16646 Federal Register / Vol. 76, No. 57 / Thursday, March 24, 2011 / Notices 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3For purposes of this filing, a Singly Listed 

Option means an option that is only listed on the 

Exchange and is not listed by any other national 

securities exchange. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact: 

The Office of the Secretary at (202) 

551–5400. 

Dated: March 22, 2011. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–7145 Filed 3–22–11; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Federal Register citation of previous 

announcement: [76 FR 15352, March 21, 

2011] 

STATUS: Closed Meeting. 

PLACE: 100 F Street, NE., Washington, 

DC. 

DATE AND TIME OF PREVIOUSLY ANNOUNCED

MEETING: March 24, 2011 at 2 p.m. 

CHANGE IN THE MEETING: Additional Item. 

The following matter will also be 

considered during the 2 p.m. Closed 

Meeting scheduled for Thursday, March 

24, 2011: 

Consideration of amicus participation. 

Commissioner Casey, as duty officer, 

voted to consider the item listed for the 

Closed Meeting in closed session, and 

determined that no earlier notice thereof 

was possible. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. For further 

information and to ascertain what, if 

any, matters have been added, deleted 

or postponed, please contact the Office 

of the Secretary at (202) 551–5400. 

Dated: March 22, 2011. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–7143 Filed 3–22–11; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[File No. 500–1] 

Circadian, Inc., Clean Energy 

Combustion, Inc. (n/k/a Clean Energy 

Combustion Systems, Inc.), Collectible 

Concepts Group, Inc., Communitronics 

of America, Inc. (n/k/a RPM Advantage, 

Inc.), and ConSyGen, Inc., Order of 

Suspension of Trading 

March 22, 2011. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Circadian, 

Inc. because it has not filed any periodic 

reports since the period ended 

September 30, 1995. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Clean 

Energy Combustion, Inc. (n/k/a Clean 

Energy Combustion Systems, Inc.) 

because it has not filed any periodic 

reports since the period ended 

September 30, 2004. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Collectible 

Concepts Group, Inc. because it has not 

filed any periodic reports since the 

period ended November 30, 2007. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of 

Communitronics of America, Inc. 

(n/k/a RPM Advantage, Inc.) because it 

has not filed any periodic reports since 

the period ended June 30, 2006. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of ConSyGen, 

Inc. because it has not filed any periodic 

reports since the period ended 

November 30, 2001. 

The Commission is of the opinion that 

the public interest and the protection of 

investors require a suspension of trading 

in the securities of the above-listed 

companies. 

Therefore, it is ordered, pursuant to 

Section 12(k) of the Securities Exchange 

Act of 1934, that trading in the 

securities of the above-listed companies 

is suspended for the period from 9:30 

a.m. EDT on March 22, 2011, through 

11:59 p.m. EDT on April 4, 2011. 

By the Commission. 

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2011–7069 Filed 3–22–11; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64096; File No. SR–Phlx– 

2011–34] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Singly Listed Options 

March 18, 2011. 

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 March 15, 

2011, 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

Fee Schedule to replace its Sector Index 

Options Fees and U.S. Dollar-Settled 

Foreign Currency Option Fees, in 

Section III of the Fee Schedule, with 

Singly Listed Options 3 Fees. Also, the 

Exchange is proposing to create new 

fees for equities, exchange-traded funds 

(‘‘ETFs’’) and Holding Company 

Depository Receipts (‘‘HOLDRS’’) which 

are not listed on another exchange. 

While changes to the Fee Schedule 

pursuant to this proposal are effective 

upon filing, the Exchange has 

designated these changes to be operative 

on April 1, 2011. 

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 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 57 / Thursday, March 24, 2011 / Notices 16647 

4BKX represents the KBW Bank Index. 

5RUT represents the options on the Russell 

2000® Index (the ‘‘Full Value Russell Index’’ or 

‘‘RUT’’). 

6RMN represents options on the one-tenth value 

Russell 2000® Index 6 (the ‘‘Reduced Value Russell 

Index’’ or ‘‘RMN’’). 

7MNX represents options on the one-tenth value 

of the Nasdaq 100 Index traded under the symbol 

MNX (‘‘MNX’’). 

8NDX represents options on the Nasdaq 100 

Index 8 traded under the symbol NDX (‘‘NDX’’). 

9The applicable U.S. dollar-settled foreign 

currency options include XDB, XDE, XDN, XDS, 

XDA, XDM, XEH, XEV, XDZ, XDC and XDV 

(‘‘Currencies’’). 

10The Exchange receives an overnight file from 

The Options Clearing Corporation, the Data 

Distribution Service feed, which provides the 

Exchange a list of options which are Singly and 

Multiply Listed. The Exchange provides its 

members with a symbol directory that indicates 

whether a security is Singly or Multiply Listed. 

This information, which is available on the 

exchange’s Web site, is updated daily. In the event 

that a Singly Listed option becomes Multiply 

Listed, the option would be assessed the fees in 

Section II of the Fee Schedule. 

11The Exchange’s indexes and currencies, which 

are subject to the fees in Section III, are only listed 

on the Exchange and therefore Singly Listed. 

12This fee proposal would not impact any equity 

options transacted in any of the symbols which are 

listed in Section I of the Exchange’s Fee Schedule 

titled ‘‘Rebates and Fees for Adding and Removing 

Liquidity in Select Symbols.’’ The Exchange is not 

amending Section I. 

13Multiply Listed options overlying equities, 

ETFs, HOLDRS, BKX, RUT, RMN, MNX and NDX 

would continue to be subject to the fees in Section 

II. For purposes of this filing, a Multiply Listed 

security means an option that is listed on more than 

one exchange. 

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 purpose of the proposed rule 

change is to create new fees titled 

‘‘Singly Listed Options’’ to recoup the 

increased costs associated with Singly 

Listed options as compared with 

Multiply Listed options. 

The Exchange currently assesses fees 

for equity options as specified in 

Section II of the Fee Schedule titled 

‘‘Equity Options Fees.’’ Section II 

includes options overlying equities, 

ETFs HOLDRS, BKX 4, RUT5, RMN 6, 

MNX 7 and NDX 8. The Exchange 

currently assesses fees for sector index 

options and U.S. Dollar-Settled foreign 

currency options as specified in Section 

III of the Exchange’s Fee Schedule titled 

‘‘Sector Index Options Fees and U.S. 

Dollar-Settled Foreign Currency Option 

Fees.’’ 

The Exchange is proposing to rename 

Section III as ‘‘Singly Listed Options’’ 

and create fees, which would apply to 

options overlying currencies,9 equities, 

ETFs, indexes, and HOLDRS not listed 

on another exchange.10 The proposed 

fees are as follows: 

Customer Professional 

Specialist, 

ROT, SQT 

and RSQT 

Firm Brokerdealer 

Options Transaction Charge .................................................................... $.35 $.45 $.35 $.45 $.45 

The Exchange would remove the 

Sector Index Option Fees and the U.S. 

Dollar-Settled Foreign Currency Options 

Fees from Section III of the Exchange’s 

Fee Schedule. Sector index options and 

U.S. Dollar-Settled foreign currency 

options would be subject to the 

proposed fees in Section III.11 Currently, 

the sector index options are assessed the 

following fees: 

Customer Professional 

Specialist, 

ROT, SQT 

and RSQT 

Firm Brokerdealer 

Options Transaction Charge .................................................................... $.44 $.35 $.35 $.30 $.45 

U.S. Dollar-Settled foreign currency 

options, which include XDB, XDE, 

XDN, XDS, XDA, XDM, XEH, XEV, 

XDZ, XDC and XDV, are assessed the 

following fees: 

Customer Professional 

Specialist, 

ROT, SQT 

and RSQT 

Firm Brokerdealer 

Options Transaction Charge .................................................................... $.44 $.30 $.30 $.30 $.45 

In addition, the Exchange proposes to 

assess Singly Listed equities, ETFs and 

HOLDRS the proposed fees in Section 

III.12 Singly listed equities, ETFs and 

HOLDRS are currently subject to the 

fees in Section II.13 The Exchange 

currently assesses equity options, 

including options overlying equities, 

ETFs, HOLDRS, BKX, RUT, RMN, MNX 

and NDX, the following fees which are 

located in Section II of the Exchange’s 

Fee Schedule: 


emcdonald on DSK2BSOYB1PROD with NOTICES
16648 Federal Register / Vol. 76, No. 57 / Thursday, March 24, 2011 / Notices 

14The proposed fees in Section III would apply 

to Singly Listed options. 15 15 U.S.C. 78f(b). 

16 15 U.S.C. 78f(b)(4). 

17By way of example, in analyzing an obvious 

error, the Exchange would have additional data 

points available in establishing a theoretical price 

for a Multiply Listed option as compared to a Singly 

Listed option, which requires additional analysis 

and administrative time to comply with Exchange 

rules to resolve an obvious error. 

18This excludes equity options which are subject 

to Section I of the Fee Schedule titled ‘‘Fees and 

Rebates for Adding and Removing Liquidity in 

Select Symbols.’’ 19A Specialist is an Exchange member who is 

registered as an options specialist pursuant to Rule 

1020(a). 20A Registered Options Trader (‘‘ROT’’) includes 

a Streaming Quote Trader (‘‘SQT’’), a Remote 

Streaming Quote Trader (‘‘RSQT’’) and a Non-SQT 

ROT, which by definition is neither a SQT or a 

RSQT. A 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. 

See Exchange Rule 1014(b)(i) and (ii). 

21An SQT is defined in Exchange Rule 

1014(b)(ii)(A) as an ROT who has received 

permission from the Exchange to generate and 

submit option quotations electronically in options 

to which such SQT is assigned. 

22A 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. 

23The Exchange market maker category includes 

Specialists (see Rule 1020) and ROTs (Rule 

1014(b)(i) and (ii), which includes SQTs (see Rule 

1014(b)(ii)(A)) and RSQTs (see Rule 1014(b)(ii)(B)). 

24Electronically delivered orders do not include 

orders delivered through the Floor Broker 

Management System. 

25The Penny Pilot was established in January 

2007; and in October 2009, it was expanded and 

extended through December 31, 2010. See 

Securities Exchange Act Release Nos. 55153 

(January 23, 2007), 72 FR 4553 (January 31, 2007) 

(SR–Phlx–2006–74) (approval order establishing 

Penny Pilot); 60873 (October 23, 2009), 74 FR 56675 

(November 2, 2009) (SR–Phlx–2009–91) (expanding 

and extending Penny Pilot); 60966 (November 9, 

2009), 74 FR 59331 (November 17, 2009) (SR–Phlx– 

2009–94) (adding seventy-five classes to Penny 

Pilot); and 61454 (February 1, 2010), 75 FR 6233 

(February 8, 2010) (SR–Phlx–2010–12) (adding 

seventy-five options classes to the Penny Pilot). See 

also Exchange Rule 1034. 

26This excludes the symbols which are subject to 

Section I of the Fee Schedule, titled ‘‘Fees and 

Rebates for Adding and Removing Liquidity in 

Select Symbols.’’ 

27This excludes the symbols which are subject to 

Section I of the Fee Schedule, titled ‘‘Fees and 

Rebates for Adding and Removing Liquidity in 

Select Symbols.’’ 

Customer Professional 

Specialist, ROT, SQT and 

RSQT 

Broker-dealer 

Firm 

Electronic Nonelectronic 

Electronic Nonelectronic 

Options Transaction Charge (Penny 

Pilot) ..................................................... $.00 $.20 $.22 $.25 $.45 $.25 $.25 

Options Transaction Charge (non-Penny 

Pilot) ..................................................... .00 .20 .23 .25 .45 .25 .25 

Options Surcharge in RUT, RMN, MNX 

and NDX ............................................... N/A N/A .15 .15 .15 .15 .15 

Options Surcharge in BKX ....................... N/A N/A .10 .10 .10 .10 .10 

The Exchange is proposing to amend 

the Equity Options Fees in Section II by 

adding the words ‘‘which are Multiply 

Listed’’ to the title of Section II to clarify 

that Section II fees apply to Multiply 

Listed options.14 The Exchange also 

proposes to amend this title consistently 

throughout the Fee Schedule. The 

Exchange also proposes to amend 

Section IV of the Exchange’s Fee 

Schedule, titled ‘‘PIXL Pricing,’’ to 

replace references to ‘‘Sector Index 

Options Fees and U.S. Dollar-Settled 

Foreign Currency Options’’ with the 

words ‘‘Singly Listed Options.’’ The 

Exchange is also proposing to amend 

the Table of Contents to reflect the 

proposed title for Section III, ‘‘Singly 

Listed Options.’’ 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Fee Schedule is 

consistent with Section 6(b) of the Act 15

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 16 in 

particular, in that it is an equitable 

allocation of reasonable fees and other 

charges among Exchange members and 

other persons using its facilities. 

The Exchange believes that the 

proposed fees for Singly Listed Options 

are equitable because the Exchange is 

seeking to recoup the operational costs 

for Singly Listed options, which costs 

are higher than those for Multiply Listed 

options.17 In addition, the Exchange 

believes that the proposed fees for 

Singly Listed options are equitable for 

the reasons specified below. 

Customers currently pay: (i) No 

transaction fee for equity options; (ii) a 

$.44 per contract fee for sector index 

options; and (iii) a $.44 per contract fee 

for U.S. Dollar-Settled foreign currency 

options. The Exchange is proposing to 

assess a $.35 per contract fee to 

Customers trading Singly Listed options 

which includes Currencies, equities, 

ETFs, Indexes and HOLDRS. Customers 

transacting Multiply Listed equity 

options, ETFs or HOLDRS are currently 

assessed no transaction fee and this 

would not change with this proposal. 

Customers who currently transact 

Singly Listed equity options, ETFs or 

HOLDRS would now pay $.35 per 

contract.18 The Exchange believes that 

this fee increase is equitable because the 

Exchange incurs a higher operational 

cost on Singly Listed options as 

compared to Multiply Listed options as 

described above. The Exchange believes 

that it is equitable to assess Customers 

$.35 per contract to transact Currencies 

and indexes, because today Customers 

pay $.44 per contract to transact these 

products. Customers would benefit from 

the lower fee. The Exchange is able to 

lower the fee by offsetting the costs with 

the fee increase to Customers who 

transact Singly Listed equity options, 

ETFs and HOLDRS. 

The Exchange believes that it is 

equitable to assess Specialists,19

Registered Options Traders,20 SQTs,21

and RSQTs 22 a transaction fee of $.35 

per contract to transact Singly Listed 

Currencies, equities, ETFs, indexes and 

HOLDRS. Market makers 23 today are 

assessed Equity Options Fees for 

transacting equity options, ETFs or 

HOLDRS ranging from $.10–$.25 per 

contract depending on whether the 

transaction is electronic 24 or nonelectronic, a Penny Pilot 25 or a nonPenny Pilot option or an option 

overlying RUT, RMN, MNX, NDX or 

BKX.26 The Exchange believes that it is 

equitable to assess market makers $.35 

per contract for transacting Singly 

Listed equities, ETFs and HOLDRs 

pursuant to the proposed fees in Section 

III, because such orders would not be 

subject to payment for order flow. 

Currently, equity option transactions, 

including options overlying equities, 

ETFs, HOLDRS, BKX, RUT, RMN, MNX 

and NDX, are subject to certain payment 

for order flow fees.27 The Exchange 

assesses Payment for Order Flow Fees of 

$.25 per contract for options trading in 

the Penny Pilot Program and $.70 per 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 57 / Thursday, March 24, 2011 / Notices 16649 

28There are no Payment for Order Flow Fees on 

trades that are not delivered electronically. 

29See Section II of the Exchange’s Fee Schedule. 

30See ISE’s Schedule of Fees. 

31See NYSE Arca’s Fee Schedule. 

32SPX refers to options on the Standard & Poor’s 

500 Index. 

33See ISE’s Schedule of Fees. 

34See NYSE Arca’s Fee Schedule. 

35See Exchange Rule 1014 titled ‘‘Obligations and 

Restrictions Applicable to Specialists and 

Registered Options Traders.’’ 

36See CBOE’s Fees Schedule. CBOE also assesses 

a surcharge fee of $0.10 for SPX which applies to 

all non-public customer transactions, including 

voluntary professionals, and professionals. 

37See NYSE Arca’s Fee Schedule. Presumably, 

this includes options only listed on NYSE Arca. 

38See Section II of the Exchange’s Fee Schedule. 

39See NYSE Arca’s Fee Schedule. 

40See NYSE Arca’s Fee Schedule. 

contract for all other equity options.28

The Exchange believes that it is 

equitable to assess market makers a 

higher rate for transacting Singly Listed 

equities, ETFs or HOLDRS because 

market makers would not be subject to 

Payment for Order Fees, as they are 

today and would continue to be under 

this proposal, when transacting 

Multiply Listed equities, ETFs or 

HOLDRS. The Exchange believes that 

increasing the fee assessed for indexes 

and Currencies from $.30 to $.35 per 

contract is equitable because as stated 

previously, the Exchange is seeking to 

recoup costs with respect to Singly 

Listed products. Additionally, the 

Exchange would be assessing the same 

fee on indexes and Currencies. 

The Exchange believes that it is 

equitable to assess Professionals, Firms 

and Broker-Dealers $.45 per contract to 

transact Singly Listed options including 

Currencies, equities, ETFs, indexes and 

HOLDRS. Currently, Professionals pay 

$.20 per contract to transact equities, 

ETFs and HOLDRS, $.35 per contract to 

transact indexes and $.30 per contract to 

transact Currencies. The Exchange 

believes that the proposed $.45 per 

contract Professional fee would be 

equitable because of the increased costs 

associated with Singly Listed options as 

explained above. 

Broker-Dealers today are assessed 

Equity Options Fees for transacting 

equity options, ETFs or HOLDRS 

ranging from $.10–$.45 per contract 

depending on whether the transaction is 

electronic or non-electronic, a Penny 

Pilot or non-Penny Pilot option or an 

option overlying RUT, RMN, MNX, 

NDX or BKX. The Exchange believes 

that the proposed Broker-Dealer fee of 

$.45 per contract is equitable because it 

is similar to the Exchange’s fees for 

electronic transactions in Penny Pilot 

and non-Penny Pilot options.29

Additionally, the Exchange believes that 

the proposed fee for both indexes and 

Currencies is equitable because the rates 

would remain the same as today. 

Finally, Firms today are assessed fees 

for transacting equities, ETFs and 

HOLDRS which range from $.10–$.25 

per contract. The Exchange believes that 

the proposed Firm fee of $.45 per 

contract is equitable because of the 

higher costs associated with Singly 

Listed options as compared to Multiply 

Listed options as explained above. The 

Exchange believes that the increased 

costs also form an equitable basis to 

increase both the Broker-Dealer fees to 

transact indexes and Currencies from 

$.30 to $.45 per contract. 

The Exchange believes that the 

proposed fees are reasonable because 

the fees are consistent with price 

differentiation that exists today at all 

option exchanges. Other exchanges 

today charge different rates as between 

Multiply Listed products and Singly 

Listed products. For example, the 

Internal Securities Exchange, LLC 

(‘‘ISE’’) assesses different fees for 

Customers who transact Multiply Listed 

options, indexes, ETFs and FX Options 

($.00) as compared to Customers who 

transact Singly Listed indexes, ETFs and 

FX Options ($.18).30

The Exchange believes that the 

Customer rate of $.35 per contract for 

Singly Listed Currencies, equities, ETFs 

and HOLDRS is reasonable because it is 

less than Customer rates assessed by 

NYSE Arca, Inc. (‘‘NYSE Arca’’), where 

a Customer electronically executing a 

Penny Pilot option or a foreign currency 

option is assessed a fee of $.45 per 

contract.31 The Exchange believes that 

the Customer rate of $.35 per contract 

for Singly Listed indexes is reasonable 

because it is less than the rate assessed 

by ISE for SPX 32 of $.44 per contract.33

The Exchange believes that the 

proposed rate of $.45 per contract for 

Singly Listed Currencies, equities, ETFs, 

indexes and HOLDRS for Professionals 

and Firms is reasonable, because the 

Exchange is proposing to assess Firms 

and Professionals the same rate assessed 

on Broker-Dealers today. NYSE Arca 

assesses Firms that electronically 

execute foreign currency options an 

equity options transaction fee of $.45 

plus a royalty fee of $.10 per contract.34

The Exchange believes it is reasonable 

to assess a Professional a per contract 

fee of $.45 per contract for transacting 

Singly Listed Currencies because the 

Exchange is assessing all market 

participants, except Customers and 

market makers, the same rate to transact 

Singly Listed Currencies. The Exchange 

believes that the price differentiation 

between market makers as compared to 

Firms, Broker-Dealers and Specialists is 

justified because market makers have 

obligations to the market, which do not 

apply to Firms, Professionals and 

Broker-Dealers.35 The Exchange believes 

that assessing Customers a lower rate to 

transact Singly Listed indexes is 

reasonable because all market 

participants benefit from Customer 

order flow. 

The Exchange believes that its 

proposed rate of $.45 per contract for 

Singly Listed indexes is reasonable 

because the Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’) 

assesses a Firm and a Professional $.40 

per contract for trading SPX.36 The 

Exchange believes that assessing Firms 

and Professionals $.45 per contract in 

Singly Listed equities, ETFs and 

HOLDRs is reasonable because NYSE 

Arca assesses Firms and Broker-Dealers 

$.50 per contract for equities, ETFs and 

HOLDRs that are not in the Penny 

Pilot.37 The Exchange is not amending 

the rates it assesses Broker-Dealers for 

Singly Listed indexes and equities. The 

rate for Singly Listed equities, ETFs and 

HOLDRs is the same rate the Exchange 

assesses Broker-Dealers transacting 

electronic Penny Pilot and non-Penny 

Pilot orders today.38 The Exchange 

believes that assessing Customers a 

lower rate to transact Singly Listed 

indexes is reasonable because it would 

increase Customer order flow to the 

Exchange and such increased liquidity 

would benefit all market participants. 

Finally, the Exchange believes that 

assessing market makers a fee of $.35 

per contract for Singly Listed Currencies 

is reasonable because it is lower than 

the fee of $.45 plus a royalty fee of $.10 

per contract that NYSE Arca assesses 

market makers that electronically 

execute foreign currency options.39 The 

Exchange is not amending the fees 

assessed on market makers transacting 

Singly Listed indexes. The Exchange 

believes that it is reasonable to assess 

market makers a $.35 per contract fee for 

equities, ETFs and HOLDRs because 

NYSE Arca assesses market makers $.45 

per contract to electronically execute 

Penny Pilot options.40

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. 


emcdonald on DSK2BSOYB1PROD with NOTICES
16650 Federal Register / Vol. 76, No. 57 / Thursday, March 24, 2011 / Notices 

41 15 U.S.C. 78s(b)(3)(A)(ii). 

42 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3Shortly after the filing of the proposed rule 

change, the Exchange withdrew an earlier proposal 

relating to the non-anonymity of Directed Orders 

(SR–BSE–2005–52). See Securities Exchange Act 

Release No. 53357 (February 23, 2006), 71 FR 10730 

(March 2, 2006) (SR–BSE–2005–52). 

4See Securities Exchange Act Release No. 63539 

(December 14, 2010), 75 FR 79429 (‘‘Notice’’). 

5See Chapter V, Section 18 of the BOX Rules. 

6See Chapter VI, Section 5(c)(i) of the BOX Rules. 

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.41 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. 

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 rulecomments@sec.gov. Please include File 

Number SR–Phlx-2011–34 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–2011–34. 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, 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 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 offices 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-2011–34, and should 

be submitted on or before April 14, 

2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.42

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–6908 Filed 3–23–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64097; File No. SR–BX– 

2010–079] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Order 

Approving Proposed Rule Change To 

Amend Chapter IV of the BOX Rules To 

Allow Executing Participants To 

Provide BOX a List of the Order Flow 

Providers for Which the Executing 

Participants Will Provide Directed 

Order Services 

March 18, 2011. 

I. Introduction 

On December 3, 2010, NASDAQ OMX 

BX, Inc. (the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposal to amend the 

rules governing its Directed Order 

process to: (i) Allow an Executing 

Participant (‘‘EP’’) to provide BOX a list 

of the Order Flow Providers (‘‘OFPs’’) for 

which the EP will provide Directed 

Order services and (ii) provide that BOX 

would reveal to the EP the participant 

ID of the OFP sending the Directed 

Order.3 The proposed rule change was 

published for comment in the Federal 

Register on December 20, 2010.4 The 

Commission received no comments on 

the proposal. This order approves the 

proposal. 

II. Description of the Proposal 

Under the BOX’s Directed Order 

process, Market Makers on BOX are able 

to handle orders on an agency basis 

directed to them by OFPs. An OFP 

sends a Directed Order to BOX with a 

designation of the Market Maker to 

whom the order is to be directed. BOX 

then routes the Directed Order to the 

appropriate Market Maker. Under 

Chapter VI, Section 5(c)(ii) of the BOX 

Rules, a Market Maker only has two 

choices when receiving a Directed 

Order: (1) Submit the order to the Price 

Improvement Period auction process 

(‘‘PIP’’); 5 or (2) send the order back to 

BOX for placement onto the BOX Book. 

A Market Maker who desires to accept 

Directed Orders must systemically 

indicate that it is an EP whenever the 

Market Maker wishes to receive 

Directed Orders from the BOX Trading 

Host. If a Market Maker does not 

systemically indicate that it is an EP, 

then the BOX Trading Host will not 

forward any Directed Orders to that 

Market Maker. In such a case, the BOX 

Trading Host will send the order 

directly to the BOX Book. If a Market 

Maker has systemically indicated that it 

wishes to receive Directed Orders, it 

shall not, under any circumstances, 

reject the receipt of a Directed Order 

from the BOX Trading Host nor reject 

the Directed Order back to the OFP who 

sent it.6

The Exchange proposes to amend 

Chapter VI, Section 5(c)(i) of the BOX 

Rules to allow EPs to provide BOX a list 

of OFPs for which the EP will provide 

Directed Order services. Under the 

proposal, prior to accepting any 

Directed Order through the Trading 

Host, an EP must inform BOX of the 

OFPs from whom it has agreed to accept 

Directed Orders (‘‘Listed OFPs’’ or 

‘‘LOFPs’’). The Trading Host will then 

only send to the EP Directed Orders 

from LOFPs. Further, under the 

proposal, the BOX Trading Host would 


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