46264 Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / 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) 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. 

12 17 CFR 240.19b–4(f)(6). 

13 Id. 

14For 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). 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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. The proposed rule 

change supports these principles in that 

it serves to increase the liquidity 

available at the NBBO. The Exchange 

believes that increased liquidity at the 

NBBO will lead to enhanced market 

quality which ultimately serves to 

protect investors and the public interest. 

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: (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 from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 10 and Rule 19b– 

4(f)(6) thereunder.11

A proposed rule change filed 

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

Act 12 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6) 13

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 so that the 

proposal may become operative 

immediately upon filing. The 

Commission believes that waiving the 

30-day operative delay 14 is consistent 

with the protection of investors and the 

public interest because such waiver will 

permit the Exchange to immediately 

apply the new enhanced quoting 

requirements. 

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–NYSE–2009–91 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–2009–91. 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 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 publicly available. All 

submissions should refer to File 

Number SR–NYSE–2009–91 and should 

be submitted on or before September 29, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–21586 Filed 9–4–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60606; File No. SR–Phlx– 

2009–76] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX, Inc. Relating to a 

Retroactive Waiver of the Cancellation 

Fee 

September 1, 2009. 

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 August 

27, 2009, 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 

retroactively waive the Cancellation Fee 

for the month of July 2009 and issue a 

rebate to member organizations for 

Cancellation Fees that were assessed in 

July 2009. 

The text of the proposed rule change 

is available on the Exchange’s Website 

at http://nasdaqomxphlx. 

cchwallstreet.com/NASDAQOMXPHLX/ 


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Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Notices 46265 

3See Exchange Rule 1080. 

4See Securities Exchange Act Release No. 60046 

(June 4, 2009), 74 FR 28083 (June 12, 2009) (SR– 

Phlx–2009–44) (assessing $2.10 per order for each 

cancelled electronically-delivered order and limit 

the applicability of the Cancellation Fee to 

cancelled electronically delivered customer orders.) 

5See e.g. Exchange Rule 1080(b)(i)(A) which 

defines customer order as ‘‘* * * is any order 

entered on behalf of a public customer, and does 

not include any order entered for the account of a 

broker-dealer, or any account in which a brokerdealer or an associated person of a broker-dealer has 

any direct or indirect interest.’’ 

6See Securities Exchange Act Release No. 60188 

(June 29, 2009), 74 FR 32986 (July 9, 2009) (SR– 

Phlx–2009–48) (aggregating options orders within a 

specified time period for the purpose of assessing 

the Cancellation Fee). At least 500 cancellations 

must be made in a given month by a member 

organization in order for a member organization to 

be assessed the Cancellation Fee. The Cancellation 

Fee is not assessed in a month in which fewer than 

500 electronically-delivered orders are cancelled. 

Simple cancels and cancel-replacement orders are 

the types of orders that are counted when 

calculating the number of electronically-delivered 

orders. (A cancel-replacement order is a 

contingency order consisting of two or more parts 

which require the immediate cancellation of a 

previously received order prior to the replacement 

of a new order with new terms and conditions. If 

the previously placed order is already filled 

partially or in its entirety the replacement order is 

automatically canceled or reduced by such 

number.) See Exchange Rule 1066(c)(7). Also, premarket cancellations are not included in the 

calculation of the Cancellation Fee as well as 

Complex Orders that are submitted electronically. 

See Securities Exchange Act Release Nos. 53226 

(February 3, 2006), 71 FR 7602 (February 13, 2006) 

(SR–Phlx–2005–92); and 53670 (April 18, 2006), 71 

FR 21087 (April 24, 2006) (SR–Phlx–2006–21). 

7See Securities Exchange Act Release Nos. 53226 

(February 3, 2006), 71 FR 7602 (February 13, 2006) 

(SR–Phlx–2005–92); and 53670 (April 18, 2006), 71 

FR 21087 (April 24, 2006) (SR–Phlx–2006–21). See 

also Securities Exchange Act Release No. 60046 

(June 4, 2009), 74 FR 28083 (June 12, 2009) (SR– 

Phlx–2009–44). 

8A Complex Order is composed of two or more 

option components and is priced as a single order 

(a ‘‘Complex Order Strategy’’) on a net debit or net 

credit basis. 

9An Immediate-or-Cancel (IOC) order is a limit 

order that is to be executed in whole or in part upon 

receipt. Any portion not so executed shall be 

cancelled. 

10NASDAQ OMX PHLX staff contacted all 

member organizations who were assessed a 

Cancellation Fee in July 2009 concerning the 

applicability and calculation of this fee prior to 

August 1, 2009. Additionally, the Exchange 

produces a daily cancellation fee reconciliation 

report as a tool for member organizations to monitor 

their cancel volume and potential charges. 

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

12 15 U.S.C. 78f(b)(4). 

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

14 17 CFR 240.19b–4(f)(2). 

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, 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 rebate monies previously 

assessed for the Cancellation Fee in July 

2009 to all member organizations. 

During the month of July 2009, member 

organizations were assessed $2.10 per 

order for each cancelled electronicallydelivered 3 order in excess of the 

number of orders executed on the 

Exchange by a member organization in 

a given month.4 The Exchange 

calculates the Cancellation Fee by 

aggregating all orders and cancels 

received by the Exchange and totaling 

those orders by member organization. 

The Exchange aggregates and counts as 

one executed customer 5 option order all 

customer orders 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.6 The following order 

activity is exempt from the Cancellation 

Fee: (i) Pre-market cancellations 7 (ii) 

Complex Orders 8 that are submitted 

electronically; (iii) unfilled Immediateor-Cancel 9 customer orders; and (iv) 

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. 

The Exchange assessed the applicable 

Cancellation Fee of $2.10 per order on 

member organizations, as specified 

above, during the month of July 2009. 

The Exchange believes that recent 

changes to the Cancellation Fee may 

have created confusion among its 

members as to the applicability of the 

fee and/or its calculation. The Exchange 

has explained the current fee 

applicability to its member 

organizations 10 and as a result would 

propose to retroactively waive the 

Cancellation Fee for the month of July 

2009 and issue a rebate to all member 

organizations for Cancellation fees 

assessed in July 2009. The Exchange 

believes that member organizations have 

been adequately educated as to the 

Exchange’s current Cancellation Fee and 

its applicability for future assessments. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its schedule of fees 

is consistent with Section 6(b) of the 

Act 11 in general, and furthers the 

objectives of Section 6(b)(4) of the Act 12

in particular, in that it is an equitable 

allocation of reasonable fees and other 

charges among Exchange members. The 

Exchange believes that the proposal to 

retroactively waive the Cancellation Fee 

for the month of July 2009 and issue a 

rebate to all member organizations for 

fees previously assessed in July 2009 is 

fair and equitable in that the waiver will 

apply to all member organizations. The 

Exchange believes that it has educated 

its members as to the applicability of the 

current Cancellation Fee and any 

confusion has been remedied for future 

assessment of this fee. 

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 13 and 

paragraph (f)(2) of Rule 19b–4 14

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: 


jlentini on DSKJ8SOYB1PROD with NOTICES
46266 Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Notices 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Commission notes that Exhibit 5 is attached 

to the filing, but is not attached to this Notice. 

4The Commission notes that, as with all filings 

submitted under Section 19(b)(3)(A) of the Act, the 

filing is effective on the date it was filed, in this 

case August 17, 2009. 

5Securities Exchange Act Release No. 59682 

(April 1, 2009), 74 FR 16015 (April 8, 2009) (SR– 

BX–2009–018). 

6See http://nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/pdf/bx-filings/2009/SR–BX– 

2009–018.pdf. 

7See http://www.sec.gov/rules/sro/bx/2009/34- 

59682.pdf. 

8See Securities Exchange Act Release No. 59682 

(April 1, 2009), 74 FR 16015 (April 8, 2009) (SR– 

BX–2009–018). 

9See http://www.nasdaqtrader.com/ 

TraderNews.aspx?id=ETA2009–16. 

10See http://www.nasdaqtrader.com/ 

Trader.aspx?id=bx_pricing. 

11 15 U.S.C. 78f. 

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

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–2009–76 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–2009–76. 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 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-2009–76 and should 

be submitted on or before September 29, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–21611 Filed 9–4–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60603; File No. SR–BX– 

2009–049] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Correct an 

Error in Rule 7018 

September 1, 2009 

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 August 

17, 2009, NASDAQ OMX BX, Inc. 

(‘‘BX’’) 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 Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

BX is filing a proposed rule change to 

correct a typographical error in Rule 

7018. The text of the proposed rule 

change is attached as Exhibit 5 3 and is 

available at http:// 

nasdaqomxbx.cchwallstreet.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, BX 

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. BX 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 

BX is submitting this filing to correct 

a typographical error in Rule 7018.4 In 

SR–BX–2009–018,5 BX modified its 

pricing for execution of orders in 

securities listed on The NASDAQ Stock 

Market (‘‘NASDAQ’’) and the New York 

Stock Exchange (‘‘NYSE’’) by, among 

other things, replacing a charge to 

access liquidity of $0.0014 per share 

executed with a credit of $0.0006 per 

share executed. This change was 

accurately described in the ‘‘Purpose’’ 

section of BX’s Form 19b–4 filing,6 in 

the Commission’s notice of the filing on 

the SEC Web site 7 and in the Federal 

Register,8 in widely disseminated 

announcements of the pricing change,9

and in the pricing schedule that appears 

on BX’s market Web site.10 However, 

due to a typographical error, the credit 

incorrectly appeared as ‘‘$0.006’’ in 

Exhibit 5 to the filing. Accordingly, BX 

is submitting this filing to correct the 

typographical error. BX has been billing 

members in accordance with the correct 

fee since the effective date of the change 

in April 2009, and accordingly believes 

that all of its members that trade on the 

NASDAQ OMX BX Equities System are 

cognizant of the correct fee. 

2. Statutory Basis 

BX believes that the proposed rule 

change is consistent with the provisions 

of Section 6 of the Act,11 in general, and 

with Section 6(b)(5) of the Act,12 in 

particular, in that it is designed to 

remove impediments to and perfect the 

mechanism of a fee [sic] and open 

market and a national market system. 

The proposed rule change corrects a 

typographical error in BX Rule 7018. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

BX does not believe that the proposed 

rule change will result in any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act, as amended. 


jlentini on DSKJ8SOYB1PROD with NOTICES