Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating to Billing Policies, 49544-49546 [2010-19971]

Download as PDF 49544 Federal Register / Vol. 75, No. 156 / Friday, August 13, 2010 / Notices emcdonald on DSK2BSOYB1PROD with NOTICES monthly fee of $5000. The Exchange proposed to establish the same fees for non-co-located customers with a 10Gb circuit connection.4 NASDAQ represented that it also already makes available to both colocated and non-co-located customers direct connections capable of supporting up to 1Gb, with per connection monthly fees of $500 for colocated customers and $1000 for non colocated customers. According to the Exchange, monthly fees are higher for non-co-located customers because direct connections require NASDAQ to provide cabinet space and middleware for those customers’ third-party vendors to connect into the datacenter and, ultimately, to the 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 similarlysituated market participants. In 4 According to the Exchange, NASDAQ provides an additional 1Gb copper connection option for colocated customers. NASDAQ 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. 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). VerDate Mar<15>2010 16:35 Aug 12, 2010 Jkt 220001 addition, the Commission believes that the connectivity options described in the proposed rule change are not unfairly discriminatory because NASDAQ 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 NASDAQ, these fees are uniform for all such customers and are either the same as fees charged to co-located customers, or vary due to different costs incurred by NASDAQ 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 proposed rule change (SR–NASDAQ– 2010–077) be, and hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–19972 Filed 8–12–10; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62661; File No. SR–Phlx– 2010–110] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating to Billing Policies August 6, 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 August 4, 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. 8 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 9 17 PO 00000 Frm 00091 Fmt 4703 Sfmt 4703 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Fee Schedule to: (i) Require members and member organizations to identify accounts to properly identify joint backoffice (‘‘JBO’’) participant transactions; (ii) specify certain policies to dispute billing invoices; and (iii) amend the index to rearrange the order of fees on the Fee Schedule. 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, on the Commission’s Web site at https:// www.sec.gov, 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 memorialize current practices for the Exchange to clearly identify orders that are not subject to the Firm Related Equity Option Cap in order to ensure that members and member organizations are being properly billed the Exchange fees and also to modify the time requirements to dispute Exchange dues and fees to reduce the Exchange’s operational costs. The Exchange proposes to memorialize an existing process that requires members and member organizations to identify certain trades which are not subject to the Firm Related Equity Option Cap and to set concrete timelines to dispute any assessed Exchange dues and fees. Currently, the Firms are subject to a maximum fee of $75,000 also known as the Firm Related Equity Option Cap. Firm equity option transaction charges, in the aggregate, for one billing month cannot exceed the Firm Related Equity E:\FR\FM\13AUN1.SGM 13AUN1 Federal Register / Vol. 75, No. 156 / Friday, August 13, 2010 / Notices emcdonald on DSK2BSOYB1PROD with NOTICES Option Cap per member organization, except for orders of JBO Participants.3 Therefore, Exchange accounts used for JBO Participant orders are not subject to the Firm Related Equity Option Cap. The Exchange proposes to memorialize the current practice of requiring members and member organizations to notify the Exchange in writing 4 and indicate which accounts are used to segregate orders of JBO participants from other Firm orders. The Exchange believes that memorializing the policy within the Fee Schedule will eliminate any confusion as to which orders are JBO Participant orders and not subject to the Firm Related Equity Option Cap. Further the Exchange proposes to create a new billing practice with respect to JBO transactions. The Exchange proposes to indicate on the Fee Schedule that the Exchange will not make any adjustments to billing invoices where JBO transactions are commingled with other Firm orders in Exchange accounts, which are designated by the member organization as not subject to the Firm Related Equity Option Cap. The Exchange believes that this practice would not create an undue burden on its members and/or member organizations and would ensure a more efficient billing process. The Exchange also proposes to establish a billing practice to prevent members and member organizations from disputing billing invoices after sixty (60) days. The Exchange proposes to state on its Fee Schedule that all billing disputes must be submitted to the Exchange in writing 5 and must be accompanied by supporting documentation. All disputes must be submitted no later than sixty (60) days after receipt of an Exchange invoice. The Exchange proposes to exclude the following types of fee disputes: NASDAQ OMX PSX Fees, Proprietary Data Feed Fees and Co-Location Services Fees.6 The Exchange is 3 A JBO participant is a Member, Member Organization or non-member organization that maintains a JBO arrangement with a clearing broker-dealer (‘‘JBO Broker’’) subject to the requirements of Regulation T Section 220.7 of the Federal Reserve System. See also Exchange Rule 703. JBO participant orders are not subject to the Firm Related Equity Option Cap because the Exchange is unable to differentiate orders of a JBO participant from orders of its JBO Broker and therefore is unable to aggregate the JBO participant’s orders. JBO participant orders may employ the F-account type and qualify for the Firm charge, but are not eligible for the Monthly Firm Cap. 4 The Exchange will issue an Options Regulatory Alert to specify the proper Exchange contacts to notify the Exchange. 5 The Exchange invoice specifies the Exchange contact persons with whom to dispute the invoice. 6 These fees are not included in the reports described in footnote 7. VerDate Mar<15>2010 16:35 Aug 12, 2010 Jkt 220001 49545 excluding these types of fees because these fees are billed separately to Exchange members and Exchange members do not have the same type of notice as all other fees on the Fee Schedule, as they do not receive reports for certain fees. The Exchange believes that members and member organizations should be aware of any billing errors within two months of receiving an invoice.7 The Exchange further believes that this practice will conserve Exchange resources which are expended when untimely billing disputes require staff to research applicable fees and order information beyond two months after the transaction occurred. Finally, the Exchange proposes to rearrange its Fee Schedule to relocate the Routing Fees and PSX Fees in the Fee Schedule to eliminate sequential numbering discrepancies in the Index which arose when the Fee Schedule was reformatted. organizations are currently required to properly account for these type of orders. The proposal is equitable because this practice will apply to all members and member organizations transacting JBO business. Additionally, the Exchange believes the requirement that all billing disputes must be submitted within 60 days from receipt of the invoice, with the exception of certain fees, is reasonable because the Exchange provides ample tools to properly and swiftly monitor and account for various charges incurred in a given month. Also, the proposal is equitable because it equally applies to all members and member organizations. The Exchange’s administrative costs would also be lowered as a result of this policy. Finally the Exchange believes that the proposal to rearrange the Fee Schedule is both reasonable and equitable because it clarifies the Fee Schedule. 2. Statutory Basis B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6(b) of the Act 8 in general, and furthers the objectives of Section 6(b)(4) of the Act 9 in particular, in that it is an equitable allocation of reasonable fees and other charges among Exchange members. The Exchange believes that the proposal to memorialize the current practice concerning JBO accounts is reasonable to ensure that the Firm Related Equity Option Cap is properly applied in billing members and member organizations. The Exchange believes that the proposal is equitable because the process of notifying the Exchange of accounts used for JBO orders is currently being employed and would therefore not create an undue burden. The Exchange believes that the proposed amendment to billing practices, the proposal to not adjust commingled JBO orders, is reasonable because members and member 7 The Exchange provides members and member organizations the ability to sign-up to receive certain daily reports (i.e. daily traded against report, daily cancel fees, etc. * * *), which provides the members and member organizations with trade data to determine fees prior to receiving a billing invoice. In addition, members and member organizations have access to myphlx.com, a password protected Web site, which provides members an electronic copy of current and historical invoices, as well as the supporting details for assessed charges. Members will have the ability to retrieve trade information from this Web site on a T +1 basis no later than September 30, 2010 This new enhancement will provide members and member organizations the ability to see information about their trades and billing information prior to receiving the final month-end invoice. 8 15 U.S.C. 78f(b). 9 15 U.S.C. 78f(b)(4). PO 00000 Frm 00092 Fmt 4703 Sfmt 4703 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 10 and subparagraph (f) of Rule 19b–4 11 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: 10 15 11 17 E:\FR\FM\13AUN1.SGM U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 13AUN1 49546 Federal Register / Vol. 75, No. 156 / Friday, August 13, 2010 / 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–2010–110 on the subject line. Paper Comments emcdonald on DSK2BSOYB1PROD with NOTICES • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62670; File No. SR– NYSEArca–2010–77] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending Its Fee Schedule August 9, 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 August 4, 2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ All submissions should refer to File or the ‘‘Exchange’’) filed with the Number SR–Phlx–2010–110. This file Securities and Exchange Commission number should be included on the (‘‘SEC’’ or ‘‘Commission’’) the proposed subject line if e-mail is used. To help the rule change as described in Items I and Commission process and review your II below, which Items have been comments more efficiently, please use prepared by the Exchange. The only one method. The Commission will Commission is publishing this notice to post all comments on the Commission’s solicit comments on the proposed rule Internet Web site (https://www.sec.gov/ change from interested persons. rules/sro.shtml). Copies of the I. Self-Regulatory Organization’s submission, all subsequent Statement of the Terms of Substance of amendments, all written statements the Proposed Rule Change with respect to the proposed rule change that are filed with the The Exchange proposes to amend its Commission, and all written Schedule of Fees and Charges for communications relating to the Exchange Services (the ‘‘Schedule’’). proposed rule change between the While changes to the Schedule pursuant Commission and any person, other than to this proposal will be effective upon those that may be withheld from the filing, the changes will become public in accordance with the operative on August 4, 2010. The provisions of 5 U.S.C. 552, will be amended section of the Schedule is available for Web site viewing and included as Exhibit 5 to the 19b–4 form. printing in the Commission’s Public A copy of this filing is available on the Reference Room, 100 F Street, NE., Exchange’s Web site at https:// Washington, DC 20549, on official www.nyse.com, at the Exchange’s business days between the hours of principal office, on the Commission’s 10 a.m. and 3 p.m. Copies of the filing Web site at https://www.sec.gov, and at also will be available for inspection and the Commission’s Public Reference copying at the principal office of the Room. Exchange. All comments received will II. Self-Regulatory Organization’s be posted without change; the Statement of the Purpose of, and Commission does not edit personal Statutory Basis for, the Proposed Rule identifying information from Change submissions. You should submit only information that you wish to make In its filing with the Commission, the available publicly. All submissions self-regulatory organization included should refer to File Number SR–Phlx– statements concerning the purpose of, 2010–110 and should be submitted on and basis for, the proposed rule change or before September 3, 2010. and discussed any comments it received on the proposed rule change. The text For the Commission, by the Division of of those statements may be examined at Trading and Markets, pursuant to delegated authority.12 the places specified in Item IV below. The Exchange has prepared summaries, Florence E. Harmon, set forth in sections A, B, and C below, Deputy Secretary. of the most significant parts of such [FR Doc. 2010–19971 Filed 8–12–10; 8:45 am] statements. BILLING CODE 8010–01–P 1 15 12 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 16:35 Aug 12, 2010 2 17 Jkt 220001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00093 Fmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this filing is to amend the Schedule to reflect new transaction pricing that will become operative on August 4, 2010. The Exchange proposes to eliminate the fees charged to Firms that manually facilitate their customer order flow. Currently, all Firm proprietary manual transactions are charged $0.18 per contract and are further capped at $2,000 per issue per day. NYSE Arca proposes to eliminate fees charged for any transaction involving a Firm’s proprietary trading account that has a customer of that same Firm on the contra side of the transaction. Under the revised Schedule, all such transactions, known as Firm Facilitation—Manual trades, will be subject to a rate of $0.00 per contract. With the reduction of Firm Facilitation—Manual trades to $0.00 the transaction fee for all other Firm proprietary manual trades will be $0.25 per contract. The fee for Firm proprietary electronic transactions will continue to be $0.50 per contract. Firm transaction fees will be applied on the same basis as all other Broker Dealer transaction fees. Additionally, there will no longer be a daily cap on Firm proprietary manual transactions in the same option class. The fees for electronic complex orders, where two complex orders trade against each other, will be reduced to $0.00 when the same Firm represents both sides. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6(b) of the Act,3 in general, and Section 6(b)(4) of the Act,4 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among its members and other persons using its facilities. 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 that is not necessary or appropriate in furtherance of the purposes of the Act. 3 15 4 15 Sfmt 4703 E:\FR\FM\13AUN1.SGM U.S.C. 78f(b). U.S.C. 78f(b)(4). 13AUN1

Agencies

[Federal Register Volume 75, Number 156 (Friday, August 13, 2010)]
[Notices]
[Pages 49544-49546]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-19971]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62661; File No. SR-Phlx-2010-110]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating 
to Billing Policies

August 6, 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 August 4, 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 amend its Fee Schedule to: (i) Require 
members and member organizations to identify accounts to properly 
identify joint back-office (``JBO'') participant transactions; (ii) 
specify certain policies to dispute billing invoices; and (iii) amend 
the index to rearrange the order of fees on the Fee Schedule.
    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, on the Commission's Web site at 
https://www.sec.gov, 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 memorialize current 
practices for the Exchange to clearly identify orders that are not 
subject to the Firm Related Equity Option Cap in order to ensure that 
members and member organizations are being properly billed the Exchange 
fees and also to modify the time requirements to dispute Exchange dues 
and fees to reduce the Exchange's operational costs. The Exchange 
proposes to memorialize an existing process that requires members and 
member organizations to identify certain trades which are not subject 
to the Firm Related Equity Option Cap and to set concrete timelines to 
dispute any assessed Exchange dues and fees.
    Currently, the Firms are subject to a maximum fee of $75,000 also 
known as the Firm Related Equity Option Cap. Firm equity option 
transaction charges, in the aggregate, for one billing month cannot 
exceed the Firm Related Equity

[[Page 49545]]

Option Cap per member organization, except for orders of JBO 
Participants.\3\ Therefore, Exchange accounts used for JBO Participant 
orders are not subject to the Firm Related Equity Option Cap. The 
Exchange proposes to memorialize the current practice of requiring 
members and member organizations to notify the Exchange in writing \4\ 
and indicate which accounts are used to segregate orders of JBO 
participants from other Firm orders. The Exchange believes that 
memorializing the policy within the Fee Schedule will eliminate any 
confusion as to which orders are JBO Participant orders and not subject 
to the Firm Related Equity Option Cap. Further the Exchange proposes to 
create a new billing practice with respect to JBO transactions. The 
Exchange proposes to indicate on the Fee Schedule that the Exchange 
will not make any adjustments to billing invoices where JBO 
transactions are commingled with other Firm orders in Exchange 
accounts, which are designated by the member organization as not 
subject to the Firm Related Equity Option Cap. The Exchange believes 
that this practice would not create an undue burden on its members and/
or member organizations and would ensure a more efficient billing 
process.
---------------------------------------------------------------------------

    \3\ A JBO participant is a Member, Member Organization or non-
member organization that maintains a JBO arrangement with a clearing 
broker-dealer (``JBO Broker'') subject to the requirements of 
Regulation T Section 220.7 of the Federal Reserve System. See also 
Exchange Rule 703. JBO participant orders are not subject to the 
Firm Related Equity Option Cap because the Exchange is unable to 
differentiate orders of a JBO participant from orders of its JBO 
Broker and therefore is unable to aggregate the JBO participant's 
orders. JBO participant orders may employ the F-account type and 
qualify for the Firm charge, but are not eligible for the Monthly 
Firm Cap.
    \4\ The Exchange will issue an Options Regulatory Alert to 
specify the proper Exchange contacts to notify the Exchange.
---------------------------------------------------------------------------

    The Exchange also proposes to establish a billing practice to 
prevent members and member organizations from disputing billing 
invoices after sixty (60) days. The Exchange proposes to state on its 
Fee Schedule that all billing disputes must be submitted to the 
Exchange in writing \5\ and must be accompanied by supporting 
documentation. All disputes must be submitted no later than sixty (60) 
days after receipt of an Exchange invoice. The Exchange proposes to 
exclude the following types of fee disputes: NASDAQ OMX PSX Fees, 
Proprietary Data Feed Fees and Co-Location Services Fees.\6\ The 
Exchange is excluding these types of fees because these fees are billed 
separately to Exchange members and Exchange members do not have the 
same type of notice as all other fees on the Fee Schedule, as they do 
not receive reports for certain fees. The Exchange believes that 
members and member organizations should be aware of any billing errors 
within two months of receiving an invoice.\7\ The Exchange further 
believes that this practice will conserve Exchange resources which are 
expended when untimely billing disputes require staff to research 
applicable fees and order information beyond two months after the 
transaction occurred.
---------------------------------------------------------------------------

    \5\ The Exchange invoice specifies the Exchange contact persons 
with whom to dispute the invoice.
    \6\ These fees are not included in the reports described in 
footnote 7.
    \7\ The Exchange provides members and member organizations the 
ability to sign-up to receive certain daily reports (i.e. daily 
traded against report, daily cancel fees, etc. * * *), which 
provides the members and member organizations with trade data to 
determine fees prior to receiving a billing invoice. In addition, 
members and member organizations have access to myphlx.com, a 
password protected Web site, which provides members an electronic 
copy of current and historical invoices, as well as the supporting 
details for assessed charges. Members will have the ability to 
retrieve trade information from this Web site on a T +1 basis no 
later than September 30, 2010 This new enhancement will provide 
members and member organizations the ability to see information 
about their trades and billing information prior to receiving the 
final month-end invoice.
---------------------------------------------------------------------------

    Finally, the Exchange proposes to rearrange its Fee Schedule to 
relocate the Routing Fees and PSX Fees in the Fee Schedule to eliminate 
sequential numbering discrepancies in the Index which arose when the 
Fee Schedule was reformatted.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule 
is consistent with Section 6(b) of the Act \8\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act \9\ in particular, in that 
it is an equitable allocation of reasonable fees and other charges 
among Exchange members. The Exchange believes that the proposal to 
memorialize the current practice concerning JBO accounts is reasonable 
to ensure that the Firm Related Equity Option Cap is properly applied 
in billing members and member organizations. The Exchange believes that 
the proposal is equitable because the process of notifying the Exchange 
of accounts used for JBO orders is currently being employed and would 
therefore not create an undue burden.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that the proposed amendment to billing 
practices, the proposal to not adjust commingled JBO orders, is 
reasonable because members and member organizations are currently 
required to properly account for these type of orders. The proposal is 
equitable because this practice will apply to all members and member 
organizations transacting JBO business.
    Additionally, the Exchange believes the requirement that all 
billing disputes must be submitted within 60 days from receipt of the 
invoice, with the exception of certain fees, is reasonable because the 
Exchange provides ample tools to properly and swiftly monitor and 
account for various charges incurred in a given month. Also, the 
proposal is equitable because it equally applies to all members and 
member organizations. The Exchange's administrative costs would also be 
lowered as a result of this policy. Finally the Exchange believes that 
the proposal to rearrange the Fee Schedule is both reasonable and 
equitable because it clarifies the Fee Schedule.

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 \10\ and subparagraph (f) of Rule 19b-4 \11\ 
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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 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:

[[Page 49546]]

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-2010-110 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-2010-110. 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 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-2010-110 and should be 
submitted on or before September 3, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

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

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19971 Filed 8-12-10; 8:45 am]
BILLING CODE 8010-01-P
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