[Federal Register Volume 76, Number 162 (Monday, August 22, 2011)]
[Notices]
[Pages 52371-52373]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-21321]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65142; File No. SR-Phlx-2011-112]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating
to Clarifying Amendments to the Rule Book
August 16, 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 August 8, 2011, 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Exchange Rules 625, 3228 and Options
Procedure Floor Advice (``OFPA'') F-10 to eliminate unnecessary text
and correct cross-references in Rule text. The Exchange also proposes
to eliminate an unnecessary title in the Rule Book.
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, at the Commission's Public Reference
Room, and on the Commission's Web site at http://www.sec.gov.
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.
[[Page 52372]]
A. 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 eliminate unnecessary
text and correct cross-references in the Rule Book. The various
amendments relate to cross-references and text in several Rules that
were not deleted in connection with other rule filings. The Exchange
proposes four amendments.
First, the Exchange proposes to amend language in Exchange Rule
625, entitled ``Training'' to remove a reference to a ``PAU.'' This
reference relates to a term that was used in connection with XLE, the
Exchange's former equity trading system, which is no longer utilized.
The Exchange recently eliminated all references to XLE, including the
definition of a Participant Authorized User of ``PAU.'' \3\ The
Exchange proposes to eliminate the reference to a PAU in Exchange Rule
625 as the term is no longer necessary.
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\3\ See Securities Exchange Act Release No. 64338 (April 25,
2011), 76 FR 24069 (April 29, 2011) (SR-Phlx-2011-13).
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Second, the Exchange proposes to amend a reference in Exchange Rule
3228, entitled ``Compliance with Rules and Registration Requirements.''
The Exchange recently amended Exchange Rule 3211 to move certain text
in paragraphs (a) through (c) to a new Exchange Rule 911, entitled
``Member and Member Organization Participation.'' \4\ The Exchange
proposes to replace the reference to Exchange Rule 3211 with Exchange
Rule 911 within Exchange Rule 3228 to reflect the current location of
the referenced text.
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\4\ See Securities Exchange Act Release No. 65010 (August 2,
2011), 76 FR 48195 (August 8, 2011) (SR-Phlx-2011-100).
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Third, the Exchange also proposes to delete text in OFPA F-10,
entitled ``Unusual Market Conditions.'' The Exchange previously filed a
proposed rule change to delete Exchange Rule 1015, entitled ``Execution
Guarantee'' and OFPA A-11, entitled ``Responsibility To Fill Customer
Orders.'' \5\ The Exchange deleted both Rule 1015 and OFPA A-11 because
those rules were outdated due to the combination of the adoption of
firm quote obligations in options and increased automation. The text of
OFPA F-10 references both Exchange Rule 1015 and OFPA A-11 in the
second paragraph. The Exchange is proposing to delete this paragraph as
the text is no longer necessary and outdated.
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\5\ See Securities Exchange Act Release No. 63064 (October 7,
2010), 75 FR 63231 (October 14, 2010) (SR-Phlx-2010-136).
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Fourth, the Exchange is proposing a technical amendment to delete a
reference to ``ITS Rules'' in the Rule Book. The Exchange previously
removed references to the Intermarket Trading System (``ITS'') Plan and
deleted Exchange Rules 2000-2002.\6\ The Exchange proposes to delete
this reference as it is unnecessary.
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\6\ See Securities Exchange Act Release No. 55569 (April 2,
2007), 72 FR 17978 (April 10, 2007) (SR-Phlx-2007-31).
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While changes pursuant to this proposal are immediately effective,
the Exchange designates the amendment to Exchange Rule 3228 become
operative on August 26, 2011.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \7\ in general, and furthers the objectives of Section
6(b)(5) of the Act \8\ 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,
by amending the text of the Exchange Rules and OFPA to update cross-
references and remove outdated and unnecessary text. The Exchange
believes that these amendments will clarify the Exchange's Rules to the
benefit of the membership.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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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
Pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(1)
\10\ thereunder, the Exchange has designated this proposal as one that
constitutes a stated policy, practice or interpretation with respect to
the meaning, administration, or enforcement of an existing rule of the
SRO, and therefore has become effective.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(1).
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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 (http://www.sec.gov/rules/sro.shtml); or
Send an e-mail to [email protected]. Please include
File Number SR-Phlx-2011-112 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-2011-112. 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 Web site (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 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
[[Page 52373]]
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-2011-112 and should be submitted on or before September 12, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-21321 Filed 8-19-11; 8:45 am]
BILLING CODE 8011-01-P