18814 Federal Register / Vol. 76, No. 65 / Tuesday, April 5, 2011 / Notices 

5HOLDRS are Holding Company Depository 

Receipts. 

6BKX represents the KBW Bank Index. 

7RUT represents the options on the Russell 

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

‘‘RUT’’). 

8RMN represents options on the one-tenth value 

Russell 2000® Index 8 (the ‘‘Reduced Value Russell 

Index’’ or ‘‘RMN’’). 

9MNX represents options on the one-tenth value 

of the Nasdaq 100 Index traded under the symbol 

MNX (‘‘MNX’’). 

10NDX represents options on the Nasdaq 100 

Index 10 traded under the symbol NDX (‘‘NDX’’). 

11This 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.’’ 

12See Securities Exchange Act Release No. 62579 

(July 28, 2010), 75 FR 47329 (August 5, 2010) (SR– 

CBOE–2010–068). 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(4). 15 15 U.S.C. 78s(b)(3)(A)(ii). 

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

sections. Section II of the Exchange’s 

Fee Schedule currently states that it 

includes options overlying equities, 

ETFs, HOLDRS,5 BKX,6 RUT,7 RMN,8

MNX 9 and NDX.10 Section III of the 

Exchange’s Fee Schedule currently 

states that it includes options overlying 

currencies, equities, ETFs, indexes and 

HOLDRS not listed on another 

exchange. The Exchange is proposing to 

add ETNS to both Sections II and III and 

assess the same rates that are currently 

assessed ETFs and other equity options 

today. 

The Exchange is not proposing to 

amend any fees.11 The Exchange would 

apply the same rates that apply to ETFs 

today to ETNs. A similar proposal was 

filed by the Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’) to 

apply the ETF rates to ETNs and include 

references to ETNs in the fee schedule.12

The Exchange is also proposing to 

make conforming amendments to the 

Table of Contents and Section IV, titled 

PIXL Pricing, of the Fee Schedule. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Fee Schedule is 

consistent with Section 6(b) of the Act 13

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 14 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 it is 

reasonable to add ETNs specifically to 

Sections II and III because it would 

codify the Exchange’s existing practice 

of assessing fees for ETN options in a 

manner similar to ETF options. This 

proposal would add clarity to the 

Exchange’s Fee Schedule. 

The Exchange believes that it is 

equitable because the fees in Sections II 

and III would be uniformly applied to 

all market participants transacting 

equity options in symbols other than 

those listed in Section I of the Fee 

Schedule. 

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.15 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-2011–38 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-2011–38. 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 the 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-2011–38 and should 

be submitted on or before April 26, 

2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–7978 Filed 4–4–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64151; File No. SR–Phlx2011–40] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX LLC Relating to Rebates 

and Fees for Adding and Removing 

Liquidity in Select Symbols 

March 30, 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 24, 

2011, NASDAQ OMX PHLX LLC (‘‘Phlx’’ 

or ‘‘Exchange’’) filed with the Securities 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 76, No. 65 / Tuesday, April 5, 2011 / Notices 18815 

3The term ‘‘Select Symbols’’ refers to the symbols 

which are subject to the Rebates and Fees for 

Adding and Removing Liquidity in Section I of the 

Exchange’s Fee Schedule. 

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

5 15 U.S.C. 78f(b)(4). 6 15 U.S.C. 78s(b)(3)(A)(ii). 

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 

Section I of the Exchange’s Fee 

Schedule titled ‘‘Rebates and Fees for 

Adding and Removing Liquidity in 

Select Symbols,’’ specifically to amend 

the Select Symbols.3

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 

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 amend the list of Select 

Symbols in Section I of the Exchange’s 

Fee Schedule, titled ‘‘Rebates and Fees 

for Adding and Removing Liquidity in 

Select Symbols’’ in order to attract 

additional order flow to the Exchange. 

The Exchange displays a list of Select 

Symbols in its Fee Schedule at Section 

I, ‘‘Rebates and Fees for Adding and 

Removing Liquidity in Select Symbols,’’ 

that are subject to the rebates and fees 

in that section. Among those symbols is 

ON Semiconductor Corp (‘‘ONNN’’), 

which the Exchange is proposing to 

remove from the list of Select Symbols. 

The Exchange is also proposing to add 

Silver Wheaton Corp. (‘‘SLW’’) to the list 

of Select Symbols in Section I. 

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. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Fee 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 and other persons 

using its facilities. 

The Exchange believes that it is 

reasonable to remove ONNN from its list 

of Select Symbols and add SLW to its 

list of Select Symbols to attract 

additional order flow to the Exchange. 

The Exchange anticipates that the 

addition of SLW to Section I of the Fee 

Schedule would attract market 

participants to transact equity options at 

the Exchange because of the available 

rebates. In addition, the Exchange 

believes that applying the fees in 

Section II to ONNN, including the 

opportunity to receive payment for 

order flow, would also attract order flow 

to the Exchange. 

The Exchange believes that it is 

equitable to amend the list of Select 

Symbols by removing ONNN and 

adding SLW because the list of Select 

Symbols would apply uniformly to all 

categories of participants in the same 

manner. All market participants who 

trade the Select Symbols would be 

subject to the rebates and fees in Section 

I of the Fee Schedule. Also, all market 

participants would be uniformly subject 

to the fees in Section II. 

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. 

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–2011–40 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-2011–40. 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 website (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 


srobinson on DSKHWCL6B1PROD with NOTICES
18816 Federal Register / Vol. 76, No. 65 / Tuesday, April 5, 2011 / Notices 

7 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(7). 

2 7 U.S.C. 7a–2(c). 

3See Securities Exchange Act Release No. 62582 

(July 28, 2010), 75 FR 47039 (August 4, 2010) 

(Notice of Filing and Immediate Effectiveness of a 

Proposed Rule Change by OneChicago, Amending 

Rule 419(a), Regulatory Halts) (SR–OC–2010–03). 

4See Securities Exchange Act Release No. 60143 

(June 19, 2009), 74 FR 30345 (June 25, 2009) (Notice 

of Filing and Immediate Effectiveness of a Proposed 

Rule Change Widening the Bid/Ask Spread for 

Quoting Market-Makers) (SR–OC–2009–02). 

5See Securities Exchange Act Release No. 59744 

(April 9, 2009), 74 FR 17706 (April 16, 2009) 

(Notice of Filing and Immediate Effectiveness of a 

Proposed Rule Change Eliminating the $3 Market 

Price Maintenance Standard) (SR–OC–2009–01). 

6See Securities Exchange Act Release No. 54454 

(September 15, 2006), 71 FR 5539 (September 22, 

2006) (Notice of Filing and Immediate Effectiveness 

of a Proposed Rule Change Relating to Listing 

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 website 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 the 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– 

2011–40 and should be submitted on or 

before April 26, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–7979 Filed 4–4–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64152; File No. SR–CFE– 

2011–001] 

Self-Regulatory Organizations; CBOE 

Futures Exchange, LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Amend 

Certain Rules Relating to Listing and 

Trading Security Futures 

March 30, 2011. 

Pursuant to Section 19(b)(7) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

March 18, 2011, CBOE Futures 

Exchange, LLC. (‘‘CFE’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change described in 

Items I, II, and III below, which Items 

have been prepared by CFE. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. CFE 

also filed this proposed rule change 

concurrently with the Commodity 

Futures Trading Commission (‘‘CFTC’’). 

CFE filed a written certification with the 

CFTC under Section 5c(c) of the 

Commodity Exchange Act (‘‘CEA’’) 2 on 

March 18, 2011. 

I. Self-Regulatory Organization’s 

Description of the Proposed Rule 

Change 

The Exchange proposes to amend 

certain rules relating to the listing and 

trading of security futures on the 

Exchange. The changes are being 

proposed to conform certain CFE rules 

to current parallel rules of OneChicago, 

LLC (‘‘OCX’’). The text of the proposed 

rule change is available on the 

Exchange’s Web site at http:// 

www.cfe.cboe.com, on the Commission’s 

Web site at http://www.sec.gov, 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, CFE 

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. CFE 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 this proposed rule is 

to amend certain rules governing the 

listing and trading of security futures on 

the Exchange. The changes are being 

made to conform certain CFE rules to 

current parallel rules of OCX. 

Regulatory Halt Amendments 

CFE is proposing to amend Rule 417 

by adding provisions for regulatory 

halts. OCX made a similar rule change 

to make clear that a ‘‘regulatory halt’’ 

applies not only to the suspending of all 

trading in equity securities on the 

underlying national securities exchange 

but also to a trading pause on an 

individual underlying equity security 

that has been imposed by the rules of 

the national securities exchange.3 CFE is 

also proposing to amend CFE Policy and 

Procedure III by adding a crossreference to Rule 417 and setting forth 

the ability of the help desk to bust any 

trade in a Single Stock Future or in a 

Narrow-Based Index Future that occurs 

after the time a regulatory halt is 

instituted and before trading has been 

resumed in the affected Single Stock 

Future or Narrow-Based Index Future. 

Change Quoting Requirements for 

Market Makers 

CFE is proposing to amend Rule 517 

and CFE Policy and Procedure VII to 

change the quoting requirements for 

Market Makers. Presently, a market 

maker, when providing quotations, 

quotes with a maximum bid/ask spread 

of no more than the greater of $0.20 (the 

‘‘20 Cent Spread’’) of 150 percent of the 

bid/ask spread in the primary market for 

the security underlying the Security 

Future. The proposed rule change will 

raise the 20 Cent Spread to $5. This 

change will be affected by amending 

subparagraph (n) to Rule 517 and 

subparagraph C to CFE Policy and 

Procedure VII. OCX made a similar rule 

change raising its 20 Cent Spread to $5, 

which was nearly identical to one 

approved by the SEC for security 

options.4

Maintenance Standard Amendments 

First, CFE is proposing to amend CFE 

Policy and Procedure VIII by 

eliminating the $3 market price 

maintenance standard. This change will 

be affected by deleting subparagraph 

B.1.(v) to CFE Policy and Procedure 

VIII. OCX made a similar rule change 

eliminating the $3 market price per 

share requirement, which was nearly 

identical to one approved by the SEC for 

security options.5

Second, CFE is proposing to eliminate 

the prohibition against opening trading 

in a Single Stock Future with a new 

delivery month unless the issuer of the 

underlying satisfies applicable 

Exchange Act reporting requirements, or 

corrects any failure within 30 days after 

the date the report was due to be filed. 

This change will be affected by deleting 

subparagraph B.2.(i) to CFE Policy and 

Procedure VIII. OCX made a similar rule 

change eliminating this maintenance 

requirement, which was nearly identical 

to one approved by the SEC for security 

options.6


srobinson on DSKHWCL6B1PROD with NOTICES