Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 1014, 23531-23532 [2012-9407]
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Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Notices
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–Phlx–
2012–46 and should be submitted on or
before May 10, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.31
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–9406 Filed 4–18–12; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
1014
mstockstill on DSK4VPTVN1PROD with NOTICES
April 13, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1, and Rule 19b–4 2 thereunder,
notice is hereby given that, on April 4,
2012, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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17:10 Apr 18, 2012
Jkt 226001
The Exchange proposes to amend
Section (b)(ii)(D)(3) of Rule 1014,
Obligations and Restrictions Applicable
to Specialists and Registered Options
Traders, a rule pertaining to the
minimum size requirement for
quotations.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nasdaqtrader.com/
micro.aspx?id=PHLXRulefilings, 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.
1. Purpose
[Release No. 34–66806; File No. SR–Phlx–
2012–49]
1 15
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
31 17
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.
This proposed rule change is based on
filings previously submitted by the
Chicago Board Options Exchange
(‘‘CBOE’’) 3 and the International
Securities Exchange (‘‘ISE’’) 4 that were
effective on filing.
The purpose of the proposed rule
change is to amend Section (b)(ii)(D)(3)
of Rule 1014, Obligations and
Restrictions Applicable to Specialists
and Registered Options Traders, in
order to change a minimum quoting size
requirement. Rule 1014(b)(ii)(D) sets
forth certain market making obligations
that apply to Streaming Quote Traders
3 See Securities Exchange Act Release No. 58828
(October 21, 2008), 73 FR 63749 (October 27, 2008)
(SR–CBOE–2008–107).
4 See Securities Exchange Act Release No. 60854
(October 21, 2009) 74 FR 55613 (October 28, 2009)
(SR–ISE–2009–84).
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
23531
(‘‘SQTs’’), 5 Remote Streaming Quote
Traders (‘‘RSQTs’’) 6 and specialists. For
example, Rule 1014(b)(ii)(D)(1) provides
that, in addition to other obligations and
with certain exceptions, an SQT and an
RSQT shall be responsible to quote twosided markets in not less than 60% of
the series in which such SQT or RSQT
is assigned. Likewise, Rule
1014(b)(ii)(D)(2) provides that a
specialist must quote two-sided markets
in the lesser of 99% of the series or
100% of the series minus one call-put
pair in each option in which such
specialist is assigned.
Currently Rule 1014(b)(ii)(D)(3)
provides that SQTs, RSQTs and the
specialist assigned in an option shall
submit electronic quotations for such
option with a size of not less than 10
contracts. The Exchange proposes to
eliminate the 10 contract minimum size
and to provide instead that the
minimum number of contracts shall be
specified by the Exchange for each
option. The proposed change would
allow the Exchange to set a minimum
quotation size requirement for quotes on
a class by class basis, provided the
minimum set by the Exchange is at least
one contract. Phlx would not impose a
minimum quotation size requirement
greater than 10 contracts.
The Exchange believes it should have
the flexibility to change the minimum
size requirement on a class by class
basis depending on market conditions
and the trading and liquidity in a
particular option class and its
underlying security. Phlx notes that the
minimum quotation size requirement
for market makers on ISE, CBOE, NYSE
Arca, Inc. (‘‘NYSE Arca’’) and the
Nasdaq Options Market (‘‘NOM’’) is
only one contract.7 As a result, Phlx
believes the proposed rule change is
based on and similar to the rules of
other options exchanges.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
5 A Streaming Quote Trader (‘‘SQT’’) is defined in
Exchange Rule 1014(b)(ii)(A) as an ROT who has
received permission from the Exchange to generate
and submit option quotations electronically in
options to which such SQT is assigned.
6 A Remote Streaming Quote Trader (‘‘RSQT’’) is
defined Exchange Rule in 1014(b)(ii)(B) as an ROT
that is a member or member organization with no
physical trading floor presence who has received
permission from the Exchange to generate and
submit option quotations electronically in options
to which such RSQT has been assigned. An RSQT
may only submit such quotations electronically
from off the floor of the Exchange.
7 See ISE Rule 804, CBOE Rules 6.2B, 8.7, 8.14,
8.15A, NYSEArca Rule 6.37B and NOM Rulebook
Chapter VII, Section 6(a).
E:\FR\FM\19APN1.SGM
19APN1
23532
Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Notices
of the Act 8 in general, and furthers the
objectives of Section 6(b)(5) of the Act 9
in particular, in that it 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
proposed rule change would permit the
Exchange to set a minimum quotation
size requirement on a class by class
basis, provided the minimum size is at
least one contract. Phlx believes that
this flexibility will enable the Exchange
to take into consideration market
conditions and the trading and liquidity
in a particular option class and its
underlying security.
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
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to 19(b)(3)(A)
of the Act 10 and Rule 19b–4(f)(6) 11
thereunder.
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
mstockstill on DSK4VPTVN1PROD with NOTICES
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement. 17 CFR 240.19b-4(f)(6).
9 15
VerDate Mar<15>2010
17:10 Apr 18, 2012
Jkt 226001
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
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–9407 Filed 4–18–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66809; File No. SR–
NYSEAmex–2012–10]
• 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–Phlx–2012–49 on the
subject line.
Self-Regulatory Organizations; NYSE
Amex LLC; Order Granting Approval of
a Proposed Rule Change Amending
NYSE Amex Rule 476A To Update Its
‘‘List of Equities Rule Violations and
Fines Applicable Thereto’’
Paper Comments
I. Introduction
On February 16, 2012, NYSE Amex
LLC (‘‘Exchange’’ or ‘‘NYSE Amex’’)
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 amend NYSE Amex Rule
476A to update its ‘‘List of Equities Rule
Violations and Fines Applicable
Thereto.’’ The proposed rule change was
published for comment in the Federal
Register on March 5, 2012.3 The
Commission received no comment
letters on the proposed rule change.
This order approves the proposed rule
change.
• 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–2012–49. 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–Phlx–
2012–49 and should be submitted on or
before May 10, 2012.
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
April 13, 2012.
II. Description
By way of background, NYSE Amex
Rule 476 governs disciplinary
proceedings involving charges against
members, member organizations,
principal executives, approved persons,
employees, or others for violations of
the federal securities laws, Exchange
rules and agreements with the
Exchange, and other offenses listed in
the rule.
NYSE Amex Rule 476A, ‘‘Imposition
of Fines for Minor Violation(s) of
Rules,’’ provides that, in lieu of
commencing a disciplinary proceeding
under Rule 476, the Exchange may
(subject to specified requirements)
‘‘impose a fine, not to exceed $5,000, on
any member, member organization,
principal executive, approved person, or
registered or non-registered employee of
a member or member organization, for
12 17
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. 66481
(February 28, 2012), 77 FR 13159 (‘‘Notice’’).
1 15
E:\FR\FM\19APN1.SGM
19APN1
]]>Agencies
[Federal Register Volume 77, Number 76 (Thursday, April 19, 2012)]
[Notices]
[Pages 23531-23532]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-9407]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66806; File No. SR-Phlx-2012-49]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule 1014
April 13, 2012.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\, and Rule 19b-4 \2\ thereunder, notice is hereby given
that, on April 4, 2012, 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 amend Section (b)(ii)(D)(3) of Rule 1014,
Obligations and Restrictions Applicable to Specialists and Registered
Options Traders, a rule pertaining to the minimum size requirement for
quotations.
The text of the proposed rule change is available on the Exchange's
Web site at https://www.nasdaqtrader.com/micro.aspx?id=PHLXRulefilings,
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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
This proposed rule change is based on filings previously submitted
by the Chicago Board Options Exchange (``CBOE'') \3\ and the
International Securities Exchange (``ISE'') \4\ that were effective on
filing.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 58828 (October 21,
2008), 73 FR 63749 (October 27, 2008) (SR-CBOE-2008-107).
\4\ See Securities Exchange Act Release No. 60854 (October 21,
2009) 74 FR 55613 (October 28, 2009) (SR-ISE-2009-84).
---------------------------------------------------------------------------
The purpose of the proposed rule change is to amend Section
(b)(ii)(D)(3) of Rule 1014, Obligations and Restrictions Applicable to
Specialists and Registered Options Traders, in order to change a
minimum quoting size requirement. Rule 1014(b)(ii)(D) sets forth
certain market making obligations that apply to Streaming Quote Traders
(``SQTs''), \5\ Remote Streaming Quote Traders (``RSQTs'') \6\ and
specialists. For example, Rule 1014(b)(ii)(D)(1) provides that, in
addition to other obligations and with certain exceptions, an SQT and
an RSQT shall be responsible to quote two-sided markets in not less
than 60% of the series in which such SQT or RSQT is assigned. Likewise,
Rule 1014(b)(ii)(D)(2) provides that a specialist must quote two-sided
markets in the lesser of 99% of the series or 100% of the series minus
one call-put pair in each option in which such specialist is assigned.
---------------------------------------------------------------------------
\5\ A Streaming Quote Trader (``SQT'') is defined in Exchange
Rule 1014(b)(ii)(A) as an ROT who has received permission from the
Exchange to generate and submit option quotations electronically in
options to which such SQT is assigned.
\6\ A Remote Streaming Quote Trader (``RSQT'') is defined
Exchange Rule in 1014(b)(ii)(B) as an ROT that is a member or member
organization with no physical trading floor presence who has
received permission from the Exchange to generate and submit option
quotations electronically in options to which such RSQT has been
assigned. An RSQT may only submit such quotations electronically
from off the floor of the Exchange.
---------------------------------------------------------------------------
Currently Rule 1014(b)(ii)(D)(3) provides that SQTs, RSQTs and the
specialist assigned in an option shall submit electronic quotations for
such option with a size of not less than 10 contracts. The Exchange
proposes to eliminate the 10 contract minimum size and to provide
instead that the minimum number of contracts shall be specified by the
Exchange for each option. The proposed change would allow the Exchange
to set a minimum quotation size requirement for quotes on a class by
class basis, provided the minimum set by the Exchange is at least one
contract. Phlx would not impose a minimum quotation size requirement
greater than 10 contracts.
The Exchange believes it should have the flexibility to change the
minimum size requirement on a class by class basis depending on market
conditions and the trading and liquidity in a particular option class
and its underlying security. Phlx notes that the minimum quotation size
requirement for market makers on ISE, CBOE, NYSE Arca, Inc. (``NYSE
Arca'') and the Nasdaq Options Market (``NOM'') is only one
contract.\7\ As a result, Phlx believes the proposed rule change is
based on and similar to the rules of other options exchanges.
---------------------------------------------------------------------------
\7\ See ISE Rule 804, CBOE Rules 6.2B, 8.7, 8.14, 8.15A,
NYSEArca Rule 6.37B and NOM Rulebook Chapter VII, Section 6(a).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b)
[[Page 23532]]
of the Act \8\ in general, and furthers the objectives of Section
6(b)(5) of the Act \9\ in particular, in that it 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 proposed rule change would permit the Exchange to set a minimum
quotation size requirement on a class by class basis, provided the
minimum size is at least one contract. Phlx believes that this
flexibility will enable the Exchange to take into consideration market
conditions and the trading and liquidity in a particular option class
and its underlying security.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) \11\
thereunder.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement. 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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 email to rule-comments@sec.gov. Please include
File Number SR-Phlx-2012-49 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-2012-49. 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-Phlx-2012-49 and should be
submitted on or before May 10, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-9407 Filed 4-18-12; 8:45 am]
BILLING CODE 8011-01-P
