[Federal Register Volume 77, Number 75 (Wednesday, April 18, 2012)]
[Notices]
[Pages 23301-23303]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-9290]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66799; File No. SR-Phlx-2012-38]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
FINRA Fees
April 12, 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 April 11, 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 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 amend the Exchange's Pricing Schedule at
Section VII, C to update FINRA fees to mirror the text of The NASDAQ
Stock Market LLC (``NASDAQ Stock Market'') and NASDAQ OMX BX, Inc.
(``BX'').
The text of the proposed rule change is available on the Exchange's
Web site
[[Page 23302]]
at http://www.nasdaqtrader.com/micro.aspx?id=PHLXRulefilings, at the
principal office of the Exchange, on the Commission's Web site at
http://www.sec.gov, 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 purpose of the proposed rule change is to both amend and update
the Exchange's FINRA fees on its Pricing Schedule at Section VII, C
entitled ``FINRA Fees'' to mirror the rules of the NASDAQ Stock Market
and BX. Currently, the Exchange displays all the FINRA fees that are
billed and collected by FINRA at Section VII, C on behalf of the
Exchange. The Exchange is proposing to replace the relevant text in the
Pricing Schedule with text similar to that of NASDAQ Stock Market Rule
7003(a)(1)--(5) \3\ and BX Rule 7003(a)(1)--(5).\4\ This amendment
would serve to (1) conform the Exchange's Pricing Schedule to that of
NASDAQ Stock Market and BX rules in order to avoid confusion over
similar FINRA fees listed in those rules, however reflected differently
on the Phlx Pricing Schedule as compared to the NASDAQ Stock Market and
BX Rules with respect to DOJ related costs;\5\ and (2) update Phlx's
current fees so that the fees comport with a recent amendment to the
DOJ pass-through fee,\6\ which is billed and collected by FINRA.
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\3\ Rule 7003(a)(6) and (b) are specific to NASDAQ Stock Market
and not applicable to Phlx. Also the NASDAQ Stock Market rule has a
reference to NASD which is being reflected as FINRA in the
Exchange's proposed rule text similar to the text of BX Rule 7003.
\4\ Rule 7003(a)(6) and (b) are specific to BX and not
applicable to Phlx.
\5\ The Phlx Pricing Schedule calculates the cost of the FINRA
fingerprint processing fee ($13) together with the pass through fee
imposed by the United States Department of Justice (``DOJ'') while
NASDAQ Stock Market Rule 7003(a)(4) and (5) and BX Rule 7003(a)(4)
and (5) only displays the $13 FINRA fingerprint processing fee and
does not display the pass-through amount to the DOJ but rather notes
such a cost is assessed by FINRA.
\6\ FINRA notified its members through an Information Notice
that there was a reduction to the DOJ pass-through fee from $17.25
to $14.50. The amounts currently displayed for fingerprint
processing fees on Phlx's Pricing Schedule would therefore need to
be amended from $30.25 to $27.50 to update the current Pricing
Schedule. However, the proposed amendment to the Pricing Schedule
would only reference the FINRA fees and would not reference the DOJ
pass-through fees therefore obviating the amendment to the proposed
text to display the price decrease as the exact DOJ fee would no
longer be displayed.
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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 conforming the text of the Exchange's Pricing Schedule regarding
certain fees billed and collected by FINRA to that of the NASDAQ Stock
Market Rule and BX, to the extent the fees apply to the Exchange, so
that there is no confusion as to the amount of fees which are similarly
billed and collected by FINRA to members of the various exchanges.
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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
Because the proposed rule change does not: (i) Significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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 this requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \11\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6) permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay and
designate the proposed rule change operative upon filing. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
and, therefore, designates the proposal operative upon filing.\12\ The
proposed rule change is not controversial as it would conform the text
of the Exchange's Pricing Schedule to similar rule text on the NASDAQ
Stock Market and BX. In addition, the proposed rule change would update
the Exchange's Pricing Schedule to make the amount of the FINRA
fingerprinting fees displayed on the Pricing Schedule accurate.
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 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 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-2012-38 on the subject line.
[[Page 23303]]
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-2012-38. 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 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-2012-38 and
should be submitted on or before May 9, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-9290 Filed 4-17-12; 8:45 am]
BILLING CODE 8011-01-P