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]

Download as PDF 55438 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 VerDate Mar<15>2010 17:37 Sep 06, 2011 1 15 10 17 Jkt 223001 PO 00000 CFR 200.30–3(a)(12). Frm 00094 Fmt 4703 Sfmt 4703 2 17 E:\FR\FM\07SEN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 07SEN1 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. VerDate Mar<15>2010 17:37 Sep 06, 2011 Jkt 223001 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 PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 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 E:\FR\FM\07SEN1.SGM 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 PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 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). E:\FR\FM\07SEN1.SGM 07SEN1

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]


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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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-Phlx-2011-122 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
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