Federal Register / Vol. 76, No. 72 / Thursday, April 14, 2011 / Notices 21081 

members or member organizations and have 

previously paid those fees. In addition, the monthly 

Account Fee would not be applicable to PSX 

Participants as MPIDs are used to identify member 

firms’ participation, not account numbers. 

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

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

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

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange’s Order and Decorum regulations 

are part of the Exchange’s Options Floor Procedure 

Advices (‘‘OFPAs’’ or Advices’’), which may 

correspond to Exchange rules, and contain the 

Exchange’s minor rule plan (‘‘MRP’’ or ‘‘Minor Rule 

Plan’’) in respect of options trading. The Minor Rule 

Plan consists of Advices with preset fines, pursuant 

to Rule 19d–1(c) under the Act. 17 CFR 240.19d– 

1(c). The Exchange is not, by this filing, amending 

the fine schedule for Regulation 6 in OFPA. 

Similarly to OFPAs, the Exchange also has Equity 

Floor Procedure Advices (‘‘EFPAs’’) in respect of 

equity trading, which are not amended by this 

filing. 

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 lower fees as an incentive 

for existing Exchange members and 

member organizations to continue to 

transact business on PSX, even after 

closing their options operations. 

The Exchange believes that the 

proposal is equitable because the waiver 

applies uniformly to any existing 

members and member organizations that 

cease options trading on the Exchange, 

but determine to remain active PSX 

Participants. 

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.14 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–2011–43 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–2011–43. 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– 

2011–43 and should be submitted on or 

before May 5, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8924 Filed 4–13–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64284; File No. SR–Phlx– 

2011–48] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Update 

Provisions Regarding the Dress Code 

and Trade Verification 

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 6, 

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 is filing with the 

Commission a proposal to amend Phlx 

Rule 1054 (Verification of Contracts and 

Reconciliation of Uncompared Trades) 

and Regulation 6 (Dress) of Rule 60 

(Order and Decorum Code) 3 to delete 

obsolete provisions and update and 

modernize these sections. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqomxphlx.cchwallstreet.

com/NASDAQOMXPHLX/Filings/, at 

the principal office of the Exchange, and 

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21082 Federal Register / Vol. 76, No. 72 / Thursday, April 14, 2011 / Notices 

4Order and Decorum regulations relate to 

administration of health, safety, welfare and general 

order and decorum on the Exchange. 

5See Securities Exchange Act Release No. 27072 

(August 8, 1989), 54 FR 32550 (SR–Phlx–89–41) 

(notice of filing and immediate effectiveness). 

6See Securities Exchange Act Release No. 28499 

(October 10, 1990), 55 FR 41290 (SR–Phlx–90–29) 

(approval order). 

7See Securities Exchange Act Release No. 55492 

(March 20, 2007), 72 FR 14321 (March 27, 2007) 

(SR–Phlx–2006–61) (notice of filing). 

Regulation 6 currently states: 

Acceptable Business Casual Dress (Men): 

• Casual slacks (i.e. khakis, dockers, corduroy 

fabric). • Ties are optional, but must be neat, clean, 

and properly tied. If a tie is torn or frayed, you will 

be asked to remove it. 

• Traditional collared shirts, polo shirts, golf 

shirts (shirts may be long or short sleeved). Shirts 

must be neat and clean. All shirts must be tucked 

in. Shirts must be buttoned at least to the second 

button from the top. • Dress shoes, casual shoes, 

loafers, athletic shoes and boots (note: pant legs 

may not be tucked into boots). All shoes must be 

neat and clean. • Traditional business attire is 

always acceptable. Blazers may be worn in lieu of 

trading jackets. • Trading jackets or blazers must be 

worn at all times on the trading floor. Identification 

badges must be properly displayed at chest level. 

• Sweaters worn over a collared shirt, turtlenecks 

worn under a collared shirt. Acceptable Business 

Casual Dress (Women): • Dresses or casual slacks 

(i.e. khakis, dockers, corduroy fabric). • Shirts, 

sweaters, shells, turtlenecks, blouses, polo shirts, 

golf shirts (long or short sleeved). • Dress shoes, 

casual shoes, loafers, athletic shoes and boots (note: 

pant legs may not be tucked into boots). All shoes 

must be neat and clean. Inappropriate Casual Dress 

(Men & Women): • Denim clothing of any kind (i.e. 

pants, skirts, dresses, shirts, vests, blouses). 

• Sweat shirts, sweat pants, other sweat apparel of 

any kind and sport jerseys. • Shorts, gym shorts, 

skorts, culottes, beach wear, workout attire or 

miniskirts. • T-shirts of any kind. • Stirrup pants 

or other excessively tight or revealing clothing (i.e. 

bike shorts, leggings, sheer blouses, stretch pants). 

• Tank tops, halter tops, tube tops, tops with 

spaghetti straps, backless tops, crop tops (note: no 

bare midriffs). • Clothing with any inappropriate, 

or oversized logos (cartoon logos, oversized sports 

logos or inappropriately suggestive logos). 

• Slippers, sandals of any kind or open toed shoes. 

• Military fatigues, cargo pants, surgical scrubs, bib 

overalls. • Clothing which is torn, soiled or in need 

of repair. • Clothing and/or accessories which 

disrupt business operations or which draw 

excessive attention to an employee • Hats or 

headgear unless worn for religious purposes. 

8This includes, per current use, members, 

member organizations, participants, and participant 

organizations. As such, the Exchange is deleting 

obsolete or unused references to Floor Manager, 

Post Supervisor, and Firm Representative from 

Regulation 6. 

9As an example, the current Dress Code discusses 

items that are essentially out of use such as skorts 

and culottes. 

10The Exchange intends to communicate the 

Dress Code to members within one week of the date 

of effectiveness of this proposal. 

11Rule 1054 was formerly known as Rule 1074. 

See Securities Exchange Act Release No. 13591 

(June 2, 1977) (SR–PBW–76–10) (approval order 

regarding, among things, renumbering Rule 1074 as 

1054). 

Rule 1054 states: At the time of execution, a 

carbon copy trade contract will be printed and 

distributed by the Exchange to the respective 

purchasing and selling members. Promptly upon 

receipt of such contract, a member organization 

which is a clearing member of the Options Clearing 

Corporation shall be obligated to verify the 

information shown on the contract, to reconcile all 

uncompared trades and advisory trades shown on 

the uncompared trade contract and to report all 

reconciliations, corrections and adjustments to the 

Exchange in accordance with such procedures as 

may be established by the Exchange from time to 

time. Such reconciliation report shall be filed with 

the Exchange prior to such cut-off hour as the 

Exchange may prescribe and shall be binding on the 

clearing member on whose behalf it is filed. The 

Exchange will consider all trades as executed and 

compared as of such cut-off hour. 

12The last modification of the rule, as an 

example, was for the purpose of deleting 

Commentary .01 to Rule 1054 relating to use of 

certain technology for the trading of Dell options. 

See Securities Exchange Act Release No. 42143 

(November 16, 1999), 64 FR 66224 (SR–Phlx–99– 

22) (November 24, 1999) (notice of filing and 

immediate effectiveness). 

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 Rule 1054 and 

Regulation 6 to delete obsolete 

provisions and update and modernize 

these sections. 

The Exchange’s Order and Decorum 

regulations pursuant to Rule 60 of the 

Option Floor Procedure Advices,4 with 

corresponding fine schedules, were 

originally codified in 1989.5 The dress 

code in Regulation 6 of Rule 60 in 

OFPA, which indicates dress norms for 

individuals on the options floor (the 

‘‘Dress Code’’) was omitted inadvertently 

in the 1989 filing and was added the 

year thereafter.6 The last proposal in 

2007 to amend the Dress Code adopted 

a business casual code and indicated 

what business attire was deemed 

acceptable on the trading floor.7

The Exchange does not propose by 

this filing to eliminate its Regulation 6. 

Rather, in light of the Exchange options 

market combining on-floor auction 

trading with an extensive electronic 

market, the Exchange proposes to 

eliminate the specifics of the Dress Code 

from Regulation 6 and set forth a 

procedure whereby the Exchange will 

communicate the specifics of the Dress 

Code to members 8 and post them on the 

options floor. The Exchange believes 

that in this way it would be able to 

address obsolete or unused Dress Code 

requirements 9 and most efficiently 

address any needed changes and 

updates, subject to notification of 

Exchange members regarding such 

requirements. 

Specifically, the Exchange proposes to 

amend Regulation 6 to indicate that the 

Dress Code outlining acceptable and 

unacceptable dress for members and 

their staff, as well as any changes to the 

Dress Code, will be communicated to 

members by the Exchange in writing.10

In addition, to further provide 

notification to on-floor traders, the Dress 

Code will be posted on the options 

trading floor of the Exchange. Moreover, 

to make sure that members have proper 

notification regarding changes, the 

Exchange proposes that changes to the 

Dress Code will only be effective three 

business days after such changes are 

communicated to Exchange members. 

By communicating guidelines as needed 

regarding acceptable apparel while on 

the trading floor, the Exchange intends 

to encourage the membership (and their 

associated persons) to comply with the 

Dress Code requirements. 

Rule 1054 regarding the procedure for 

verification and reconciliation of 

options trades has been in existence for 

more than thirty years.11 During that 

time the rule has seen little substantive 

(material) modification.12 As such, the 

rule still has obsolete legacy language 

discussing the printing and distribution 

of carbon copy trade contracts. The 

Exchange therefore proposes to 

eliminate reference to obsolete or 

unused language in Rule 1054, 

particularly in light of having both onfloor and electronic markets, while 

preserving most of the rule. 

Specifically, after eliminating 

reference to carbon copy trade contracts, 

the Exchange proposes to state that a 

member organization which is a clearing 

member of the Options Clearing 

Corporation shall be obligated to 

compare all trades made through or on 

behalf of such member as soon as 

possible after such trades are made or 

after receiving notification thereof. In 

addition, as currently required by the 

rule, such member would have to 

reconcile all uncompared trades and 

advisory trades and report all 

reconciliations, corrections and 

adjustments to the Exchange in 

accordance with such procedures as 

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Federal Register / Vol. 76, No. 72 / Thursday, April 14, 2011 / Notices 21083 

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

14 15 U.S.C. 78f(b)(5). 

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

16 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file the proposed rule change at least five business 

days prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 63981 

(February 25, 2011), 76 FR 12180 (March 4, 2011) 

(‘‘Notice’’). 

may be established by the Exchange 

from time to time. The current rule 

requirement that such reconciliation 

report shall be filed with the Exchange 

prior to such cut-off hour as the 

Exchange may prescribe and shall be 

binding on the clearing member on 

whose behalf it is filed is not changed. 

The Exchange believes that the 

proposed Rule 1054 changes not only 

deletes obsolete provisions and updates 

the rule but also brings the rule into 

conformity with current options trading 

practices. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 13 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 14

in particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, and to remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system, by 

deleting obsolete provisions and 

updating and modernizing its 

Regulation 6 regarding the Exchange’s 

Dress Code and Rule 1054 regarding 

verification and reconciliation of 

options trades. 

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 Exchange believes that the 

foregoing proposed rule change may 

take effect upon filing with the 

Commission pursuant to Section 

19(b)(3)(A) 15 of the Act and Rule 19b– 

4(f)(6)(iii) thereunder 16 because the 

foregoing proposed rule change does 

not: (i) Significantly affect the 

protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate. 

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. 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–2011–48 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–2011–48. 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. 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– 

2011–48 and should be submitted on or 

before May 5, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Cathy Ahn, 

Deputy Secretary. 

[FR Doc. 2011–9061 Filed 4–13–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64276; File No. SR–Phlx– 

2011–13] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Designation of a Longer Period for 

Commission Action on a Proposed 

Rule Change Relating to Amendments 

to NASDAQ OMX PHLX LLC’s Limited 

Liability Company Agreement, ByLaws, Rules, Advices and Regulations 

April 8, 2011. 

I. Introduction 

On February 16, 2011, NASDAQ OMX 

PHLX LLC (‘‘Phlx’’ or ‘‘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 proposed rule 

change to amend the Exchange’s 

Limited Liability Company Agreement, 

By-Laws, Rules, Advices and 

Regulations to alter its governance 

process and to make other nonsubstantive conforming changes. The 

proposed rule change was published for 

comment in the Federal Register on 

March 4, 2011.3 The Commission 

received no comment letters regarding 

the proposal. 

mstockstill on DSKH9S0YB1PROD with NOTICES