[Federal Register Volume 77, Number 242 (Monday, December 17, 2012)]
[Notices]
[Pages 74699-74700]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-30271]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68402; File No. SR-Phlx-2012-137]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Rebates and Fees for Adding and Removing Liquidity
December 11, 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 December 3, 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 file Section I of the Exchange's Pricing
Schedule entitled ``Rebates and Fees for Adding and Removing Liquidity
in Select Symbols'' in order to preserve amendments to the Pricing
Schedule that became effective after the suspension of certain fees on
April 30, 2012.
The Exchange has designated the proposed amendment to be operative
on December 3, 2012.
The text of the proposed rule change is available on the Exchange's
Web site at http://www.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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange filed two immediately effective rule changes, SR-Phlx-
2012-27 and SR-Phlx-2012-54,\3\ to amend certain fees and rebates in
Section I, which filings were temporarily suspended by the Commission
as of April 30, 2012 (``Suspension Order'').\4\ In order to continue
the effectiveness of certain fees and rebates that were contained in
SR-Phlx-2012-27, but not the subject of the Suspension Order, the
Exchange filed a rule change on April 30, 2012.\5\ On November 9, 2012,
the Commission approved SR-Phlx-2012-27 and SR-Phlx-2012-54, as
modified by Amendment No. 1, on a one-year pilot basis, with such fees
being operative on December 3, 2012 (``Approval Order'').\6\
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\3\ See Securities Exchange Act Release Nos. 66551 (March 9,
2012), 77 FR 15400 (March 15, 2012) (SR-Phlx-2012-27) and 66883
(April 30, 2012), 77 FR 26591 (May 4, 2012) (SR-Phlx-2012-54).
\4\ By order dated April 30, 2012, the Commission suspended SR-
Phlx-2012-27 and SR-Phlx-2012-54. See Securities Exchange Release
No. 66884 (April 30, 2012), 77 FR 26595 (May 4, 2012) (SR-Phlx-2012-
27 and SR-Phlx-2012-54).
\5\ See Securities Exchange Act Release No. 66968 (May 11,
2012), 77 FR 29425 (May 17, 2012) (SR-Phlx-2012-57).
\6\ See Securities Exchange Act Release No. 68202 (November 9,
2012), 77 FR 68856 (November 16, 2012) (SR-Phlx-2012-27 and SR-Phlx-
2012-54).
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The Approval Order reinstated the fees that were proposed by the
Exchange in SR-Phlx-2012-27.\7\ Since the date of the suspension, the
Exchange filed multiple amendments to Section I of the Pricing Schedule
which became effective after the Suspension Order.\8\ The Exchange
proposes to preserve the amendments to Section I of the Pricing
Schedule that became effective after the Suspension Order in order to
continue the effectiveness of the current fees and rebates which were
not the subject of the Approval Order. The fees for executions of
Complex Orders by Directed Participants and Market Makers, which were
the subject of the Approval Order, will be addressed in a separate
filing proposed to be operative on December 3, 2012 and are not
included in this filing.
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\7\ Specifically, SR-Phlx-2012-27 proposed to: (1) Increase the
Customer Complex Order Rebate for Adding Liquidity from $0.30 to
$0.32 per contract, (2) create a new Complex Order Rebate for
Removing Liquidity and specifically pay a Customer a $0.06 Complex
Order Rebate for Removing Liquidity, and (3) increase the Complex
Order Fees for Removing Liquidity for Firms, Broker-Dealers and
Professionals from $0.35 per contract to $0.38 per contract.
\8\ See Securities Exchange Act Release Nos. 66985 (May 14,
2012), 77 FR 29726 (May 18, 2012) (SR-Phlx-2012-61); 67047 (May 23,
2012), 77 FR 32165 (May 31, 2012) (SR-Phlx-2012-70); 67189 (June 12,
2012), 77 FR 36310 (June 18, 2012) (SR-Phlx-2012-77); 67439 (July
13, 2012), 77 FR 42541 (July 19, 2012) (SR-Phlx-2012-90); 67633
(August 9, 2012), 77 FR 49040 (August 15, 2012) (SR-Phlx-2012-104);
67830 (September 11, 2012), 77 FR 57169 (September 17, 2012) (SR-
Phlx-2012-112); and SR-Phlx-2012-125) (not yet published).
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2. Statutory Basis
The Exchange believes that its proposal to amend its Pricing
Schedule is consistent with Section 6(b) of the Act \9\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \10\ in
particular, in that it is concerned solely with the administration of
the Exchange. This filing serves to preserve the current pricing that
has been filed with the Commission notwithstanding the Approval Order
that was issued by the Commission. The Exchange believes this proposal
is a technical and non-substantive rule change with the sole purpose of
preserving the current fees and rebates in Section I. The fees that
were the subject of the Approval Order, which related to fees for
executions of Complex Orders by Directed Participants and Market
Makers, will be addressed in a separate filing. This proposal maintains
the status quo, which would be otherwise altered by the Approval Order.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
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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
The foregoing rule change has become effective pursuant to Section
[[Page 74700]]
19(b)(3)(A)(iii) of the Act.\11\ 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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\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
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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 Number SR-Phlx-2012-137 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-2012-137. 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 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-2012-137 and should be
submitted on or before January 7, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-30271 Filed 12-14-12; 8:45 am]
BILLING CODE 8011-01-P