[Federal Register Volume 75, Number 140 (Thursday, July 22, 2010)]
[Notices]
[Pages 42797-42801]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-17926]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62504; File No. SR-Phlx-2010-93]
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Delta Hedge Exemptions
July 15, 2010.
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 June 30, 2010, NASDAQ OMX PHLX, Inc. (``Phlx'' or
``Exchange'') 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 (i) expand the delta hedging exemption
available for equity options positions limits, (ii) amend the reporting
requirements applicable to members relying on the delta hedging
exemption and (iii) adopt a delta hedging exemption from certain index
options position limits.
The text of the proposed rule change is available on the Exchange's
Web site at http://www.nasdaqtrader.com/micro.aspx?id=PHLXRulefilings,
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
[[Page 42798]]
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 parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
I. Expansion of Delta-Based Equity Hedge Exemption
On December 14, 2007,\3\ the Commission approved a proposed rule
change establishing an exemption from equity options position and
exercise limits for positions held by the Chicago Board Options
Exchange (``CBOE'') members, and certain of their affiliates, that are
``delta neutral'' \4\ under a ``permitted pricing model'', subject to
certain conditions (``Exemption''). NASDAQ OMX PHLX filed a rule filing
to establish an exemption similar to CBOE's filing.\5\ CBOE expanded
its exemption from equity options position and exercise limits, amended
reporting requirements and adopted a delta hedging exemption from
certain index options position limits.\6\ The Exchange is proposing to
amend Exchange Rules 1001, and 1001A as well as Option Floor Procedure
Advice F-15 to make similar amendments.\7\
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\3\ See Securities Exchange Act Release No. 56970 (December 14,
2007), 72 FR 72428 (December 20, 2007) (SR-CBOE-2007-99). The
exemption was extended to certain customers whose accounts are
carried by a member. See Securities Exchange Act Release No. 60555
(August 21, 2009), 74 FR 43741 (August 27, 2009) (SR-CBOE-2009-039).
\4\ The term ``delta neutral'' is defined in Commentary .09(a)
to Exchange Rule 1001 as referring to an equity option position that
is hedged, in accordance with a permitted pricing model, by a
position in the underlying security or one or more instruments
relating to the underlying security, for the purpose of offsetting
the risk that the value of the option position will change with
incremental changes in the price of the security underlying the
option position.
\5\ See Securities Exchange Act Release No. 57359 (February 20,
2008), 73 FR 11178 (February 29, 2008) (SR-Phlx-2008-07).
\6\ See Securities Exchange Act Release No. 62190 (May 27,
2010), 75 FR 31826 (June 4, 2010) (SR-CBOE-2010-021).
\7\ This proposed rule filing is being done pursuant to an
industry-wide initiative, under the auspices of the Intermarket
Surveillance Group (``ISG''), to establish comparable delta-hedge
exemption rules among exchanges.
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The ``options contract equivalent of the net delta'' of a hedged
equity option position is subject to the position limits under Exchange
Rule 1001, subject to the availability of other exemptions.\8\
Currently, the Exemption only is available for securities that directly
underlie the applicable option position. This means that with respect
to options on exchange-traded funds (``ETF options''), index options
overlying the same index on which the ETF is based currently cannot be
combined with the ETF options to calculate a net delta for purposes of
the Exemption.
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\8\ The term ``options contract equivalent of the net delta'' is
defined in Commentary .09 (b)(1) of Exchange Rule 1001 as the net
delta divided by the number of shares underlying the option
contract. The term ``net delta'' is defined at Commentary .09(b)(2)
of the Exchange Rule 1001 to mean, at any time, the number of shares
(either long or short) required to offset the risk that the value of
an equity option position will change with incremental changes in
the price of the security underlying the option position, as
determined in accordance with a permitted pricing model.
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Many ETF options overlie exchange-traded funds that track the
performance of an index. For example, options on Standard & Poor's
Depositary Receipts (``SPY'') track the performance of the S&P 500
index. Market participants often hedge SPY options with options on the
S&P 500 Index (``SPX options'') or with other financial instruments
based on the S&P 500 Index for risk management purposes. The Exchange
believes that in order for eligible market participants to more fully
benefit from the Exemption as it relates to ETF options, securities and
other instruments that are based on the same underlying ETF or the same
index on which the ETF is based should also be included in any
determination of an ETF option position's net delta or whether the
options position is hedged delta neutral.\9\
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\9\ However, this would not include baskets of securities for
purposes of the Exemption.
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Accordingly, the Exchange proposes to expand the Exemption by
amending Exchange Rule 1001 to permit equity option positions for which
the underlying security is an ETF that is based on the same index as an
index option to be combined with an index option position for
calculation of the delta-based equity hedge exemption. The proposed
rule would allow financial products such as securities index options,
index futures, and options on index futures to be included along with
the ETF in an equity option's net delta calculation. So for example,
the proposed rule would allow SPY options to be hedged not only with
SPY shares, but with S&P 500 options, S&P 500 futures, options on S&P
500 futures or any other instrument that tracks the performance of or
is based on the S&P 500 index. This would be accomplished by including
such positions with a related index option position in accordance with
the Delta-Based Index Hedge Exemption rule proposed below.
Index options and equity options (i.e., ETF options) that are
eligible to be combined for computing a delta-based hedge exemption,
along with all securities and/or other instruments that are based on or
track the performance of the same underlying security or index, will be
grouped and the net delta and options contract equivalent of the net
delta will be calculated for each respective option class based on
offsets realized from the grouping as a whole.
The Exchange proposes to amend the definition of ``net delta'' at
Commentary .09(b)(2) of Exchange Rule 1001 to mean, at any time, the
number of shares and/or other units of trade \10\ (either long or
short) required to offset the risk that the value of an equity option
position will change with incremental changes in the price of the
security underlying the option position, as determined in accordance
with a permitted pricing model. The Exchange proposes to amend the
definition of the ``option contract equivalent of the net delta'' at
Commentary .09(b)(1) of Exchange Rule 1001 to mean the net delta
divided by the number of shares that equate to one option contract on a
delta basis.
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\10\ Other units of trade would include, for example, options or
futures contracts hedging the relevant option position. When
determining whether an ETF option hedged with other instruments such
as ETF or index options is delta neutral, the relative size of the
ETF option when compared to the other product is taken into
consideration. For example, SPX options are ten (10) times larger
than SPY options thus 1 SPX delta is equivalent to .10 SPY deltas.
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II. Reporting Requirements
Exchange Rule 1001 Commentary .09(f) sets forth the reporting
requirements applicable to Exchange members who rely on the Exemption.
The Exchange proposes to amend Exchange Rule 1001 Commentary .09(f) to
exempt from the reporting requirements Exchange market-makers \11\
relying on the Exemption who use the Options Clearing Corporation
(``OCC'') pricing model, because market-maker positions and delta
information can be accessed through the Exchange's market surveillance
systems. This proposed exemption is consistent with similar exemptions
from the reporting
[[Page 42799]]
requirements under Exchange Rule 1001A(c) applicable to broad-based
(market) index options and narrow-based (industry) index options.
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\11\ Exchange market-makers include Registered Option Traders
and Specialists. A Registered Option Trader (``ROT'') is defined in
Exchange Rule 1014(b) as a regular member or a foreign currency
options participant of the Exchange located on the trading floor who
has received permission from the Exchange to trade in options for
his own account. A ROT includes a Streaming Quote Trader (``SQT'')
as defined in 1014(b)(ii)(A), a Remote Streaming Quote Trader
(``RSQT'') as defined in 1014(b)(ii)(B) and a Non-SQT, which by
definition is neither a SQT or a RSQT. See Exchange Rule 1014 (b)(i)
and (ii). A Specialist is an Exchange member who is registered as an
options specialist pursuant to Rule 1020(a).
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III. Delta-Based Index Hedge Exemption
Index options traded on the Exchange are subject to position and
exercise limits, as provided under Exchange Rules 1001A and 1002A.\12\
Position limits are imposed, generally, to prevent the establishment of
options positions that can be used or might create incentives to
manipulate or disrupt the underlying market so as to benefit the holder
of the options position.
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\12\ See Exchange Rule 1001A, which provides position limits for
broad-based index options and narrow-based index options.
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Index options are often used by market participants such as
institutional investors to hedge large portfolios. Exchange rules
include hedge exemptions to allow certain positions in index options in
excess of the applicable standard position limit if hedged with an
Exchange-approved qualified portfolio. Under Rule 1001A Commentary .01,
Index Hedge Exemption, a qualified portfolio must be previously
established and the options must be carried in an account with an
Exchange member. Securities used as a hedge pursuant to this provision
may not be used to hedge other option positions.\13\
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\13\ See Commentary .01(b), Exchange Rule 1001A.
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The Exchange believes that any limit on the ability of market
participants to use index options to hedge their portfolios exposes
market participants to unnecessary risk on the unhedged portion of
their portfolios. The Exchange proposes to adopt a delta-based
exemption from index option position and exercise limits that are
substantially similar to the delta-based equity hedge exemption under
Exchange Rule 1001. A delta-based index hedge exemption would provide
market participants the ability to accumulate an unlimited number of
index options contracts provided that such contracts are properly delta
hedged in accordance with the requirements of the exemption.
Proposed Exemption. The Exchange proposes to adopt an exemption
from index options position and exercise limits \14\ for positions held
by Exchange members and certain of their affiliates that are ``delta
neutral'' (as defined below) under a ``permitted pricing model'' (as
defined below), subject to certain conditions (``Index Exemption'').
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\14\ Exchange Rule 1002A establishes exercise limits for an
index option at the same level as the index option's position limit
under index options position limit rules in Exchange Rules 1001A,
therefore no changes are proposed to Exchange Rule 1002A.
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The term ``delta neutral'' is defined in proposed Commentary .04(A)
of Exchange Rule 1001A as referring to an index option position that is
hedged, in accordance with a permitted pricing model, by a position in
one or more correlated instruments for the purpose of offsetting the
risk that the value of the option position will change with incremental
changes in the value of the underlying index. Correlated instruments
would be defined to mean securities and/or other instruments that track
the performance of or are based on the same underlying index as the
index underlying the option position. These definitions would allow
financial products such as ETF options, index futures, options on index
futures and ETFs that track the performance of or are based on the same
underlying index to be included in an index option's net delta
calculation.
Any index option position that is not delta neutral would be
subject to position and exercise limits, subject to the availability of
other exemptions. Only the ``options contract equivalent of the net
delta'' of such position would be subject to the appropriate position
limit.\15\
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\15\ Under proposed Commentary .04(B) of Exchange Rule 1001A,
the term ``options contract equivalent of the net delta'' is defined
as the net delta divided by units of trade that equate to one option
contract on a delta basis, and the term ``net delta'' is defined as,
at any time, the number of shares and/or other units of trade
(either long or short) required to offset the risk that the value of
an index option position will change with incremental changes in the
value of the underlying index, as determined in accordance with a
permitted pricing model.
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In addition, members could not use the same positions in correlated
instruments in connection with more than one hedge exemption.
Therefore, a position in correlated instruments used as part of a delta
hedging strategy could not also serve as the basis for any other index
hedge exemption.
Permitted Pricing Model. Under the proposed rule, the calculation
of the delta for any index option position, and the determination of
whether a particular index option position is hedged delta neutral,
must be made using a permitted pricing model. A ``permitted pricing
model'' is defined in proposed Exchange Rule 1001A to have the same
meaning as defined in Exchange Rule 1001, namely, the pricing model
maintained and operated by OCC and the pricing models used by (i) a
member or its affiliate subject to consolidated supervision by the SEC
pursuant to Appendix E of SEC Rule 15c3-1; (ii) a financial holding
company (``FHC'') or a company treated as an FHC under the Bank Holding
Company Act of 1956, or its affiliate subject to consolidated holding
company group supervision;\16\ (iii) an SEC registered OTC derivatives
dealer; \17\ and (iv) a national bank.\18\
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\16\ The pricing model of an FHC or of an affiliate of an FHC
would have to be consistent with: (i) The requirements of the Board
of Governors of the Federal Reserve System (``Fed''), as amended
from time to time, in connection with the calculation of risk-based
adjustments to capital for market risk under capital requirements of
the Fed, provided that the member or affiliate of a member relying
on this exemption in connection with the use of such model is an
entity that is part of such company's consolidated supervised
holding company group; or (ii) the standards published by the Basel
Committee on Banking Supervision, as amended from time to time and
as implemented by such company's principal regulator, in connection
with the calculation of risk-based deductions or adjustments to or
allowances for the market risk capital requirements of such
principal regulator applicable to such company--where ``principal
regulator'' means a member of the Basel Committee on Banking
Supervision that is the home country consolidated supervisor of such
company--provided that the member or affiliate of a member relying
on this exemption in connection with the use of such model is an
entity that is part of such company's consolidated supervised
holding company group. See Commentary .09(c)(3), Exchange Rule 1001.
\17\ The pricing model of an SEC registered OTC derivatives
dealer would have to be consistent with the requirements of Appendix
F to SEC Rule 15c3-1 and SEC Rule 15c3-4 under the Act, as amended
from time to time, in connection with the calculation of risk-based
deductions from capital for market risk thereunder. Only an OTC
derivatives dealer and no other affiliated entity (including a
member) would be able to rely on this part of the Exemption. See
Commentary .09(c)(4), Exchange Rule 1001.
\18\ The pricing model of a national bank would have to be
consistent with the requirements of the Office of the Comptroller of
the Currency, as amended from time to time, in connection with the
calculation of risk-based adjustments to capital for market risk
under capital requirements of the Office of the Comptroller of the
Currency. Only a national bank and no other affiliated entity
(including a member) would be able to rely on this part of the
Exemption. See Commentary .09(c)(5), Exchange Rule 1001.
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Aggregation of Accounts. Members and non-member affiliates relying
on the Index Exemption would be required to ensure that the permitted
pricing model is applied to all positions in correlated instruments
hedging the relevant option position that are owned or controlled by
the member, or its affiliates.
However, the net delta of an index option position held by an
entity entitled to rely on the Index Exemption, or by a separate and
distinct trading unit of such entity, may be calculated without regard
to positions in correlated instruments held by an affiliated entity or
by another trading unit within the same entity, provided that: (i) The
entity demonstrates to the Exchange's satisfaction that no control
relationship,
[[Page 42800]]
as defined in Commentary .06 to Exchange Rule 1001, exists between such
affiliates or trading units, and (ii) the entity has provided the
Exchange written notice in advance that it intends to be considered
separate and distinct from any affiliate, or, as applicable, which
trading units within the entity are to be considered separate and
distinct from each other for purposes of the Index Exemption.\19\ Any
member or non-member affiliate relying on the Index Exemption must
designate, by prior written notice to the Exchange, each trading unit
or entity whose options positions are required by Exchange rules to be
aggregated with the options positions of such member or non-member
affiliate relying on the Index Exemption for purposes of compliance
with Exchange position or exercise limits.\20\
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\19\ See proposed Commentary .04(D)(2), Exchange Rule 1001A.
\20\ See proposed Commentary .04(D)(3), Exchange Rule 1001A.
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The Exchange previously issued a Memorandum to the membership which
discussed, among other things, control relationships.\21\
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\21\ See Memorandum No. 0025-08 dated January 7, 2008.
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Obligations of Members and Affiliates. Any member relying on the
Index Exemption would be required to provide a written certification to
the Exchange that it is using a permitted pricing model as defined in
the rule for purposes of the Index Exemption.\22\ In addition, by such
reliance, such member would authorize any other person carrying for
such member an account including, or with whom such member has entered
into, a position in a correlated instrument hedging the relevant option
position to provide to the Exchange or OCC such information regarding
such account or position as the Exchange or OCC may request as part of
the Exchange's confirmation or verification of the accuracy of any net
delta calculation under this exemption.\23\
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\22\ See proposed Commentary .04(E)(1)(i), Exchange Rule 1001A.
\23\ See proposed Commentary .04(E)(1)(ii), Exchange Rule 1001A.
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The index option positions of a non-member affiliate relying on the
Index Exemption must be carried by a member with which it is
affiliated.\24\ A member carrying an account that includes an index
option position for a non-member affiliate that intends to rely on the
Index Exemption would be required to obtain from such non-member
affiliate a written certification that it is using a permitted pricing
model as defined in the rule for purposes of the Index Exemption.\25\
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\24\ See proposed Commentary .04(E)(2), Exchange Rule 1001A.
\25\ In addition, the member would be required to obtain from
such non-member affiliate a written statement confirming that such
non-member affiliate: (a) Is relying on the Index Exemption; (b)
will use only a permitted pricing model for purposes of calculating
the net delta of its option positions for purposes of the Index
Exemption; (c) will promptly notify the member if it ceases to rely
on the Index Exemption; (d) authorizes the member to provide to the
Exchange or the OCC such information regarding positions of the non-
member affiliate as the Exchange or OCC may request as part of the
Exchange's confirmation or verification of the accuracy of any net
delta calculation under the Index Exemption; and (e) if the non-
member affiliate is using the OCC Model, has duly executed and
delivered to the Exchange such documents as the Exchange may require
to be executed and delivered to the Exchange as a condition to
reliance on the Exemption. See proposed Commentary .04(E)(3),
Exchange Rule 1001A.
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Reporting. Under proposed Exchange Rule 1001A each member (other
than an Exchange market-maker using the OCC Model) relying on the Index
Exemption would be required to report, in accordance with Exchange Rule
1003: \26\ (i) All index option positions (including those that are
delta neutral) that are reportable thereunder, and (ii) on its own
behalf or on behalf of a designated aggregation unit pursuant to
Commentary .04(D) to Exchange Rule 1001A for each such account that
holds an index option position subject to the Index Exemption in excess
of the levels specified in Exchange Rule 1001A the net delta and the
options contract equivalent of the net delta of such position.
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\26\ Exchange Rule 1003 requires, among other things, that
members report to the Exchange aggregate long or short positions on
the same side of the market of 200 or more contracts of any single
class of options contracts dealt in on the Exchange.
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Records. Under proposed Commentary .04(G), Exchange Rule 1001A each
member relying on the Index Exemption would be required to (i) retain,
and would be required to undertake reasonable efforts to ensure that
any non-member affiliate of the member relying on the Index Exemption
retains, a list of the options, securities and other instruments
underlying each options position net delta calculation reported to the
Exchange hereunder, and (ii) produce such information to the Exchange
upon request.\27\
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\27\ A member would be authorized to report position information
of its non-member affiliate pursuant to the written statement
required under proposed Commentary .04E(3)(ii)(d), Exchange Rule
1001A.
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Reliance on Federal Oversight. As provided under proposed Exchange
Rule Commentary .04(C), Exchange Rule 1001A a permitted pricing model
includes proprietary pricing models used by members and affiliates that
have been approved by the SEC, the Fed or another Federal financial
regulator. In adopting the proposed Index Exemption the Exchange would
be relying upon the rigorous approval processes and ongoing oversight
of a Federal financial regulator. The Exchange notes that it would not
be under any obligation to verify whether a member's or its affiliate's
use of a proprietary pricing model is appropriate or yielding accurate
results.
The Exchange also proposes to amend Option Floor Procedure Advice
(``OFPA'') F-15, Minor Infractions of Position/Exercise Limits and
Hedge Exemptions, to clarify the application of Exchange Rule 1001A,
Position Limits, and Exchange Rule 1002A, Exercise Limits to OFPA F-15.
The Exchange will issue a regulatory circular upon publication of
the notice of this filing regarding the proposal herein.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \28\ in general, and furthers the objectives of Section
6(b)(5) of the Act \29\ 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.
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\28\ 15 U.S.C. 78f(b).
\29\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that allowing correlated instruments to be
included in the calculation of an equity option's net delta would
enable eligible market participants to more fully realize the benefit
of the delta based equity hedge exemption. The proposed delta-based
index hedge exemption would be substantially similar to the delta-based
equity hedge exemption under Exchange Rule 1001. Also, the Commission
has previously stated its support for recognizing options positions
hedged on a delta neutral basis as properly exempted from position
limits.\30\
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\30\ See Securities Exchange Act Release No. 40594 (October 23,
1998), 63 FR 59362, 59380 (November 3, 1998) (adopting rules
relating to OTC Derivatives Dealers).
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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.
[[Page 42801]]
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 foregoing rule change does not: (1) Significantly
affect the protection of investors or the public interest; (2) impose
any significant burden on competition; and (3) become operative for 30
days after the date of this filing, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \31\ and Rule 19b-4(f)(6) thereunder.\32\
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\31\ 15 U.S.C. 78s(b)(3)(A).
\32\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\33\
However, Rule 19b-4(f)(6)(iii) \34\ 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. The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest. The Commission notes
that it recently approved a substantially similar proposal filed by the
Chicago Board Options Exchange, Incorporated,\35\ and therefore
believes that no significant purpose is served by a 30-day operative
delay. For these reasons, the Commission designates the proposed rule
change to be operative upon filing with the Commission.\36\
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\33\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to
the Commission written notice of its 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 this requirement.
\34\ Id.
\35\ See Securities Exchange Act Release No. 62190 (May 27,
2010), 75 FR 31826 (June 4, 2010) (SR-CBOE-2010-21).
\36\ For the 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 such proposed rule
change the Commission may summarily abrogate 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 e-mail to [email protected]. Please include
File Number SR-Phlx-2010-93 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-2010-93. This file
number should be included on the subject line if e-mail 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,\37\ 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 inspection
and copying in the Commission's Public Reference Room 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 Number SR-Phlx-2010-93 and should be submitted on or before August
12, 2010.
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\37\ The text of the proposed rule change is available on the
Commission's Web site at http://www.sec.gov/rules/sro.shtml.
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\38\
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\38\ 17 CFR 200.30-3(a)(12).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-17926 Filed 7-21-10; 8:45 am]
BILLING CODE 8010-01-P