Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Rebates and Fees for Adding and Removing Liquidity, 74699-74700 [2012-30271]

Download as PDF Federal Register / Vol. 77, No. 242 / Monday, December 17, 2012 / Notices Dated: December 5, 2012. Antonio Dias, Technical Advisor, Advisory Committee on Reactor Safeguards. 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. [FR Doc. 2012–30318 Filed 12–14–12; 8:45 am] BILLING CODE 7590–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–68402; File No. SR–Phlx– 2012–137] Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Rebates and Fees for Adding and Removing Liquidity December 11, 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 December 3, 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. srobinson on DSK4SPTVN1PROD with I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to file Section I of the Exchange’s Pricing Schedule entitled ‘‘Rebates and Fees for Adding and Removing Liquidity in Select Symbols’’ in order to preserve amendments to the Pricing Schedule that became effective after the suspension of certain fees on April 30, 2012. The Exchange has designated the proposed amendment to be operative on December 3, 2012. The text of the proposed rule change is available on the Exchange’s Web site at https://www.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 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Mar<15>2010 16:21 Dec 14, 2012 Jkt 229001 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange filed two immediately effective rule changes, SR–Phlx–2012– 27 and SR–Phlx–2012–54,3 to amend certain fees and rebates in Section I, which filings were temporarily suspended by the Commission as of April 30, 2012 (‘‘Suspension Order’’).4 In order to continue the effectiveness of certain fees and rebates that were contained in SR–Phlx–2012–27, but not the subject of the Suspension Order, the Exchange filed a rule change on April 30, 2012.5 On November 9, 2012, the Commission approved SR–Phlx–2012– 27 and SR–Phlx–2012–54, as modified by Amendment No. 1, on a one-year pilot basis, with such fees being operative on December 3, 2012 (‘‘Approval Order’’).6 The Approval Order reinstated the fees that were proposed by the Exchange in SR–Phlx–2012–27.7 Since the date of the suspension, the Exchange filed multiple amendments to Section I of the Pricing Schedule which became effective after the Suspension Order.8 3 See Securities Exchange Act Release Nos. 66551 (March 9, 2012), 77 FR 15400 (March 15, 2012) (SR– Phlx–2012–27) and 66883 (April 30, 2012), 77 FR 26591 (May 4, 2012) (SR–Phlx–2012–54). 4 By order dated April 30, 2012, the Commission suspended SR–Phlx–2012–27 and SR–Phlx–2012– 54. See Securities Exchange Release No. 66884 (April 30, 2012), 77 FR 26595 (May 4, 2012) (SR– Phlx–2012–27 and SR–Phlx–2012–54). 5 See Securities Exchange Act Release No. 66968 (May 11, 2012), 77 FR 29425 (May 17, 2012) (SR– Phlx–2012–57). 6 See Securities Exchange Act Release No. 68202 (November 9, 2012), 77 FR 68856 (November 16, 2012) (SR–Phlx–2012–27 and SR–Phlx–2012–54). 7 Specifically, SR–Phlx–2012–27 proposed to: (1) Increase the Customer Complex Order Rebate for Adding Liquidity from $0.30 to $0.32 per contract, (2) create a new Complex Order Rebate for Removing Liquidity and specifically pay a Customer a $0.06 Complex Order Rebate for Removing Liquidity, and (3) increase the Complex Order Fees for Removing Liquidity for Firms, Broker-Dealers and Professionals from $0.35 per contract to $0.38 per contract. 8 See Securities Exchange Act Release Nos. 66985 (May 14, 2012), 77 FR 29726 (May 18, 2012) (SR– Phlx–2012–61); 67047 (May 23, 2012), 77 FR 32165 (May 31, 2012) (SR–Phlx–2012–70); 67189 (June 12, 2012), 77 FR 36310 (June 18, 2012) (SR–Phlx–2012– 77); 67439 (July 13, 2012), 77 FR 42541 (July 19, 2012) (SR–Phlx–2012–90); 67633 (August 9, 2012), PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 74699 The Exchange proposes to preserve the amendments to Section I of the Pricing Schedule that became effective after the Suspension Order in order to continue the effectiveness of the current fees and rebates which were not the subject of the Approval Order. The fees for executions of Complex Orders by Directed Participants and Market Makers, which were the subject of the Approval Order, will be addressed in a separate filing proposed to be operative on December 3, 2012 and are not included in this filing. 2. Statutory Basis The Exchange believes that its proposal to amend its Pricing Schedule is consistent with Section 6(b) of the Act 9 in general, and furthers the objectives of Section 6(b)(4) of the Act 10 in particular, in that it is concerned solely with the administration of the Exchange. This filing serves to preserve the current pricing that has been filed with the Commission notwithstanding the Approval Order that was issued by the Commission. The Exchange believes this proposal is a technical and nonsubstantive rule change with the sole purpose of preserving the current fees and rebates in Section I. The fees that were the subject of the Approval Order, which related to fees for executions of Complex Orders by Directed Participants and Market Makers, will be addressed in a separate filing. This proposal maintains the status quo, which would be otherwise altered by the Approval Order. 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 77 FR 49040 (August 15, 2012) (SR–Phlx–2012– 104); 67830 (September 11, 2012), 77 FR 57169 (September 17, 2012) (SR–Phlx–2012–112); and SR– Phlx–2012–125) (not yet published). 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(4). E:\FR\FM\17DEN1.SGM 17DEN1 74700 Federal Register / Vol. 77, No. 242 / Monday, December 17, 2012 / Notices 19(b)(3)(A)(iii) of the Act.11 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: srobinson on DSK4SPTVN1PROD with 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–Phlx–2012–137 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–2012–137. 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 10:00 a.m. and 3:00 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– 2012–137 and should be submitted on or before January 7, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–30271 Filed 12–14–12; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–68398; File No. SR–ISE– 2012–93] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Increase Position and Exercise Limits in EEM Options December 11, 2012. 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 28, 2012, the International Securities Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘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 Exchange proposes to amend its rules to increase position and exercise limits for options on the iShares MSCI Emerging Markets Index Fund (‘‘EEM’’). The text of the proposed rule change is available on the Exchange’s Web site www.ise.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. 12 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 11 15 U.S.C. 78s(b)(3)(A)(iii). VerDate Mar<15>2010 16:21 Dec 14, 2012 Jkt 229001 PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 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 self-regulatory organization 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 ISE proposes to amend Supplementary Material .01 to ISE Rule 412 and Supplementary Material .01 of ISE Rule 414 to increase position and exercise limits, respectively, for EEM options. This filing is based on a filing previously submitted by the Chicago Board Options Exchange (‘‘CBOE’’), which the Commission recently approved.3 Position limits for exchange-traded fund (‘‘ETFs’’) options, such as EEM options, are determined pursuant to Rule 412 and vary according to the number of outstanding shares and trading volume during the most recent six-month trading period of an underlying stock or ETF. The largest in capitalization and most frequently traded stocks and ETFs have an option position limit of 250,000 contracts (with adjustments for splits, re-capitalizations, etc.) on the same side of the market; smaller capitalization stocks and ETFs have position limits of 200,000, 75,000, 50,000 or 25,000 contracts (with adjustments for splits, re-capitalizations, etc.) on the same side of the market. The current position limit for EEM options is 250,000 contracts. The purpose of the proposed rule change is to amend Rules 412 and 414 to increase the position and exercise limits for EEM options to 500,000 contracts. There is precedent for establishing position limits for options on actively-traded ETFs and these position limit levels are set forth in Rule 412, Supplementary Material .01.4 3 See Securities Exchange Act Release No. 68086 (October 23, 2012), 77 FR 65600 (October 29, 2012) (SR–CBOE–2012–066). 4 Rule 412, Supplementary Material .01, lists exceptions to standard position limits which are: put or call option contracts overlying the PowerShares QQQ Trust (‘‘QQQQ’’), for which the E:\FR\FM\17DEN1.SGM 17DEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 77, Number 242 (Monday, December 17, 2012)]
[Notices]
[Pages 74699-74700]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-30271]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68402; File No. SR-Phlx-2012-137]


Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating to 
Rebates and Fees for Adding and Removing Liquidity

December 11, 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 December 3, 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 file Section I of the Exchange's Pricing 
Schedule entitled ``Rebates and Fees for Adding and Removing Liquidity 
in Select Symbols'' in order to preserve amendments to the Pricing 
Schedule that became effective after the suspension of certain fees on 
April 30, 2012.
    The Exchange has designated the proposed amendment to be operative 
on December 3, 2012.
    The text of the proposed rule change is available on the Exchange's 
Web site at https://www.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 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 Exchange filed two immediately effective rule changes, SR-Phlx-
2012-27 and SR-Phlx-2012-54,\3\ to amend certain fees and rebates in 
Section I, which filings were temporarily suspended by the Commission 
as of April 30, 2012 (``Suspension Order'').\4\ In order to continue 
the effectiveness of certain fees and rebates that were contained in 
SR-Phlx-2012-27, but not the subject of the Suspension Order, the 
Exchange filed a rule change on April 30, 2012.\5\ On November 9, 2012, 
the Commission approved SR-Phlx-2012-27 and SR-Phlx-2012-54, as 
modified by Amendment No. 1, on a one-year pilot basis, with such fees 
being operative on December 3, 2012 (``Approval Order'').\6\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release Nos. 66551 (March 9, 
2012), 77 FR 15400 (March 15, 2012) (SR-Phlx-2012-27) and 66883 
(April 30, 2012), 77 FR 26591 (May 4, 2012) (SR-Phlx-2012-54).
    \4\ By order dated April 30, 2012, the Commission suspended SR-
Phlx-2012-27 and SR-Phlx-2012-54. See Securities Exchange Release 
No. 66884 (April 30, 2012), 77 FR 26595 (May 4, 2012) (SR-Phlx-2012-
27 and SR-Phlx-2012-54).
    \5\ See Securities Exchange Act Release No. 66968 (May 11, 
2012), 77 FR 29425 (May 17, 2012) (SR-Phlx-2012-57).
    \6\ See Securities Exchange Act Release No. 68202 (November 9, 
2012), 77 FR 68856 (November 16, 2012) (SR-Phlx-2012-27 and SR-Phlx-
2012-54).
---------------------------------------------------------------------------

    The Approval Order reinstated the fees that were proposed by the 
Exchange in SR-Phlx-2012-27.\7\ Since the date of the suspension, the 
Exchange filed multiple amendments to Section I of the Pricing Schedule 
which became effective after the Suspension Order.\8\ The Exchange 
proposes to preserve the amendments to Section I of the Pricing 
Schedule that became effective after the Suspension Order in order to 
continue the effectiveness of the current fees and rebates which were 
not the subject of the Approval Order. The fees for executions of 
Complex Orders by Directed Participants and Market Makers, which were 
the subject of the Approval Order, will be addressed in a separate 
filing proposed to be operative on December 3, 2012 and are not 
included in this filing.
---------------------------------------------------------------------------

    \7\ Specifically, SR-Phlx-2012-27 proposed to: (1) Increase the 
Customer Complex Order Rebate for Adding Liquidity from $0.30 to 
$0.32 per contract, (2) create a new Complex Order Rebate for 
Removing Liquidity and specifically pay a Customer a $0.06 Complex 
Order Rebate for Removing Liquidity, and (3) increase the Complex 
Order Fees for Removing Liquidity for Firms, Broker-Dealers and 
Professionals from $0.35 per contract to $0.38 per contract.
    \8\ See Securities Exchange Act Release Nos. 66985 (May 14, 
2012), 77 FR 29726 (May 18, 2012) (SR-Phlx-2012-61); 67047 (May 23, 
2012), 77 FR 32165 (May 31, 2012) (SR-Phlx-2012-70); 67189 (June 12, 
2012), 77 FR 36310 (June 18, 2012) (SR-Phlx-2012-77); 67439 (July 
13, 2012), 77 FR 42541 (July 19, 2012) (SR-Phlx-2012-90); 67633 
(August 9, 2012), 77 FR 49040 (August 15, 2012) (SR-Phlx-2012-104); 
67830 (September 11, 2012), 77 FR 57169 (September 17, 2012) (SR-
Phlx-2012-112); and SR-Phlx-2012-125) (not yet published).
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2. Statutory Basis
    The Exchange believes that its proposal to amend its Pricing 
Schedule is consistent with Section 6(b) of the Act \9\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \10\ in 
particular, in that it is concerned solely with the administration of 
the Exchange. This filing serves to preserve the current pricing that 
has been filed with the Commission notwithstanding the Approval Order 
that was issued by the Commission. The Exchange believes this proposal 
is a technical and non-substantive rule change with the sole purpose of 
preserving the current fees and rebates in Section I. The fees that 
were the subject of the Approval Order, which related to fees for 
executions of Complex Orders by Directed Participants and Market 
Makers, will be addressed in a separate filing. This proposal maintains 
the status quo, which would be otherwise altered by the Approval Order.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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

[[Page 74700]]

19(b)(3)(A)(iii) of the Act.\11\ 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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A)(iii).
---------------------------------------------------------------------------

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-2012-137 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-2012-137. 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 
10:00 a.m. and 3:00 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-2012-137 and should be 
submitted on or before January 7, 2013.

    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. 2012-30271 Filed 12-14-12; 8:45 am]
BILLING CODE 8011-01-P

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