82120 Federal Register / Vol. 75, No. 249 / Wednesday, December 29, 2010 / Notices 

9 15 U.S.C. 78o–4(b)(2)(L). 

10 15 U.S.C. 78s(b)(2). 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Section I of the Fee Schedule titled Rebates and 

Fees for Adding and Removing Liquidity in Select 

Symbols contains a list of symbols which apply to 

Section I of the Fee Schedule (‘‘Select Symbols’’). 

4All customer or AON orders submitted by a 

Professional from the same member organization 

that are executed in the same series on the same 

side of the market at the same price within a 300 

second period are aggregated and counted as one 

executed customer or AON option order submitted 

by a Professional. 

5A Cancellation Fee does not apply to pre-market 

cancellations, Complex Orders that are submitted 

electronically, unexecuted Immediate-or-Cancel 

(‘‘IOC’’) customer orders or cancelled customer 

orders that improved the Exchange’s prevailing bid 

or offer (‘‘PBBO’’) market at the time the customer 

orders were received by the Exchange. 

persons, provided that there is robust 

protection of investors against fraud.9

The Commission believes that the 

proposed rule change is consistent with 

Section 15B(b)(2) of the Exchange Act, 

because it provides that: (i) municipal 

advisors shall deal fairly with all 

persons and not engage in any 

deceptive, dishonest, or unfair practice 

and (ii) municipal advisors and their 

associated persons shall not conduct 

municipal advisory activities in 

contravention of restrictions imposed 

upon them by the Commission. Such 

restrictions are, amongst other things, 

consistent with Section 15B(b)(2)(C) of 

the Exchange Act because they are 

designed to prevent fraudulent and 

manipulative acts and practices and to 

promote just and equitable principles of 

trade. The Commission further believes 

that the proposed rule change is 

consistent with Section 15B(b)(2)(L) of 

the Exchange Act because the proposed 

rule change does not impose a 

regulatory burden on small municipal 

advisors that is not necessary or 

appropriate in the public interest and 

the proposed rule change is necessary 

for the robust protection of investors 

against fraud as well as the protection 

of municipal entities and obligated 

persons. Many municipal advisors play 

a key role in the structuring of offerings 

of municipal securities and the 

preparation of offering documents used 

to market those securities to investors. 

In some cases, they advise on the 

appropriateness of municipal financial 

products, including municipal 

derivatives, entered into by municipal 

entities, the effectiveness of which may 

have a substantial impact on the 

finances of those municipal entities. In 

other cases, they solicit municipal 

entities and obligated persons for 

investment advisory business with 

respect to funds held by or on behalf of 

such municipal entity or obligated 

person which, if not conducted 

according to the highest standards, may 

have a substantial effect on the finances 

of the municipal entities and obligated 

persons that control those funds. 

Investors, therefore, have a substantial 

interest in municipal advisors 

conducting their municipal advisory 

activities fairly, not engaging in 

fraudulent conduct, and not engaging in 

municipal advisory activities contrary to 

disciplinary actions imposed by the 

Commission. 

The proposal will become effective 

upon Commission approval. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Exchange Act,10

that the proposed rule change (SR– 

MSRB–2010–16), be, and it hereby is, 

approved. 

For the Commission, by the Division 

of Trading and Markets, pursuant to 

delegated authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–32732 Filed 12–28–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63595; File No. SR–Phlx– 

2010–179] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Cancellation Fee 

December 22, 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 

16, 2010, NASDAQ OMX PHLX, Inc. 

(‘‘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 its 

Fee Schedule to eliminate the 

Cancellation Fee for electronically 

delivered customer orders from Section 

II, Equity Options Fees, of the Fee 

Schedule. 

While changes to the Exchange’s Fee 

Schedule pursuant to this proposal are 

effective upon filing, the Exchange has 

designated this proposal to be operative 

for trades occurring on and after 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend the Exchange’s Fee 

Schedule, specifically Section II, Equity 

Options Fees, to eliminate the 

Cancellation Fee for electronically 

delivered customer orders. 

Currently, the Exchange assesses a 

Cancellation Fee on electronically 

delivered Customer order for symbols 

other than the select symbols in Section 

I of the Fee Schedule 3 and Professional 

All-or-None (‘‘AON’’) orders that are 

submitted by a member. The Exchange 

assesses $2.10 per order for each 

cancelled electronically delivered 

customer order and $1.10 per order for 

each cancelled electronically delivered 

AON order submitted by a Professional 

in excess of the number of AON orders 

submitted by a Professional executed on 

the Exchange by a member organization 

in a given month.4 A Cancellation Fee 

is not assessed in a month in which 

fewer than 500 electronically delivered 

customer or AON orders submitted by a 

Professional, respectively, are 

cancelled.5

The Exchange is proposing to amend 

the Cancellation Fee in Section II so that 

the Cancellation Fee would not apply to 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 249 / Wednesday, December 29, 2010 / Notices 82121 

6See Securities Exchange Act Release No. 63252 

(November 5, 2010), 75 FR 69486 (November 12, 

2010) (SR–Phlx–2010–150). 

7See Securities Exchange Act Release No. 61802 

(April 5, 2010), 75 FR 17193 (March 30, 2010) (SR– 

Phlx–2010–05). 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(4). 

10 15 U.S.C. 78s(b)(3)(A)(ii). 

11 17 CFR 240.19b-4(f)(2). 

12The text of the proposed rule change is 

available on Exchange’s Web site at http:// 

nasdaqtrader.com/micro.aspx?id=PHLXfilings, on 

the Commission’s Web site at http://www.sec.gov, at 

Phlx, and at the Commission’s Public Reference 

Room. 

13 17 CFR 200.30–3(a)(12). 

customer orders. The Cancellation Fee 

would continue to apply to Professional 

AON orders in all symbols, both Select 

Symbols and non-Select Symbols, and it 

would continue to not apply to any 

other type of Professional order. 

The Exchange recently amended the 

Fee Schedule to remove the 

Cancellation Fee for customer orders in 

the Select Symbols.6 The Exchange 

believes the Cancellation Fee is no 

longer required for customers to cover 

the cost of system utilization. In 

addition, the requirement to mark 

Professional orders has also alleviated 

some of the capacity issues that resulted 

from customer cancel orders.7 The 

Exchange believes that removing the 

Cancellation Fee for customer orders is 

appropriate because the concerns with 

system congestion have been alleviated 

by the requirement to mark Professional 

orders. 

While changes to the Exchange’s Fee 

Schedule pursuant to this proposal are 

effective upon filing, the Exchange has 

designated this proposal to be operative 

for trades occurring on or after 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 8

in general, and furthers the objectives of 

Section 6(b)(4) of the Act9 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 the proposed amendments 

to the customer Cancellation Fee are 

reasonable because they are no longer 

required to recover costs associated with 

excessive order cancellation activity. 

The Exchange believes that there should 

not be increased system congestion as a 

result of removing the customer 

Cancellation Fee. 

The Exchange believes that the 

Cancellation Fee is still necessary with 

respect to Professional AON orders 

because those orders are treated as 

customer orders for purposes of priority. 

Member organizations must indicate 

whether orders are for Professionals. 

The Exchange believes that this 

requirement to mark an order as 

Professional has shifted the source of 

the system congestion from customer 

orders to Professional AON orders. 

Continuing to assess a Cancellation Fee 

for Professional AON orders in all 

symbols should continue to ease system 

congestion and allow the Exchange to 

recover costs associated with excessive 

order cancellation activity. 

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 10 and 

paragraph (f)(2) of Rule 19b–4 11

thereunder. 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–2010–179 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–010–179. 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,12 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–Phlx2010–179 and should be submitted on 

or January 19, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–32729 Filed 12–28–10; 8:45 am] 

BILLING CODE 8011–01–P 

SOCIAL SECURITY ADMINISTRATION 

Privacy Act of 1974, as Amended; 

Proposed Routine Use 

AGENCY: Social Security Administration 

(SSA). 

ACTION: Proposed routine use. 

SUMMARY: In accordance with the 

Privacy Act (5 U.S.C. 552a(e)(4) and 

(e)(11)), we are issuing public notice of 

our intent to add a new routine use to 

our system of records entitled Master 

Files of Social Security Number (SSN) 

Holders and SSN Applications, 60–0058 

(the Enumeration System). The routine 


srobinson on DSKHWCL6B1PROD with NOTICES