Federal Register / Vol. 76, No. 152 / Monday, August 8, 2011 / Notices 48195 

7 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78s(b)(3)(a)(ii). 

9 17 CFR 240.19b–4(f)(2). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

responding to customer requests, 

configuring NASDAQ’s systems, 

programming to user specifications, and 

administering the service, among other 

things, and may provide NASDAQ with 

a profit to the extent costs are covered. 

NASDAQ also believes that the 

proposed rule change is consistent with 

the provisions of Section 6(b)(5) of the 

Act 7 because it is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. PRM is designed to assist 

member firms in avoiding entry of 

erroneous orders by screening out those 

that exceed pre-determined limits, 

which otherwise may harm both the 

member firm and the quality of the 

markets. As such, PRM is an important 

compliance tool that members may use 

to help maintain the regulatory integrity 

of the markets. NASDAQ believes that 

the amendments to the fees assessed for 

PRM and its services may encourage 

more member firms to subscribe to this 

useful compliance tool. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NASDAQ 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. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor 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 8 and 

subparagraph (f)(2) of Rule 19b-4 

thereunder.9 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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

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–NASDAQ–2011–099 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–NASDAQ–2011–099. 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– 

NASDAQ–2011–099 and should be 

submitted on or before August 29, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20008 Filed 8–5–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65010; File No. SR–Phlx– 

2011–100] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX LLC Relating to Member 

and Member Organization Participation 

August 2, 2011. 

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 July 26, 

2011, 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 

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 apply 

Exchange Rule 3211 entitled ‘‘PSX 

Participant Registration’’ to members 

and member organizations conducting 

an options business. 

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 

mstockstill on DSK4VPTVN1PROD with NOTICES

48196 Federal Register / Vol. 76, No. 152 / Monday, August 8, 2011 / Notices 

3See Exchange Rule 3211 entitled ‘‘PSX 

Participant Registration,’’ which is applicable to 

PSX Participants. 

4PSX is a cash equities electronic trading 

platform. Specifically, PSX is an open-access fully 

electronic integrated order display and execution 

system for NMS stocks. 

5PHLX XL® is the Exchange’s automated options 

trading system. This proposal refers to ‘‘PHLX XL’’ 

as the Exchange’s automated options trading 

system. In May 2009 the Exchange enhanced the 

system and adopted corresponding rules referring to 

the system as ‘‘Phlx XL II.’’ See Securities Exchange 

Act Release No. 59995 (May 28, 2009), 74 FR 26750 

(June 3, 2009) (SR–Phlx–2009–32). The Exchange 

intends to submit a separate technical proposed 

rule change that would change all references to the 

system from ‘‘Phlx XL II’’ to ‘‘PHLX XL’’ for 

branding purposes. 

6FBMS is designed to enable floor brokers and/ 

or their employees to enter, route, and report 

transactions stemming from options orders received 

on the Exchange. FBMS also is designed to establish 

an electronic audit trail for options orders 

represented and executed by floor brokers on the 

Exchange. See Exchange Rule 1080, commentary 

.06 

7PSX Participants are not subject to this Rule, but 

are subject to Exchange Rule 3211. See Exchange 

Rule 3211. 

8See Exchange Rules 600 (Registration), 604 

(Registration and Termination of Registered 

Persons), 620 (Trading Floor Registration), 640 

(Continuing Education for Registered Persons), 901 

(Denials of and Conditions to Membership), Rule 

908 (Rights and Privileges of A–1 Permits) and Rule 

910 (Qualification as Member Organization), among 

other Rules. 

9See Exchange Rule 59 (Deliveries through 

Registered Clearing Agencies). 

10See also Exchange Rule 1080 (Phlx XL and 

PHLX XL II) describes PHLX XL and the obligations 

of options members. 

11See Exchange By-Law Article VI, Section 6–3 

(Use of Facilities of Exchange), Rule 606 

(Communication and Equipment), Option Floor 

Procedure Advice F–31 (Communications and 

Equipment), By-Law Article VII, Sec. 7–3 

(Membership Qualifications) and Exchange Rule 

1080 (Phlx XL and PHLX XL II) describes PHLX XL 

and the obligations of options members. 

12See Exchange Rules 1035 (Acceptance of Bid or 

Offer), 1044 (Delivery and Payment) and 1052 

(Responsibility of Clearing Options Members for 

Exchange Options Transactions). These Rules are 

applicable to options members today. 

13See Exchange Rule 1053 (Filing Of Trade 

Information), 1055 (Reporting of Compared Trades 

to Options Clearing Corporation) and 1063 

(Responsibilities of Floor Brokers). These Rules are 

applicable to options members today. 

14See Exchange Rules 600 (Registration), 604 

(Registration and Termination of Registered 

Persons) and 620 (Trading Floor Registration). 

These Rules are applicable to options members 

today. 

15See Exchange Rule 908 (Rights and Privileges 

of A–1 Permits) which provides that permit holders 

must abide by the By-Laws and Rules of the 

Exchange. 

16 15 U.S.C. 78f(b). 

17 15 U.S.C. 78f(b)(5). 

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 apply Exchange Rule 3211, 

entitled ‘‘PSX Participant Registration’’ 

to members and member organizations 

transacting options. The Exchange 

proposes to clearly specify requirements 

for all members and member 

organizations to access the Exchange’s 

trading system. 

The Exchange currently requires PSX 

Participants to comply with certain 

requirements to access the Exchange’s 

trading system as specified in Exchange 

Rule 3211.3 The Exchange proposes to 

apply substantially the same 

requirements in new Exchange Rule 911 

to members and member organizations 

transacting options, by eliminating 

paragraphs (a) through (c) in Exchange 

Rule 3211, located in the PSX Rules, 

and adopting new Exchange Rule 911, 

which is proposed to be located in the 

Rules of the Exchange, and making it 

applicable to all members of the 

Exchange. The Exchange proposes to 

add new Exchange Rule 911 to the list 

of Rules in Exchange Rule 3202, entitled 

‘‘Application of Other Rules of the 

Exchange,’’ so that paragraphs (a) 

through (c) in Exchange Rule 911 would 

continue to apply to PSX Participants. 

Also, the Exchange proposes to rename 

Exchange Rule 3211 ‘‘Sponsored 

Participants’’ to accurately reflect the 

substance of the remaining language in 

3211(d), which the Exchange would 

rename as paragraph ‘‘a’’ to reflect the 

removal of the previous paragraphs. 

Today, the Exchange’s trading system 

is accessible to all Exchange members 

and member organizations, transacting 

equities or options, that meet the 

registration, qualification and other 

membership requirements set forth in 

the Exchange Rules. The Exchange’s 

trading system, for purposes of this Rule 

911, shall include NASDAQ OMX PSX 

(‘‘PSX’’),4 PHLX XL® 5 and the Floor 

Broker Management System (‘‘FBMS’’),6

(collectively ‘‘System’’).7

Specifically, the Exchange proposes to 

apply the provisions of new proposed 

Rule 911 to options members and 

member organizations. The provisions 

in section (a) are clarifying amendments 

as options members are required to 

comply with these provisions today. For 

example, the obligation to register in 

paragraph (a) and to execute all 

applicable agreements applies today to 

option members.8 The requirement to 

have a membership in or arrangement 

with a clearing agency also applies 

today to option members.9 Compliance 

with all applicable Rules and 

procedures is specified in By-Law 

Article VI, Section 6–1 entitled ‘‘Rights 

and Privileges’’ and Section 6–12 

entitled ‘‘Dealing on the Exchange,’’ 

which By-Laws apply to all Exchange 

members.10 The maintenance of 

physical security of the equipment 

located on the premises of the member 

or member organization and improper 

use of the Exchange’s System is also 

currently enumerated in the Rules 

which are applicable to options 

members.11 The acceptance and 

settlement of trades effected by a 

member or member organization is 

delineated in the Rules today and 

applicable to option members.12 The 

input of accurate information into the 

Exchange’s System 13 and the effective 

date of a member or member 

organization’s registration, are described 

in the Rules regarding registration of 

members and member organizations, 

which are applicable to option 

members.14

The member and member 

organization’s continuing obligation to 

report any noncompliance with 

registration requirements is inferred 

today in the Exchange’s Rules.15 The 

Exchange believes that this provision in 

section (b) of proposed Rule 911 should 

be equally applied to option members as 

it is currently applicable to PSX 

Participants today. 

Finally, the provision in section (c) to 

impose temporary restrictions upon the 

automated entry or updating of orders or 

quotes/orders as the Exchange may 

determine is not currently applicable to 

options members but only PSX members 

today. The Exchange is proposing to 

apply this provision to options members 

in order that the Exchange uniformly 

may apply its rules regarding System 

access to all members of the Exchange. 

The Exchange believes that this 

provision of the proposed Rule is 

necessary to protect the integrity of the 

Exchange’s systems. For example, such 

temporary restrictions may be necessary 

to address a system problem at a 

particular member or member 

organization or at the Exchange, or an 

unexpected period of extremely high 

message traffic. The scope of any such 

restrictions shall be communicated to 

the affected options member or member 

organization in writing. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 16 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 17

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 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 76, No. 152 / Monday, August 8, 2011 / Notices 48197 

18 15 U.S.C. 78s(b)(3)(A). 

19 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. 20 17 CFR 200.30–3(a)(12). 

open market and a national market 

system, and, in general to protect 

investors and the public interest, by 

further clarifying the Exchange’s Rules 

with respect to its members and member 

organizations transacting options. The 

Exchange believes that equally applying 

the rule to both options members and 

member organizations and PSX 

Participants further protects the public 

interest. 

The Exchange believes that this 

proposed rule would, in part, clarify the 

obligations of an option member or 

member organization with respect to the 

provisions in section (a)(1) through (6) 

of the proposed Rule. As specified 

herein, the Exchange believes that 

option members today are subject to 

these requirements and the proposal 

merely serves to clarify these obligations 

in a single Rule. These requirements in 

section (a) of the proposed rule seek to 

ensure that the option members and 

member organizations are required to 

maintain certain standards to protect the 

integrity of the Exchange’s systems, as is 

the case today for PSX Participants. 

The Exchange believes that an options 

member and member organization’s 

continuing obligation to report any 

noncompliance with registration 

requirements is inferred in the Rules 

today as described herein. The 

application of proposed Rule 911 to 

option members would adopt a clear 

Rule for option members regarding their 

obligation to report noncompliance with 

any registration requirement, as is the 

case today for PSX Participants. The 

Exchange believes this provision is 

instrumental in assisting the Exchange 

with its regulatory responsibilities. 

Finally, the Exchange proposes to add 

a new provision, that it may impose 

temporary restrictions upon the 

automated entry or updating of orders or 

quotes/orders as the Exchange may 

determine to be necessary to protect the 

integrity of the Exchange’s systems, for 

option members. This provision is 

applicable today to PSX Participants. 

The Exchange believes that this ability 

to impose a temporary restriction upon 

members and member organizations 

transacting options would assist the 

Exchange in maintaining the integrity of 

the market and protecting 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 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 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 after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to 19(b)(3)(A) 

of the Act 18 and Rule 19b–4(f)(6) 19

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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

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–2011–100 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–2011–100. 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– 

2011–100 and should be submitted on 

or before August 29, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–19991 Filed 8–5–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65015; File No. SR– 

MSRB–2011–08] 

Self-Regulatory Organizations; 

Municipal Securities Rulemaking 

Board; Notice of Filing of Proposed 

New Rule A–11, on Municipal Advisor 

Assessments, and New Form A–11– 

Interim 

August 2, 2011. 

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

Securities Exchange Act of 1934 (the 

mstockstill on DSK4VPTVN1PROD with NOTICES