[Federal Register Volume 77, Number 84 (Tuesday, May 1, 2012)]
[Notices]
[Pages 25773-25774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-10392]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66859; File No. SR-Phlx-2012-52]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
the Account Fee
April 25, 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 18, 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 amend the Account Fee displayed in the
Pricing Schedule at Section VI, A entitled ``Membership Fees.''
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 this filing is to recoup some of the billing and
processing costs associated with participant accounts. The proposed
amendment would also encourage members to discontinue holding inactive
trading accounts, which the Exchange believes should, in turn,
eliminate the need to expend resources to create additional account
fields. As a result, the staff time allocated to maintaining account
records would be reduced, which would allow for a more efficient use of
staff resources.
Currently, member organizations receive one free account for each
permit assigned to the member organization and the Exchange assesses an
Account Fee of $50.00 for each additional account a member holds. The
Exchange initially adopted this Account Fee in 2006 to encourage member
organizations to discontinue holding inactive trading accounts, which
the Exchange believed would, in turn, eliminate the need to expend
resources to create additional account.\3\ The Exchange is proposing to
amend this fee to assess an Account Fee of $50.00 per month for each
account held by a member organization. The Exchange would remove the
following text from the Pricing Schedule ``for each account beyond the
number of permits billed to that member organization.'' While today
member organizations receive one free account for each permit assigned
to the member organization, the proposal would bill a member
organization $50.00 for each account. The Account Fee would cover any
month, or any part of a month, during which an account is maintained by
a member.
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\3\ See Securities Exchange Act Release No. 53046 (January 3,
2006), 71 FR 1459 (January 9, 2006) (SR-Phlx-2005-89). The Exchange
noted in its filing that the $50 per month fee would be applicable
to any part of a month.
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Member organizations are not restricted in the number of trading
accounts they may request through the Exchange's Membership Department.
In many instances, multiple accounts are requested by a member
organization as a means of tracking various trading activity using the
Exchange's account numbers or because they have multiple clearing
arrangements.
2. Statutory Basis
The Exchange believes that its proposal to amend its Pricing
Schedule is consistent with Section 6(b) of the Act \4\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \5\ in
particular, in that it is an equitable allocation of reasonable fees
and other charges among Exchange members.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the proposed amendment to the Account
Fee is reasonable because it seeks to recoup costs incurred by the
Exchange. Further, the Exchange is seeking to incentivize members to
discontinue inactive trading accounts. The Exchange also believes that
the proposed Account Fee is equitable and not unfairly discriminatory
because it would be uniformly applied to all members.
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.\6\ 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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\6\ 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
[[Page 25774]]
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-2012-52 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-2012-52. 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 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-2012-52 and should be
submitted on or before May 22, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-10392 Filed 4-30-12; 8:45 am]
BILLING CODE 8011-01-P