49058 Federal Register / Vol. 74, No. 185 / Friday, September 25, 2009 / Notices 

22 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3An SQT is an Exchange Registered Options 

Trader (‘‘ROT’’) who has received permission from 

the Exchange to generate and submit options 

quotations electronically through AUTOM in 

eligible options to which such SQT is assigned. An 

SQT may only submit such quotations while such 

SQT is physically present on the floor of the 

Exchange. See Exchange Rule 1014(b)(ii)(A). 

4An RSQT is a ROT that is a member or member 

organization with no physical trading floor 

presence who has received permission from the 

Exchange to generate and submit option quotations 

electronically through AUTOM in eligible options 

to which such RSQT has been assigned. An RSQT 

may only submit such quotations electronically 

from off the floor of the Exchange. See Exchange 

Rule 1014(b)(ii)(B). 

5The Exchange notes that a separate proposed 

rule change has been pre-filed (the ‘‘separate 

filing’’) that would amend various Exchange rules, 

including certain portions of Rule 507. The instant 

proposed amendments to Commentary .02 of Rule 

507 are not affected by, and do not affect, the 

proposed amendments in the separate filing. The 

term ‘‘no change’’ used in this proposal applies 

only to the instant proposed rule change and does 

not override or negate any proposed changes in the 

separate filing. 6Commentary .05 to Rule 507 states that the 

Exchange may increase the MNQ levels established 

in this Commentary by submitting to the SEC a rule 

filing pursuant to Section 19(b)(3)(A) of the 

Exchange Act. The Exchange may decrease the 

MNQ levels established in this Commentary upon 

SEC approval of a rule filing submitted pursuant to 

Section 19(b)(2) of the Exchange Act. 7When initially adopted, Commentary .02(a)–(c) 

established MNQ levels of 20 market participants 

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–CBOE–2009–069 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–CBOE–2009–069. 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–CBOE–2009–069 and 

should be submitted on or before 

October 16, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–23111 Filed 9–24–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60688; File No. SR–Phlx– 

2009–82] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX, Inc. Relating to the 

Maximum Number of Quoters (‘‘MNQ’’) 

Permitted To Be Assigned in Equity 

Options 

September 18, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 2 thereunder, 

notice is hereby given that on 

September 17, 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 amend 

Exchange Rule 507, Application for 

Approval as an SQT or RSQT and 

Assignment in Options, which governs 

the assignment of options to Streaming 

Quote Traders (‘‘SQTs’’).3 and Remote 

Streaming Quote Traders (‘‘RSQTs’’),4

by establishing a higher maximum 

number of quoting participants 

(‘‘Maximum Number of Quoters’’ or 

‘‘MNQ’’) in equity options.5

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, 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 provide additional liquidity 

in equity options on the Exchange by 

increasing the MNQ in equity options.6

Currently, the Exchange limits the 

number of participants that may be 

assigned to a particular equity option at 

any one time based upon each option’s 

monthly national volume. Commentary 

.02 to Rule 507 currently sets forth 

tiered MNQ levels permitting 

assignment of trading privileges to 22 

market participants for the top 5% most 

actively traded options; 17 market 

participants for next 10% most actively 

traded options, and 15 market 

participants for all other options.7 The 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 74, No. 185 / Friday, September 25, 2009 / Notices 49059 

for the top 5% most actively traded options; 15 

market participants for next 10% most actively 

traded options, and 10 market participants for all 

other options. See Securities Exchange Act Release 

No. 55114 (January 17, 2007), 72 FR 3185 (January 

24, 2007) (SR–Phlx–2006–81). These MNQ levels 

were subsequently increased to levels of 22, 17, and 

12, respectively. See Securities Exchange Act 

Release No. 56261 (August 15, 2007), 72 FR 47112 

(August 22, 2007) (SR–Phlx–2007–51). The MNQ 

levels were then increased to the current 22, 17 and 

15 respectively. See Securities Exchange Act 

Release No. 58906 (November 6, 2008), 73 FR 67239 

(November 13, 2008) (SR–Phlx–2008–76). 

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

9 15 U.S.C. 78f(b)(5). 

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

11 17 CFR 240.19b–4(f)(6). 

12 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s intent 

to file the proposed rule change along with a brief 

description and the 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 the pre-filing requirement. 13 17 CFR 200.30–3(a)(12). 

ranking is based upon the preceding 

month’s national volumes. 

The Exchange proposes to increase 

the MNQ levels from 22 to 24 market 

participants for equity options in the top 

5% most actively traded options; from 

17 market participants to 19 market 

participants for next 10% most actively 

traded options; and from 15 market 

participants to 17 market participants 

for all other options. 

All new applicants for trading 

privileges will be subject to the process 

for assignment described in Rule 507. 

The Exchange considers all applicants 

for assignment in options using the 

objective criteria set forth in Exchange 

Rule 507(b). The objective criteria are 

used by the Exchange in determining 

the most beneficial assignment of 

options for the Exchange and the public. 

After careful analysis, the Exchange 

believes it has the capacity to increase 

the MNQ as proposed. The Exchange 

believes that the effect of an increase in 

the MNQ fosters competition in that it 

increases the number of market 

participants that may quote 

electronically in a product. Pursuant to 

Commentary .05 to Rule 507, The 

Exchange will announce all changes 

regarding MNQ levels to the 

membership on the Exchange’s Web 

site. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 8 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 9

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 

adding depth and liquidity to the 

Exchange’s markets in equity options. 

The Exchange further believes that 

increasing the MNQ in equity options is 

pro-competitive, because it adds depth 

and liquidity to the Exchange’s markets 

by permitting additional participants to 

compete on the Exchange. 

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 either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The proposed rule change is 

designated by the Exchange as a ‘‘noncontroversial’’ rule pursuant to Section 

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

subparagraph (f)(6) of Rule 19b–4 

thereunder,11 because the proposed rule 

change: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) 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, provided that the 

Exchange has given the Commission 

written notice of its intent to file the 

proposed rule change at least five 

business days prior to the filing of the 

proposed rule change.12

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–2009–82 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–2009–82. 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–2009–82 and should 

be submitted on or before October 16, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–23097 Filed 9–24–09; 8:45 am] 

BILLING CODE 8010–01–P 


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