Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices 2733 

10 15 U.S.C. 78s(b)(2). 

11The Comission notes that it is extending the 

time period in which to issue an approval or 

disapproval order to March 11, 2011, since the full 

60-day extension would expire on Saturday, March 

12, 2011. 

12 17 CFR 200.30–3(a)(57). 

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

2 17 CFR 240.19b–4. 

3For a complete description of Phlx XL II, see 

Securities Exchange Act Release No. 59995 (May 

28, 2009), 74 FR 26750 (June 3, 2009) (SR–Phlx– 

2009–32). The instant proposed fees will apply only 

to option orders entered into, and routed by, the 

Phlx XL II system. 

4Select Symbols refer to the symbols which are 

subject to ISE’s Rebates and Fees for Adding and 

Removing Liquidity in Select Symbols in ISE’s 

Schedule of Fees. 

5See SR–ISE–2010–120. 

6See Securities Exchange Act Release No. 59995 

(May 28, 2009), 74 FR 26750 (June 3, 2009) (SR– 

Phlx–2009–32). 

7See SR–ISE–2010–120. See also E-mail from 

Angela S. Dunn, Assistant General Counsel, Phlx, 

to Johnna B. Dumler, Special Counsel, Commission, 

dated January 5, 2011. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(4). 

Guard, and the length of the trading halt 

that results, differ from those of the 

recently approved, market-wide singlestock circuit breakers, the Commission 

believes the proposal raises issues as to 

whether the operation of the Volatility 

Guard will interfere with, or otherwise 

limit the effectiveness of, the circuit 

breakers, the goal of which is to prevent 

potentially destabilizing price volatility 

across the U.S. securities markets. 

Extending the time within which to 

approve or disapprove this proposed 

rule change will enable the Commission 

to more fully consider these issues. 

Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the 

Act,10 designates March 11, 2011, as the 

date by which the Commission should 

either approve or disapprove the 

proposed rule change.11

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–771 Filed 1–13–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63679; File No. SR–Phlx– 

2010–187] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Routing Fees 

January 7, 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 December 

29, 2010, NASDAQ OMX PHLX, Inc. 

[sic] (‘‘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 

fees governing pricing for Exchange 

members using the Phlx XL II system,3

for routing standardized equity and 

index option Customer and Professional 

orders to away markets for execution. 

While fee changes pursuant to this 

proposal are effective upon filing, the 

Exchange has designated these changes 

to be operative on January 3, 2011. 

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, at the 

Commission’s Public Reference Room, 

and on the Commission’s Web site at 

http://www.sec.gov. 

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 purpose of the proposed rule 

change is to recoup costs that the 

Exchange incurs for routing and 

executing Customer and Professional 

orders in equity and index options to 

the International Securities Exchange 

LLC (‘‘ISE’’) in Select Symbols 4 for 

orders of 100 or more contracts. ISE 

recently amended its fees and the 

amendments proposed herein reflect the 

proposed ISE amendments.5

In May 2009, the Exchange adopted 

Rule 1080(m)(iii)(A) to establish Nasdaq 

Options Services LLC (‘‘NOS’’), a 

member of the Exchange, as the 

Exchange’s exclusive order router.6 NOS 

is utilized by the Phlx XL II system 

solely to route orders in options listed 

and open for trading on the Phlx XL II 

system to destination markets. 

Currently, the Exchange assesses a 

Routing Fee of $0.26 per contract for 

Customer orders and $0.31 per contract 

for Professional orders. The Exchange 

proposes to amend its Routing Fees for 

orders routed to ISE in Select Symbols 

by assessing $0.18 per contract for 

Customer orders and $0.34 per contract 

for Professional Orders. 

The Exchange also proposes to 

remove a footnote reference to the ISE 

Select Symbols which states ‘‘[t]his fee 

applies to orders of 100 or more 

contracts.’’ This proposal reflects recent 

amendments to ISE’s fees, which 

eliminate the fee differential between 

priority customers with 100 or more 

contracts and priority customers with 

less than 100 contracts.7 All other 

orders that are routed to ISE, which are 

not in the Select Symbols, would be 

assessed the rates labeled ‘‘ISE’’. 

The Exchange is proposing these fees 

to recoup the majority of transaction 

and clearing costs associated with 

routing Customer and Professional 

orders to ISE in Select Symbols. These 

proposed fees will enable the Exchange 

to recover the transaction fees assessed 

by ISE, where applicable, plus clearing 

fees for the execution of Customer and 

Professional orders routed from the Phlx 

XL II system. As with all fees, the 

Exchange may adjust these Routing Fees 

in response to competitive conditions 

by filing a new proposed rule change. 

While fee changes pursuant to this 

proposal are effective upon filing, the 

Exchange has designated these changes 

to be operative on January 3, 2011. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Fee Schedule is 

consistent with Section 6(b) of the Act 8

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 9 in particular, 

in that it is an equitable allocation of 

reasonable fees and other charges among 

Exchange members. The Exchange 

believes that these fees are reasonable 

because the Exchange is seeking to 

recoup costs that it incurs when routing 

orders to ISE in Select Symbols on 

mstockstill on DSKH9S0YB1PROD with NOTICES

2734 Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices 

10 15 U.S.C. 78s(b)(3)(A)(ii). 

11 17 CFR 240.19b–4(f)(2). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5A Member is any registered broker or dealer that 

has been admitted to membership in the Exchange. 

behalf of its members. The Exchange 

believes that the proposed fee 

amendments are equitable because these 

amendments mirror recent proposed 

amendments to ISE’s Schedule of Fees 

and are being uniformly applied to the 

Exchange’s 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 10 and 

paragraph (f)(2) of Rule 19b–4 11

thereunder. At any time within 60 days 

of the filing of such 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. 

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–2010–187 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–2010–187. 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, 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–2010– 

187 and should be submitted on or 

before February 4, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–716 Filed 1–13–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63663; File No. SR–BATS– 

2011–001] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Related to Fees for Use 

of BATS Exchange, Inc. 

January 6, 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 January 4, 

2011, BATS Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BATS’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Exchange has designated the proposed 

rule change as one establishing or 

changing a member due, fee, or other 

charge imposed by the Exchange under 

Section 19(b)(3)(A)(ii) of the Act 3 and 

Rule 19b–4(f)(2) thereunder,4 which 

renders the proposed rule change 

effective upon filing with the 

Commission. 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 modify its 

fee schedule applicable to Members 5 of 

the Exchange pursuant to BATS Rules 

15.1(a) and (c). Changes to the fee 

schedule pursuant to this proposal will 

be effective upon filing. 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at http://www.batstrading.com, 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 parts 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 proposes to modify its 

fee schedule applicable to use of the 

Exchange effective January 4, 2011, in 

order to: (i) Amend the fees for certain 

routing strategies based on a change of 

fees at the New York Stock Exchange 

(‘‘NYSE’’); and (ii) remove reference to a 

routing strategy called ‘‘Dark Scan’’ that 

the Exchange has ceased offering. 

mstockstill on DSKH9S0YB1PROD with NOTICES