Federal Register / Vol. 74, No. 158 / Tuesday, August 18, 2009 / Notices 41777 

21 17 CFR 200.30–3(a)(12). 

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

2A facilitation occurs when a floor broker holds 

an options order for a public customer and a contraside order for the same option series and, after 

providing an opportunity for all persons in the 

trading crowd to participate in the transaction, 

executes both orders as a facilitation cross. See 

Exchange Rule 1064. 

3A JBO participant is a Member, Member 

Organization or non-member organization that 

maintains a JBO arrangement with a clearing 

broker-dealer (‘‘JBO Broker’’) subject to the 

requirements of Regulation T Section 220.7 of the 

Federal Reserve System. See also Exchange Rule 

703. JBO participant orders are excluded from the 

definition of Firm Proprietary because the Exchange 

is unable to differentiate orders of a JBO participant 

from orders of its JBO Broker and therefore is 

unable to aggregate the JBO participant’s orders for 

purposes of the defining Firm Proprietary 

transactions. JBO participant orders may employ 

the F-account type and qualify for the firm 

proprietary charge, but would not be eligible for the 

Monthly Firm Cap. 

4The waiver would not apply to orders where a 

member is acting as agent on behalf of a nonmember. 

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

6 15 U.S.C. 78f(b)(4). 

7NYSE Amex currently charges different rates to 

different market participants in assessing its firm 

facilitation fee. See Securities Exchange Act Release 

No. 60378 (July 23, 2009), 74 FR 38245 (July 31, 

2009) (SR–NYSEAmex–2009–38). 

8A 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 1083(k)(i). 

9A Principal Order is an order for the principal 

account of an Eligible Market Maker and is not a 

P/A Order. See Exchange Rule 1083(k)(ii). 

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 inspection and copying 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 FINRA. 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–FINRA–2009–047 and 

should be submitted on or before 

September 8, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–19735 Filed 8–17–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60477; File No. SR–Phlx– 

2009–67] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Firm Proprietary Facilitation Orders 

August 11, 2009. 

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

Securities Exchange Act of 1934,1 notice 

is hereby given that on August 5, 2009, 

NASDAQ OMX PHLX, Inc. (‘‘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 Phlx. The Commission 

is publishing this notice to solicit 

comments on the proposed rule change 

from interested parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to waive the 

Firm Proprietary Options Transaction 

Charge for members executing 

facilitation orders 2 when such members 

are trading in their own proprietary 

account. 

While changes to the Exchange’s fee 

schedule pursuant to this proposal are 

effective upon filing, the Exchange has 

designated this proposal to be effective 

for trades settling on or after August 11, 

2009. 

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, 

Phlx 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 Phlx 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, Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to encourage firm facilitation 

transactions, raise additional revenue 

for the Exchange and create incentive 

for Member Organizations to continue to 

facilitate customer order flow. 

Currently, the Firm Proprietary Options 

Transaction Charge is $.24 per contract. 

This fee applies to firm proprietary 

orders (‘‘F’’ account type) in equity 

options products. In addition, Firm 

Proprietary Options Transaction 

Charges is capped in the aggregate for 

one billing month at $75,000 per 

member organization (‘‘Monthly Firm 

Cap’’), except for orders of joint backoffice (‘‘JBO’’) participants.3

The Exchange is proposing to waive 

the $.24 Firm Proprietary Options 

Transaction Charge for members 

executing facilitation orders pursuant to 

Exchange Rule 1064 when such 

members are trading in their own 

proprietary account.4 The Exchange 

desires to waive the Firm Proprietary 

Options Transaction Charge for member 

transacting proprietary trades in their 

own account to encourage member firms 

to facilitate additional customer order 

flow. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its schedule of fees 

is consistent with Section 6(b) of the 

Act 5 in general, and furthers the 

objectives of Section 6(b)(4) of the Act 6

in particular, in that it is an equitable 

allocation of reasonable fees and other 

charges among Exchange members. The 

Exchange believes that the waiver of the 

Firm Proprietary Options Transaction 

Charge is equitable because it uniformly 

applies to all member organizations. 

This waiver is consistent with the 

current fee schedule and industry fee 

assessments of member firms that allow 

for different rates to be charged for 

different order types originated by 

dissimilarly classified market 

participants.7 For example, the 

Exchange assesses different transaction 

fees applicable to the execution of 

Principal Acting as Agent Orders (‘‘P/A 

Orders’’) 8 and Principal Orders (‘‘P 

Orders’’) 9 sent to the Exchange via the 

Intermarket Option Linkage (‘‘Linkage’’) 

under the Plan for the Purpose of 

Creating and Operating an Intermarket 

Option Linkage (the ‘‘Plan’’). The 

Exchange charges $0.45 per option 


jlentini on DSKJ8SOYB1PROD with NOTICES
41778 Federal Register / Vol. 74, No. 158 / Tuesday, August 18, 2009 / Notices 

10See Securities Exchange Act Release No. 60210 

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

2009–53). 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(2). 13 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. 

4The Exchange changed its name to NYSE Amex 

in March 2009. See Securities Exchange Act Release 

No. 59575 (March 13, 2009), 74 FR 11803 (March 

19, 2009) (SR–NYSEALTR–2009–24). 

5See SR–NYSE–2009–76, formally submitted on 

July 28, 2009. 

contract for P Orders sent to the 

Exchange and $.30 per contract for P/A 

Orders.10 The Exchange believes that 

waiving the Firm Proprietary Options 

Transaction Charge for members 

executing facilitation orders pursuant to 

Exchange Rule 1064 when such 

members are trading in their own 

account is consistent with rate 

differentials that exist in the current fee 

schedule and serves to encourage 

members to facilitate customer order 

flow. 

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 

Because the foregoing rule change 

established or changes a due, fee, or 

other charge imposed by the Exchange, 

it has become effective pursuant to 

Section 19(b)(3)(A) of the Act 11 and 

subparagraph (f)(2) of Rule 19b–4 12

thereunder. 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–2009–67 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 submission should refer to File 

Number SR–Phlx–2009–67. 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 inspection and copying 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 Phlx. 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 with to make 

available publicly. All submissions 

should refer to File Number SR–Phlx– 

2009–67 and should be submitted on or 

before September 8, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–19733 Filed 8–17–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60458; File No. SR– 

NYSEAMEX–2009–52] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Deleting Rule 409A—NYSE 

Amex Equities and Adopting New Rule 

2266—NYSE Amex Equities To 

Conform to Proposed Rule Changes 

Submitted in a Companion Filing by 

the New York Stock Exchange LLC 

August 7, 2009. 

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 July 28, 

2009, 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, formerly the American 

Stock Exchange LLC and NYSE 

Alternext US LLC,4 proposes to delete 

Rule 409A—NYSE Amex Equities and 

to adopt new Rule 2266—NYSE Amex 

Equities to conform to proposed rule 

changes submitted in a companion 

filing by the New York Stock Exchange 

LLC (‘‘NYSE’’).5 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. 


jlentini on DSKJ8SOYB1PROD with NOTICES