21784 Federal Register / Vol. 76, No. 74 / Monday, April 18, 2011 / Notices 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5See Options Floor Procedures Advice F–14(d). 

6See Securities Exchange Act Release No. 54389 

(August 31), 71 FR 52829 (September 7, 2006), 

amended by Securities Exchange Act Release No. 

57620 (April 4, 2008), 73 FR 19271 (September 7, 

2006)(‘‘QCT Exemption Order’’). 

supporting documentation, may be 

obtained by contacting the U.S. Office of 

Personnel Management, Attention: Rob 

Timmins, 1900 E Street, NW., Room 

1425, Washington, DC 20415, or sent via 

electronic mail to pmf@opm.gov, or 

faxed to (202) 606–3040. 

SUPPLEMENTARY INFORMATION: The OPM 

Form 1300, Presidential Management 

Fellows (PMF) Nomination Form, is 

used by accredited colleges and 

universities to nominate eligible 

graduate students to the Presidential 

Management Fellows (PMF) Program. 

Information about the PMF Program 

(e.g., eligibility, application and 

nomination process, guidance for 

academia, and a sample copy of the 

OPM Form 1300) can be found at 

http://www.pmf.gov. 

Analysis 

Agency: Employee Services, U.S. 

Office of Personnel Management. 

Title: OPM Form 1300—Presidential 

Management Fellows (PMF) Nomination 

Form. 

OMB Number: 3206–0082. 

Affected Public: Academic 

institutions, graduate students, and 

individuals. 

Number of Respondents: 9,000. 

Estimated Time per Respondent: 10 

minutes. 

Total Burden Hours: 1,500 hours. 

U.S. Office of Personnel Management. 

John Berry, 

Director. 

[FR Doc. 2011–9254 Filed 4–15–11; 8:45 am] 

BILLING CODE 6325–38–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold a Closed Meeting 

on Thursday, April 21, 2011 at 2 p.m. 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) 

and 17 CFR 200.402(a)(3), (5), (7), 9(ii) 

and (10), permit consideration of the 

scheduled matters at the Closed 

Meeting. 

Commissioner Casey, as duty officer, 

voted to consider the items listed for the 

Closed Meeting in a closed session. 

The subject matter of the Closed 

Meeting scheduled for Thursday, April 

21, 2011 will be: 

Institution and settlement of injunctive 

actions; 

Institution and settlement of 

administrative proceedings; 

An adjudicatory matter; and 

Other matters relating to enforcement 

proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact: 

The Office of the Secretary at (202) 

551–5400. 

Dated: April 14, 2011. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–9434 Filed 4–14–11; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64294; File No. SR–Phlx2011–53] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX LLC Relating to Amending 

the Option Floor Procedures Advice F– 

14 Regarding Executing Hedge and 

Synthetic Options Orders Containing 

Stock Components 

April 13, 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 (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange filed the 

proposal pursuant to Section 19(b)(3)(A) 

of the Act 3 and Rule 19b–4(f)(6) 

thereunder.4 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 

Option Floor Procedures Advice F–14 

regarding executing hedge and synthetic 

options orders containing stock 

components. 

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, 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 Exchange’s 

Option Floor Procedures Advice F–14 

(the ‘‘OFPA F–14’’) regarding executing 

hedge and synthetic options orders 

containing stock components. 

Specifically, the Exchange proposes to 

modify the requirement that once the 

credit or debit execution price to a 

hedge or synthetic options order is 

agreed upon, the stock portion of the 

order must be effected prior to the 

execution of the option portion.5

Instead, the Exchange proposes to 

require that the stock portion of the 

order, if any, must be executed at or 

near the same time as the options 

portion. 

The qualified contingent trade 

exemption (‘‘QCT Exemption’’) 6

exempts the component orders of a 

qualified contingent trade (‘‘QCT’’) from 

the trade [sic] provisions of Rule 611 of 


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Federal Register / Vol. 76, No. 74 / Monday, April 18, 2011 / Notices 21785 

7 17 CFR 242.611. 

8A tied hedge order is an options order that is 

tied to a hedge transaction as defined in 

Commentary .04 to rule 1064, following the receipt 

of an options order in a class determined by the 

Exchange as eligible for ‘‘tied hedge’’ transactions. 

See Exchange Rule 1066(f)(4). Commentary .04 to 

Rule 1064 further states that Rule 1064(d) does not 

prohibit a member or member organization from 

buying or selling a stock, security futures or futures 

position following receipt of an option order, 

including a complex order, but prior to announcing 

such order to the trading crowd, provided that, 

among other things, all tied hedge transactions 

(regardless of whether the option order is a simple 

or complex order) are treated the same as complex 

orders for purposes of the Exchange’s open outcry 

allocation and reporting procedures. Tied hedge 

transactions are subject to the existing NBBO tradethrough requirements for options and stock, as 

applicable, and may qualify for various exceptions; 

however, when the option order is a simple order 

the execution of the option leg of a tied hedge 

transaction does not qualify it for any NBBO tradethrough exception for a Complex Trade. 

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

10 15 U.S.C. 78f(b)(5). 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(6). Rule 19b–4(f)(6)(iii) 

also requires the self-regulatory organization to 

provide the Commission with written notice of its 

intent to file the proposed rule change, along with 

a brief description and text of 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 satisfied this requirement. 13 17 CFR 200.30–3(a)(12). 

Regulation NMS.7 As provided in the 

QCT Exempt [sic] Order, a QCT is a 

transaction that consists of two or more 

component orders that satisfy the 

requirements of a QCT in the QCT 

Exemption Order. In the QCT 

Exemption Order, the definition of a 

QCT requires that the execution of one 

component is contingent upon the 

execution of all components at or near 

the same time. 

Currently, OFPA F–14 provides that 

the stock portion of the hedge or 

synthetic options order must be 

executed prior to the options portion of 

the order. The Exchange proposes to 

amend OFPA F–14 to more closely align 

OFPA F–14 with the language of the 

QCT Exemption by stating the stock 

portion of a hedge or synthetic options 

order must trade at or near the same 

time as the options order. The Exchange 

notes that compliance with OFPA F–14, 

by itself, is not sufficient to qualify for 

the QCT Exemption. A transaction must 

satisfy all the requirements of the QCT 

Exemption Order to qualify for the QCT 

Exemption. The Exchange notes that the 

proposed amendment to OFPA F–14 

does not modify the terms of Exchange 

Rule 1064, Commentary .04 in that the 

members must continue to comply with 

all procedures concerning tied hedge 

orders.8

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 9 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 10

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest by 

deleting obsolete language that is relied 

upon to execute orders that are outside 

the PHLX market. Modifying OFPA F– 

14 as proposed will promote efficiency, 

eliminate confusion and prevent 

potential trade-through violations 

within the marketplace. 

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 has designated the 

proposed rule change as one that 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, if 

consistent with the protection of 

investors and the public interest. 

Therefore, the proposed rule change has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 11 and Rule 19b– 

4(f)(6) thereunder.12

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. 

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–2011–53 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-2011–53. 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 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 

Number SR–Phlx–2011–53 and should 

be submitted on or before May 9, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–9315 Filed 4–15–11; 8:45 am] 

BILLING CODE 8011–01–P 


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