Self-Regulatory Organizations; Proposed Rule Changes:
Federal Register: April 5, 2011 (Volume 76, Number 65)
Notices
Page 18814-18816
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
DOCID:fr05ap11-110
SECURITIES AND EXCHANGE COMMISSION
Release No. 34-64151; File No. SR-Phlx-2011-40
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating to Rebates and Fees for Adding and Removing Liquidity in Select Symbols
March 30, 2011.
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 March 24, 2011, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'') filed with the Securities
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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.
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Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The Exchange proposes to amend Section I of the Exchange's Fee
Schedule titled ``Rebates and Fees for Adding and Removing Liquidity in
Select Symbols,'' specifically to amend the Select Symbols.\3\
\3\ The term ``Select Symbols'' refers to the symbols which are subject to the Rebates and Fees for Adding and Removing Liquidity in
Section I of the Exchange's Fee Schedule.
While changes to the Fee Schedule pursuant to this proposal are effective upon filing, the Exchange has designated these changes to be operative on April 1, 2011.
The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaqtrader.com/micro.aspx?id=PHLXfilings, at the principal office of the Exchange, and at the Commission's Public
Reference Room.
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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.
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Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change 1. Purpose
The purpose of the proposed rule change is to amend the list of
Select Symbols in Section I of the Exchange's Fee Schedule, titled
``Rebates and Fees for Adding and Removing Liquidity in Select
Symbols'' in order to attract additional order flow to the Exchange.
The Exchange displays a list of Select Symbols in its Fee Schedule at Section I, ``Rebates and Fees for Adding and Removing Liquidity in
Select Symbols,'' that are subject to the rebates and fees in that section. Among those symbols is ON Semiconductor Corp (``ONNN''), which the Exchange is proposing to remove from the list of Select Symbols.
The Exchange is also proposing to add Silver Wheaton Corp. (``SLW'') to the list of Select Symbols in Section I.
While changes to the Fee Schedule pursuant to this proposal are effective upon filing, the Exchange has designated these changes to be operative on April 1, 2011. 2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6(b) of the Act \4\ in general, and furthers the objectives of Section 6(b)(4) of the Act \5\ in particular, in that it is an equitable allocation of reasonable fees and other charges among Exchange members and other persons using its facilities.
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
The Exchange believes that it is reasonable to remove ONNN from its list of Select Symbols and add SLW to its list of Select Symbols to attract additional order flow to the Exchange. The Exchange anticipates that the addition of SLW to Section I of the Fee Schedule would attract market participants to transact equity options at the Exchange because of the available rebates. In addition, the Exchange believes that applying the fees in Section II to ONNN, including the opportunity to receive payment for order flow, would also attract order flow to the
Exchange.
The Exchange believes that it is equitable to amend the list of
Select Symbols by removing ONNN and adding SLW because the list of
Select Symbols would apply uniformly to all categories of participants in the same manner. All market participants who trade the Select
Symbols would be subject to the rebates and fees in Section I of the
Fee Schedule. Also, all market participants would be uniformly subject to the fees in Section II.
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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.
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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.
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Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.\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.
\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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 (http:// www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-Phlx-2011-40 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-2011-40. This file number should be included on the subject line if e-mail 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 website (http://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
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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 website 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-2011-40 and should be submitted on or before April 26, 2011.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\7\
\7\ 17 CFR 200.30-3(a)(12).
Cathy H. Ahn,
Deputy Secretary.
FR Doc. 2011-7979 Filed 4-4-11; 8:45 am
BILLING CODE 8011-01-P
