78286 Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Notices 

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

8 17 CFR 240.19b–4(f)(6). When filing a proposed 

rule change pursuant to Rule 19b–4(f)(6) under the 

Act, an exchange is required to give the 

Commission 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 Commission 

notes that the Exchange has satisfied this 

requirement. 

9 17 CFR 240.19b–4(f)(6)(iii). 

10 Id. 

11For the purposes only of waiving the operative 

date of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(1). 

the pilot to April 11, 2011 would allow 

the pilot to continue to operate without 

interruption while the Exchange and the 

Commission further assess the effect of 

the pilot on the marketplace or whether 

other initiatives should be adopted in 

lieu of the current pilot. 

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 

Because the foregoing proposed rule 

change does not: (1) Significantly affect 

the protetion of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) 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, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 7 and Rule 19b– 

4(f)(6) thereunder.8

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.9 However, Rule 19b– 

4(f)(6)10 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay. 

The Commission has considered the 

Exchange’s request to waive the 30-day 

operative delay. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest, as it will allow the pilot 

program to continue uninterrupted, 

thereby avoiding the investor confusion 

that could result from a temporary 

interruption in the pilot program.11

Therefore, the Commission designates 

the proposed rule change to be operative 

upon filing. 

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 

change 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–NYSEArca–2010–114 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–NYSEArca–2010–114. 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– 

NYSEArca–2010–114 and should be 

submitted on or before January 5, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–31470 Filed 12–14–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63495; File No. SR–Phlx– 

2010–171] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX LLC Relating to Collection 

of Exchange Fees 

December 9, 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 December 

6, 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 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, pursuant to Section 

19(b)(1) of the Act 3 and Rule 19b–4 


hsrobinson on DSK69SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Notices 78287 

4 17 CFR 240.19b–4. 

5The Exchange will not debit accounts for fees 

that are unusually large or for special 

circumstances, unless such debiting is requested by 

the member. 

6Exchange Rule 924 entitled, Obligations of 

Members and Member Organizations to the 

Exchange, states, among other things, that members 

and member organizations shall be liable for such 

fees, fines, dues, penalties and other amounts 

imposed by the Exchange. 

7The monthly invoice will indicate that the 

amount on the invoice will be debited from the 

designated NSCC account. Each month, the 

Exchange will send a file to the member’s clearing 

firm which will indicate the amounts to be debited 

from each member. If a member is ‘‘self-clearing’’, 

no such file would be sent as the member would 

receive the invoice, as noted above, which would 

indicate the amount to be debited. 

8Exchange fees are noted on the Exchange Fee 

Schedule. 

9This includes, among other things, fines which 

result from: violation of Rule 60, Order and 

Decorum; violations of the Minor Rule Plan 

pursuant to Rule 970; monetary sanctions imposed 

by the Business Conduct Committee relating to a 

Letter of Caution; and monetary sanctions imposed 

by a Hearing Panel in connection with Disciplinary 

Violations. With respect to disciplinary sanctions 

that are imposed by either the Business Conduct 

Committee or a Hearing Panel, the Exchange would 

not debit any monies until such action is final. The 

Exchange would not consider an action final until 

all appeal periods have run and/or all appeal 

timeframes are exhausted. With respect to nondisciplinary actions, the Exchange would similarly 

not take action to debit a member account until all 

appeal periods have run and/or all appeal 

timeframes are exhausted. Any uncontested 

disciplinary or non-disciplinary actions will be 

debited, and the amount due will appear on the 

members invoice prior to the actual NSCC debit. 

10The Exchange would also notify members by 

phone and through Equity Trader Alerts of this 

proposal prior to the approval of the proposal to 

prepare members for this rule change. 

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

12 15 U.S.C. 78f(b)(5). 

thereunder,4 proposes to amend 

Exchange Rule 3202, Application of 

Other Rules of the Exchange, to add 

Exchange Rule 909, Collection of 

Exchange Fees and Other Claims, to the 

list of Rules which are applicable to 

PSX Participants. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to require PSX Participants to 

provide a clearing account number for 

an account at the National Securities 

Clearing Corporation (‘‘NSCC’’) for 

purposes of permitting the Exchange to 

debit any undisputed or final fees, fines, 

charges and/or other monetary sanctions 

or other monies due and owing to the 

Exchange or other charges related to 

Rule 924. Currently, the Exchange 

requires all members of the Exchange 

trading options to provide such an 

NSCC account number. The Exchange 

believes that the proposed debiting 

process for PSX Participants would 

create an efficient method of collecting 

undisputed or final fees, fines, charges 

and/or other monetary sanctions or 

monies due and owing to the Exchange 

from those PSX Participants.5 Further, 

this proposal would provide a cost 

savings to the Exchange in that it would 

alleviate administrative processes 

related to the collection of monies owed 

to the Exchange for PSX Participants as 

it does today for members trading 

options. Collection matters divert staff 

resources away from the Exchange’s 

regulatory and business purposes. In 

addition, the debiting process would 

prevent PSX Participant accounts from 

becoming overdue. 

The Exchange proposes to require 

PSX Participants and applicants to 

provide a clearing account number for 

an account at NSCC in order to permit 

the Exchange to debit any undisputed or 

final fees, fines, charges and/or 

monetary sanctions or other monies due 

and owing to the Exchange or other 

charges related to Rule 924.6 The 

Exchange would send a monthly 

invoice 7 to each PSX Participant on 

approximately the 3rd–10th business 

day of the following month. The 

Exchange would also send a file to 

NSCC each month on approximately the 

23rd of the following month to initiate 

the debit of the appropriate amount 

stated on the PSX Participant’s invoice 

for the prior month. Because the PSX 

Participant would receive an invoice 

well before any monies are debited 

(normally within two weeks), the PSX 

Participant would have adequate time to 

contact the staff with any questions 

concerning their invoice. 

If a PSX Participant disagrees with the 

invoice, the Exchange would not 

commence the debit until the dispute is 

resolved. Specifically, the Exchange will 

not include the disputed amount in the 

debit if the member has disputed the 

amount in writing to the Exchange’s 

designated staff by the 15th of the 

month, or the following business day if 

the 15th is not a business day, and the 

amount in dispute is at least $10,000 or 

greater. Once NSCC receives the file 

from the Exchange, NSCC would 

proceed to debit the amounts indicated 

from the clearing members’ account. In 

the instance where the PSX Participant 

clears through an Exchange clearing 

member, the estimated transactions fees 

owed to the Exchange are typically 

debited by the clearing member on a 

daily basis in order to ensure adequate 

funds have been escrowed. The 

Exchange would debit any monies owed 

including undisputed or final fees,8

fines, charges and/or monetary 

sanctions or monies due and owed to 

the Exchange.9 The Exchange believes 

that the debit process would eliminate 

the risk of unpaid invoices because of 

the large amounts of capital held at 

NSCC by members. 

The Exchange proposes to add Rule 

909 to the list of Exchange Rules which 

are applicable to PSX Participants. The 

Exchange proposes this rule change 

become operative upon ten (10) days 

written notice to PSX Participants, upon 

the publication of this rule change in 

the federal register.10

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 11 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 12

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 

providing PSX Participants with an 

efficient process to pay undisputed or 

final fees, fines, charges and/or 

monetary sanctions or monies dues and 

owing to the Exchange. The Exchange 

believes that this process of debiting 

NSCC accounts would ease the PSX 

Participant’s administrative burden in 

paying monthly invoices, avoid overdue 

balances and provide same day 

collection from all PSX Participants, 

who owe monies to the Exchange, 

which results in equitable treatment. 


hsrobinson on DSK69SOYB1PROD with NOTICES
78288 Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Notices 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f)(6). 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. 

15 17 CFR 240.19b–4(f)(6)(iii). 

16 Id. 

17The Exchange has stated that it will notify 

members by phone and through Equity Trader 

Alerts to prepare members for this rule change. 

18For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

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 

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 after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Exchange Act 13 and 

Rule 19b–4(f)(6) 14 thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.15 However, Rule 19b– 

4(f)(6)(iii) permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest.16 The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Exchange has requested that 

the Commission waive the 30-day 

operative delay and designate the 

proposed rule change to become 

operative upon ten days written notice 

to PSX Participants, upon this 

proposal’s publication in the Federal 

Register. 17 The Exchange proposes to 

uniformly apply Exchange Rule 909 to 

all members of NASDAQ OMX PHLX, 

options and equities. The Exchange 

currently requires members who 

transact options to comply with Rule 

909 and provide the Exchange with an 

NSCC number for the purpose of direct 

debiting. The Exchange believes that 

expanding this Rule to apply to 

members transacting equities, PSX 

Participants, would allow the Exchange 

to alleviate administrative processes 

related to the collection of monies. The 

Exchange desires to provide PSX 

Participants adequate time to transition 

to direct debit and therefore requests the 

Commission waive the 30-day operative 

delay. Based on the foregoing, the 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest and hereby designates 

the proposal operative upon ten days 

written notice to PSX Participants, upon 

this proposal’s publication in the 

Federal Register.18

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–2010–171 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–2010–171. 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 website (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 website 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– 

2010–171 and should be submitted on 

or before January 5, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–31457 Filed 12–14–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63494; File No. SR–ISE– 

2010–112] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fees and Rebates 

for Adding and Removing Liquidity 

December 9, 2010. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on November 

26, 2010, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) filed with the Securities and 

Exchange Commission the proposed 

rule change, as described in Items I and 

II, and below, which items have been 

prepared by the self-regulatory 

organization. The Commission is 

publishing this notice to solicit 


hsrobinson on DSK69SOYB1PROD with NOTICES