Federal Register / Vol. 75, No. 45 / Tuesday, March 9, 2010 / Notices 10857 

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

2 17 CFR 240.19b–4. 

3A P/A Order is an order for the principal 

account of a specialist (or equivalent entity on 

another participant exchange that is authorized to 

represent Public Customer orders), reflecting the 

terms of a related unexecuted Public Customer 

order for which the specialist is acting as agent. See 

Exchange Rule 1088, Phase Out of Intermarket 

Linkage Rules. 

4A Principal Order is an order for the principal 

account of an Eligible Market Maker and is not a 

P/A Order. See Exchange Rule 1088, Phase Out of 

Intermarket Linkage Rules. 

5See Securities Exchange Act Release No. 60363 

(July 22, 2009), 74 FR 37270 (July 28, 2009) (SR– 

Phlx–2009–61). Linkage was governed by the 

Options Linkage Authority under the conditions set 

forth under the Plan for the Purpose of Creating and 

Operating an Intermarket Option Linkage approved 

by the Commission. The registered U.S. options 

markets are linked together on a real-time basis 

through a network capable of transporting orders 

and messages to and from each market. 

6See Securities Exchange Act Release No. 60210 

(July 1, 2009), 74 FR 32989 (July 9, 2009) (SR–Phlx– 

2009–53). 

7See Securities Exchange Act Release Nos. 60405 

(July 20, 2009) (National Market System Plan 

Relating to Options Order Protection and Locked/ 

Crossed Markets). The Plan is a national market 

system plan proposed by the seven existing options 

exchanges and approved by the Commission. See 

Securities Exchange Act Release No. 59647 (March 

30, 2009), 74 FR 15010 (April 2, 2009) (File No. 4– 

546) (‘‘Plan Notice’’) and 60405 (July 30, 2009), 74 

FR 39362 (August 6, 2009) (File No. 4–546) (‘‘Plan 

Approval’’). The seven options exchanges are: 

Chicago Board Options Exchange, Incorporated 

(‘‘CBOE’’); International Securities Exchange LLC 

(‘‘ISE’’); NASDAQ OMX BX, Inc. (‘‘BOX’’); The 

NASDAQ Stock Market LLC (‘‘Nasdaq’’); NYSE 

Amex LLC (‘‘NYSE Amex’’); NYSE Arca, Inc. 

(‘‘NYSE Arca’’); and Phlx (each exchange 

individually a ‘‘Participant’’ and, together, the 

‘‘Participating Options Exchanges’’). 

8See Securities Exchange Act Release No. 60363 

(July 22, 2009), 74 FR 37270 (July 28, 2009) (SR– 

Phlx–2009–61). Linkage was governed by the 

Options Linkage Authority under the conditions set 

forth under the Plan for the Purpose of Creating and 

Operating an Intermarket Option Linkage approved 

by the Commission. The registered U.S. options 

markets are linked together on a real-time basis 

through a network capable of transporting orders 

and messages to and from each market. 

9See footnote 7. 

10See footnote 7. 

11See footnote 7. 

12See Exchange Rule 1080(m). 

13See Securities Exchange Act Release Nos. 

60210 (July 1, 2009), 74 FR 32989 (July 9, 2009) 

(SR–Phlx–2009–53); 58144 (July 11, 2008), 73 FR 

41394 (July 18, 2008) (SR–Phlx–2008–49); 56166 

(July 30, 2007), 72 FR 43312 (August 3, 2007) (SR– 

Phlx–2007–52); 54233 (July 27, 2006), 71 FR 44070 

(August 3, 2006) (SR–Phlx–2006–44); 51257 

(February 25, 2005), 70 FR 10736 (March 4, 2005) 

(SR–Phlx–2005–10); 50125 (July 30, 2004), 69 FR 

47479 (August 5, 2004) (SR–Phlx–2004–44); 49163 

(January 30, 2004), 69 FR 5885 (February 6, 2004) 

(SR–Phlx–2003–89); and 47953 (May 30, 2003), 68 

FR 34027 (June 6, 2003) (SR–Phlx–2003–16). 

14 15 U.S.C. 78f(b). 

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

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61617; File No. SR–Phlx– 

2010–22] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Linkage Pilot 

March 1, 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 February 

24, 2010, NASDAQ OMX PHLX, Inc. 

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

Securities and Exchange Commission 

(the ‘‘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 

discontinue its current pilot program 

(the ‘‘pilot’’) relating to fees applicable to 

Principal Acting as Agent Orders (‘‘P/A 

Orders’’) 3 and Principal Orders (‘‘P 

Orders’’).4 The text of the proposed rule 

change is available on Phlx’s Web site 

at http://www.nasdaqtrader.com, on the 

Commission’s Web site at http:// 

www.sec.gov, at Phlx, 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to discontinue the current 

pilot program related to transaction fees 

for P/A Orders and P Orders sent to the 

Exchange via the Intermarket Option 

Linkage (‘‘Linkage’’) under the former 

Plan for the Purpose of Creating and 

Operating an Intermarket Linkage 

(‘‘Linkage Plan’’).5 The current pilot is 

set to expire July 31, 2010.6

On June 17, 2008, the Exchange filed 

an executed copy of the Options Order 

Protection and Locked/Crossed Market 

Plan (‘‘Plan’’), joining all other approved 

options markets in adopting the Plan.7

The Plan requires each options 

exchange to adopt rules implementing 

various requirements specified in the 

Plan.8

The Plan replaces the Linkage Plan. 

The Linkage Plan required Participating 

Options Exchanges to operate a standalone system or ‘‘Linkage’’ for sending 

order-flow between exchanges to limit 

trade-throughs.9 The Options Clearing 

Corporation (‘‘OCC’’) operated the 

Linkage system (the ‘‘System’’).10 The 

Exchange adopted various new rules in 

connection with the Plan to avoid tradethroughs and locked markets, among 

other things.11 The Exchange currently 

offers private routing directly to away 

markets.12

The pilot, which is set to expire on 

July 31, 2010, relates to fees charged by 

the Exchange for both P/A and P Orders. 

The Exchange currently charges $.45 per 

option contract for P Orders sent to the 

Exchange and $0.30 per option contract 

for P/A Orders. The current pilot 

program has been renewed periodically 

over several years.13 Because there are 

no longer any participant exchanges to 

the Linkage Plan who send Linkage P or 

P/A Orders, the Exchange proposes to 

discontinue the pilot. 

The Exchange also proposes to amend 

its Fee Schedule to remove all 

references to Linkage fees. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 14 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 15

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 

removing all references to Linkage in 

the Fee Schedule and to clarify that 

Linkage fees are no longer applicable. 

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. 


sroberts on DSKD5P82C1PROD with NOTICES
10858 Federal Register / Vol. 75, No. 45 / Tuesday, March 9, 2010 / Notices 

16 15 U.S.C. 78s(b)(3)(A). 17 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the self-regulatory organization 

to submit to 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 

Exchange has satisfied this requirement. 

18 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange [sic] Release No. 59975 

(May 27, 2009) [sic], 74 FR 26449 (June 2, 2009) 

(SR–NYSEAmex–2009–26) [sic]. 

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: (i) Does not significantly affect 

the protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, does not 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 16 and Rule 19b– 

4(f)(6) thereunder.17

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

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–2010–22 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–2010–22. 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 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–2010–22 and should 

be submitted on or before March 30, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–4913 Filed 3–8–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61627; File No. SR– 

NYSEAMEX–2010–11] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Amending NYSE Amex Rule 

476 To Add a Provision for Violations 

Relating To Failing to Observe High 

Standards of Commercial Honor and 

Just and Equitable Principles of Trade 

March 2, 2010. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on February 

9, 2010, NYSE Amex LLC (the 

‘‘Exchange’’ or ‘‘NYSE Amex’’) filed with 

the Securities and Exchange 

Commission (the ‘‘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 Rule 476 to add a provision 

for violations relating to failing to 

observe high standards of commercial 

honor and just and equitable principles 

of trade. The text of the proposed rule 

change is available at the Exchange, the 

Commission’s Public Reference Room, 

and http://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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

In this filing, NYSE Amex LLC 

(‘‘NYSE Amex’’ or the ‘‘Exchange’’) 

proposes to amend NYSE Amex Rule 

476 to add a provision for violations 

relating to failing to observe high 

standards of commercial honor and just 

and equitable principles of trade. The 

Commission previously approved an 

amendment to NYSE Amex Rule 476 to 

delete subsection (a)(6), which 

concerned just and equitable principles 

of trade.4 The rationale for that deletion 

was because NYSE Amex adopted an 

equities rule—NYSE Amex Equities 

Rule 2010—that provided for the same 

content as the prior version of Rule 

476(a)(6) and that harmonized the 

Exchange rule with the New York Stock 


sroberts on DSKD5P82C1PROD with NOTICES