Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Fees for NASDAQ OMX PSX, 55438-55440 [2011-22777]
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Federal Register / Vol. 76, No. 173 / Wednesday, September 7, 2011 / Notices
objectives of Section 6(b)(4) 6 and 6(b)(5)
of the Act,7 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees, and other charges
among its members and issuers and
other persons using its facilities and is
designed to prevent fraudulent and
manipulative acts and practices, 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. The
Exchange believes that the proposed
change to the Fee Schedule is equitable
because it applies fees for comparable
co-location services uniformly to users
of those services and because access to
the Exchange and the services and
products it provides are offered on fair
and non-discriminatory terms. The
proposed changes would result in
clarification of the Exchange’s fees for
co-location and related services.
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.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
emcdonald on DSK5VPTVN1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 8 of the Act and
subparagraph (f)(2) of Rule 19b–4 9
thereunder, because it establishes a due,
fee, or other charge imposed by the
NYSE Arca.
At any time within 60 days of the
filing of such 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
U.S.C. 78f(b)(4).
U.S.C. 78f(b)(5).
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(2).
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.10
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–22778 Filed 9–6–11; 8:45 am]
Electronic Comments
BILLING CODE 8011–01–P
• 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–NYSEArca–2011–65 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.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65233; File No. SR–Phlx–
2011–122]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify Fees
for NASDAQ OMX PSX
August 31, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
All submissions should refer to File
notice is hereby given that on August
Number SR–NYSEArca–2011–65. This
25, 2011, NASDAQ OMX PHLX LLC
file number should be included on the
subject line if e-mail is used. To help the (‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
Commission process and review your
(‘‘SEC’’ or ‘‘Commission’’) the proposed
comments more efficiently, please use
rule change as described in Items I, II,
only one method. The Commission will
and III, below, which Items have been
post all comments on the Commission’s prepared by the Exchange. The
Internet Web site (https://www.sec.gov/
Commission is publishing this notice to
rules/sro.shtml ). Copies of the
solicit comments on the proposed rule
submission, all subsequent
change from interested persons.
amendments, all written statements
I. Self-Regulatory Organization’s
with respect to the proposed rule
Statement of the Terms of Substance of
change that are filed with the
the Proposed Rule Change
Commission, and all written
The Exchange proposes to modify the
communications relating to the
fees applicable to trading on the
proposed rule change between the
Commission and any person, other than NASDAQ OMX PSX system (‘‘PSX’’).
The text of the proposed rule change is
those that may be withheld from the
available on the Exchange’s Web site at
public in accordance with the
https://nasdaqomxphlx.
provisions of 5 U.S.C. 552, will be
cchwallstreet.com/NASDAQOMXPHLX/
available for Web site viewing and
Filings/, at the principal office of the
printing in the Commission’s Public
Exchange, and at the Commission’s
Reference Room, 100 F Street, NE.,
Public Reference Room.
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of 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–
NYSEArca–2011–65 and should be
submitted on or before September 28,
2011.
6 15
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.
7 15
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U.S.C. 78s(b)(1).
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Federal Register / Vol. 76, No. 173 / Wednesday, September 7, 2011 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing to modify
order execution fees applicable to use of
PSX for trading stocks priced at $1 or
more. Currently, PSX charges $0.0025
per share executed for orders that access
liquidity. Consistent with PSX’s goal of
encouraging display of larger order
sizes, the Exchange currently offers a
rebate of $0.0024 per share executed for
Displayed Orders with an original order
size of 2,000 or more shares, but only
$0.0022 for Displayed Orders with an
original order size of less than 2,000.3
The rebate for Non-Displayed Orders is
$0.0010 per share executed.
Effective September 1, 2011, the fee
for accessing liquidity will increase to
$0.0027 per share executed; the rebate
for providing displayed liquidity with
an original order size of 2,000 or more
shares will increase to $0.0026 per share
executed; and the rebate for Displayed
Orders with an original order size of less
than 2,000 will increase to $0.0024 per
share executed. Consistent with PSX’s
goal of encouraging greater display of
liquidity, the rebate for Non-Displayed
Orders that provide liquidity will
remain $0.0010 per share executed. By
increasing its rebate for displayed
liquidity, the Exchange hopes to attract
more liquidity to PSX.
The Exchange is also correcting two
typographical errors in the Order
Execution provision of Section VIII of
the fee schedule. These corrections do
not impact any fees assessed by the
Exchange.
emcdonald on DSK5VPTVN1PROD with NOTICES
3 The
higher credit applies to an order as it is
decremented by partial executions, but does not
apply in circumstances where an order for 2,000
shares or more is entered and then reduced in size
by the entering Participant, such that the order is
subsequently in the System for less than 2,000
shares. Moreover, changes to orders that result from
system operations other than execution and
decrementation are deemed to result in new orders.
For example, a Pegged Order is considered a new
order each time its price changes. Thus, if a
Participant entered a 2,400 share order that posted
to the PSX book, the order was executed for 1,000
shares, and the remainder of the order was then
executed for 1,400, both of the executions would
receive the higher credit. However, if a PSX
Participant entered a 2,400 share order and
subsequently modified the order down to 1,500
shares, the lower credit would apply. Finally, if a
Participant entered a 2,400 share buy order pegged
to the national best bid, the order executed for 1,000
shares, and the order then repriced due to a change
in the national best bid, the 1,000 share execution
would receive the higher 0.0024 credit but a
subsequent execution of the repriced order would
receive the lower credit because it would be treated
as a new order with a size below 2,000 shares.
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17:37 Sep 06, 2011
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2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,4
in general, and with Section 6(b)(4) of
the Act,5 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among members and issuers and other
persons using any facility or system
which the Exchange operates or
controls. The impact of the price
changes upon the net fees paid by a
particular market participant will
depend upon a number of variables,
including the prices of the market
participant’s quotes and orders relative
to the national best bid and offer (i.e.,
its propensity to add or remove
liquidity), its usage of Non-Displayed
orders, and the size of the orders that it
enters. Although the change will result
in an increase of the fee charged to
access liquidity on PSX, the Exchange
believes that the proposed fee to access
liquidity is reasonable because it is
consistent with Rule 610(c) under
Regulation NMS,6 which found that fees
not in excess of $0.0030 per share
executed would promote the objective
of equal regulation and preventing
excessive fees. As the Commission
determined in that matter, competition
is best able to determine whether a
strategy of charging fees set at lower
levels, or of charging a higher fee and
paying a higher rebate, will be
successful.7 Moreover, the increase in
fees to access liquidity will be offset by
an increase in the rebate for providing
displayed liquidity.
The Exchange believes that the
proposal reflects an equitable allocation
of fees, as all similarly situated member
organizations will be subject to the same
fee structure, and access to the
Exchange’s market is offered on fair and
non-discriminatory terms. The
Exchange further believes that it is
equitable to pay a higher rebate with
respect to displayed liquidity, because
the Exchange expects that the higher
rebate will promote its goal of
promoting market transparency through
a market structure that provides higher
execution priority to orders based on
their size and display status.
The Exchange notes that it operates in
a highly competitive market in which
market participants can readily favor
competing venues if they deem fee
levels at a particular venue to be
excessive. The Exchange believes that
4 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
6 17 CFR 242.610(c).
7 Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37596 (June 29, 2005).
5 15
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55439
its fees continue to be reasonable and
equitably allocated to members on the
basis of whether they opt to direct
orders to the Exchange and thereby
make use of its order execution services.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
Because the market for order execution
and routing is extremely competitive,
members may readily favor the
Exchange’s competitors in making order
routing decisions to the extent that they
deem PSX’s fees to be excessive.
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.8 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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Phlx–2011–122 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
8 15
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U.S.C. 78s(b)(3)(A)(ii).
07SEN1
55440
Federal Register / Vol. 76, No. 173 / Wednesday, September 7, 2011 / Notices
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
All submissions should refer to File
Number SR–Phlx–2011–122. 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.9 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–
2011–122 and should be submitted on
or before September 28, 2011.
[Release No. 34–65232; File No. SR–C2–
2011–019]
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–22777 Filed 9–6–11; 8:45 am]
emcdonald on DSK5VPTVN1PROD with NOTICES
BILLING CODE 8011–01–P
17:37 Sep 06, 2011
August 31, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on August
26, 2011, the C2 Options Exchange,
Incorporated (‘‘Exchange’’ or ‘‘C2’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Exchange has designated the proposal as
a ‘‘non-controversial’’ proposed rule
change pursuant to Section
19(b)(3)(A)(iii) of the Act 3 and Rule
19b–4(f)(6) thereunder.4 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 is proposing to make
certain conforming and non-substantive
amendments to C2 Rule 6.3, Trading
Halts, as it relates to individual stock
trading pauses in underlying stocks. The
text of the proposed rule change is
available on the Exchange’s website
(https://www.c2exchange.com/Legal/
RuleFilings.aspx), at the Exchange’s
Office of the Secretary 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 those
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 parts of such
statements.
9 The text of the proposed rule change is available
on the Commission’s Web site at https://
www.sec.gov.
10 17 CFR 200.30–3(a)(12).
VerDate Mar<15>2010
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Related to Trading Halts
Jkt 223001
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The individual stock trading pause
pilot rule was developed in consultation
with U.S. listing markets to provide for
uniform market-wide trading pause
standards for certain underlying
individual stocks that experience rapid
price movement. In conjunction with
the pilot, C2 (and other options
exchanges) adopted rules that provide
that trading in the overlying options on
an eligible stock would halt when the
primary listing market for the
underlying stock issues a trading pause.
The underlying individual stock
trading pause pilot was recently
expanded to include all NMS stocks.5 In
light of the recent expansion of the
underlying individual stock trading
pause pilot, C2 is proposing certain
conforming and non-substantive
amendments to its Rule 6.3.
Specifically, the Exchange is proposing
to replace a reference to ‘‘eligible
underlying stock’’ with a conforming
reference to ‘‘underlying NMS stock.’’
The Exchange is also proposing to
include text in the rule confirming that,
following an individual stock trading
pause, trading will generally resume on
the primary listing market for the stock
after a period of five minutes, which is
consistent with the current pilot and is
simply intended to provide more detail
in the text explaining the existing pilot’s
operation.
2. Statutory Basis
The statutory basis for the proposed
rule change is Section 6(b)(5) of the
Act,6 which requires the rules of an
exchange 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. The proposed rule
change also is designed to support the
principles of Section 11A(a)(1) 7 of the
5 The pilot list of stocks originally included all
stocks in the S&P 500 Index, but it has been
expanded over time to include all NMS stocks. See,
e.g., Securities Exchange Act Release Nos. 62884
(September 10, 2010), 75 FR 56618 (September 16,
2010) (SR–CBOE–2010–065) (order approving
expansion of the individual stock trading pause
pilot to include all stocks in the Russell 1000 index
and a pilot list of Exchange Traded Products) and
64735 (June 23, 2011), 76 FR 38243 (June 29, 2011)
(SR–CBOE–2011–049) (order approving further
expansion of the individual stock trading pause
pilot to include all NMS stocks effective August 8,
2011).
6 15 U.S.C. 78f(b)(5).
7 15 U.S.C. 78k–1(a)(1).
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]]>Agencies
[Federal Register Volume 76, Number 173 (Wednesday, September 7, 2011)]
[Notices]
[Pages 55438-55440]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-22777]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65233; File No. SR-Phlx-2011-122]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Modify
Fees for NASDAQ OMX PSX
August 31, 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 August 25, 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 modify the fees applicable to trading on
the NASDAQ OMX PSX system (``PSX''). The text of the proposed rule
change is available on the Exchange's Web site at https://nasdaqomxphlx.cchwallstreet.com/NASDAQOMXPHLX/Filings/, 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.
[[Page 55439]]
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing to modify order execution fees applicable
to use of PSX for trading stocks priced at $1 or more. Currently, PSX
charges $0.0025 per share executed for orders that access liquidity.
Consistent with PSX's goal of encouraging display of larger order
sizes, the Exchange currently offers a rebate of $0.0024 per share
executed for Displayed Orders with an original order size of 2,000 or
more shares, but only $0.0022 for Displayed Orders with an original
order size of less than 2,000.\3\ The rebate for Non-Displayed Orders
is $0.0010 per share executed.
---------------------------------------------------------------------------
\3\ The higher credit applies to an order as it is decremented
by partial executions, but does not apply in circumstances where an
order for 2,000 shares or more is entered and then reduced in size
by the entering Participant, such that the order is subsequently in
the System for less than 2,000 shares. Moreover, changes to orders
that result from system operations other than execution and
decrementation are deemed to result in new orders. For example, a
Pegged Order is considered a new order each time its price changes.
Thus, if a Participant entered a 2,400 share order that posted to
the PSX book, the order was executed for 1,000 shares, and the
remainder of the order was then executed for 1,400, both of the
executions would receive the higher credit. However, if a PSX
Participant entered a 2,400 share order and subsequently modified
the order down to 1,500 shares, the lower credit would apply.
Finally, if a Participant entered a 2,400 share buy order pegged to
the national best bid, the order executed for 1,000 shares, and the
order then repriced due to a change in the national best bid, the
1,000 share execution would receive the higher 0.0024 credit but a
subsequent execution of the repriced order would receive the lower
credit because it would be treated as a new order with a size below
2,000 shares.
---------------------------------------------------------------------------
Effective September 1, 2011, the fee for accessing liquidity will
increase to $0.0027 per share executed; the rebate for providing
displayed liquidity with an original order size of 2,000 or more shares
will increase to $0.0026 per share executed; and the rebate for
Displayed Orders with an original order size of less than 2,000 will
increase to $0.0024 per share executed. Consistent with PSX's goal of
encouraging greater display of liquidity, the rebate for Non-Displayed
Orders that provide liquidity will remain $0.0010 per share executed.
By increasing its rebate for displayed liquidity, the Exchange hopes to
attract more liquidity to PSX.
The Exchange is also correcting two typographical errors in the
Order Execution provision of Section VIII of the fee schedule. These
corrections do not impact any fees assessed by the Exchange.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\4\ in general, and with
Section 6(b)(4) of the Act,\5\ in particular, in that it provides for
the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using any facility or
system which the Exchange operates or controls. The impact of the price
changes upon the net fees paid by a particular market participant will
depend upon a number of variables, including the prices of the market
participant's quotes and orders relative to the national best bid and
offer (i.e., its propensity to add or remove liquidity), its usage of
Non-Displayed orders, and the size of the orders that it enters.
Although the change will result in an increase of the fee charged to
access liquidity on PSX, the Exchange believes that the proposed fee to
access liquidity is reasonable because it is consistent with Rule
610(c) under Regulation NMS,\6\ which found that fees not in excess of
$0.0030 per share executed would promote the objective of equal
regulation and preventing excessive fees. As the Commission determined
in that matter, competition is best able to determine whether a
strategy of charging fees set at lower levels, or of charging a higher
fee and paying a higher rebate, will be successful.\7\ Moreover, the
increase in fees to access liquidity will be offset by an increase in
the rebate for providing displayed liquidity.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(4).
\6\ 17 CFR 242.610(c).
\7\ Securities Exchange Act Release No. 51808 (June 9, 2005), 70
FR 37496, 37596 (June 29, 2005).
---------------------------------------------------------------------------
The Exchange believes that the proposal reflects an equitable
allocation of fees, as all similarly situated member organizations will
be subject to the same fee structure, and access to the Exchange's
market is offered on fair and non-discriminatory terms. The Exchange
further believes that it is equitable to pay a higher rebate with
respect to displayed liquidity, because the Exchange expects that the
higher rebate will promote its goal of promoting market transparency
through a market structure that provides higher execution priority to
orders based on their size and display status.
The Exchange notes that it operates in a highly competitive market
in which market participants can readily favor competing venues if they
deem fee levels at a particular venue to be excessive. The Exchange
believes that its fees continue to be reasonable and equitably
allocated to members on the basis of whether they opt to direct orders
to the Exchange and thereby make use of its order execution services.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended.
Because the market for order execution and routing is extremely
competitive, members may readily favor the Exchange's competitors in
making order routing decisions to the extent that they deem PSX's fees
to be excessive.
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.\8\ 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.
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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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-2011-122 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary,
[[Page 55440]]
Securities and Exchange Commission, 100 F Street, NE., Washington, DC
20549-1090.
All submissions should refer to File Number SR-Phlx-2011-122. 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.\9\ 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-2011-122 and should be
submitted on or before September 28, 2011.
\9\ The text of the proposed rule change is available on the
Commission's Web site at https://www.sec.gov.
\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-22777 Filed 9-6-11; 8:45 am]
BILLING CODE 8011-01-P
