Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Options Regulatory Fee, 77277-77279 [2011-31734]
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Federal Register / Vol. 76, No. 238 / Monday, December 12, 2011 / Notices
complex orders to receive an execution,
while also enhancing execution quality
for orders in the regular market.
In particular, the Exchange believes
that automatically generating legging
orders, which will only be executed
after all other executable interest at the
same price (including non-displayed
interest) is executed in full, will provide
additional execution opportunities for
complex orders, without negatively
impacting any investors in the regular
market. In fact, the generation of legging
orders may enhance execution quality
for investors in the regular market by
improving the price and/or size of the
ISE BBO and by providing additional
execution opportunity for resting orders
on the regular order book.
The Exchange also believes that the
generation of legging orders is fully
compliant with all regulatory
requirements. In particular, legging
orders are firm orders that will be
displayed at the ISE BBO. A legging
order will be automatically removed if
it is no longer displayable at the ISE
BBO or if the net price of the complex
order can no longer be achieved.
Moreover, to assure compliance with
intermarket rules, a legging order will
not be generated at a price that would
lock or cross another market. Finally,
the generation of legging orders is
limited in scope, as they may be
generated only for complex options
orders with two legs. Additionally, the
Exchange will closely manage and
curtail the generation of legging orders
to assure that they do not negatively
impact system capacity and
performance.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
jlentini on DSK4TPTVN1PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) As the Commission
may designate if it finds such longer
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15:55 Dec 09, 2011
Jkt 226001
period to be appropriate and publishes
its reasons for so finding or (ii) as to
which the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
such proposed rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
77277
available publicly. All submissions
should refer to File Number SR–ISE–
2011–82 and should be submitted on or
before January 3, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
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:
[FR Doc. 2011–31736 Filed 12–9–11; 8:45 am]
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–ISE–2011–82 on the subject
line.
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Relating to
the Options Regulatory Fee
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–ISE–2011–82. This file
number should be included on the
subject line if email 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. 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
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65897; File No. SR–Phlx–
2011–163]
December 6, 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 November
23, 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 increase its
Options Regulatory Fee (‘‘ORF’’).
While changes to the Fee Schedule
pursuant to this proposal are effective
upon filing, the Exchange has
designated these changes to be operative
January 3, 2012.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaqtrader.com/
micro.aspx?id=PHLXfilings, 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
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\12DEN1.SGM
12DEN1
77278
Federal Register / Vol. 76, No. 238 / Monday, December 12, 2011 / Notices
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
jlentini on DSK4TPTVN1PROD with NOTICES
The purpose of the proposed rule
change is to amend the ORF to increase
it from $0.0035 per contract to $0.004
per contract in order to recoup
increased regulatory expenses while
also ensuring that the ORF will not
exceed costs.
The ORF is assessed to each member
for all options transactions executed or
cleared by the member that are cleared
by The Options Clearing Corporation
(‘‘OCC’’) in the customer range (i.e., that
clear in the customer account of the
member’s clearing firm at OCC). The
Exchange monitors the amount of
revenue collected from the ORF to
ensure that it, in combination with its
other regulatory fees and fines, does not
exceed regulatory costs. The ORF is
imposed upon all [sic] transactions
executed by a member, even if such
transactions do not take place on the
Exchange.3 The ORF also includes
options transactions that are not
executed by an Exchange member but
are ultimately cleared by an Exchange
member.4 The ORF is not charged for
member options transactions because
members incur the costs of owning
memberships and through their
3 The ORF applies to all ‘‘C’’ account origin code
orders executed by a member on the Exchange.
Exchange rules require each member to record the
appropriate account origin code on all orders at the
time of entry in order to allow the Exchange to
properly prioritize and route orders and assess
transaction fees pursuant to the rules of the
Exchange and report resulting transactions to the
OCC. See Exchange Rule 1063, Responsibilities of
Floor Brokers, and Options Floor Procedure Advice
F–4, Orders Executed as Spreads, Straddles,
Combinations or Synthetics and Other Order Ticket
Marking Requirements. The Exchange represents
that it has surveillances in place to verify that
members mark orders with the correct account
origin code.
4 In the case where one member both executes a
transaction and clears the transaction, the ORF is
assessed to the member only once on the execution.
In the case where one member executes a
transaction and a different member clears the
transaction, the ORF is assessed only to the member
who executes the transaction and is not assessed to
the member who clears the transaction. In the case
where a non-member executes a transaction and a
member clears the transaction, the ORF is assessed
to the member who clears the transaction.
VerDate Mar<15>2010
15:55 Dec 09, 2011
Jkt 226001
memberships are charged transaction
fees, dues and other fees that are not
applicable to non-members. The dues
and fees paid by members go into the
general funds of the Exchange, a portion
of which is used to help pay the costs
of regulation. The ORF is collected
indirectly from members through their
clearing firms by OCC on behalf of the
Exchange.
The ORF is designed to recover a
portion of the costs to the Exchange of
the supervision and regulation of its
members, including performing routine
surveillances, investigations,
examinations, financial monitoring, and
policy, rulemaking, interpretive, and
enforcement activities. The Exchange
believes that revenue generated from the
ORF, when combined with all of the
Exchange’s other regulatory fees, will
cover a material portion, but not all, of
the Exchange’s regulatory costs. The
Exchange will continue to monitor the
amount of revenue collected from the
ORF to ensure that it, in combination
with its other regulatory fees and fines,
do not exceed regulatory costs. If the
Exchange determines regulatory
revenues exceed regulatory costs, the
Exchange will adjust the ORF by
submitting a fee change filing to the
Commission.
While changes to the Fee Schedule
pursuant to this proposal are effective
upon filing, the Exchange has
designated these changes to be operative
on January 3, 2012.
2. Statutory Basis
The Exchange believes that its
proposal to amend its Fee Schedule is
consistent with Section 6(b) of the Act 5
in general, and furthers the objectives of
Section 6(b)(4) of the Act 6 in particular,
in that it is an equitable allocation of
reasonable fees and other charges among
Exchange members. The Exchange
believes that the fee change is
reasonable because the Exchange desires
to recoup its regulatory expenses while
also ensuring that the revenue collected
from the ORF does not exceed
regulatory costs.
The Exchange believes that the ORF is
equitable and not unfairly
discriminatory because it is objectively
allocated to Exchange members in that
it would continue to be charged to all
members on all of their transactions that
clear as customer at OCC. The Exchange
is assessing higher fees to those member
firms that require more Exchange
regulatory services based on the amount
of customer options business they
conduct. In addition, the ORF seeks to
5 15
6 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
Frm 00076
Fmt 4703
recover the costs of supervising and
regulating members, including
performing routine surveillances,
investigations, examinations, financial
monitoring, and policy, rulemaking,
interpretive, and enforcement activities.
The ORF is not charged for member
options transactions because members
incur the costs of owning memberships
and through their memberships are
charged transaction fees, dues and other
fees that are not applicable to nonmembers. Additionally, the dues and
fees paid by members go into the
general funds of the Exchange, a portion
of which is used to help pay the costs
of regulation.
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.7 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
7 15
Sfmt 4703
E:\FR\FM\12DEN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
12DEN1
Federal Register / Vol. 76, No. 238 / Monday, December 12, 2011 / Notices
• Send an email to rulecomments@sec.gov. Please include File
Number SR–Phlx–2011–163 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-2011–163. This file
number should be included on the
subject line if email 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 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
publicly available. All submissions
should refer to File Number SR–Phlx–
2011–163 and should be submitted on
or before January 3, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–31734 Filed 12–9–11; 8:45 am]
jlentini on DSK4TPTVN1PROD with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65898; File No. SR–ISE–
2011–78]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change to Amend the Threshold
Levels for Tier-Based Rebates for
Qualified Contingent Cross Orders and
Solicitation Orders Executed on the
Exchange
December 6, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that,
on November 22, 2011, the International
Securities Exchange, LLC (the
‘‘Exchange’’ or the ‘‘ISE’’) 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 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 ISE is proposing to amend the
threshold levels for tier-based rebates
for Qualified Contingent Cross (‘‘QCC’’)
orders and Solicitation orders. The text
of the proposed rule change is available
on the Exchange’s Web site (https://
www.ise.com), 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
self-regulatory organization 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 self-regulatory organization has
prepared summaries, set forth in
sections A, B and C below, of the most
significant aspects of such statements.
1 15
8 17
CFR 200.30–3(a)(12).
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15:55 Dec 09, 2011
2 17
Jkt 226001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00077
Fmt 4703
Sfmt 4703
77279
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to amend the threshold
contract levels to encourage members to
submit greater numbers of QCC orders
and Solicitation orders to the Exchange.
The Exchange currently provides a
rebate to Members who reach a certain
volume threshold in QCC orders and/or
Solicitation orders during a month.3
Once a Member reaches the volume
threshold, the Exchange provides a
rebate to that Member for all of its QCC
and Solicitation traded contracts for that
month. The rebate is paid to the
Member entering a qualifying order, i.e.,
a QCC order and/or a Solicitation order.
The rebate applies to QCC orders and
Solicitation orders in all symbols traded
on the Exchange. Additionally, the
threshold levels are based on the
originating side so if, for example, a
Member submits a Solicitation order for
1,000 contracts, all 1,000 contracts are
counted to reach the established
threshold even if the order is broken up
and executed with multiple counter
parties.
The current volume threshold and
corresponding rebate per contract is:
Originating contract sides
0–99,999 ...............................
100,000–1,699,999 ...............
1,700,000–2,499,999 ............
2,500,000–3,499,999 ............
3,500,000+ ............................
Rebate per
contract
$0.00
0.01
0.03
0.05
0.07
The Exchange now proposes to amend
the current tiers by: (1) Increasing the
threshold for Members to qualify for a
rebate, from a minimum of 100,000
qualifying contracts to 200,000
qualifying contracts. While the
Exchange proposes to increase the
minimum threshold level, the Exchange
also proposes to increase the rebate
payable for this tier, from $0.01 per
contract to $0.02 per contract; (2)
lowering the contract threshold level for
the middle tier while maintaining the
rebate at $0.03 per contract; (3) lowering
the contract threshold and the per
contract rebate for the fourth tier; and
(4) lowering the amount of qualifying
contracts a Member must trade to
qualify for the maximum per contract
3 See Exchange Act Release Nos. 65087 (August
10, 2011), 76 FR 50783 (August 16, 2011) (SR–ISE–
2011–47); 65583 (October 18, 2011), 76 FR 65555
(October 21, 2011) (SR–ISE–2011–68); and 65705
(November 8, 2011), 76 FR 70789 (November 15,
2011) (SR–ISE–2011–70).
E:\FR\FM\12DEN1.SGM
12DEN1
Agencies
[Federal Register Volume 76, Number 238 (Monday, December 12, 2011)]
[Notices]
[Pages 77277-77279]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-31734]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65897; File No. SR-Phlx-2011-163]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
to the Options Regulatory Fee
December 6, 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 November 23, 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 increase its Options Regulatory Fee
(``ORF'').
While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative January 3, 2012.
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaqtrader.com/micro.aspx?id=PHLXfilings, 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
[[Page 77278]]
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 the ORF to
increase it from $0.0035 per contract to $0.004 per contract in order
to recoup increased regulatory expenses while also ensuring that the
ORF will not exceed costs.
The ORF is assessed to each member for all options transactions
executed or cleared by the member that are cleared by The Options
Clearing Corporation (``OCC'') in the customer range (i.e., that clear
in the customer account of the member's clearing firm at OCC). The
Exchange monitors the amount of revenue collected from the ORF to
ensure that it, in combination with its other regulatory fees and
fines, does not exceed regulatory costs. The ORF is imposed upon all
[sic] transactions executed by a member, even if such transactions do
not take place on the Exchange.\3\ The ORF also includes options
transactions that are not executed by an Exchange member but are
ultimately cleared by an Exchange member.\4\ The ORF is not charged for
member options transactions because members incur the costs of owning
memberships and through their memberships are charged transaction fees,
dues and other fees that are not applicable to non-members. The dues
and fees paid by members go into the general funds of the Exchange, a
portion of which is used to help pay the costs of regulation. The ORF
is collected indirectly from members through their clearing firms by
OCC on behalf of the Exchange.
---------------------------------------------------------------------------
\3\ The ORF applies to all ``C'' account origin code orders
executed by a member on the Exchange. Exchange rules require each
member to record the appropriate account origin code on all orders
at the time of entry in order to allow the Exchange to properly
prioritize and route orders and assess transaction fees pursuant to
the rules of the Exchange and report resulting transactions to the
OCC. See Exchange Rule 1063, Responsibilities of Floor Brokers, and
Options Floor Procedure Advice F-4, Orders Executed as Spreads,
Straddles, Combinations or Synthetics and Other Order Ticket Marking
Requirements. The Exchange represents that it has surveillances in
place to verify that members mark orders with the correct account
origin code.
\4\ In the case where one member both executes a transaction and
clears the transaction, the ORF is assessed to the member only once
on the execution. In the case where one member executes a
transaction and a different member clears the transaction, the ORF
is assessed only to the member who executes the transaction and is
not assessed to the member who clears the transaction. In the case
where a non-member executes a transaction and a member clears the
transaction, the ORF is assessed to the member who clears the
transaction.
---------------------------------------------------------------------------
The ORF is designed to recover a portion of the costs to the
Exchange of the supervision and regulation of its members, including
performing routine surveillances, investigations, examinations,
financial monitoring, and policy, rulemaking, interpretive, and
enforcement activities. The Exchange believes that revenue generated
from the ORF, when combined with all of the Exchange's other regulatory
fees, will cover a material portion, but not all, of the Exchange's
regulatory costs. The Exchange will continue to monitor the amount of
revenue collected from the ORF to ensure that it, in combination with
its other regulatory fees and fines, do not exceed regulatory costs. If
the Exchange determines regulatory revenues exceed regulatory costs,
the Exchange will adjust the ORF by submitting a fee change filing to
the Commission.
While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative on January 3, 2012.
2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \5\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \6\ in particular, in that
it is an equitable allocation of reasonable fees and other charges
among Exchange members. The Exchange believes that the fee change is
reasonable because the Exchange desires to recoup its regulatory
expenses while also ensuring that the revenue collected from the ORF
does not exceed regulatory costs.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that the ORF is equitable and not unfairly
discriminatory because it is objectively allocated to Exchange members
in that it would continue to be charged to all members on all of their
transactions that clear as customer at OCC. The Exchange is assessing
higher fees to those member firms that require more Exchange regulatory
services based on the amount of customer options business they conduct.
In addition, the ORF seeks to recover the costs of supervising and
regulating members, including performing routine surveillances,
investigations, examinations, financial monitoring, and policy,
rulemaking, interpretive, and enforcement activities. The ORF is not
charged for member options transactions because members incur the costs
of owning memberships and through their memberships are charged
transaction fees, dues and other fees that are not applicable to non-
members. Additionally, the dues and fees paid by members go into the
general funds of the Exchange, a portion of which is used to help pay
the costs of regulation.
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.\7\ 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.
---------------------------------------------------------------------------
\7\ 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
[[Page 77279]]
Send an email to rule-comments@sec.gov. Please include
File Number SR-Phlx-2011-163 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-2011-163. This
file number should be included on the subject line if email 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 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 publicly available. All
submissions should refer to File Number SR-Phlx-2011-163 and should be
submitted on or before January 3, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-31734 Filed 12-9-11; 8:45 am]
BILLING CODE 8011-01-P