Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating to Qualified Contingent Cross Fees, 30223-30224 [2011-12759]

Download as PDF Federal Register / Vol. 76, No. 100 / Tuesday, May 24, 2011 / Notices Dated: May 18, 2011. Elizabeth M. Murphy, Secretary. principal office of the Exchange, at the Commission’s Public Reference Room, and on the Commission’s Web site at http://www.sec.gov. [FR Doc. 2011–12699 Filed 5–23–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–64520; File No. SR–Phlx– 2011–66] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating to Qualified Contingent Cross Fees May 19, 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 May 13, 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 Fee Schedule to adopt fees applicable to a Qualified Contingent Cross Order (‘‘QCC Order’’) for execution in the Phlx XL II System.3 While changes to the Fee Schedule pursuant to this proposal are effective upon filing, the Exchange has designated these changes to be operative on May 16, 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 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 A QCC Order is comprised of an order to buy or sell at least 1000 contracts that is identified as being part of a qualified contingent trade, as that term is defined in Rule 1080(o)(3), coupled with a contra-side order to buy or sell an equal number of contracts. The QCC Order must be executed at a price at or between the National Best Bid and Offer and be rejected if a Customer order is resting on the Exchange book at the same price. A QCC Order shall only be submitted electronically from off the floor to the PHLX XL II System. See Rule 1080(o). See also Securities Exchange Act Release No. 64249 (April 7, 2011), 76 FR 20773 (April 13, 2011) (SR– Phlx–2011–47) (a rule change to establish a QCC Order to facilitate the execution of stock/option Qualified Contingent Trades that satisfy the requirements of the trade through exemption in connection with Rule 611(d) of the Regulation NMS). jlentini on DSK4TPTVN1PROD with NOTICES 2 17 VerDate Mar<15>2010 16:47 May 23, 2011 Jkt 223001 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 Sections I and II, of the Exchange’s Fee Schedule, entitled ‘‘Rebates and Fees for Adding and Removing Liquidity in Select Symbols’’ 4 and ‘‘Equity Options Fees’’ 5 to establish fees for a new order type called Qualified Contingent Cross.6 There are currently several categories of market participants: Customers, Directed Participants,7 Specialists,8 Registered Options Traders,9 SQTs,10 RSQTs,11 Broker-Dealers, Firms and 4 Section I fees and rebates are applicable to certain select symbols which are defined in Section I (‘‘Select Symbols’’). 5 Section II includes options overlying equities, ETFs, ETNs, indexes and HOLDRS which are Multiply Listed. 6 The Qualified Contingent Cross functionality will be operative on May 16, 2011. 7 A Directed Participant is a Specialist, SQT, or RSQT that executes a customer order that is directed to them by an Order Flow Provider and is executed electronically on PHLX XL II. 8 A Specialist is an Exchange member who is registered as an options specialist pursuant to Rule 1020(a). 9 A Registered Options Trader (‘‘ROT’’) includes a Streaming Quote Trader (‘‘SQT’’), a Remote Streaming Quote Trader (‘‘RSQT’’) and a Non-SQT ROT, which by definition is neither a SQT or a RSQT. A ROT is defined in Exchange Rule 1014(b) as a regular member or a foreign currency options participant of the Exchange located on the trading floor who has received permission from the Exchange to trade in options for his own account. See Exchange Rule 1014(b)(i) and (ii). 10 An SQT is defined in Exchange Rule 1014(b)(ii)(A) as an ROT who has received permission from the Exchange to generate and submit option quotations electronically in options to which such SQT is assigned. 11 An RSQT is defined Exchange Rule in 1014(b)(ii)(B) as an ROT that is a member or member organization with no physical trading floor PO 00000 Frm 00136 Fmt 4703 Sfmt 4703 30223 Professional.12 The Exchange proposes to adopt pricing for QCC Orders for the above categories applicable to both Sections I and II. QCC Transaction Fees will apply to the Select Symbols listed in Section I and the symbols applicable to Section II. The Exchange proposes to assess Directed Participants, Specialists, ROTs, SQTs, RSQTs, Professionals, Firms and Broker-Dealers a $0.20 per contract QCC transaction fee (‘‘QCC Transaction Fees’’). A Customer would not be assessed a QCC Fee. As mentioned, the proposed QCC Fees would apply to Sections I and II of the Fee Schedule and would be subject to the Firm Related Equity Option Cap and the Monthly Cap. The Firm Related Equity Option Cap is currently $75,000.13 ROTs and Specialists are currently subject to a Monthly Cap of $550,000.14 The Exchange also proposes additional text to Sections I and II of the Fee Schedule to describe the applicability of both the Firm Related Equity Option Cap and the Monthly Cap to those sections of the Fee Schedule. While changes to the Fee Schedule pursuant to this proposal are effective upon filing, the Exchange has designated these changes to be operative on May 16, 2011. 2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is presence who has received permission from the Exchange to generate and submit option quotations electronically in options to which such RSQT has been assigned. An RSQT may only submit such quotations electronically from off the floor of the Exchange. 12 The Exchange defines a ‘‘professional’’ as any person or entity that (i) is not a broker or dealer in securities, and (ii) places more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s) (hereinafter ‘‘Professional’’). 13 Firm equity option transaction charges, in the aggregate, for one billing month will not exceed the Firm Related Equity Option Cap per member organization when such members are trading in their own proprietary account. The Firm equity options transaction charges will be waived for members executing facilitation orders pursuant to Exchange Rule 1064 when such members are trading in their own proprietary account. Firms that (i) are on the contra-side of an electronicallydelivered and executed Customer complex order; and (ii) have reached the Firm Related Equity Option Cap will be assessed a $0.05 per contract fee. See Securities Exchange Act Release No. 63780 (January 26, 2011), 76 FR 5846 (February 2, 2011) (SR–Phlx–2011–07). 14 The trading activity of separate ROTs and Specialist member organizations will be aggregated in calculating the Monthly Cap if there is at least 75% common ownership between the member organizations. In addition, ROTs and Specialists that (i) are on the contra-side of an electronicallydelivered and executed Customer complex order; and (ii) have reached the Monthly Cap will be assessed a $0.05 per contract fee. See Securities Exchange Act Release No. 64113 (March 23, 2011), 76 FR 17468 (March 29, 2011) (SR–Phlx–2011–36). E:\FR\FM\24MYN1.SGM 24MYN1 30224 Federal Register / Vol. 76, No. 100 / Tuesday, May 24, 2011 / Notices consistent with Section 6(b) of the Act 15 in general, and furthers the objectives of Section 6(b)(4) of the Act 16 in particular, in that it is an equitable allocation of reasonable fees and other charges among Exchange members. The Exchange believes that the proposed fees are equitable because the fees are within the range of fees currently assessed in Section II for Multiply Listed equity options. Customers are not assessed a fee for options overlying equities which are Multiply Listed. Other market participants are assessed transaction fees which range from $.20 per contract to $.25 per contract, generally.17 In addition, the Exchange is proposing to assess the same fee on all market participants uniformly, with the exception of Customers. The Exchange believes that its proposal to not assess Customers QCC Transaction Fees is not unfairly discriminatory because the Exchange is seeking to incentivize Broker-Dealers and Professionals to execute Customer QCC Orders on the Exchange. The Exchange believes that the proposed fees are reasonable because the fees are comparable to the Exchange’s fees, as stated above, and because the fees are within the range of fees assessed by the International Securities Exchange, LLC (‘‘ISE’’) for qualified contingent cross orders. ISE assesses $0.20 per contract for qualified contingent cross orders to all market participants 18 except the priority customer.19 The Exchange operates in a highly competitive market comprised of nine U.S. options exchanges in which sophisticated and knowledgeable market participants readily can, and do, send order flow to competing exchanges if they deem fee levels at a particular exchange to be excessive. The Exchange believes that the proposed QCC Fees it assesses must be competitive with fees assessed on other options exchanges. The Exchange believes that this competitive marketplace impacts the fees present on the Exchange today and influences the proposals set forth above. 15 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 17 A Broker-Dealer is the one exception to this range. A Broker-Dealer is assessed $.45 per contract for electronically submitted transactions in Penny Pilot and non-Penny Pilot options. 18 The fee for an ISE market maker is either $.18 or $.20 per contract, depending on the product. See ISE’s Fee Schedule. See also SR–ISE–2011–14. 19 An ISE priority customer is not assessed a fee. See ISE’s Fee Schedule. jlentini on DSK4TPTVN1PROD with NOTICES 16 15 VerDate Mar<15>2010 16:47 May 23, 2011 Jkt 223001 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.20 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. 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–2011–66 on the subject line. 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– 2011–66 and should be submitted on or before June 14, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.21 Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–12759 Filed 5–23–11; 8:45 am] BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #12592 and #12593] Oklahoma Disaster #OK–00047 U.S. Small Business Administration. ACTION: Notice. AGENCY: This is a Notice of the Presidential declaration of a major disaster for Public Assistance Only for the State of Oklahoma (FEMA—1985— Paper Comments DR), dated 05/13/2011. • Send paper comments in triplicate Incident: Severe Winter Storm and to Elizabeth M. Murphy, Secretary, Snowstorm. Securities and Exchange Commission, Incident Period: 01/31/2011 through 100 F Street, NE., Washington, DC 02/05/2011. 20549–1090. Effective Date: 05/13/2011. All submissions should refer to File Physical Loan Application Deadline Number SR–Phlx–2011–66. This file Date: 07/12/2011. Economic Injury (EIDL) Loan number should be included on the subject line if e-mail is used. To help the Application Deadline Date: 02/13/2012. Commission process and review your ADDRESSES: Submit completed loan comments more efficiently, please use applications to: U.S. Small Business only one method. The Commission will Administration, Processing and post all comments on the Commission’s Disbursement Center, 14925 Kingsport Internet Web site (http://www.sec.gov/ Road, Fort Worth, TX 76155. 20 15 PO 00000 U.S.C. 78s(b)(3)(A)(ii). Frm 00137 Fmt 4703 Sfmt 4703 SUMMARY: 21 17 E:\FR\FM\24MYN1.SGM CFR 200.30–3(a)(12). 24MYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 76, Number 100 (Tuesday, May 24, 2011)]
[Notices]
[Pages 30223-30224]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-12759]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64520; File No. SR-Phlx-2011-66]

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

May 19, 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 May 13, 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 Fee Schedule to adopt fees
applicable to a Qualified Contingent Cross Order (``QCC Order'') for
execution in the Phlx XL II System.\3\
---------------------------------------------------------------------------

\3\ A QCC Order is comprised of an order to buy or sell at least
1000 contracts that is identified as being part of a qualified
contingent trade, as that term is defined in Rule 1080(o)(3),
coupled with a contra-side order to buy or sell an equal number of
contracts. The QCC Order must be executed at a price at or between
the National Best Bid and Offer and be rejected if a Customer order
is resting on the Exchange book at the same price. A QCC Order shall
only be submitted electronically from off the floor to the PHLX XL
II System. See Rule 1080(o). See also Securities Exchange Act
Release No. 64249 (April 7, 2011), 76 FR 20773 (April 13, 2011) (SR-
Phlx-2011-47) (a rule change to establish a QCC Order to facilitate
the execution of stock/option Qualified Contingent Trades that
satisfy the requirements of the trade through exemption in
connection with Rule 611(d) of the Regulation NMS).
---------------------------------------------------------------------------

While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative on May 16, 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 Sections I and
II, of the Exchange's Fee Schedule, entitled ``Rebates and Fees for
Adding and Removing Liquidity in Select Symbols'' \4\ and ``Equity
Options Fees'' \5\ to establish fees for a new order type called
Qualified Contingent Cross.\6\
---------------------------------------------------------------------------

\4\ Section I fees and rebates are applicable to certain select
symbols which are defined in Section I (``Select Symbols'').
\5\ Section II includes options overlying equities, ETFs, ETNs,
indexes and HOLDRS which are Multiply Listed.
\6\ The Qualified Contingent Cross functionality will be
operative on May 16, 2011.
---------------------------------------------------------------------------

There are currently several categories of market participants:
Customers, Directed Participants,\7\ Specialists,\8\ Registered Options
Traders,\9\ SQTs,\10\ RSQTs,\11\ Broker-Dealers, Firms and
Professional.\12\ The Exchange proposes to adopt pricing for QCC Orders
for the above categories applicable to both Sections I and II. QCC
Transaction Fees will apply to the Select Symbols listed in Section I
and the symbols applicable to Section II. The Exchange proposes to
assess Directed Participants, Specialists, ROTs, SQTs, RSQTs,
Professionals, Firms and Broker-Dealers a $0.20 per contract QCC
transaction fee (``QCC Transaction Fees''). A Customer would not be
assessed a QCC Fee.
---------------------------------------------------------------------------

\7\ A Directed Participant is a Specialist, SQT, or RSQT that
executes a customer order that is directed to them by an Order Flow
Provider and is executed electronically on PHLX XL II.
\8\ A Specialist is an Exchange member who is registered as an
options specialist pursuant to Rule 1020(a).
\9\ A Registered Options Trader (``ROT'') includes a Streaming
Quote Trader (``SQT''), a Remote Streaming Quote Trader (``RSQT'')
and a Non-SQT ROT, which by definition is neither a SQT or a RSQT. A
ROT is defined in Exchange Rule 1014(b) as a regular member or a
foreign currency options participant of the Exchange located on the
trading floor who has received permission from the Exchange to trade
in options for his own account. See Exchange Rule 1014(b)(i) and
(ii).
\10\ An SQT is defined in Exchange Rule 1014(b)(ii)(A) as an ROT
who has received permission from the Exchange to generate and submit
option quotations electronically in options to which such SQT is
assigned.
\11\ An RSQT is defined Exchange Rule in 1014(b)(ii)(B) as an
ROT that is a member or member organization with no physical trading
floor presence who has received permission from the Exchange to
generate and submit option quotations electronically in options to
which such RSQT has been assigned. An RSQT may only submit such
quotations electronically from off the floor of the Exchange.
\12\ The Exchange defines a ``professional'' as any person or
entity that (i) is not a broker or dealer in securities, and (ii)
places more than 390 orders in listed options per day on average
during a calendar month for its own beneficial account(s)
(hereinafter ``Professional'').
---------------------------------------------------------------------------

As mentioned, the proposed QCC Fees would apply to Sections I and
II of the Fee Schedule and would be subject to the Firm Related Equity
Option Cap and the Monthly Cap. The Firm Related Equity Option Cap is
currently $75,000.\13\ ROTs and Specialists are currently subject to a
Monthly Cap of $550,000.\14\
---------------------------------------------------------------------------

\13\ Firm equity option transaction charges, in the aggregate,
for one billing month will not exceed the Firm Related Equity Option
Cap per member organization when such members are trading in their
own proprietary account. The Firm equity options transaction charges
will be waived for members executing facilitation orders pursuant to
Exchange Rule 1064 when such members are trading in their own
proprietary account. Firms that (i) are on the contra-side of an
electronically-delivered and executed Customer complex order; and
(ii) have reached the Firm Related Equity Option Cap will be
assessed a $0.05 per contract fee. See Securities Exchange Act
Release No. 63780 (January 26, 2011), 76 FR 5846 (February 2, 2011)
(SR-Phlx-2011-07).
\14\ The trading activity of separate ROTs and Specialist member
organizations will be aggregated in calculating the Monthly Cap if
there is at least 75% common ownership between the member
organizations. In addition, ROTs and Specialists that (i) are on the
contra-side of an electronically-delivered and executed Customer
complex order; and (ii) have reached the Monthly Cap will be
assessed a $0.05 per contract fee. See Securities Exchange Act
Release No. 64113 (March 23, 2011), 76 FR 17468 (March 29, 2011)
(SR-Phlx-2011-36).
---------------------------------------------------------------------------

The Exchange also proposes additional text to Sections I and II of
the Fee Schedule to describe the applicability of both the Firm Related
Equity Option Cap and the Monthly Cap to those sections of the Fee
Schedule.
While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative on May 16, 2011.
2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is

[[Page 30224]]

consistent with Section 6(b) of the Act \15\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \16\ in particular, in
that it is an equitable allocation of reasonable fees and other charges
among Exchange members.
---------------------------------------------------------------------------

\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

The Exchange believes that the proposed fees are equitable because
the fees are within the range of fees currently assessed in Section II
for Multiply Listed equity options. Customers are not assessed a fee
for options overlying equities which are Multiply Listed. Other market
participants are assessed transaction fees which range from $.20 per
contract to $.25 per contract, generally.\17\ In addition, the Exchange
is proposing to assess the same fee on all market participants
uniformly, with the exception of Customers. The Exchange believes that
its proposal to not assess Customers QCC Transaction Fees is not
unfairly discriminatory because the Exchange is seeking to incentivize
Broker-Dealers and Professionals to execute Customer QCC Orders on the
Exchange.
---------------------------------------------------------------------------

\17\ A Broker-Dealer is the one exception to this range. A
Broker-Dealer is assessed $.45 per contract for electronically
submitted transactions in Penny Pilot and non-Penny Pilot options.
---------------------------------------------------------------------------

The Exchange believes that the proposed fees are reasonable because
the fees are comparable to the Exchange's fees, as stated above, and
because the fees are within the range of fees assessed by the
International Securities Exchange, LLC (``ISE'') for qualified
contingent cross orders. ISE assesses $0.20 per contract for qualified
contingent cross orders to all market participants \18\ except the
priority customer.\19\
---------------------------------------------------------------------------

\18\ The fee for an ISE market maker is either $.18 or $.20 per
contract, depending on the product. See ISE's Fee Schedule. See also
SR-ISE-2011-14.
\19\ An ISE priority customer is not assessed a fee. See ISE's
Fee Schedule.
---------------------------------------------------------------------------

The Exchange operates in a highly competitive market comprised of
nine U.S. options exchanges in which sophisticated and knowledgeable
market participants readily can, and do, send order flow to competing
exchanges if they deem fee levels at a particular exchange to be
excessive. The Exchange believes that the proposed QCC Fees it assesses
must be competitive with fees assessed on other options exchanges. The
Exchange believes that this competitive marketplace impacts the fees
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.\20\ 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.
---------------------------------------------------------------------------

\20\ 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-2011-66 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-2011-66. 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 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-2011-66 and should be
submitted on or before June 14, 2011.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
Cathy H. Ahn,
Deputy Secretary.
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\21\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2011-12759 Filed 5-23-11; 8:45 am]
BILLING CODE 8011-01-P