Sunshine Act Meeting, 68856 [2012-28048]
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68856
Federal Register / Vol. 77, No. 222 / Friday, November 16, 2012 / Notices
9. In the event the Commission adopts
a rule under the Act providing
substantially similar relief to that in the
order requested in the application, the
requested order will expire on the
effective date of that rule.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–27875 Filed 11–15–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68202; File Nos. SR–Phlx–
2012–27; SR–Phlx–2012–54]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing of Amendments No. 1, and Order
Granting Accelerated Approval for
Proposed Rule Changes as Modified
by Amendments No. 1 Relating to
Complex Order Fees and Rebates for
Adding and Removing Liquidity in
Select Symbols
November 9, 2012.
SECURITIES AND EXCHANGE
COMMISSION
mstockstill on DSK4VPTVN1PROD with NOTICES
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Wednesday, November 14, 2012 at
9:30 a.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(4), (8), (9)(A)(i) and (ii),
and 17 CFR 200.402(a)(4), (8), (9)(A)(i)
and (ii), permit consideration of the
scheduled matter at the Closed Meeting.
Commissioner Walter, as duty officer,
voted to consider the item listed for the
Closed Meeting in a closed session, and
determined that no earlier notice was
possible.
The subject matter of the Closed
Meeting will be an examination of a
financial institution.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting item.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact: The Office of the Secretary at
(202) 551–5400.
Dated: November 13, 2012.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012–28048 Filed 11–14–12; 4:15 pm]
BILLING CODE 8011–01–P
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I. Introduction
On March 1, 2012 and April 23, 2012,
NASDAQ OMX PHLX LLC (‘‘Phlx’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘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 two proposed
rule changes relating to the transaction
fees for certain complex order
(‘‘Complex Order’’) transactions.3 The
notice of filing of Phlx–2012–27 was
published for comment in the Federal
Register on March 15, 2012,4 and the
notice of filing of Phlx–2012–54 was
published for comment in the Federal
Register on May 4, 2012.5
On April 30, 2012, the Commission
suspended the proposals and instituted
proceedings to determine whether to
approve or disapprove the proposals.6
Following the institution of the
proceedings, the Commission received a
letter from the Exchange in support of
its proposals.7 On September 11, 2012,
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 A Complex Order is any order involving the
simultaneous purchase and/or sale of two or more
different options series in the same underlying
security, priced at a net debit or credit based on the
relative prices of the individual components, for the
same account, for the purpose of executing a
particular investment strategy. A Complex Order
may also be a stock-option order, which is an order
to buy or sell a stated number of units of an
underlying stock or exchange-traded fund (‘‘ETF’’)
coupled with the purchase or sale of options
contract(s). See Exchange Rule 1080, Commentary
.08(a)(i).
4 See Securities Exchange Act Release No. 66551
(March 9, 2012), 77 FR 15400 (SR–Phlx–2012–27)
(‘‘Notice I’’).
5 See Securities Exchange Act Release No. 66883
(April 30, 2012), 77 FR 26591 (SR–Phlx–2012–54)
(‘‘Notice II’’).
6 See Securities Exchange Act Release No. 66884
(April 30, 2012), 77 FR 26595 (May 4, 2012) (‘‘Order
Instituting Proceedings’’). The Order Instituting
Proceedings suspended the fees adopted in SR–
Phlx–2012–27 and SR–Phlx–2012–54.
Consequently, these fees were in effect for only two
months, from March 1, 2012 to April 30, 2012.
7 See Letter from Joan C. Conley, Senior Vice
President and Corporate Secretary, Nasdaq OMX, to
2 17
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Frm 00126
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Sfmt 4703
the Commission issued a notice of
designation of a longer period for
Commission action on the proceedings
to determine whether to disapprove the
proposed rule changes.8 On October 24,
2012, the Exchange filed Amendment
No. 1 to each of the proposed rule
changes. In the amendments, the
Exchange proposed to put certain of the
fees (for Complex Order executions by
Directed Participants 9 and Market
Makers) 10 on a one-year pilot program,
and stated that the proposed fees would
be operative on December 3, 2012. The
Exchange committed to provide
publicly available data and data
analyses of those fees to the
Commission during the pilot.11 The
Exchange also represented that, prior to
and at the time of a complex order
transaction, Market Makers, including
Directed Participants, are unaware of
the identity of the contra-party to the
transaction. The Exchange stated that
Rule 707 is intended to prohibit
coordinated actions between Directed
Participants and order flow providers
(‘‘OFPs’’), and that the Exchange
proactively conducts surveillance for,
and enforces against, such violations.12
The Commission received no
comment letters on the proposals. This
order approves the proposed rule
changes, as modified by Amendments
No. 1, and approves, as a one-year pilot
program, those fees which the Exchange
proposes to implement on a pilot basis.
II. Description of the Proposals
The Exchange’s first proposal
amended Complex Order fees and
rebates for adding and removing
liquidity in its Select Symbols.13
Specifically, Phlx’s proposal: (1)
Increased the customer rebate for adding
liquidity from $0.30 per contract to
Elizabeth M. Murphy, Secretary, Commission, dated
July 26, 2012 (‘‘Response’’).
8 See Securities Exchange Act Release No. 67825
(September 11, 2012), 77 FR 57168 (September 17,
2012).
9 The term ‘‘Directed Participant’’ applies to
transactions for the account of a Specialist,
Streaming Quote Trader (‘‘SQT’’) or Remote
Streaming Quote Trader (‘‘RSQT’’) resulting from a
Customer order that is (1) directed to the Specialist,
SQT or RSQT by an order flow provider, and (2)
executed by that Specialist, SQT or RSQT
electronically on Phlx XL II. See Phlx Fee Schedule
at 3.
10 A ‘‘Market Maker’’ includes Specialists (see
Exchange Rule 1020) and Registered Options
Traders (‘‘ROTs’’) (see Exchange Rule 1014(b)(i) and
(ii), which includes SQTs (see Exchange Rule
1014(b)(ii)(A)) and RSQTs (see Exchange Rule
1014(b)(ii)(B)).
11 See Amendment No. 1 to SR–Phlx–2012–27
and SR–Phlx–2012–54, filed October 24, 2012.
12 See Amendment No. 1 to each filing, supra
note 11.
13 The Select Symbols are listed in Section I of
the Phlx Fee Schedule.
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Agencies
[Federal Register Volume 77, Number 222 (Friday, November 16, 2012)]
[Notices]
[Page 68856]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-28048]
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SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to the provisions of the
Government in the Sunshine Act, Public Law 94-409, that the Securities
and Exchange Commission will hold a Closed Meeting on Wednesday,
November 14, 2012 at 9:30 a.m.
Commissioners, Counsel to the Commissioners, the Secretary to the
Commission, and recording secretaries will attend the Closed Meeting.
Certain staff members who have an interest in the matters also may be
present.
The General Counsel of the Commission, or his designee, has
certified that, in his opinion, one or more of the exemptions set forth
in 5 U.S.C. 552b(c)(4), (8), (9)(A)(i) and (ii), and 17 CFR
200.402(a)(4), (8), (9)(A)(i) and (ii), permit consideration of the
scheduled matter at the Closed Meeting.
Commissioner Walter, as duty officer, voted to consider the item
listed for the Closed Meeting in a closed session, and determined that
no earlier notice was possible.
The subject matter of the Closed Meeting will be an examination of
a financial institution.
At times, changes in Commission priorities require alterations in
the scheduling of meeting item.
For further information and to ascertain what, if any, matters have
been added, deleted or postponed, please contact: The Office of the
Secretary at (202) 551-5400.
Dated: November 13, 2012.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012-28048 Filed 11-14-12; 4:15 pm]
BILLING CODE 8011-01-P