614 Federal Register / Vol. 76, No. 3 / Wednesday, January 5, 2011 / Notices 

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

11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a 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 has fulfilled this requirement. 

12The text of the proposed rule change is 

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

www.sec.gov. 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Active SQF ports refer to ports that receive 

inbound quotes at any time within that month. 

4See Securities Exchange Act Release No. 63034 

(October 4, 2010), 75 FR 62441 (October 8, 2010) 

(SR–Phlx–2010–124). 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 10 and 

Rule 19b–4(f)(6) thereunder.11

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–NYSE–2010–86 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–NYSE–2010–86. 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 the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange.12 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–NYSE– 

2010–86 and should be submitted on or 

before January 26, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–33256 Filed 1–4–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63619; File No. SR–Phlx– 

2010–181] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change as Modified 

by Amendment No. 1 Thereto by 

NASDAQ OMX PHLX LLC Relating to 

Active SQF Port Fee 

December 29, 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 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 

Exchange submitted an amendment to 

the proposed rule change on December 

29, 2010 (‘‘Amendment No. 1’’) to clarify 

the purpose of the proposed fee change. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change, as amended, 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 

Active Specialized Quote Feed (‘‘SQF’’) 

Port Fee to create a tiered schedule of 

fees. 

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 Active SQF Port 

Fees to establish a tiered schedule of 

fees.3 SQF is an interface that enables 

specialists, Streaming Quote Traders 

(‘‘SQTs’’) and Remote Streaming Quote 

Traders (‘‘RSQTs’’) to connect and send 

quotes into Phlx XL. The Exchange 

released SQF 6.0 on October 11, 2010.4

The Exchange anticipates that member 

organizations will utilize both SQF 5.0 

and SQF 6.0 for a period of time. 

Currently, the Exchange assesses an 

Active SQF Port Fee of $500 per month 

per port. The Exchange would propose 

to eliminate the $500 Active Port Fee 

and instead assess members an Active 

Port Fee as follows: 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 3 / Wednesday, January 5, 2011 / Notices 615 

5See Securities Exchange Act Release No. 63034 

(October 4, 2010), 75 FR 62441 (October 8, 2010) 

(SR–Phlx–2010–124). 

6See Amendment No. 1 (adding the preceding 

two sentences). 

7See Securities Exchange Act Release No. 63145 

(October 21, 2010), 75 FR 66168 (October 21, 2010) 

(SR–Phlx–2010–143) (a proposal to amend the 

Active SQF Port Fee so that member organizations 

are not assessed a fee for use of SQF 5.0 active ports 

to the extent the member is paying for the same (or 

greater) number of SQF 6.0 active ports). 

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). 12 17 CFR 200.30–3(a)(12). 

Number of Active SQF Ports Cost per port 

per month 

0–4 ........................................ $350 

5–18 ...................................... 1,250 

19–40 .................................... 2,350 

40 and over .......................... 3,000 

The Exchange proposes to cap the 

Active SQF Port Fees at $40,000 per 

month through March 31, 2011 (‘‘Cap’’). 

On April 1, 2011, there will no longer 

be a Cap in effect for the Active SQF 

Port Fee. The purpose of the Cap is to 

ensure member organizations are not 

assessed fees in excess of the Active 

SQF Port fees, which fees would have 

been charged under the fixed rate of 

$500 per month per port, during the 

transition from SQF 5.0 to SQF 6.0.5

The Exchange believes that member 

organizations will utilize less SQF 6.0 

ports than SQF 5.0 ports and that all 

member organizations should have 

transitioned to SQF 6.0 by March 31, 

2011. The Exchange believes that the 

proposed tiered Active SQF Port Fees 

will create a more efficient use of 

Exchange resources by providing 

members an incentive to utilize the 

minimum number of ports necessary for 

their business. The Exchange believes 

that all members will benefit from a 

faster and more efficient system if ports 

are efficiently utilized by members.6

The Exchange will continue to 

account for the number of SQF 

interfaces in order that member 

organizations are not assessed port fees 

for use of the prior version of the 

interface (SQF 5.0) while transitioning 

to (and paying for) the new version 

(SQF 6.0).7

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 

on 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 Act 9 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 assessing fees at the 

aforementioned rates is equitable 

because the fee would be applied 

equally to all members. The Exchange 

also believes that the proposal is 

reasonable because through the 

transition period the Exchange is 

proposing a Cap to ensure members are 

not burdened by proposed tiered 

schedule of fees. 

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–2010–181 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–2010–181. 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–Phlx– 

2010–181 and should be submitted on 

or before January 26, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–33267 Filed 1–4–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63617; File No. SR–BX– 

2010–092] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Modify Fees 

for the NASDAQ OMX BX Equities 

System 

December 29, 2010. 

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

Securities Exchange Act of 1934 


jlentini on DSKJ8SOYB1PROD with NOTICES