Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating to Permit Fees, 21080-21081 [2011-8924]

Download as PDF 21080 Federal Register / Vol. 76, No. 72 / Thursday, April 14, 2011 / Notices 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– 2011–50 and should be submitted on or before May 5, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Cathy Ahn, Deputy Secretary. [FR Doc. 2011–9073 Filed 4–13–11; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–64265; File No. SR–Phlx– 2011–43] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating to Permit Fees mstockstill on DSKH9S0YB1PROD with NOTICES April 8, 2011. 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 April 1, 2011, NASDAQ OMX PHLX LLC (‘‘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 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Mar<15>2010 20:32 Apr 13, 2011 Jkt 223001 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the Exchange’s Fee Schedule to waive Permit Fees for existing Exchange members or member organizations that cease to conduct an options business, but continue to conduct an equities business. 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, 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 BILLING CODE 8011–01–P 16 17 solicit comments on the proposed rule change from interested persons. 1. Purpose The purpose of the proposed rule change is to extend the waiver of Permit Fees to existing members or member organizations that cease to conduct an options business on Phlx XL II,3 but continue to conduct business on NASDAQ OMX PSX (‘‘PSX’’) 4 under a market participant identifier (‘‘MPID’’) 5 registered to the member or member organization. The Exchange is proposing this waiver to incentivize existing members and member organizations to continue to transact an equities business at the Exchange. The Exchange currently assesses members and member organizations who are transacting business on the Exchange a Permit Fee of $1,100 per month. The Exchange assesses members 3 Phlx XL II is the Exchange’s electronic options trading platform. 4 PSX is the Exchange’s cash equities market electronic trading platform. 5 An MPID is a four-letter code used by a member to categorize its trading activity for a specific purpose. PO 00000 Frm 00141 Fmt 4703 Sfmt 4703 and member organizations who are not transacting business on the Exchange a Permit Fee of $7,500 per month. A member or member organization would not be assessed the $7,500 Permit Fee for not transacting business on the Exchange if that member is either: (i) Solely a PSX Participant or (ii) engaged in any options business at the Exchange in a particular month. If the Exchange member or member organization meets the exemption criteria related to the $7,500 Permit Fee, the member or member organization would be assessed the $1,100 Permit Fee. In addition, a member or member organization that sponsors an options participant 6 would pay an additional Permit Fee for each sponsored options participant.7 At the time PSX began operations in October 2010, the Exchange filed a rule change to waive the Application Fee, Initiation Fee, Permit Fee and Account Fee for applicants applying to participate in PSX (‘‘October 2010 Rule Change’’).8 The October 2010 Rule Change applied the waivers to new Exchange members applying solely to participate in PSX.9 Also, the October 2010 Rule Change did not apply the waivers to an applicant seeking approval to participate solely in the options market, or to an applicant seeking to participate in both the equities and the options markets.10 Finally, the October 2010 Rule Change did not apply the waivers to members or member organizations that ceased their options operations, but remained solely as PSX Participants. This filing proposes to extend the October 2010 Rule Change waiver of the Permit Fee to those Exchange members and member organizations that cease an options business, but continue to conduct an equities business.11 6 See Exchange Rule 1094 titled Sponsored Participants. A Sponsored Participant may obtain authorized access to the Exchange only if such access is authorized in advance by one or more Sponsoring Member Organizations. Sponsored Participants must enter into and maintain participant agreements with one or more Sponsoring Member Organizations establishing a proper relationship(s) and account(s) through which the Sponsored Participant may trade on the Exchange. 7 See Securities Exchange Act Release No. 63569 (December 17, 2010), 75 FR 81323 (December 27, 2010) (SR–Phlx–2010–178). 8 See Securities Exchange Act Release No. 63351 (November 19, 2010), 75 FR 73140 (November 29, 2010) (SR–Phlx–2010–54). 9 See Securities Exchange Act Release No. 63351 (November 19, 2010), 75 FR 73140 (November 29, 2010) (SR–Phlx–2010–54). 10 See Securities Exchange Act Release No. 63351 (November 19, 2010), 75 FR 73140 (November 29, 2010) (SR–Phlx–2010–54). 11 These members and member organizations would not be assessed an Application Fee or Initiation Fee because they are already Exchange E:\FR\FM\14APN1.SGM 14APN1 Federal Register / Vol. 76, No. 72 / Thursday, April 14, 2011 / Notices 2. Statutory Basis IV. Solicitation of Comments The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6(b) of the Act 12 in general, and furthers the objectives of Section 6(b)(4) of the Act 13 in particular, in that it is an equitable allocation of reasonable fees and other charges among Exchange members and other persons using its facilities. The Exchange believes that it is reasonable to lower fees as an incentive for existing Exchange members and member organizations to continue to transact business on PSX, even after closing their options operations. The Exchange believes that the proposal is equitable because the waiver applies uniformly to any existing members and member organizations that cease options trading on the Exchange, but determine to remain active PSX Participants. 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: 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 mstockstill on DSKH9S0YB1PROD with NOTICES The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.14 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. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. members or member organizations and have previously paid those fees. In addition, the monthly Account Fee would not be applicable to PSX Participants as MPIDs are used to identify member firms’ participation, not account numbers. 12 15 U.S.C. 78f(b). 13 15 U.S.C. 78f(b)(4). 14 15 U.S.C. 78s(b)(3)(A)(ii). VerDate Mar<15>2010 20:32 Apr 13, 2011 Jkt 223001 21081 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–8924 Filed 4–13–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION 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–2011–43 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. [Release No. 34–64284; File No. SR–Phlx– 2011–48] Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Update Provisions Regarding the Dress Code and Trade Verification April 8, 2011. 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 April 6, 2011, NASDAQ OMX PHLX LLC (‘‘Phlx’’ All submissions should refer to File or ‘‘Exchange’’) filed with the Securities Number SR–Phlx–2011–43. This file and Exchange Commission (‘‘SEC’’ or number should be included on the ‘‘Commission’’) the proposed rule subject line if e-mail is used. To help the change as described in Items I, II, and Commission process and review your III, 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 change from interested persons. Internet Web site (https://www.sec.gov/ 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 The Exchange is filing with the change that are filed with the Commission a proposal to amend Phlx Commission, and all written Rule 1054 (Verification of Contracts and communications relating to the Reconciliation of Uncompared Trades) proposed rule change between the and Regulation 6 (Dress) of Rule 60 Commission and any person, other than (Order and Decorum Code) 3 to delete those that may be withheld from the obsolete provisions and update and public in accordance with the modernize these sections. provisions of 5 U.S.C. 552, will be The text of the proposed rule change available for Web site viewing and is available on the Exchange’s Web site printing in the Commission’s Public at https://nasdaqomxphlx.cchwallstreet. Reference Room, 100 F Street, NE., com/NASDAQOMXPHLX/Filings/, at Washington, DC 20549, on official the principal office of the Exchange, and business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also 15 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). will be available for inspection and 2 17 CFR 240.19b–4. copying at the principal office of the 3 The Exchange’s Order and Decorum regulations Exchange. All comments received will are part of the Exchange’s Options Floor Procedure be posted without change; the Advices (‘‘OFPAs’’ or Advices’’), which may Commission does not edit personal correspond to Exchange rules, and contain the Exchange’s minor rule plan (‘‘MRP’’ or ‘‘Minor Rule identifying information from Plan’’) in respect of options trading. The Minor Rule submissions. You should submit only Plan consists of Advices with preset fines, pursuant information that you wish to make to Rule 19d–1(c) under the Act. 17 CFR 240.19d– 1(c). The Exchange is not, by this filing, amending available publicly. All submissions the fine schedule for Regulation 6 in OFPA. should refer to File Number SR–Phlx– Similarly to OFPAs, the Exchange also has Equity 2011–43 and should be submitted on or Floor Procedure Advices (‘‘EFPAs’’) in respect of before May 5, 2011. equity trading, which are not amended by this PO 00000 filing. Frm 00142 Fmt 4703 Sfmt 4703 E:\FR\FM\14APN1.SGM 14APN1

Agencies

[Federal Register Volume 76, Number 72 (Thursday, April 14, 2011)]
[Notices]
[Pages 21080-21081]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-8924]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64265; File No. SR-Phlx-2011-43]


 Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating 
to Permit Fees

April 8, 2011.
    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 April 1, 2011, NASDAQ OMX PHLX LLC (``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 the Exchange's Fee Schedule to waive 
Permit Fees for existing Exchange members or member organizations that 
cease to conduct an options business, but continue to conduct an 
equities business.
    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, 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 extend the waiver of 
Permit Fees to existing members or member organizations that cease to 
conduct an options business on Phlx XL II,\3\ but continue to conduct 
business on NASDAQ OMX PSX (``PSX'') \4\ under a market participant 
identifier (``MPID'') \5\ registered to the member or member 
organization. The Exchange is proposing this waiver to incentivize 
existing members and member organizations to continue to transact an 
equities business at the Exchange.
---------------------------------------------------------------------------

    \3\ Phlx XL II is the Exchange's electronic options trading 
platform.
    \4\ PSX is the Exchange's cash equities market electronic 
trading platform.
    \5\ An MPID is a four-letter code used by a member to categorize 
its trading activity for a specific purpose.
---------------------------------------------------------------------------

    The Exchange currently assesses members and member organizations 
who are transacting business on the Exchange a Permit Fee of $1,100 per 
month. The Exchange assesses members and member organizations who are 
not transacting business on the Exchange a Permit Fee of $7,500 per 
month. A member or member organization would not be assessed the $7,500 
Permit Fee for not transacting business on the Exchange if that member 
is either: (i) Solely a PSX Participant or (ii) engaged in any options 
business at the Exchange in a particular month. If the Exchange member 
or member organization meets the exemption criteria related to the 
$7,500 Permit Fee, the member or member organization would be assessed 
the $1,100 Permit Fee. In addition, a member or member organization 
that sponsors an options participant \6\ would pay an additional Permit 
Fee for each sponsored options participant.\7\
---------------------------------------------------------------------------

    \6\ See Exchange Rule 1094 titled Sponsored Participants. A 
Sponsored Participant may obtain authorized access to the Exchange 
only if such access is authorized in advance by one or more 
Sponsoring Member Organizations. Sponsored Participants must enter 
into and maintain participant agreements with one or more Sponsoring 
Member Organizations establishing a proper relationship(s) and 
account(s) through which the Sponsored Participant may trade on the 
Exchange.
    \7\ See Securities Exchange Act Release No. 63569 (December 17, 
2010), 75 FR 81323 (December 27, 2010) (SR-Phlx-2010-178).
---------------------------------------------------------------------------

    At the time PSX began operations in October 2010, the Exchange 
filed a rule change to waive the Application Fee, Initiation Fee, 
Permit Fee and Account Fee for applicants applying to participate in 
PSX (``October 2010 Rule Change'').\8\ The October 2010 Rule Change 
applied the waivers to new Exchange members applying solely to 
participate in PSX.\9\ Also, the October 2010 Rule Change did not apply 
the waivers to an applicant seeking approval to participate solely in 
the options market, or to an applicant seeking to participate in both 
the equities and the options markets.\10\ Finally, the October 2010 
Rule Change did not apply the waivers to members or member 
organizations that ceased their options operations, but remained solely 
as PSX Participants.
---------------------------------------------------------------------------

    \8\ See Securities Exchange Act Release No. 63351 (November 19, 
2010), 75 FR 73140 (November 29, 2010) (SR-Phlx-2010-54).
    \9\ See Securities Exchange Act Release No. 63351 (November 19, 
2010), 75 FR 73140 (November 29, 2010) (SR-Phlx-2010-54).
    \10\ See Securities Exchange Act Release No. 63351 (November 19, 
2010), 75 FR 73140 (November 29, 2010) (SR-Phlx-2010-54).
---------------------------------------------------------------------------

    This filing proposes to extend the October 2010 Rule Change waiver 
of the Permit Fee to those Exchange members and member organizations 
that cease an options business, but continue to conduct an equities 
business.\11\
---------------------------------------------------------------------------

    \11\ These members and member organizations would not be 
assessed an Application Fee or Initiation Fee because they are 
already Exchange members or member organizations and have previously 
paid those fees. In addition, the monthly Account Fee would not be 
applicable to PSX Participants as MPIDs are used to identify member 
firms' participation, not account numbers.

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[[Page 21081]]

2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule 
is consistent with Section 6(b) of the Act \12\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \13\ in 
particular, in that it is an equitable allocation of reasonable fees 
and other charges among Exchange members and other persons using its 
facilities.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that it is reasonable to lower fees as an 
incentive for existing Exchange members and member organizations to 
continue to transact business on PSX, even after closing their options 
operations.
    The Exchange believes that the proposal is equitable because the 
waiver applies uniformly to any existing members and member 
organizations that cease options trading on the Exchange, but determine 
to remain active PSX Participants.

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.\14\ 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. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

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-2011-43 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-2011-43. 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-2011-43 and should be 
submitted on or before May 5, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-8924 Filed 4-13-11; 8:45 am]
BILLING CODE 8011-01-P
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