored access rule has been relied upon by many member organizations, the Exchange believes that the changes proposed herein should serve to help market participants seeking access to its 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 19(b)(3)(A) of the Act 8 and Rule 19b–4(f)(6) 9 thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend 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 thriving, especially because other exchanges’ similar programs are not pilot programs. 8 15 U.S.C. 78s(b)(3)(A). 9 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. The Exchange has satisfied this requirement. E:\FR\FM\10AUN1.SGM 10AUN1 48390 Federal Register / Vol. 75, No. 153 / Tuesday, August 10, 2010 / Notices • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–Phlx-2010–107 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-2010–107. 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 inspection and copying in the Commission’s Public Reference Room. Copies of the 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-2010–107 and should be submitted on or before August 31, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–19605 Filed 8–9–10; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62638; File No. SR–BX– 2010–043] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Order Approving a Proposed Rule Change Relating to Pricing for Direct Circuit Connections August 4, 2010. On June 24, 2010, NASDAQ OMX BX, Inc. (‘‘BX’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to establish pricing for 10Gb direct circuit connections and codify pricing for 1Gb direct circuit connections for customers who are not co-located in BX’s datacenter. The proposed rule change was published for comment in the Federal Register on July 2, 2010.3 The Commission received no comment letters on the proposal. This order approves the proposed rule change. In its proposal, BX proposed to establish fees for direct 10Gb circuit connections, and codify fees for direct circuit connections capable of supporting up to 1Gb, for customers who are not co-located at the Exchange’s datacenter. BX represented that it already makes available to co-located customers a 10Gb circuit connection and charges for each a $1000 initial installation charge as well as an ongoing monthly fee of $5000. The Exchange proposed to establish the same fees for non-co-located customers with a 10Gb circuit connection.4 BX represented that it also already makes available to both co-located and non-co-located customers direct connections capable of supporting up to 1Gb, with per connection monthly fees of $500 for co-located customers and $1000 for non co-located customers. According to the Exchange, monthly fees are higher for non-co-located customers because direct connections require BX to provide cabinet space and middleware for those customers’ thirdparty vendors to connect into the datacenter and, ultimately, to the sroberts on DSKB9S0YB1PROD with NOTICES 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 62393 (July 2, 2010), 75 FR 38571 (‘‘Notice’’). 4 According to the Exchange, BX provides an additional 1Gb copper connection option for colocated customers. BX represented that, given the technological constraints of copper connections over longer distances, it does not offer a copper connection option to users outside of its datacenter. 2 17 10 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 16:26 Aug 09, 2010 Jkt 220001 PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 trading system. Finally, the Exchange represented that for non-co-located customers, it charges an optional installation fee of $925 if the customer chooses to use an on-site router. After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.5 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(4) of the Act,6 which requires that the rules of a national securities exchange provide for the equitable allocation of reasonable dues, fees and other charges among its members and issuers and other persons using its facilities, and with Section 6(b)(5) of the Act,7 which requires, among other things, that the rules of a national securities exchange be 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, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The Commission believes that the proposed fees for 10Gb and 1Gb direct circuit connections are reasonable and equitably allocated insofar as they are applied on the same terms to similarly situated market participants. In addition, the Commission believes that the connectivity options described in the proposed rule change are not unfairly discriminatory because BX makes the 10Gb and 1Gb direct circuit connections uniformly available to all non-co-located customers who voluntarily request them and pay the fees as detailed in the proposal. As represented by BX, these fees are uniform for all such customers and are either the same as fees charged to colocated customers, or vary due to different costs incurred by BX associated with providing service to the two different customer types. Finally, the Commission believes that the proposal will further the protection of investors and the public interest because it will provide greater transparency regarding the connectivity options available to market participants. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,8 that the 5 In approving this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 6 15 U.S.C. 78f(b)(4). 7 15 U.S.C. 78f(b)(5). 8 15 U.S.C. 78s(b)(2). E:\FR\FM\10AUN1.SGM 10AUN1

Agencies

[Federal Register Volume 75, Number 153 (Tuesday, August 10, 2010)]
[Notices]
[Pages 48388-48390]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-19605]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62628; File No. SR-Phlx-2010-107]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating 
to Making Permanent the Sponsored Access Pilot Program

August 3, 2010.
    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 28, 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 make permanent its sponsored access rule, 
Rule 1094. The current pilot expires on September 15, 2010.
    The text of the proposed rule change is available on the Exchange's 
Web site at https://www.nasdaqtrader.com/micro.aspx?id=PHLXRulefilings, 
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 making permanent its sponsored access rule, which is 
similar to that of other exchanges. Since the inception of the rule as 
a pilot, many member organizations have now availed themselves of the 
program. The Exchange believes that making the program permanent should 
help attract even more users, especially because other exchanges' 
similar rules are not pilot programs.
    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

[[Page 48389]]

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 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. Given that 
it is substantially similar to the rules of several other exchanges and 
has been in effect for several prior pilot periods,\6\ the proposal to 
make permanent this pilot program does not appear to raise any novel 
regulatory issues.\7\ Because the sponsored access rule has been relied 
upon by many member organizations, the Exchange believes that the 
changes proposed herein should serve to help market participants 
seeking access to its marketplace.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ See Securities Exchange Release Nos. 59362 (February 5, 
2009), 74 FR 6931 (February 11, 2009) (SR-Phlx-2009-10); 60456 
(August 7, 2009), 74 FR 40862 (August 13, 2009) (SR-Phlx-2009-63); 
60942 (November 4, 2009), 74 FR 58350 (November 12, 2009) (SR-Phlx-
2009-93); 61372 (January 15, 2010), 75 FR 4132 (January 26, 2010) 
(SR-Phlx-2010-04); and 61776 (March 24, 2010), 75 FR 16219 (March 
31, 2010) (SR-Phlx-2010-44).
    \7\ The Exchange understands that the Commission has proposed 
for comment new Rule 15c3-5 under the Exchange Act that would govern 
access to trading venues. Securities Exchange Act Release No. 61379 
(January 19, 2010), 75 FR 4007 (January 26, 2010) (File No. S7-03-
10). Of course, once such a rule becomes effective, the Exchange 
would comply with it and modify its rules accordingly. In the 
interim, the Exchange believes that making its Rule 1094 permanent 
sends a message to its users that the Exchange's sponsored access 
program is thriving, especially because other exchanges' similar 
programs are not pilot programs.
---------------------------------------------------------------------------

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 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) \9\ 
thereunder.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 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. 
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend 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

[[Page 48390]]

     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-Phlx-2010-107 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-2010-107. 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 inspection and copying in the 
Commission's Public Reference Room. Copies of the 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-2010-107 and 
should be submitted on or before August 31, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19605 Filed 8-9-10; 8:45 am]
BILLING CODE 8010-01-P
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