Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 / Notices 76509 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4(f)(2). 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 6 of the Act and 

subparagraph (f)(2) of Rule 19b–4 7

thereunder, because it establishes a due, 

fee, or other charge imposed on its 

members by NYSE Amex. 

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–NYSEAmex–2010–112 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–2010–112. 

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– 

NYSEAmex–2010–112 and should be 

submitted on or before December 29, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–30718 Filed 12–7–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63411; File No. SR–Phlx– 

2010–169] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX LLC To Modify Fees for 

NASDAQ OMX PSX 

December 2, 2010. 

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 November 

23, 2010, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III 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 modify the 

fees applicable to trading on the 

NASDAQ OMX PSX system (‘‘PSX’’). 

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 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 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange is proposing to modify 

order execution fees applicable to use of 

PSX. Specifically, the Exchange is 

modifying the credit provided to PSX 

Participants that provide liquidity to 

support executions on the platform. In 

keeping with the goal of PSX to provide 

an electronic exchange environment 

that encourages display of larger order 

sizes through its unique price-size order 

execution algorithm, the Exchange 

proposes to offer a larger liquidity 

provider credit to Participants when 

Displayed Orders with an original order 

size of 2,000 or more shares are 

executed. Specifically, the credit will be 

$0.0024 per share executed for 

Displayed Orders with an original order 

size of 2,000 or more shares, but will 

only be $0.0018 per share executed for 

Non-Displayed Orders or for Displayed 

Orders with an original order size of less 

than 2,000. Through the change, the 

Exchange hopes to further promote PSX 

as a venue that enhances price 

discovery and efficiency by encouraging 

transparent trading of larger orders. 

The higher credit would apply to an 

order as it is decremented by partial 

executions, but would not apply in 

circumstances where an order for 2,000 


jlentini on DSKJ8SOYB1PROD with NOTICES
76510 Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 / Notices 

3 15 U.S.C. 78f. 

4 15 U.S.C. 78f(b)(4). 5 15 U.S.C. 78s(b)(3)(A)(ii). 

6The text of the proposed rule change is available 

on the Commission’s Web site at http:// 

www.sec.gov/rules/sro.shtml. 

7 17 CFR 200.30–3(a)(12). 

or more shares is entered and then 

reduced in size by the entering 

Participant, such that the order is 

subsequently in the System for less than 

2,000 shares. Moreover, changes to 

orders that result from system 

operations other than execution and 

decrementation will also be deemed to 

result in new orders. For example, a 

Pegged Order will be considered a new 

order each time its price changes. 

Thus, if a Participant entered a 2,400 

share order that posted to the PSX book, 

the order was executed for 1,000 shares, 

and the remainder of the order was then 

executed for 1,400, both of the 

executions would receive the $0.0024 

credit. However, if a PSX Participant 

entered a 2,400 share order and 

subsequently modified the order down 

to 1,500 shares, the $0.0018 credit 

would apply. Finally, if a Participant 

entered a 2,400 share buy order pegged 

to the national best bid, the order 

executed for 1,000 shares, and the order 

then repriced due to a change in the 

national best bid, the 1,000 share 

execution would receive the $0.0024 

credit but a subsequent execution of the 

repriced order would receive the 

$0.0018 credit because it would be 

treated as a new order with a size below 

2,000 shares. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,3

in general, and with Section 6(b)(4) of 

the Act,4 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among members and issuers and other 

persons using any facility or system 

which the Exchange operates or 

controls. The impact of the price 

changes upon the net fees paid by a 

particular market participant will 

depend upon a number of variables, 

including the prices of the market 

participant’s quotes and orders relative 

to the national best bid and offer (i.e., 

its propensity to add or remove 

liquidity), its usage of Non-Displayed 

orders, and the size of the orders that it 

enters. 

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 change will result in 

a fee reduction to PSX Participants that 

provide liquidity through PSX using 

relatively large orders, and a fee 

increase to Participants using small 

orders or Non-Displayed Orders. If 

particular market participants object to 

the proposed fee changes because they 

prefer the use of smaller or NonDisplayed Orders, they may readily 

direct order flow to other venues. The 

Exchange believes that its fees continue 

to be reasonable and equitably allocated 

to members on the basis of whether they 

opt to direct orders to the Exchange and 

thereby make use of its order execution 

services. 

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, as amended. 

Because the market for order execution 

and routing is extremely competitive, 

members may readily direct orders to 

the Exchange’s competitors. Indeed, as a 

relatively new market entrant, the 

Exchange believes that its pricing will 

promote further competition by 

enhancing the ability of PSX to compete 

with alternative trading systems that 

seek to attract larger order sizes through 

pricing or by operating as ‘‘dark pools.’’ 

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.5 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–2010–169 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–2010–169. 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,6 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 Number SR–Phlx– 

2010–169 and should be submitted on 

or before December 29, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–30703 Filed 12–7–10; 8:45 am] 

BILLING CODE 8011–01–P 


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