Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating to Rebates and Fees for Customer Complex Orders, 22158-22160 [2011-9478]

Download as PDF 22158 Federal Register / Vol. 76, No. 76 / Wednesday, April 20, 2011 / Notices 3010.13(a)(5). Interested persons may express views and offer comments on whether the planned changes are consistent with the policies of 39 U.S.C. 3622 and 39 CFR part 3010. Comments are due no later than May 2, 2011. The Commission appoints Natalie Rea to represent the interests of the general public in this proceeding. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–64300; File No. SR–Phlx– 2011–52] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating to Rebates and Fees for Customer Complex Orders IV. Ordering Paragraphs It is ordered: 1. The Commission establishes Docket No. R2011–5 to consider matters raised by the Postal Service’s April 12, 2011 filing. 2. Interested persons may submit comments on the planned price adjustments. Comments are due May 2, 2011. 3. Pursuant to 39 U.S.C. 505, Natalie Rea is appointed to serve as officer of the Commission (Public Representative) to represent the interests of the general public in this proceeding. 4. The Commission directs the Secretary to arrange for prompt publication of this notice in the Federal Register. By the Commission. Ruth Ann Abrams, Acting Secretary. [FR Doc. 2011–9543 Filed 4–19–11; 8:45 am] BILLING CODE 7710–FW–P April 14, 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 8, 2011, NASDAQ OMX PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Complex Order 3 Fees in Section I of its Fee Schedule titled ‘‘Rebates and Fees for Adding and Removing Liquidity in Select Symbols.’’ While changes to the Fee Schedule pursuant to this proposal are effective upon filing, the Exchange has designated these changes to be operative on April 11, 2011. The text of the proposed rule change is available on the Exchange’s Web site at http://nasdaqtrader.com/ micro.aspx?id=PHLXfilings, at the principal office of the Exchange, at the Commission’s Public Reference Room, and on the Commission’s Web site at http://www.sec.gov. Customer srobinson on DSKHWCL6B1PROD with NOTICES Rebate for Adding Liquidity in all Select Symbols except SPY, QQQ and AAPL Rebate for Adding Liquidity for SPY, QQQ and AAPL .................................... 1 15 VerDate Mar<15>2010 17:52 Apr 19, 2011 Jkt 223001 In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to amend Section I, Part B of the Exchange’s Fee Schedule, titled ‘‘Complex Order’’ to: (i) Pay a Customer Complex Order Rebate for Adding Liquidity of $0.25 per contract for options overlying the iShares Russell 2000 Index (‘‘IWM’’); and (ii) waive the Customer Complex Order Fee for Removing Liquidity for options overlying Standard and Poor’s Depositary Receipts/SPDRs (‘‘SPY’’) 4; the PowerShares QQQ Trust (‘‘QQQ’’)®; and Apple, Inc. (‘‘AAPL’’) [sic]. The Exchange is proposing these amendments to the Fee Schedule in order to continue to attract additional Customer order flow. Complex Order Rebate for Adding Liquidity Currently, the Exchange pays the following Complex Order Rebates for Adding Liquidity in the Select Symbols: Firm Broker-dealer Professional $0.24 $0.00 $0.00 $0.00 $0.00 $0.00 0.25 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 A Complex Order is any order involving the simultaneous purchase and/or sale of two or more different options series in the same underlying security, priced at a net debit or credit based on the 2 17 Specialist, ROT, SQT and RSQT Directed participant II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 0.00 0.00 0.00 0.00 0.00 relative prices of the individual components, for the same account, for the purpose of executing a particular investment strategy. Furthermore, a Complex Order can also be a stock-option order, which is an order to buy or sell a stated number of units of an underlying stock or ETF coupled with PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 the purchase or sale of options contract(s). See Exchange Rule 1080, Commentary .08(a)(i). 4 SPY options are based on the SPDR exchangetraded fund (‘‘ETF’’), which is designed to track the performance of the S&P 500 Index. E:\FR\FM\20APN1.SGM 20APN1 22159 Federal Register / Vol. 76, No. 76 / Wednesday, April 20, 2011 / Notices With respect to Complex Orders, the Exchange pays Customers a rate of $0.25 per contract in specific Select Symbols, namely SPY, QQQ and AAPL. The Exchange currently pays a Complex Order Customer Rebate of $0.24 per contract for transactions that add liquidity in IWM (‘‘IWM Rebate’’).5 The Exchange is proposing to change the IWM Customer Complex Order Rebate for Adding Liquidity from $0.24 to % $0.25 per contract. The Exchange would continue to pay all other Select Symbols, except SPY, QQQ and AAPL, a Customer Complex Order Rebate for Adding Liquidity of $0.24 per contract. Other, non-Customer market participants would not be paid a Complex Order Rebate for Adding Liquidity.6 The Exchange believes that this increased rebate for Customers transacting Complex Orders in options Customer Fee for Removing Liquidity ...................... $0.25 With respect to Complex Orders, the Exchange currently assesses Customers a Fee for Removing Liquidity of $0.25 per contract in all Select Symbols. The Exchange is proposing to waive the Customer Complex Order Fee for Removing Liquidity for options overlying SPY, QQQ, IWM and AAPL. All other Select Symbols would continue to be subject to a Customer Complex Order Fee for Removing Liquidity of $0.25 per contract. The Exchange is not proposing to waive the Complex Order Fee for Removing Liquidity for any other market participant.7 The Exchange believes that this waiver of the Customer Complex Order Fee for Removing Liquidity for options overlying SPY, QQQ, IWM and AAPL will attract additional Customer order flow to the Exchange in those Select Symbols. The Exchange does not propose to amend the fees in Section I, Part A titled ‘‘Single contra-side order.’’ While changes to the Fee Schedule pursuant to this proposal are effective upon filing, the Exchange has designated these changes to be operative on April 11, 2011. srobinson on DSKHWCL6B1PROD with NOTICES 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 also believes that there is an equitable allocation of reasonable rebates among Exchange members. 5 The Exchange currently also pays a $0.24 per contract Customer Complex Order Rebate for Adding Liquidity in all Select Symbols except SPY, QQQ and AAPL. VerDate Mar<15>2010 17:52 Apr 19, 2011 Jkt 223001 Specialist, ROT, SQT and RSQT Directed participant $0.25 6 The only market participant that receives a Rebate for Adding Liquidity for Complex Orders today is a Customer. 7 The other non-Customer market participants would continue to be assessed a Complex Order Fee for Removing Liquidity as noted above. Frm 00085 Fmt 4703 Sfmt 4703 Complex Order Fee for Removing Liquidity Currently, the Exchange assesses the following Complex Orders Fees for Removing Liquidity in the Select Symbols: Firm $0.27 The Exchange believes that it is reasonable to pay an increased Complex Order Rebate for Adding Liquidity to Customers in options overlying IWM and waive the Complex Order Fee for Removing Liquidity for Customers in options overlying SPY, QQQ, IWM and AAPL, because both the proposed Customer rebate and waiver of the fee should attract additional Customer order flow to the Exchange for the benefit of all market participants. The Exchange believes that the proposal is equitable because by paying an increased Complex Order Rebate for Adding Liquidity to Customers transacting options overlying IWM and waiving the Customer Fee for Removing Liquidity in options overlying SPY, QQQ, IWM and AAPL, all market participants should benefit from the increased liquidity which increased Customer order flow should bring to the Exchange. In addition, the aforementioned proposals are equitable because the Exchange would uniformly pay and waive the rebate and fee, respectively, for all Customer Complex Orders in the applicable symbols. Also, the Exchange believes that it is reasonable to assess a different Fee for Removing Liquidity in certain symbols. For example, Chicago Board Options Exchange, Incorporated (‘‘CBOE’’) assesses Customers different fees for transacting QQQ [sic] and SPY as compared to other equity options.10 The Exchange operates in a highly competitive market comprised of nine U.S. options exchanges in which sophisticated and knowledgeable market participants can readily send order flow to competing exchanges if they deem fee levels at a particular PO 00000 overlying IWM will attract additional Customer order flow to the Exchange in IWM. Broker-dealer $0.28 Professional $0.35 $0.28 exchange to be excessive. The Exchange believes that the Complex Order fees and rebates it assesses must be competitive with fees and rebates assessed in place on other options exchanges. The Exchange believes that this competitive marketplace impacts the fees and rebates present on the Exchange today and influences the proposals set forth above. 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.11 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 8 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 10 See CBOE’s Fees Schedule. 11 15 U.S.C. 78s(b)(3)(A)(ii). 9 15 E:\FR\FM\20APN1.SGM 20APN1 22160 Federal Register / Vol. 76, No. 76 / Wednesday, April 20, 2011 / Notices whether the proposed rule should be approved or disapproved. 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: For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Cathy H. Ahn, Deputy Secretary. Dated: April 13, 2011. Tomicah S. Tillemann Senior Adviser for Civil Society and Emerging Democracies, U.S. Department of State. [FR Doc. 2011–9478 Filed 4–19–11; 8:45 am] BILLING CODE 4710–10–P BILLING CODE 8011–01–P DEPARTMENT OF TRANSPORTATION DEPARTMENT OF STATE Federal Aviation Administration [Public Notice 7397] Fifty-Fourth Meeting: RTCA Special Committee 186: Automatic Dependent Surveillance—Broadcast (ADS–B) Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–Phlx-2011–52 on the subject line. Advisory Committee on the Secretary of State’s Strategic Dialogue With Civil Society; Notice of the Establishment of an Advisory Committee This is notice of the establishment of the Advisory Committee on the Secretary of State’s Strategic Dialogue • Send paper comments in triplicate with Civil Society (hereinafter ‘‘the to Elizabeth M. Murphy, Secretary, Committee’’). The Committee will Securities and Exchange Commission, provide advice and assistance in the 100 F Street, NE., Washington, DC formulation of U.S. policies, proposals, 20549–1090. and strategies for engagement with, and All submissions should refer to File protection of, civil society worldwide. Number SR–Phlx-2011–52. This file Functions of the Committee include, but number should be included on the subject line if e-mail is used. To help the are not limited to: (a) Providing information and advice on the effective Commission process and review your integration of civil society into overall comments more efficiently, please use only one method. The Commission will foreign policy; and (b) providing post all comments on the Commission’s information and advice on the Department of State’s role in advancing, Internet Web site (http://www.sec.gov/ promoting, and protecting freedom of rules/sro.shtml). Copies of the association and expression. The submission, all subsequent objective of the Committee is to bring to amendments, all written statements the United States government a source with respect to the proposed rule of expertise, knowledge, and insight not change that are filed with the available within the Department or Commission, and all written communications relating to the elsewhere in the government on these proposed rule change between the issues. The Committee serves in a solely Commission and any person, other than advisory capacity. those that may be withheld from the The membership of the Committee public in accordance with the will consist of representatives who are provisions of 5 U.S.C. 552, will be leaders of U.S. and foreign civil society available for website viewing and and U.S. and foreign businesses engaged printing in the Commission’s Public with civil society. They may include: Reference Room, 100 F Street, NE., Leaders of independent public policy Washington, DC 20549, on official advocacy organizations, non-profit business days between the hours of 10 organizations that defend human rights a.m. and 3 p.m. Copies of the filing also and promote democracy, humanitarian will be available for inspection and organizations, private foundations and copying at the principal office of the funds, charitable trusts, societies, Exchange. All comments received will associations and non-profit be posted without change; the corporations. It is anticipated that the Commission does not edit personal Committee will meet at least annually. identifying information from The Department affirms that this submissions. You should submit only advisory committee is necessary and in information that you wish to make the public interest. available publicly. All submissions should refer to File Number SR–PhlxFor further information, please call 2011–52 and should be submitted on or Tomicah S. Tillemann, Senior Adviser before May 11, 2011. for Civil Society and Emerging Democracies, U.S. Department of State, 12 17 CFR 200.30–3(a)(12). at civilsociety@state.gov. srobinson on DSKHWCL6B1PROD with NOTICES Paper Comments VerDate Mar<15>2010 17:52 Apr 19, 2011 Jkt 223001 [FR Doc. 2011–9575 Filed 4–19–11; 8:45 am] PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 Federal Aviation Administration (FAA), DOT. ACTION: Notice of RTCA Special Committee 186: Automatic Dependent Surveillance—Broadcast (ADS–B) meeting. AGENCY: The FAA is issuing this notice to advise the public of a meeting of RTCA Special Committee 186: Automatic Dependent Surveillance— Broadcast (ADS–B). DATES: The meeting will be held May 3–5, 2011 from 9 a.m. to 5 p.m. ADDRESSES: The meeting will be held at the RTCA Conference Rooms, 1828 L Street, NW., Suite 805, Washington, DC 20036. FOR FURTHER INFORMATION CONTACT: RTCA Secretariat, 1828 L Street, NW., Suite 805, Washington, DC, 20036, (202) 833–9339; fax (202) 833–9434; Web site http://www.rtca.org. SUPPLEMENTARY INFORMATION: Pursuant to section 10(a)(2) of the Federal Advisory Committee Act (Pub. L. 92– 463, 5 U.S.C., Appendix 2), notice is hereby given for a Special Committee 186, Automatic Dependent Surveillance—Broadcast (ADS–B) meeting. The agenda will include: SUMMARY: Specific Working Group Sessions Tuesday, May 3 • All Day, WG–6 Application Technical Requirements, MacIntosh-NBAA Room & Hilton-ATA Room Wednesday, May 4 • All Day, WG–6 Application Technical Requirements, MacIntosh-NBAA Room & Hilton-ATA Room Thursday, May 5 • Plenary Session Agenda—Plenary Session—Agenda May 5, 2011 RTCA—Washington, DC—MacIntoshNBAA Room & Hilton-ATA Room 9 a.m. • Chairman’s Introductory Remarks E:\FR\FM\20APN1.SGM 20APN1

Agencies

[Federal Register Volume 76, Number 76 (Wednesday, April 20, 2011)]
[Notices]
[Pages 22158-22160]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-9478]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64300; File No. SR-Phlx-2011-52]


 Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating 
to Rebates and Fees for Customer Complex Orders

April 14, 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 8, 2011, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III below, which 
Items have been prepared by the 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 Complex Order \3\ Fees in 
Section I of its Fee Schedule titled ``Rebates and Fees for Adding and 
Removing Liquidity in Select Symbols.''
---------------------------------------------------------------------------

    \3\ A Complex Order is any order involving the simultaneous 
purchase and/or sale of two or more different options series in the 
same underlying security, priced at a net debit or credit based on 
the relative prices of the individual components, for the same 
account, for the purpose of executing a particular investment 
strategy. Furthermore, a Complex Order can also be a stock-option 
order, which is an order to buy or sell a stated number of units of 
an underlying stock or ETF coupled with the purchase or sale of 
options contract(s). See Exchange Rule 1080, Commentary .08(a)(i).
---------------------------------------------------------------------------

    While changes to the Fee Schedule pursuant to this proposal are 
effective upon filing, the Exchange has designated these changes to be 
operative on April 11, 2011.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqtrader.com/micro.aspx?id=PHLXfilings, at the 
principal office of the Exchange, at the Commission's Public Reference 
Room, and on the Commission's Web site at http://www.sec.gov.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to amend Section I, Part 
B of the Exchange's Fee Schedule, titled ``Complex Order'' to: (i) Pay 
a Customer Complex Order Rebate for Adding Liquidity of $0.25 per 
contract for options overlying the iShares Russell 2000 Index 
(``IWM''); and (ii) waive the Customer Complex Order Fee for Removing 
Liquidity for options overlying Standard and Poor's Depositary 
Receipts/SPDRs (``SPY'') \4\; the PowerShares QQQ Trust 
(``QQQ'')[supreg]; and Apple, Inc. (``AAPL'') [sic]. The Exchange is 
proposing these amendments to the Fee Schedule in order to continue to 
attract additional Customer order flow.
---------------------------------------------------------------------------

    \4\ SPY options are based on the SPDR exchange-traded fund 
(``ETF''), which is designed to track the performance of the S&P 500 
Index.
---------------------------------------------------------------------------

Complex Order Rebate for Adding Liquidity
    Currently, the Exchange pays the following Complex Order Rebates 
for Adding Liquidity in the Select Symbols:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                            Specialist,
                                                             Customer        Directed      ROT, SQT and        Firm        Broker-dealer   Professional
                                                                            participant        RSQT
--------------------------------------------------------------------------------------------------------------------------------------------------------
Rebate for Adding Liquidity in all Select Symbols except           $0.24           $0.00           $0.00           $0.00           $0.00           $0.00
 SPY, QQQ and AAPL......................................
Rebate for Adding Liquidity for SPY, QQQ and AAPL.......            0.25            0.00            0.00            0.00            0.00            0.00
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 22159]]

    With respect to Complex Orders, the Exchange pays Customers a rate 
of $0.25 per contract in specific Select Symbols, namely SPY, QQQ and 
AAPL. The Exchange currently pays a Complex Order Customer Rebate of 
$0.24 per contract for transactions that add liquidity in IWM (``IWM 
Rebate'').\5\ The Exchange is proposing to change the IWM Customer 
Complex Order Rebate for Adding Liquidity from $0.24 to $0.25 per 
contract. The Exchange would continue to pay all other Select Symbols, 
except SPY, QQQ and AAPL, a Customer Complex Order Rebate for Adding 
Liquidity of $0.24 per contract. Other, non-Customer market 
participants would not be paid a Complex Order Rebate for Adding 
Liquidity.\6\ The Exchange believes that this increased rebate for 
Customers transacting Complex Orders in options overlying IWM will 
attract additional Customer order flow to the Exchange in IWM.
---------------------------------------------------------------------------

    \5\ The Exchange currently also pays a $0.24 per contract 
Customer Complex Order Rebate for Adding Liquidity in all Select 
Symbols except SPY, QQQ and AAPL.
    \6\ The only market participant that receives a Rebate for 
Adding Liquidity for Complex Orders today is a Customer.
---------------------------------------------------------------------------

Complex Order Fee for Removing Liquidity
    Currently, the Exchange assesses the following Complex Orders Fees 
for Removing Liquidity in the Select Symbols:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                            Specialist,
                                                             Customer        Directed      ROT, SQT and        Firm        Broker-dealer   Professional
                                                                            participant        RSQT
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fee for Removing Liquidity..............................           $0.25           $0.25           $0.27           $0.28           $0.35           $0.28
--------------------------------------------------------------------------------------------------------------------------------------------------------

    With respect to Complex Orders, the Exchange currently assesses 
Customers a Fee for Removing Liquidity of $0.25 per contract in all 
Select Symbols. The Exchange is proposing to waive the Customer Complex 
Order Fee for Removing Liquidity for options overlying SPY, QQQ, IWM 
and AAPL. All other Select Symbols would continue to be subject to a 
Customer Complex Order Fee for Removing Liquidity of $0.25 per 
contract. The Exchange is not proposing to waive the Complex Order Fee 
for Removing Liquidity for any other market participant.\7\ The 
Exchange believes that this waiver of the Customer Complex Order Fee 
for Removing Liquidity for options overlying SPY, QQQ, IWM and AAPL 
will attract additional Customer order flow to the Exchange in those 
Select Symbols.
---------------------------------------------------------------------------

    \7\ The other non-Customer market participants would continue to 
be assessed a Complex Order Fee for Removing Liquidity as noted 
above.
---------------------------------------------------------------------------

    The Exchange does not propose to amend the fees in Section I, Part 
A titled ``Single contra-side order.'' While changes to the Fee 
Schedule pursuant to this proposal are effective upon filing, the 
Exchange has designated these changes to be operative on April 11, 
2011.
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 also believes that there is an 
equitable allocation of reasonable rebates among Exchange members.
---------------------------------------------------------------------------

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

    The Exchange believes that it is reasonable to pay an increased 
Complex Order Rebate for Adding Liquidity to Customers in options 
overlying IWM and waive the Complex Order Fee for Removing Liquidity 
for Customers in options overlying SPY, QQQ, IWM and AAPL, because both 
the proposed Customer rebate and waiver of the fee should attract 
additional Customer order flow to the Exchange for the benefit of all 
market participants. The Exchange believes that the proposal is 
equitable because by paying an increased Complex Order Rebate for 
Adding Liquidity to Customers transacting options overlying IWM and 
waiving the Customer Fee for Removing Liquidity in options overlying 
SPY, QQQ, IWM and AAPL, all market participants should benefit from the 
increased liquidity which increased Customer order flow should bring to 
the Exchange. In addition, the aforementioned proposals are equitable 
because the Exchange would uniformly pay and waive the rebate and fee, 
respectively, for all Customer Complex Orders in the applicable 
symbols.
    Also, the Exchange believes that it is reasonable to assess a 
different Fee for Removing Liquidity in certain symbols. For example, 
Chicago Board Options Exchange, Incorporated (``CBOE'') assesses 
Customers different fees for transacting QQQ [sic] and SPY as compared 
to other equity options.\10\
---------------------------------------------------------------------------

    \10\ See CBOE's Fees Schedule.
---------------------------------------------------------------------------

    The Exchange operates in a highly competitive market comprised of 
nine U.S. options exchanges in which sophisticated and knowledgeable 
market participants can readily send order flow to competing exchanges 
if they deem fee levels at a particular exchange to be excessive. The 
Exchange believes that the Complex Order fees and rebates it assesses 
must be competitive with fees and rebates assessed in place on other 
options exchanges. The Exchange believes that this competitive 
marketplace impacts the fees and rebates present on the Exchange today 
and influences the proposals set forth above.

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.\11\ 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

[[Page 22160]]

whether the proposed rule should be approved or disapproved.
---------------------------------------------------------------------------

    \11\ 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-Phlx-2011-52 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-2011-52. 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 (http://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 website 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-2011-52 and should be 
submitted on or before May 11, 2011.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-9478 Filed 4-19-11; 8:45 am]
BILLING CODE 8011-01-P