1106 Federal Register / Vol. 77, No. 5 / Monday, January 9, 2012 / Notices 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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. 

4Section II includes options overlying equities, 

ETFs, ETNs, indexes and HOLDRs which are 

Multiply Listed. 

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

6 15 U.S.C. 78f(b)(4). 

All submissions should refer to File 

Number SR–ISE–2011–84. This file 

number should be included on the 

subject line if email 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–ISE– 

2011–84 and should be submitted on or 

before January 30, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–99 Filed 1–6–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66085; File No. SR–Phlx– 

2011–180] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Rebates and Fees for Adding and 

Removing Liquidity in Select Symbols 

January 3, 2012. 

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 

21, 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 

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 January 3, 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 the 

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, entitled ‘‘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,’’ 

which are subject to the rebates and fees 

in that section. The Exchange is 

proposing to delete Market Vectors 

Semiconductor ET (‘‘SMH’’) from the 

list of Select Symbols. SMH would be 

subject to the rebates and fees in Section 

II of the Fee Schedule entitled ‘‘Equity 

Options Fees.’’ 4

While changes to the Fee Schedule 

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 5

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 6 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 SMH from its list 

of Select Symbols to attract additional 

order flow to the Exchange. The 

Exchange believes that applying the fees 

in Section II of the Fee Schedule to 

SMH, including the opportunity to 

receive payment for order flow, will 

attract order flow to the Exchange. 

The Exchange believes that it is 

equitable and not unfairly 

discriminatory to amend its list of Select 

Symbols to remove SMH 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, which would not include 

SMH. Also, all market participants 

would be uniformly subject to the fees 

in Section II, which would include 

SMH. 

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. 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 5 / Monday, January 9, 2012 / Notices 1107 

7 15 U.S.C. 78s(b)(3)(A)(ii). 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3OCC indicated that if it intends to clear 

additional non-S&P OTC products it will file a 

proposed rule change with the Commission 

pursuant to Section 19(b)(2) of the Act. Telephone 

conference between Steve Szarmack, Vice President 

and Associate General Counsel, OCC, and Pamela 

Kesner, Special Counsel, Securities and Exchange 

Commission Division of Trading and Markets on 

December 22, 2011. 

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.7 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 email to rulecomments@sec.gov. Please include File 

No. SR–Phlx–2011–180 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 

No. SR–Phlx–2011–180. This file 

number should be included on the 

subject line if email 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–2011– 

180 and should be submitted on or 

before January 30, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–100 Filed 1–6–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66090; File No. SR–OCC– 

2011–19] 

Self-Regulatory Organizations; 

Options Clearing Corporation; Notice 

of Filing of Proposed Rule Change, as 

Modified by Amendment No. 1 Thereto, 

Relating to the Clearance and 

Settlement of Over-the-Counter 

Options 

January 3, 2012. 

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 

20, 2011, The Options Clearing 

Corporation (‘‘OCC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change. On January 3, 2012, OCC filed 

Amendment No. 1 to the proposed rule 

change. The propose rule change as 

amended by Amendment No. 1 is 

described in Items I, II, and III below, 

which Items have been prepared 

primarily by OCC. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

and Amendment No. 1 to the proposed 

rule change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The proposed rule change would 

allow OCC to provide central clearing of 

OTC options beginning in the first 

quarter of 2012. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

OCC 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. OCC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements. 

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

The purpose of this proposed rule 

change is to allow OCC to provide 

central clearing of OTC options 

beginning in the first quarter of 2012. 

OCC will clear the proposed OTC 

options in a manner that is highly 

similar to the manner in which it clears 

listed options, with only such 

modifications as are appropriate to 

reflect the unique characteristics of OTC 

options. 

OTC Options 

The initial OTC options to be cleared 

by OCC will consist of options on equity 

indices published by Standard & Poor’s 

Financial Services LLC (‘‘S&P’’).3 OCC 

has entered into a license agreement 

with S&P that allows OCC to clear OTC 

options on the S&P 500 Index, the S&P 

MidCap 400 Index and the S&P Small 

Cap 600 Index. OCC may clear OTC 

options on other indices and on 

individual equity securities in the 

future. OTC options will have 

predominantly common terms and 

characteristics, but also include unique 

terms negotiated by the parties. 

Transactions in OTC options will not be 

executed through the facilities of any 


tkelley on DSK3SPTVN1PROD with NOTICES