[Federal Register Volume 77, Number 91 (Thursday, May 10, 2012)]
[Notices]
[Pages 27526-27527]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-11257]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66925; File No. SR-Phlx-2012-53]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Exchange's Pricing Schedule
May 4, 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 April 25, 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.
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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 increase the Remote Specialist Fee from
$50 per option allocation per month to $200 per option allocation per
month. While fee changes pursuant to this proposal are effective upon
filing, the Exchange has designated these changes to be operative on
May 1, 2012.
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.
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to amend the Exchange's
Pricing Schedule at Section VI. C (Membership Fees) to increase the
Exchange's Remote Specialist Fee to better account for and recoup costs
associated with maintaining a remote specialist post on the Exchange's
trading floor.
Exchange Rule 501, Specialist Appointment, and Exchange Rule 1020,
Registration and Functions of Options Specialists, allow qualified
Exchange members to act as off-floor specialists in one or more options
classes (``Remote Specialist'').\3\ The Exchange staffs and administers
a physical location or post on the trading floor to provide on-floor
market participants with a physical location to trade in options
classes allocated to a Remote Specialist. This physical location on the
Exchange's trading floor requires Exchange operations and regulatory
staff to be present at this post. The Exchange incurs operational and
regulatory costs to maintain this post and defrays such
[[Page 27527]]
costs by assessing a Remote Specialist Fee.
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\3\ See Securities Exchange Act Release No. 64591 (June 8,
2011), 76 FR 33383 (June 2, 2011) (SR-Phlx-2011-79). A Remote
Specialist is an options specialist in one or more classes that may
not have a physical presence on an Exchange floor and is approved by
the Exchange pursuant to Rule 501.
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The Exchange currently assesses Remote Specialists a monthly fee of
$50 per option allocation.\4\ The Exchange caps the fee at $4,500 per
month. The Exchange is now proposing to increase the Remote Specialist
Fee monthly from $50 per option allocation to $200 per option
allocation. The $4,500 cap would remain unchanged. The purpose of the
increase is to enable the Exchange to better account for and defray the
operational and regulatory costs of maintaining this post.
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\4\ See Securities Exchange Act Release No. 64705 (June 20,
2011), 76 FR 37163 (June 24, 2011) (SR-Phlx-2011-83). Pursuant to
Rule 507, Application for Approval as an SQT or RSQT and Assignment
in Options, a Remote Specialist must meet certain requirements to be
approved as an RSQT. Rule 507(b)(i) describes the process for the
assignment of options. See Exchange Rule 507. An RSQT is defined in
Exchange Rule 1014(b)(ii)(B) as an ROT that is a member or member
organization with no physical trading floor presence who has
received permission from the Exchange to generate and submit option
quotations electronically in options to which such RSQT has been
assigned. An RSQT may only submit such quotations electronically
from off the floor of the Exchange.
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2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \5\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \6\ in particular, in that
it is an equitable allocation of reasonable fees and other charges
among Exchange members and other persons using its facilities.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the proposed increase in the Remote
Specialist Fee is reasonable because it will enhance the Exchange's
ability to recoup costs that are incurred by the Exchange for
maintaining a defined physical location or post on the Exchange's
trading floor to facilitate interaction amongst market participants
located on the Exchange's physical trading floor. The Exchange also
believes the proposal is reasonable because the Exchange proposes to
maintain the existing cap on the Remote Specialist Fee at $4,500 per
month.
The Exchange believes that the proposed Remote Specialist Fee is
equitable because it would be uniformly applied to all Remote
Specialists.
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
19(b)(3)(A)(ii) of the Act.\7\ 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.
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\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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 No. SR-Phlx-2012-53 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 No. SR-Phlx-2012-53. 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
10:00 a.m. and 3:00 p.m. Copies of such 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 No. SR-Phlx-2012-53 and should be
submitted on or before May 31, 2012.
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\8\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-11257 Filed 5-9-12; 8:45 am]
BILLING CODE 8011-01-P