21078 Federal Register / Vol. 76, No. 72 / Thursday, April 14, 2011 / Notices 

16 15 U.S.C. 78s(b)(3)(A). 17 17 CFR 19b–4(f)(2). 

18The text of the proposed rule change is 

available on Exchange’s Web site at http:// 

www.directedge.com, on the Commission’s Web site 

at http://www.sec.gov, at EDGA, and at the 

Commission’s Public Reference Room. 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3RMN represents options on the one-tenth value 

Russell 2000® Index (the ‘‘Reduced Value Russell 

Index’’ or ‘‘RMN’’). 

applies uniformly to all Members. Based 

on these comparisons, the Exchange 

believes that the rate is reasonable as it 

is line with the fees assessed by BATS 

BZX Exchange. 

The Exchange notes that it operates in 

a highly competitive market in which 

market participants can readily direct 

order flow to competing venues if they 

deem fee levels at a particular venue to 

be excessive. The proposed rule change 

reflects a competitive pricing structure 

designed to incent market participants 

to direct their order flow to the 

Exchange. The Exchange believes the 

fees and credits remain competitive 

with those charged by other venues and 

therefore continue to be reasonable and 

equitably allocated to Members. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose any burden on competition that 

is 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 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

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) of 

the Act 16 and Rule 19b–4(f)(2) 17

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–EDGA–2011–10 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–EDGA–2011–10. 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,18 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–EDGA– 

2011–10 and should be submitted on or 

before May 5, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–9045 Filed 4–13–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64286; File No. SR–Phlx– 

2011–50] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Singly Listed and Multiply Listed 

Indexes 

April 8, 2011. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 2 thereunder, 

notice is hereby given that on April 8, 

2011, NASDAQ OMX PHLX LLC (‘‘Phlx’’ 

or ‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘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 the 

Exchange’s Fee Schedule to discontinue 

assessing an Options Surcharge Fee for 

RMN.3

The Exchange also proposes to 

remove specific symbol references to 

certain indexes in the title of Section II 

of the Exchange’s Fee Schedule 

captioned, ‘‘Equity Options Fees 

(Includes options overlying equities, 

ETFs, ETNs, HOLDRS, BKX, RUT, RMN, 

MNX, NDX which are Multiply Listed)’’ 

and instead substitute the word 

‘‘indexes.’’ The Exchange proposes to 

make other conforming changes in the 

Fee Schedule. 

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 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 76, No. 72 / Thursday, April 14, 2011 / Notices 21079 

4RMN recently became a Singly Listed index 

option. The Exchange assesses higher fees for 

Singly Listed options as there are increased costs 

associated with those products. 

5RUT represents the options on the Russell 

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

‘‘RUT’’). 

6MNX represents options on the one-tenth value 

of the Nasdaq 100 Index traded under the symbol 

MNX (‘‘MNX’’). 

7NDX represents options on the Nasdaq 100 

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

8An 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. 

9A RSQT is defined Exchange Rule in 

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. 

10BKX represents the KBW Bank Index. 

11RMN recently became a Singly Listed index 

option. This proposed amendment would remove 

RMN from Section II of the Fee Schedule as well 

as the other specifically named index symbols and 

instead refer to indexes generally. 

12 15 U.S.C. 78f(b). 

13 15 U.S.C. 78f(b)(4). 

14See Section III of the Fee Schedule titled 

‘‘Singly Listed Options (Includes options overlying 

currencies, equities, ETFs, ETNs, indexes and 

HOLDRS not listed on another exchange), where the 

broader term ‘‘indexes’’ is utilized. 15 15 U.S.C. 78s(b)(3)(A)(ii). 

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 discontinue assessing an 

Options Surcharge for RMN because 

that index is no longer Multiply Listed 

and the license fee costs would be 

absorbed in the fees assessed on Singly 

Listed products.4 The Exchange 

currently assesses an Options Surcharge 

for RUT,5 RMN, MNX 6 and NDX 7 of 

$.15 per contract for Specialists, ROTs, 

SQTs 8 and RSQTs,9 Broker Dealers and 

Firms. The Exchange will continue to 

assess an Options Surcharge for RUT, 

MNX, NDX and BKX. 

The purpose of this rule change is 

also to make the title of Section II of the 

Fee Schedule more general to address 

when a particular option switches from 

a Multiply Listed to a Singly Listed 

product. Specifically, the Exchange is 

amending Section II of the Fee 

Schedule, titled ‘‘Equity Options Fees 

(Includes options overlying equities, 

ETFs, ETNs, HOLDRS, BKX, RUT, RMN, 

MNX, NDX which are Multiply Listed)’’ 

to ‘‘Equity Options Fees (Includes 

options overlying equities, ETFs, ETNs, 

indexes and HOLDRS, which are 

Multiply Listed).’’ The Exchange is 

proposing to remove specific references 

to certain index symbols, namely 

BKX,10 RUT, RMN, MNX and NDX, in 

the heading and instead use the broader 

term ‘‘indexes’’ in order to account for a 

circumstance where one of these named 

index options becomes Singly Listed.11

The broader term ‘‘indexes’’ would 

clarify that only index options that are 

Multiply Listed would be assessed the 

fees in Section II. Index options that are 

Singly Listed options would continue to 

be assessed the fees in Section III, which 

applies to options overlying currencies, 

equities, ETFs, ETNs, indexes and 

HOLDRs not listed on another exchange. 

The Exchange is proposing to make 

this change in the Preface Section of the 

Fee Schedule as well as references to 

Section II fees in Section IV, titled ‘‘PIXL 

Pricing.’’ 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Fee Schedule is 

consistent with Section 6(b) of the Act 12

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 13 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 not assess an Options 

Surcharge on RMN, a Singly Listed 

index option, because the license costs, 

which are recouped by the Options 

Surcharge Fee, are absorbed in the 

higher fees assessed to Singly Listed 

index options. 

The Exchange believes that it is 

reasonable to remove the specific 

references to certain index symbols and 

instead insert the reference to ‘‘indexes’’ 

because the reference to the category of 

products is consistent with the 

remainder of the Fee Schedule 14 and 

more accurately describes the category 

of products applicable to Section II of 

the Fee Schedule. 

The Exchange believes that the 

proposals to not assess an Options 

Surcharge on RMN and remove specific 

references to index symbols and insert 

the reference to ‘‘indexes’’ are equitable 

because these proposals would 

uniformly apply to members and 

member organizations trading Singly 

Listed and Multiply Listed products. 

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–2011–50 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-2011–50. 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 

mstockstill on DSKH9S0YB1PROD with NOTICES

21080 Federal Register / Vol. 76, No. 72 / Thursday, April 14, 2011 / Notices 

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Phlx XL II is the Exchange’s electronic options 

trading platform. 

4PSX is the Exchange’s cash equities market 

electronic trading platform. 

5An MPID is a four-letter code used by a member 

to categorize its trading activity for a specific 

purpose. 

6See Exchange Rule 1094 titled Sponsored 

Participants. A Sponsored Participant may obtain 

authorized access to the Exchange only if such 

access is authorized in advance by one or more 

Sponsoring Member Organizations. Sponsored 

Participants must enter into and maintain 

participant agreements with one or more 

Sponsoring Member Organizations establishing a 

proper relationship(s) and account(s) through 

which the Sponsored Participant may trade on the 

Exchange. 

7See Securities Exchange Act Release No. 63569 

(December 17, 2010), 75 FR 81323 (December 27, 

2010) (SR–Phlx–2010–178). 

8See Securities Exchange Act Release No. 63351 

(November 19, 2010), 75 FR 73140 (November 29, 

2010) (SR–Phlx–2010–54). 

9See Securities Exchange Act Release No. 63351 

(November 19, 2010), 75 FR 73140 (November 29, 

2010) (SR–Phlx–2010–54). 

10See Securities Exchange Act Release No. 63351 

(November 19, 2010), 75 FR 73140 (November 29, 

2010) (SR–Phlx–2010–54). 

11These members and member organizations 

would not be assessed an Application Fee or 

Initiation Fee because they are already Exchange 

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– 

2011–50 and should be submitted on or 

before May 5, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Cathy Ahn, 

Deputy Secretary. 

[FR Doc. 2011–9073 Filed 4–13–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64265; File No. SR–Phlx– 

2011–43] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX LLC Relating to Permit 

Fees 

April 8, 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 April 1, 

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 the 

Exchange’s Fee Schedule to waive 

Permit Fees for existing Exchange 

members or member organizations that 

cease to conduct an options business, 

but continue to conduct an equities 

business. 

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 extend the waiver of Permit 

Fees to existing members or member 

organizations that cease to conduct an 

options business on Phlx XL II,3 but 

continue to conduct business on 

NASDAQ OMX PSX (‘‘PSX’’) 4 under a 

market participant identifier (‘‘MPID’’) 5

registered to the member or member 

organization. The Exchange is proposing 

this waiver to incentivize existing 

members and member organizations to 

continue to transact an equities business 

at the Exchange. 

The Exchange currently assesses 

members and member organizations 

who are transacting business on the 

Exchange a Permit Fee of $1,100 per 

month. The Exchange assesses members 

and member organizations who are not 

transacting business on the Exchange a 

Permit Fee of $7,500 per month. A 

member or member organization would 

not be assessed the $7,500 Permit Fee 

for not transacting business on the 

Exchange if that member is either: (i) 

Solely a PSX Participant or (ii) engaged 

in any options business at the Exchange 

in a particular month. If the Exchange 

member or member organization meets 

the exemption criteria related to the 

$7,500 Permit Fee, the member or 

member organization would be assessed 

the $1,100 Permit Fee. In addition, a 

member or member organization that 

sponsors an options participant 6 would 

pay an additional Permit Fee for each 

sponsored options participant.7

At the time PSX began operations in 

October 2010, the Exchange filed a rule 

change to waive the Application Fee, 

Initiation Fee, Permit Fee and Account 

Fee for applicants applying to 

participate in PSX (‘‘October 2010 Rule 

Change’’).8 The October 2010 Rule 

Change applied the waivers to new 

Exchange members applying solely to 

participate in PSX.9 Also, the October 

2010 Rule Change did not apply the 

waivers to an applicant seeking 

approval to participate solely in the 

options market, or to an applicant 

seeking to participate in both the 

equities and the options markets.10

Finally, the October 2010 Rule Change 

did not apply the waivers to members 

or member organizations that ceased 

their options operations, but remained 

solely as PSX Participants. 

This filing proposes to extend the 

October 2010 Rule Change waiver of the 

Permit Fee to those Exchange members 

and member organizations that cease an 

options business, but continue to 

conduct an equities business.11

mstockstill on DSKH9S0YB1PROD with NOTICES