[Federal Register Volume 77, Number 25 (Tuesday, February 7, 2012)]
[Notices]
[Pages 6162-6164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-2641]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66284; File No. SR-Phlx-2012-04]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Offer a
New Product, TradeInfo PHLX, and Amend the Fee Schedule to Add a
Related Subscription Fee
February 1, 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 January 26, 2012, NASDAQ OMX PHLX LLC (``Exchange'' or
``PHLX'') filed with the Securities and Exchange Commission (the
``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.
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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 offer a new product, TradeInfo PHLX, to
amend the fee schedule to add a related subscription fee.
The text of the proposed rule change is available from the
Exchange's Web site at http://nasdaqomxphlx.cchwallstreet.com/NASDAQOMXPHLX/Filings/, at the Exchange's principal office, 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.
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A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing to offer a new product, TradeInfo PHLX,
and to amend its fee schedule to assess a fee of $95 per user, per
month for subscription to the new product.\3\ Through a secure Web
connection, TradeInfo PHLX will allow a subscribing member to scan for
their orders submitted to PHLX. A subscribing member will be able to
scan for all orders in a particular security or all orders of a
particular type, regardless of their status (open, canceled, executed,
etc.). A subscribing member will also be able to cancel open orders at
the order, port or firm mnemonic level. For example, after scanning for
open orders, a subscribing member is able to select an open order and
cancel the order. TradeInfo PHLX will also allow a subscribing member
to scan other order statuses, such as executed, cancelled, broken,
rejected and suspended orders. A subscribing member will be able to
generate reports of execution, order or cancel information, which can
be exported into a spreadsheet for review. TradeInfo PHLX will also
permit a subscribing member to manage their order flow and mitigate
risk by giving them the ability to view their orders and executions, as
well as the ability to perform cancels at the port level. Last,
TradeInfo PHLX will allow a subscribing member to download records of
their orders and executions for record-keeping purposes. The Exchange
currently offers PSX TradeInfo data to subscribing members for a fee of
$95 per user, per month for member's trading activity on the PSX
equities market.\4\ Under the proposed rule change, TradeInfo PHLX will
be available to PHLX members participating on the PHLX options market.
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\3\ The Exchange is creating new Chapter XII ``PHLX Trading
Application Services'' of the NASDAQ OMX PHLX LLC Fee Schedule under
which it will place the proposed new fee.
\4\ See NASDAQ OMX PHLX LLC Fee Schedule (January 5, 2012),
Chapter VIII NASDAQ OMX PSX FEES, TradeInfo PSX, p. 23.
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TradeInfo PHLX is similar to comparable products offered by the The
Nasdaq Stock Market (``Nasdaq'') and NASDAQ OMX BX (``BX'').\5\ PHLX is
proposing to offer the same functionality to its options participants
in regard to their PHLX trade activity for the same fee assessed for
the similar products offered by Nasdaq and BX.\6\
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\5\ Securities Exchange Act Release No. 55135 (January 19,
2007), 72 FR 3893 (January 26, 2007) (SR-NASDAQ-2006-062). See also
Securities Exchange Act Release No. 60826 (October 14, 2009), 74 FR
54605 (October 22, 2009) (SR-BX-2009-062).
\6\ NASDAQ Rule 7015(f) and Chapter XV, Section 3(a) of the
Nasdaq Options Rules each assess subscribing members a fee of $95
per user, per month for TradeInfo if the subscribing member does not
have a subscription to the Nasdaq Workstation (the Nasdaq
Workstation includes access to TradeInfo). BX Rule 7015 assesses
subscribing members a fee of $95 per user, per month for TradeInfo
BX.
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2. Statutory Basis
The Exchange believes that the proposed fee is consistent with the
provisions of Section 6 of the Act,\7\ in general, and with Section
6(b)(4) of the Act,\8\ in particular, in that it provides for the
equitable allocation of reasonable dues, fees and other charges among
members and issuers and other persons using any facility or system
which the Exchange operates or controls. The Exchange believes that the
fee is reasonable since the functionally identical product is currently
offered for the same subscription fee to PSX participants, as well as
Nasdaq and BX members. The Exchange believes that the fee is equitably
allocated since subscription to the product is voluntary and the fee is
assessed only upon members that elect to subscribe to the product. The
fee is based on the number of subscriptions subscribed, so all
similarly-situated member firms would be assessed the same amount.
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\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(4).
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The Exchange believes the proposed rule change is consistent with
Section 6(b)(5) of the Act,\9\ which requires that the rules of an
exchange be designed to prevent fraudulent and manipulative acts and
practices, promote just and equitable principles of trade, foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, protect investors and the public interest. The
Exchange believes the proposed rule change is consistent with these
requirements because the TradeInfo PHLX offers a useful analytical tool
with which PHLX members may access information concerning their order
and trade activity occurring on PHLX, thus allowing such participants
to make informed decisions concerning such activity. The Exchange notes
that Nasdaq and BX offer the same type of product to their members.
Affording PHLX participants access to the same functionality promotes
the goal of perfecting the mechanism of a free and open market by
providing a subscriber clearer picture of its market activity and
providing it the ability to quickly cancel orders should the
participant determine it necessary to do so.
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\9\ 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
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not significantly
affect the protection of investors or the public interest, does not
impose any significant burden on competition, and, by its terms, does
not become operative for 30 days from the date on which it was filed,
or such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of 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 the five-day prefiling requirement.
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The Exchange has requested that the Commission waive the 30-day
operative delay. The Commission believes that waiver of the operative
delay is consistent with the protection of investors and the public
interest because the proposal will provide a tool for Exchange members
to assist them in the management of their Exchange orders and is
substantially similar to those of other exchanges.\12\ Therefore, the
Commission designates the proposal operative upon filing.\13\
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\12\ See supra notes 4 and 5.
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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
[[Page 6164]]
public interest, for the protection of investors, or otherwise in
furtherance of the purposes of the Act.
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 email to [email protected]. Please include
File Number SR-Phlx-2012-04 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-2012-04. 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 (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
10a.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-2012-04 and should be
submitted on or before February 28, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-2641 Filed 2-6-12; 8:45 am]
BILLING CODE 8011-01-P