Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Withdrawal of Proposed Rule Change To Adopt Rules Regarding Supervision in the Consolidated FINRA Rulebook, 62890-62891 [2011-26101]
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Federal Register / Vol. 76, No. 196 / Tuesday, October 11, 2011 / Notices
The Exchange believes that the
proposal to exclude QCC orders from
the Marketing Charges program is
reasonable given the nature of a QCC
order. QCC orders by design are not
subject to competitive bidding or
offering, instead a qualifying QCC order
is printed to the tape allowing for a
clean cross. Therefore, it is the
Exchange’s expectation that
inducements such as payment for order
flow will not factor into attracting QCC
orders since a market maker being
solicited to be a party to such a trade
will simply ask for the order to be sent
to a venue that does not collect
marketing charges for QCC orders. One
such exchange, the CBOE, already
explicitly excludes QCC orders from its
payment for order flow program.17 The
Exchange believes therefore that it is
reasonable to exclude QCC orders from
the Marketing Charges program.
The Exchange believes the proposed
$.03 per contract rebate for Floor
Brokers who enter QCC orders that
execute is reasonable because it will
allow Floor Brokers the opportunity to
compete for QCC orders that would
otherwise be entered into front-end
order entry systems of competing
exchanges.18 The proposed rebate is
comparable to that found on NASDAQ
OMX PHLX 19 in that it is being offered
to Floor Brokers as an inducement that
may allow them to competitively price
their services offered to all participants.
To the extent that the rebate is
successful in attracting additional order
flow to the Exchange, all participants
should benefit. As such, the Exchange
believes that the rebate is appropriate
and reasonable.
The Exchange believes the proposal to
adopt a $.03 per contract rebate is
equitable and not unfairly
discriminatory because it would
uniformly apply to all QCC orders
entered by a Floor Broker for validation
by the system and potential execution.
Any participant will be able to engage
a rebate-receiving Floor Broker in a
discussion surrounding the appropriate
level of fees that they may be charged
for entrusting the entry of the QCC order
to the Floor Broker into the Exchange
systems for validation and execution.
The additional order flow attracted by
this rebate should benefit all
participants. For this reason, the
Exchange believes the adoption of the
proposed rebate is both equitable and
not unfairly discriminatory.
17 See
CBOE fee schedule, supra note 12, at page
4, footnote 6.
18 See supra note 7.
19 See supra note 8.
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For the reasons noted above, the
Exchange believes that the proposed
fees are fair, equitable and not unfairly
discriminatory.
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.
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) 20 of the Act and
subparagraph (f)(2) of Rule 19b–4 21
thereunder, because it establishes a due,
fee, or other charge imposed by the
NYSE Amex.
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.
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–NYSEAmex–2011–72 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–NYSEAmex–2011–72. This
20 15
21 17
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
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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, NW.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. The text of the proposed
rule change is available on the
Commission’s Web site at https://
www.sec.gov. 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–
NYSEAmex–2011–72 and should be
submitted on or before November 1,
2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–26102 Filed 10–7–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65477; File No. SR–FINRA–
2011–028]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Withdrawal of
Proposed Rule Change To Adopt Rules
Regarding Supervision in the
Consolidated FINRA Rulebook
October 4, 2011.
On June 10, 2011, Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
filed with the Securities and Exchange
22 17
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CFR 200.30–3(a)(12).
11OCN1
Federal Register / Vol. 76, No. 196 / Tuesday, October 11, 2011 / Notices
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Exchange Act’’
or ‘‘Act’’) 1 and Rule 19b–4 thereunder,2
a proposed rule change to adopt rules
regarding supervision in the
consolidated FINRA rulebook. The
proposed rule change was published for
comment in the Federal Register on
June 29, 2011.3 The Commission
received 12 comments on the proposal.4
On July 26, 2011, FINRA extended the
time period in which the Commission
must approve the proposed rule change,
disapprove the proposed rule change, or
institute proceedings to determine
whether to approve or disapprove the
proposed rule change, to September 27,
2011.
On September 27, 2011, FINRA
withdrew the proposed rule change
(SR–FINRA–2011–028).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.5
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–26101 Filed 10–7–11; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65483 File No. SR–OCC–
2011–13]
Self-Regulatory Organizations;
Options Clearing Corporation; Notice
of Filing of Proposed Rule Relating to
Relative Performance Indexes
October 4, 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
September 21, 2011, The Options
Clearing Corporation (‘‘OCC’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change. On October 4,
2011, OCC filed Amendment No. 1 to
the proposed rule change. The proposed
rule change as amended by Amendment
No. 1 is described in Items I, II, and III
below, which Items have been prepared
primarily by OCC. The Commission is
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 64736
(June 26, 2011), 76 FR 38245 (June 29, 2011) (Notice
of Filing of File No. SR–FINRA–2011–028)
(‘‘Notice’’).
4 The comment period ended on July 20, 2011; all
comments are posted on the Commission’s Web
site, https://www.sec.gov/rules/sro.shtml.
5 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change would
remove any potential cloud on the
jurisdictional status of relative
performance indexes.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
OCC 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. OCC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
1 15
publishing this notice to solicit
comments on the proposed rule change
and Amendment No. 1 to the proposed
rule change from interested persons.
The purpose of the proposed rule
change is to remove any potential cloud
on the jurisdictional status of relative
performance indexes. NASDAQ OMX
PHLX has proposed to trade options on
indexes (‘‘Alpha Index Options’’) that
measure the relative total returns of a
stock or exchange-traded fund (‘‘ETF’’)
against another stock or ETF, including
where one of the reference ETFs
measured by the index is a gold- or
silver-based ETF.3 Generally, a relative
performance index should be
considered to be an index of securities
since the components of a relative
performance index are ETFs or other
securities. However, OCC would like to
confirm the jurisdictional treatment of
relative performance indexes in
situations in which one of the reference
securities of an underlying relative
performance index is an ETF designed
to measure the return of gold or silver.
To accomplish this purpose, OCC is
proposing to add an interpretation
following Section 2 in Article XVII of
OCC’s By-Laws,4 clarifying that OCC
3 The staff notes that on August 17, 2011, the
Commission issued an Order granting approval this
proposed rule change. See Securities Exchange Act
Release No. 34–65149, 76 FR 52729 (August 23,
2011).
4 The staff notes that OCC’s is also adding a
definition of ‘‘relative performance index’’ to
Section 1, which will be defined as an index
designed to measure the relative performance of a
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62891
will clear and treat as securities any
relative performance index, including in
situations in which one of the reference
securities of a relative performance
index is an ETF designed to measure the
return of gold or silver. The Commission
and Commodity Futures Trading
Commission (‘‘CFTC’’) have previously
approved changes to OCC’s By-Laws
clarifying that options on the CBOE
Gold ETF Volatility Index will be
cleared and treated as securities.5
In its capacity as a ‘‘derivatives
clearing organization’’ registered as such
with the CFTC, OCC is filing this
proposed rule change for prior approval
by the CFTC pursuant to provisions of
the Commodity Exchange Act (the
‘‘CEA’’) in order to foreclose any
potential liability under the CEA based
on an argument that the clearing by OCC
of such options as securities options
constitutes a violation of the CEA.
OCC believes that the proposed
interpretation of OCC’s By-Laws is
consistent with the purposes and
requirements of Section 17A of the
Exchange Act because it is designed to
promote the prompt and accurate
clearance and settlement of transactions
in securities options, to foster
cooperation and coordination with
persons engaged in the clearance and
settlement of such transactions, to
remove impediments to and perfect the
mechanism of a national system for the
prompt and accurate clearance and
settlement of such transactions, and, in
general, to protect investors and the
public interest. It accomplishes this
purpose by reducing the likelihood of a
dispute as to the Commission’s
jurisdiction over relative performance
indexes in situations where one of the
reference securities of an underlying
relative performance index is a gold- or
silver-based ETF. The proposed rule
change is not inconsistent with the ByLaws and Rules of OCC.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
OCC does not believe that the
proposed rule change would impose any
burden on competition.
reference security or reference index in relation to
another reference security or reference index.
5 See Securities Exchange Act Release No. 34–
62290, 75 FR 35861 (June 23, 2010); CFTC Order
Exempting the Trading and Clearing of Certain
Products Related to the CBOE Gold ETF Volatility
Index and Similar Products, 75 FR 81977
(December 29, 2010).
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]]>Agencies
[Federal Register Volume 76, Number 196 (Tuesday, October 11, 2011)]
[Notices]
[Pages 62890-62891]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-26101]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65477; File No. SR-FINRA-2011-028]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Withdrawal of Proposed Rule Change To Adopt
Rules Regarding Supervision in the Consolidated FINRA Rulebook
October 4, 2011.
On June 10, 2011, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange
[[Page 62891]]
Commission (``Commission''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Exchange Act'' or ``Act'') \1\ and
Rule 19b-4 thereunder,\2\ a proposed rule change to adopt rules
regarding supervision in the consolidated FINRA rulebook. The proposed
rule change was published for comment in the Federal Register on June
29, 2011.\3\ The Commission received 12 comments on the proposal.\4\ On
July 26, 2011, FINRA extended the time period in which the Commission
must approve the proposed rule change, disapprove the proposed rule
change, or institute proceedings to determine whether to approve or
disapprove the proposed rule change, to September 27, 2011.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 64736 (June 26,
2011), 76 FR 38245 (June 29, 2011) (Notice of Filing of File No. SR-
FINRA-2011-028) (``Notice'').
\4\ The comment period ended on July 20, 2011; all comments are
posted on the Commission's Web site, https://www.sec.gov/rules/sro.shtml.
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On September 27, 2011, FINRA withdrew the proposed rule change (SR-
FINRA-2011-028).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\5\
---------------------------------------------------------------------------
\5\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-26101 Filed 10-7-11; 8:45 am]
BILLING CODE 8011-01-P
