25770 Federal Register / Vol. 77, No. 84 / Tuesday, May 1, 2012 / Notices 

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

7 15 U.S.C. 78f(b)(5). 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

orders marked with the Self-Trade 

Prevention modifiers in the same 

manner during openings and reopenings as during regular trading. 

Once the CBSX System is so enabled 

to permit the use of the Self-Trade 

Prevention modifiers, and such use has 

been appropriately tested, CBSX intends 

to announce the availability of the SelfTrade Prevention modifiers to the CBSX 

Traders via Regulatory Circular prior to 

the implementation of the Self-Trade 

Prevention modifiers. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the Act,6

in general, and furthers the objectives of 

Section 6(b)(5) of the Act 7 in particular 

that the rules of an exchange be 

designed to promote just and equitable 

principles of trade, to prevent 

fraudulent and manipulative acts, to 

remove impediments to and to perfect 

the mechanism for a free and open 

market and a national market system, 

and, in general, to protect investors and 

the public interest. The proposed rule 

change advances these objectives by 

making available to market participants 

an order and quote modifier that will 

assist them in preventing unwanted 

executions against themselves. Allowing 

market participants to prevent 

unwanted executions against 

themselves removes impediments to 

and perfects the mechanism for a free 

and open market by allowing market 

participants to better manage order flow 

and prevent the potential for (or 

appearance of) ‘‘wash sales’’ that may 

occur as a result of the velocity of 

trading in today’s high-speed 

marketplace, and by streamlining 

certain regulatory functions by reducing 

false positive results that may occur on 

Exchange-generated wash trading 

surveillance reports when orders are 

executed by the same CBSX Trader. 

Finally, adding an interpretation to 

Rule 52.1 to provide that, in instances 

in which the Self-Trade Prevention 

modifiers are implicated, the Self-Trade 

Prevention modifier rules will 

supersede other allocation methods only 

for the purposes of preventing selftrades, as described in the proposed 

Self-Trade Prevention modifier rule, and 

also clarifying that, in circumstances 

where both the Market-Maker Self-Trade 

Prevention Order and a Self-Trade 

Prevention modifier are implicated, the 

Self-Trade Prevention modifier shall 

rule and take precedence, perfects the 

mechanism for a free and open national 

market system and protects investors 

and the public interest by removing any 

potential confusion regarding priority 

and allocation methods. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE does not believe that the 

proposed rule change will 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 neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

A. By order approve or disapprove 

such proposed rule change, or 

B. Institute proceedings to determine 

whether the proposed rule change 

should be 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 

Number SR–CBOE–2012–013 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–CBOE–2012–013. 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 

10:00 a.m. and 3:00 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–CBOE– 

2012–013 and should be submitted on 

or before May 22, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–10463 Filed 4–30–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66857; File No. SR– 

NYSEAmex–2012–23] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing of 

Proposed Rule Change Amending 

NYSE Amex Options Rule 928NY 

Specifying That the Potential Range for 

the Settings Applicable to the Market 

Maker Risk Limitation Mechanism Will 

Be Between One and 100 Executions 

per Second, To Eliminate the Current 

Reference to the Default Setting and, in 

the Future, To Specify the Applicable 

Minimum, Maximum and Default 

Settings via Regulatory Bulletin 

April 25, 2012. 

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

Securities Exchange Act of 1934 

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

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 77, No. 84 / Tuesday, May 1, 2012 / Notices 25771 

3See Securities Exchange Act Release No. 59472 

(February 27, 2009), 74 FR 9843 (March 6, 2009) 

(SR–NYSEALTR–2008–14). 

4See NYSE Amex Options Rule 928NY(b)(1). 

5See NYSE Amex Options Rule 928NY(b)(2). 

6The high end of the range would remain 

unchanged at 100 executions per second. 

7See proposed NYSE Amex Options Rule 

928NY(b)(1). The Exchange proposes to designate 

NYSE Amex Options Rule 928NY(b)(2) as 

‘‘reserved.’’ 

8See, e.g., Chapter VI, Section 16 of the Boston 

Options Exchange (‘‘BOX’’) Rules, which provides 

that, related to BOX’s Quote Removal Mechanism 

Upon Technical Disconnect, BOX Market Makers 

will be notified of the value that ‘‘n’’ seconds 

represents via Regulatory Circular. See also 

Securities Exchange Act Release No. 58140 (July 10, 

2008), 73 FR 41384 (July 18, 2008) (SR–BSE–2008– 

40), in which the Commission noted [sic] that ‘‘n’’ 

seconds would be configurable by BOX and any 

subsequent re-configurations will be announced to 

Market Makers via Regulatory Circular. See also 

Interpretation and Policy .05 to Chicago Board 

Options Exchange (‘‘CBOE’’) Rule 6.74A, which 

provides that any determinations made by CBOE 

regarding CBOE’s Automated Improvement 

Mechanism, such as eligible classes, order size 

parameters and the minimum price increment for 

certain responses, shall be communicated in a 

Regulatory Circular. See also CBOE Rule 

6.13(b)(i)(C)(2)(a), which provides that CBOE may 

establish certain maximum order size eligibility 

requirements with respect to automatic executions 

and announce such determinations via Regulatory 

Circular. See also CBOE Rules 6.45A and 6.45B, 

which provide that CBOE will issue a Regulatory 

Circular to specify certain priority-related 

information, including specifying which priority 

rules will govern which classes of options any time 

the Exchange changes the priority. See also CBOE 

Rule 6.25(a)(4)(i), which provides that, for purposes 

of nullifying a trade due to an erroneous print in 

an underlying or related instrument, CBOE may 

announce such underlying or related instrument via 

Regulatory Circular. See also C2 Options Exchange 

(‘‘C2’’) Rule 6.13, which provides that C2 may make 

certain determinations regarding the price check 

parameter feature and announce such 

determinations via Regulatory Circular. See also 

Securities Exchange Act Release No. 65311 

(September 9, 2011), 76 FR 57094 (September 15, 

2011) (SR–C2–2011–018). 

9See, e.g., Chapter VI, Section 15 of the BOX 

Rules, which provides for Automatic Quote 

Cancellation. See also Securities Exchange Act 

Release No. 65001 (August 1, 2011), 76 FR 47635 

(August 5, 2011) (SR–BX–2011–050). See also 

Supplementary Material .01 to International 

Securities Exchange (‘‘ISE’’) Rule 804, which 

provides for Automated Quotation Adjustments for 

Market Makers. 

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

11 15 U.S.C. 78f(b)(5). 

notice is hereby given that on April 12, 

2012, NYSE Amex LLC (the ‘‘Exchange’’ 

or ‘‘NYSE Amex’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. 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 

NYSE Amex Options Rule 928NY to 

specify that the potential range for the 

settings applicable to the Market Maker 

Risk Limitation Mechanism 

(‘‘Mechanism’’) will be between one and 

100 executions per second, to eliminate 

the current reference to the default 

setting and, in the future, to specify the 

applicable minimum, maximum and 

default settings via Regulatory Bulletin. 

The text of the proposed rule change is 

available at the Exchange, the 

Commission’s Public Reference Room, 

and www.nyse.com. 

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 

self-regulatory organization 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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

NYSE Amex Options Rule 928NY to 

specify that the potential range for the 

settings applicable to the Mechanism 

will be between one and 100 executions 

per second, to eliminate the current 

reference to the default setting and, in 

the future, to specify the applicable 

minimum, maximum and default 

settings via Regulatory Bulletin. 

The Mechanism protects Market 

Makers from the risk associated with an 

excessive number of nearly 

simultaneous executions in a single 

option class.3 Specifically, if ‘‘n’’ 

executions occur within one second 

against the Market Maker’s quotes in an 

appointed class, the NYSE Amex 

System automatically cancels all quotes 

posted by the Market Maker in that 

class. 

The Mechanism currently defaults the 

‘‘n’’ number of executions to 50 

executions per second.4 However, a 

Market Maker may instead set the ‘‘n’’ 

number of executions between five and 

100 executions per second.5 The 

Exchange proposes to decrease the low 

end of this range from five to one.6 The 

Exchange also proposes to eliminate the 

reference to the default setting that is 

applicable to the Mechanism. In 

addition, the Exchange proposes that, in 

the future, it will specify the applicable 

minimum, maximum and default 

settings for the Mechanism via 

Regulatory Bulletin, all of which would 

be within the proposed range of one to 

100 executions per second.7

The Exchange believes that this 

proposed change would provide the 

Exchange with greater flexibility with 

respect to changing these settings in the 

future. In particular, the Exchange may 

need to change the settings from time to 

time to accommodate systems capacity 

concerns. The Exchange believes that 

specifying these settings via Regulatory 

Bulletin, instead of within NYSE Amex 

Options Rule 928NY, is consistent with 

the manner in which the Commission 

currently permits other option 

exchanges to communicate settings or 

parameters for various exchange 

mechanisms to their members other 

than through the rule filing process, i.e., 

via notices, bulletins or circulars.8

The Exchange anticipates announcing 

via Regulatory Bulletin that the 

applicable minimum, maximum and 

default settings for the Mechanism will 

be decreased to 2, 50 and 5 executions 

per second, respectively. The Exchange 

believes that decreasing these settings 

would provide Market Makers with 

greater flexibility with respect to 

managing their risk on the Exchange, 

consistent with the flexibility available 

on other option markets. In this regard, 

the Exchange understands that the 

Commission has previously permitted 

similar risk mechanisms to be 

implemented on other option exchanges 

without requiring any applicable 

minimum, maximum and/or default 

settings in the exchanges’ corresponding 

rules.9

The Exchange is not proposing any 

other changes to the Mechanism at this 

time. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Securities Exchange 

Act of 1934 (the ‘‘Act’’),10 in general, 

and furthers the objectives of Section 

6(b)(5) of the Act,11 in particular, 

because 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 regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, to remove impediments to 

mstockstill on DSK4VPTVN1PROD with NOTICES

25772 Federal Register / Vol. 77, No. 84 / Tuesday, May 1, 2012 / Notices 

12See supra note 8. 

13As noted above, the Exchange anticipates that 

the current minimum, maximum and default 

settings will be decreased to 2, 50 and 5 executions 

per second, respectively. The Exchange 

understands that the Commission has previously 

permitted similar risk mechanisms to be 

implemented on other option exchanges without 

any applicable minimum, maximum and/or default 

settings in the exchanges’ corresponding rules. See 

supra note 9. 

14See, e.g., NYSE Amex Options Rule 925NY. 

15 17 CFR 242.602. 

and perfect the mechanisms of a free 

and open market and a national market 

system and, in general, to protect 

investors and the public interest and 

because it is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the proposed rule 

change would prevent fraudulent and 

manipulative acts and practices and 

promote just and equitable principles of 

trade because it would continue to 

provide Market Makers with greater 

control and flexibility with respect to 

managing risk and the manner in which 

they enter quotes. The Exchange 

believes that this increased control and 

flexibility also fosters cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, and 

processing information with respect to, 

and facilitating transactions in, 

securities. The Exchange further 

believes that the proposed rule change 

would remove impediments to and 

perfect the mechanisms of a free and 

open market and a national market 

system because it would permit the 

Exchange to adjust the minimum, 

maximum and default settings for the 

Mechanism via Regulatory Bulletin, 

which would be consistent with the 

manner in which other option 

exchanges are permitted to 

communicate settings or parameters for 

various exchange mechanisms to their 

members other than through the rule 

filing process, i.e., via notices, bulletins 

or circulars.12 The Exchange further 

believes that the proposed rule change 

is consistent with, and furthers the 

objectives of, the Act because it would 

permit the Exchange to increase or 

decrease the minimum, maximum and 

default settings from their current 

levels, should the Exchange choose to 

do so, for example, to accommodate 

systems capacity concerns.13 The 

Exchange also believes that specifying 

the applicable minimum, maximum and 

default settings for the Mechanism via 

Regulatory Bulletin would further 

remove impediments to and perfect the 

mechanisms of a free and open market 

by reducing the resources that would 

otherwise be expended, by both the 

Exchange and the Commission, if the 

Exchange is required to propose a rule 

change with the Commission each time 

it wishes to change the settings. 

The Exchange believes that the 

proposed decrease of the low end of the 

range of the Mechanism’s settings to one 

execution per second would continue to 

reasonably ensure that, consistent with 

their obligations, Market Makers 

maintain a quote on the Exchange. In 

this regard, the Exchange notes that the 

proposed rule change would not relieve 

Market Makers on the Exchange of their 

quoting obligations under the 

Exchange’s Rules.14 As is the case today, 

a Market Maker quote that is cancelled 

would no longer count toward satisfying 

the Market Maker’s percentage quoting 

obligation under NYSE Amex Options 

Rule 925NY. The Exchange further 

notes that the proposed rule change 

would not relieve a Market Maker of its 

‘‘firm quote’’ obligation under Rule 602 

of Regulation NMS 15 or NYSE Amex 

Options Rule 970NY, thereby promoting 

the protection of investors and the 

public interest. 

The Exchange further believes that the 

proposed rule change is not unfairly 

discriminatory because the same 

minimum, maximum and default 

settings would be applicable to all 

Market Makers and because the settings 

would be announced via Regulatory 

Bulletin to all Market Makers at the 

same time. 

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 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 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve or disapprove 

the proposed rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be 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 

Number SR–NYSEAmex–2012–23 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–NYSEAmex-2012–23. 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. The text of the 

proposed rule change is available on the 

Commission’s Web site at http:// 

www.sec.gov. 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 

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Federal Register / Vol. 77, No. 84 / Tuesday, May 1, 2012 / Notices 25773 

16 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. 53046 

(January 3, 2006), 71 FR 1459 (January 9, 2006) (SR– 

Phlx–2005–89). The Exchange noted in its filing 

that the $50 per month fee would be applicable to 

any part of a month. 

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). 

should refer to File Number SR– 

NYSEAmex–2012–23 and should be 

submitted on or before May 22, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–10391 Filed 4–30–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66859; File No. SR–Phlx– 

2012–52] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Account Fee 

April 25, 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 April 18, 

2012, 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 

Account Fee displayed in the Pricing 

Schedule at Section VI, A entitled 

‘‘Membership Fees.’’ 

While fee changes pursuant to this 

proposal are effective upon filing, the 

Exchange has designated these changes 

to be operative on May 1, 2012. 

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 this filing is to recoup 

some of the billing and processing costs 

associated with participant accounts. 

The proposed amendment would also 

encourage members to discontinue 

holding inactive trading accounts, 

which the Exchange believes should, in 

turn, eliminate the need to expend 

resources to create additional account 

fields. As a result, the staff time 

allocated to maintaining account 

records would be reduced, which would 

allow for a more efficient use of staff 

resources. 

Currently, member organizations 

receive one free account for each permit 

assigned to the member organization 

and the Exchange assesses an Account 

Fee of $50.00 for each additional 

account a member holds. The Exchange 

initially adopted this Account Fee in 

2006 to encourage member 

organizations to discontinue holding 

inactive trading accounts, which the 

Exchange believed would, in turn, 

eliminate the need to expend resources 

to create additional account.3 The 

Exchange is proposing to amend this fee 

to assess an Account Fee of $50.00 per 

month for each account held by a 

member organization. The Exchange 

would remove the following text from 

the Pricing Schedule ‘‘for each account 

beyond the number of permits billed to 

that member organization.’’ While today 

member organizations receive one free 

account for each permit assigned to the 

member organization, the proposal 

would bill a member organization 

$50.00 for each account. The Account 

Fee would cover any month, or any part 

of a month, during which an account is 

maintained by a member. 

Member organizations are not 

restricted in the number of trading 

accounts they may request through the 

Exchange’s Membership Department. In 

many instances, multiple accounts are 

requested by a member organization as 

a means of tracking various trading 

activity using the Exchange’s account 

numbers or because they have multiple 

clearing arrangements. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Pricing 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. 

The Exchange believes that the 

proposed amendment to the Account 

Fee is reasonable because it seeks to 

recoup costs incurred by the Exchange. 

Further, the Exchange is seeking to 

incentivize members to discontinue 

inactive trading accounts. The Exchange 

also believes that the proposed Account 

Fee is equitable and not unfairly 

discriminatory because it would be 

uniformly applied to all members. 

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 

mstockstill on DSK4VPTVN1PROD with NOTICES