[Federal Register Volume 75, Number 37 (Thursday, February 25, 2010)]
[Notices]
[Pages 8762-8763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-3791]
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SECURITIES AND EXCHANGE COMMISSION
[File Nos. SR-Phlx-2009-104, SR-Phlx-2009-116, & SR-Phlx-2010-14;
[Release No. 61547]
NASDAQ OMX PHLX, Inc.; Order of Summary Abrogation
February 19, 2010.
Notice is hereby given that the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(3)(C) of the Securities
Exchange
[[Page 8763]]
Act of 1934 (``Act''),\1\ is summarily abrogating three proposed rule
changes of NASDAQ OMX PHLX, Inc. (``Phlx'' or ``Exchange'').
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\1\ 15 U.S.C. 78s(b)(3)(C).
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On December 22, 2009, on December 31, 2009, and on January 26,
2010, Phlx filed proposed rule changes to amend its fee schedule. In
SR-Phlx-2009-104, Phlx proposed to amend its fee schedule, to among
other things, assess a transaction fee of $0.05 per contract on Phlx
specialists, Streaming Quote Traders (``SQTs'') and Remote Streaming
Quote Traders (``RSQTs'') \2\ for equity option orders directed to them
by an order flow provider and executed electronically. A Phlx
specialist, SQT, or RSQT would be assessed a transaction fee of $0.21
per contract when it trades with an order not directed to it. In SR-
Phlx-2009-116, Phlx proposed to amend its fee schedule to adopt, for a
two-month pilot period expiring March 2, 2010, a per contract
transaction fee on market participants who remove liquidity from the
Exchange in options on Standard & Poor's Depositary Receipts/SPDRs
(``SPY'') and a per contract rebate or transaction fee for market
participants who add liquidity in SPY options.\3\ The amount of such
transaction fees and rebates vary depending on the type of market
participant. In SR-Phlx-2010-14, Phlx proposed to amend its fee
schedule to apply, for a pilot period expiring March 2, 2010, the same
per contract transaction fees and rebates Phlx adopted in SR-Phlx-2009-
116 for transactions in options on SPY to transactions in options
overlying the PowerShares QQQ Trust (``QQQQ'') [reg], Ishares Russell
2000 (``IWM''), and Citigroup Inc. (``C'').
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\2\ Streaming Quote Traders, or ``SQTs,'' and Remote Streaming
Quote Traders, or ``RSQTs,'' are Phlx market makers who may generate
and submit option quotations electronically on the Phlx. RSQTs may
only submit quotations from off the floor.
\3\ Phlx filed Amendment No. 1 to SR-Phlx-2009-116 on January 5,
2010 to correct a typographical error in the purpose section to make
it consistent with the fee schedule provided in Exhibit 5 thereto.
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The proposed rule changes were immediately effective upon filing
with the Commission pursuant to Section 19(b)(3)(A) of the Act.\4\
Pursuant to Section 19(b)(3)(C) of the Act,\5\ at any time within 60
days of the date of filing a proposed rule change pursuant to Section
19(b)(1) of the Act,\6\ the Commission may summarily abrogate the
change in the rules of the self-regulatory organization and require
that the proposed rule change be re-filed in accordance with the
provisions of Section 19(b)(1) of the Act \7\ and reviewed in
accordance with Section 19(b)(2) of the Act,\8\ 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.
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\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 15 U.S.C. 78s(b)(3)(C).
\6\ 15 U.S.C. 78s(b)(1).
\7\ Id.
\8\ 15 U.S.C. 78s(b)(2).
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The Commission is concerned about whether the proposals are
consistent with the statutory requirements applicable to a national
securities exchange under the Act, including, among other provisions,
Section 6(b)(4) of the Act,\9\ which requires that the rules of a
national securities exchange provide for the equitable allocation of
reasonable dues, fees, and other charges among its members and issuers
and other parties using its facilities; Section 6(b)(5) of the Act,\10\
which requires, among other things, that the rules of a national
securities exchange not be designed to permit unfair discrimination
between customers, issuers, brokers, or dealers; and Section 6(b)(8) of
the Act,\11\ which requires that the rules of a national securities
exchange do not impose any burden on competition not necessary or
appropriate in furtherance of the Act.
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\9\ 15 U.S.C. 78f(b)(4).
\10\ 15 U.S.C. 78f(b)(5).
\11\ 15 U.S.C. 78f(b)(8).
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Accordingly, the Commission believes that the procedures provided
by Section 19(b)(2) of the Act \12\ will provide a more appropriate
mechanism for determining whether the proposed rule changes are
consistent with the Act. Therefore, the Commission finds that it is
appropriate in the public interest, for the protection of investors,
and otherwise in furtherance of the purposes of the Act, to abrogate
the proposed rule changes.
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\12\ 15 U.S.C. 78s(b)(2).
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It is therefore ordered, pursuant to Section 19(b)(3)(C) of the
Act,\13\ that File Nos. SR-Phlx-2009-104, SR-Phlx-2009-116, as modified
by Amendment No. 1, and SR-Phlx-2010-14, be and hereby are, summarily
abrogated. If Phlx chooses to re-file the proposed rule changes, it
must do so pursuant to Sections 19(b)(1) \14\ and 19(b)(2) of the
Act.\15\
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\13\ 15 U.S.C. 78s(b)(3)(C).
\14\ 15 U.S.C. 78s(b)(1).
\15\ 15 U.S.C. 78s(b)(2).
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By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-3791 Filed 2-24-10; 8:45 am]
BILLING CODE 8011-01-P