Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order Approving Proposed Rule Change Relating to Stock Execution Clerks, 11606 [2012-4403]
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Federal Register / Vol. 77, No. 38 / Monday, February 27, 2012 / Notices
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–NASDAQ–2012–026 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66430; File No. SR–Phlx–
2011–178]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Order
Approving Proposed Rule Change
Relating to Stock Execution Clerks
Paper Comments
February 21, 2012.
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
On December 20, 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 eliminate the stock execution
clerk registration category from the
Exchange’s rules. The proposed rule
change was published for comment in
the Federal Register on January 9,
2012.3 The Commission received no
comments on the proposal.
The purpose of the proposed rule
change is to eliminate the category of
stock execution clerk from the
Exchange’s rules. Exchange Rule 1090
currently defines a stock execution clerk
as any clerk other than a specialist clerk
on the Exchange trading floor who
functions as an intermediary in a
transaction (i) consummated on the
Exchange; (ii) entered verbally for
execution other than on the Exchange;
or (iii) entered into a third party system
designed to execute transactions other
than on the Exchange.4 A stock
execution clerk is intended to provide a
service to Exchange members on the
Options Floor by accepting orders for
the purchase and sale of securities
underlying options transactions. Once
such orders are accepted, the stock
execution clerk forwards such orders to
the appropriate marketplace for
execution. According to the Exchange,
the transactions executed are typically
hedging transactions in underlying
stocks for Exchange specialists and
Registered Options Traders.
The Exchange has represented that
this registration capacity is outdated
and no longer necessary. According to
the Exchange, the function of a stock
execution clerk has become largely
automated, as transactions that were
handled by stock execution clerks now
take place off-floor and mostly occur
electronically. As such, the type of
business conducted by stock execution
clerks is not conducted on the
srobinson on DSK4SPTVN1PROD with NOTICES
All submissions should refer to File
Number SR–NASDAQ–2012–026. 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
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2012–026 and should be
submitted on or before March 19, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–4480 Filed 2–24–12; 8:45 am]
11 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
18:10 Feb 24, 2012
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 66079
(January 3, 2012), 77 FR 1099.
4 See Exchange Rule 1090, Commentary .01(a).
2 17
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Exchange’s trading floor today. The
Exchange stated that there are not
currently any registered stock execution
clerks on the Exchange, and there have
not been for some time.
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange 5 and, in particular,
the requirements of Section 6(b)(5) of
the Act.6 Specifically, the Commission
finds that the proposed rule change is
designed 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 proposal will eliminate the stock
execution clerk registration category
from the Exchange’s rules. There are no
clerks currently registered as a stock
execution clerks on the Exchange’s
trading floor, and there have not been
for some time. Given that there are
currently no stock execution clerks
registered with the Exchange, and that
transactions that were previously
handled by stock execution clerks now
take place off-floor and mostly occur
electronically, this registration category
is no longer necessary. As such, deleting
this category of clerks is reasonably
designed to provide clarity to members,
and to keep the Exchange’s rules
updated. For the foregoing reasons, the
Commission believes that the proposed
rule change is consistent with the Act.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,7 that the
proposed rule change (SR–Phlx–2011–
178) 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. 2012–4403 Filed 2–24–12; 8:45 am]
BILLING CODE 8011–01–P
5 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
6 15 U.S.C. 78f(b)(5).
7 15 U.S.C. 78s(b)(2).
8 17 CFR 200.30–3(a)(12).
E:\FR\FM\27FEN1.SGM
27FEN1
]]>Agencies
[Federal Register Volume 77, Number 38 (Monday, February 27, 2012)]
[Notices]
[Page 11606]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-4403]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66430; File No. SR-Phlx-2011-178]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order
Approving Proposed Rule Change Relating to Stock Execution Clerks
February 21, 2012.
On December 20, 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 eliminate the
stock execution clerk registration category from the Exchange's rules.
The proposed rule change was published for comment in the Federal
Register on January 9, 2012.\3\ The Commission received no comments on
the proposal.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 66079 (January 3,
2012), 77 FR 1099.
---------------------------------------------------------------------------
The purpose of the proposed rule change is to eliminate the
category of stock execution clerk from the Exchange's rules. Exchange
Rule 1090 currently defines a stock execution clerk as any clerk other
than a specialist clerk on the Exchange trading floor who functions as
an intermediary in a transaction (i) consummated on the Exchange; (ii)
entered verbally for execution other than on the Exchange; or (iii)
entered into a third party system designed to execute transactions
other than on the Exchange.\4\ A stock execution clerk is intended to
provide a service to Exchange members on the Options Floor by accepting
orders for the purchase and sale of securities underlying options
transactions. Once such orders are accepted, the stock execution clerk
forwards such orders to the appropriate marketplace for execution.
According to the Exchange, the transactions executed are typically
hedging transactions in underlying stocks for Exchange specialists and
Registered Options Traders.
---------------------------------------------------------------------------
\4\ See Exchange Rule 1090, Commentary .01(a).
---------------------------------------------------------------------------
The Exchange has represented that this registration capacity is
outdated and no longer necessary. According to the Exchange, the
function of a stock execution clerk has become largely automated, as
transactions that were handled by stock execution clerks now take place
off-floor and mostly occur electronically. As such, the type of
business conducted by stock execution clerks is not conducted on the
Exchange's trading floor today. The Exchange stated that there are not
currently any registered stock execution clerks on the Exchange, and
there have not been for some time.
After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange \5\
and, in particular, the requirements of Section 6(b)(5) of the Act.\6\
Specifically, the Commission finds that the proposed rule change is
designed 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.
---------------------------------------------------------------------------
\5\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The proposal will eliminate the stock execution clerk registration
category from the Exchange's rules. There are no clerks currently
registered as a stock execution clerks on the Exchange's trading floor,
and there have not been for some time. Given that there are currently
no stock execution clerks registered with the Exchange, and that
transactions that were previously handled by stock execution clerks now
take place off-floor and mostly occur electronically, this registration
category is no longer necessary. As such, deleting this category of
clerks is reasonably designed to provide clarity to members, and to
keep the Exchange's rules updated. For the foregoing reasons, the
Commission believes that the proposed rule change is consistent with
the Act.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (SR-Phlx-2011-178) be, and it
hereby is, approved.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-4403 Filed 2-24-12; 8:45 am]
BILLING CODE 8011-01-P
