Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order Approving Proposed Rule Change To Delete Exchange Rule 795 “Member Officer or Director”, 1536 [2012-184]

Download as PDF 1536 Federal Register / Vol. 77, No. 6 / Tuesday, January 10, 2012 / Notices takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments [FR Doc. 2012–186 Filed 1–9–12; 8:45 am] 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 email to rulecomments@sec.gov. Please include File No. SR–Phlx–2011–184 on the subject line. mstockstill on DSK4VPTVN1PROD with NOTICES 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 No. SR–Phlx–2011–184. 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 available publicly. All submissions should refer to File No. SR–Phlx–2011– 184 and should be submitted on or before January 31, 2012. VerDate Mar<15>2010 18:28 Jan 09, 2012 Jkt 226001 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.19 Kevin M. O’Neill, Deputy Secretary. BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–66097; File No. SR–Phlx2011–149] Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order Approving Proposed Rule Change To Delete Exchange Rule 795 ‘‘Member Officer or Director’’ January 4, 2012. I. Introduction On November 3, 2011, NASDAQ OMX PHLX LLC (‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to delete Exchange Rule 795 ‘‘Member Officer or Director.’’ The proposed rule change was published in the Federal Register on November 21, 2011.3 The Commission received no comments on the proposal. This order approves the proposed rule change. II. Description of Proposal The Exchange proposes to delete current Exchange Rule 795 ‘‘Member Officer or Director.’’ Exchange Rule 795 provides that a member of the Exchange shall not be an officer or director of, or own or control, directly or indirectly, a substantial interest in a corporation engaged in the securities business which is not a member organization of the Exchange, except with the written permission of the Exchange. III. Commission Findings and Discussion After careful review, the Commission finds that the proposed rule change is consistent with the requirements of Section 6 of the Act,4 and the rules and regulations thereunder applicable to a national securities exchange. In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,5 which CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 65745 (November 14, 2011), 76 FR 72018. 4 15 U.S.C. 78f. 5 15 U.S.C. 78f(b)(5). requires, among other things, that the rules of the exchange be 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.6 The Exchange represented that Exchange Rule 795 was adopted prior to the Exchange’s demutualization in 2004 and that, prior to demutualization there may have been an interest in the Exchange being notified of, and approving, a member’s role in another entity. The Exchange further represented that it has not utilized Exchange Rule 795 in over 10 years and does not believe that the Exchange should be in a position to control an Exchange member’s role in another entity. The Commission believes that the proposal should clarify the Exchange’s rulebook by removing an outdated and unused rule. Further, the Commission believes that deletion of Exchange Rule 795 could allow Exchange members to conduct transactions with regard to other corporations engaged in the securities business which are not Exchange member organizations more expeditiously. Accordingly, the Commission finds that the proposal would promote just and equitable principles of trade and remove impediments to and perfect the mechanism of a free and open market, and is consistent with the requirements of the Act. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,7 that the proposed rule change (SR–Phlx–2011– 149) be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–184 Filed 1–9–12; 8:45 am] BILLING CODE 8011–01–P 19 17 1 15 PO 00000 Frm 00084 Fmt 4703 Sfmt 9990 6 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 7 15 U.S.C. 78s(b)(2). 8 17 CFR 200.30–3(a)(12). E:\FR\FM\10JAN1.SGM 10JAN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 77, Number 6 (Tuesday, January 10, 2012)]
[Notices]
[Page 1536]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-184]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66097; File No. SR-Phlx-2011-149]


 Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order 
Approving Proposed Rule Change To Delete Exchange Rule 795 ``Member 
Officer or Director''

January 4, 2012.

I. Introduction

    On November 3, 2011, NASDAQ OMX PHLX LLC (``Exchange'') filed with 
the Securities and Exchange Commission (``Commission''), pursuant to 
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ 
and Rule 19b-4 thereunder,\2\ a proposed rule change to delete Exchange 
Rule 795 ``Member Officer or Director.'' The proposed rule change was 
published in the Federal Register on November 21, 2011.\3\ The 
Commission received no comments on the proposal. This order approves 
the proposed rule change.
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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. 65745 (November 14, 
2011), 76 FR 72018.
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II. Description of Proposal

    The Exchange proposes to delete current Exchange Rule 795 ``Member 
Officer or Director.'' Exchange Rule 795 provides that a member of the 
Exchange shall not be an officer or director of, or own or control, 
directly or indirectly, a substantial interest in a corporation engaged 
in the securities business which is not a member organization of the 
Exchange, except with the written permission of the Exchange.

III. Commission Findings and Discussion

    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of Section 6 of the Act,\4\ 
and the rules and regulations thereunder applicable to a national 
securities exchange. In particular, the Commission finds that the 
proposed rule change is consistent with Section 6(b)(5) of the Act,\5\ 
which requires, among other things, that the rules of the exchange be 
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.\6\
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    \4\ 15 U.S.C. 78f.
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
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    The Exchange represented that Exchange Rule 795 was adopted prior 
to the Exchange's demutualization in 2004 and that, prior to 
demutualization there may have been an interest in the Exchange being 
notified of, and approving, a member's role in another entity. The 
Exchange further represented that it has not utilized Exchange Rule 795 
in over 10 years and does not believe that the Exchange should be in a 
position to control an Exchange member's role in another entity.
    The Commission believes that the proposal should clarify the 
Exchange's rulebook by removing an outdated and unused rule. Further, 
the Commission believes that deletion of Exchange Rule 795 could allow 
Exchange members to conduct transactions with regard to other 
corporations engaged in the securities business which are not Exchange 
member organizations more expeditiously. Accordingly, the Commission 
finds that the proposal would promote just and equitable principles of 
trade and remove impediments to and perfect the mechanism of a free and 
open market, and is consistent with the requirements of the Act.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-Phlx-2011-149) be, and it 
hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    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. 2012-184 Filed 1-9-12; 8:45 am]
BILLING CODE 8011-01-P

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