49810 Federal Register / Vol. 76, No. 155 / Thursday, August 11, 2011 / Notices 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). 

11 Id. 

12 Id. 

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

14For purposes only of waiving the operative 

delay of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). See also 17 CFR 200.30–3(a)(59). 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

proprietary traders. This filing provides 

the content outline and relevant 

specifications for the Series 56 

examination program, which NASDAQ 

believes establishes the appropriate 

qualifications for this new registration 

category, because it tests the knowledge 

generally applicable to proprietary 

trading. 

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 

Pursuant to Section 19(b)(3)(A) of the 

Act 9 and Rule 19b–4(f)(6) 10 thereunder, 

the Exchange has designated this 

proposal as one that effects a change 

that: (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 after the date of 

the filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest. Rule 19b–4(f)(6) 11

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. 

Under Rule 19b–4(f)(6) of the Act,12 a 

proposal does not become operative for 

30 days after the date of its filing, or 

such shorter time as the Commission 

may designate if consistent with the 

protection of investors and the public 

interest. The Exchange requests that the 

Commission waive the 30 day operative 

period for this filing so that it may 

become effective and operative upon 

filing with the Commission pursuant to 

Section 19(b)(3)(A) 13 of the Act and 

subparagraph (f)(6) thereunder. The 

Exchange believes waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public as 

a waiver will make the examination 

available as soon as possible to coincide 

with availability on another exchange. 

For the reasons stated above, the 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest and designates the 

proposal as operative upon filing.14

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. 

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 rule-comments

@sec.gov. Please include File Number 

SR–NASDAQ–2011–108 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–2011–108. 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 such filing 

also will be available for inspection and 

copying at the principal office of 

NASDAQ. 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– 

NASDAQ–2011–108 and should be 

submitted on or before September 1, 

2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20370 Filed 8–10–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65049; File No. SR–Phlx– 

2011–103] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Rebates and Fees for Adding and 

Removing Liquidity in Select Symbols 

August 5, 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 August 

1, 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 amend its 

Complex Order Fees in Section I of its 

Fee Schedule titled ‘‘Rebates and Fees 


srobinson on DSK4SPTVN1PROD with NOTICES
Federal Register / Vol. 76, No. 155 / Thursday, August 11, 2011 / Notices 49811 

3See Exchange Rule 1080, Commentary .08(a)(i). 

4SPY options are based on the SPDR exchangetraded fund (‘‘ETF’’), which is designed to track the 

performance of the S&P 500 Index. 

5The only market participant that receives a 

Rebate for Adding Liquidity for Complex Orders 

today is a Customer. 6A list of all symbols subject to the Rebates and 

Fees for Adding and Removing Liquidity are listed 

in Section I of the Exchange’s Fee Schedule and 

titled ‘‘Select Symbols.’’ 7All other market participants are assessed a Fee 

for Removing Liquidity today other than Customer 

Complex Orders in SPY, QQQ, IWM and AAPL. 8This would result in a $0.01 per contract rebate 

increase for SPY, QQQ, IWM and AAPL and a $0.02 

per contract rebate increase for BAC, C, GLD, INTC, 

JPM, SLV, XLF and F. 9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(4). 

for Adding and Removing Liquidity in 

Select Symbols.’’ 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, at the 

principal office of the Exchange, at the 

Commission’s Public Reference Room, 

and on the Commission’s Web site at 

http://www.sec.gov. 

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 amend Section I, Part B of 

the Exchange’s Fee Schedule for 

Complex Orders. A Complex Order is 

any order involving the simultaneous 

purchase and/or sale of two or more 

different options series in the same 

underlying security, priced at a net 

debit or credit based on the relative 

prices of the individual components, for 

the same account, for the purpose of 

executing a particular investment 

strategy. Furthermore, a Complex Order 

can also be a stock-option order, which 

is an order to buy or sell a stated 

number of units of an underlying stock 

or ETF coupled with the purchase or 

sale of options contract(s).3

The Exchange proposes to increase 

the current Customer Rebate for Adding 

Liquidity with respect to Complex 

Orders for options overlying: (i) 

Standard and Poor’s Depositary 

Receipts/SPDRs (‘‘SPY’’); 4 (ii) the 

PowerShares QQQ Trust (‘‘QQQ’’)®; (iii) 

Apple, Inc. (‘‘AAPL’’); (iv) iShares 

Russell 2000 Index (‘‘IWM’’); (v) Bank of 

America Corporation (’’BAC’’); (vi) 

Citigroup, Inc. (’’C’’); (vii) SPDR Gold 

Trust (’’GLD’’); (viii) Intel Corporation 

(‘‘INTC’’); (ix) JPMorgan Chase & Co. 

(’’JPM’’); (x) iShares Silver Trust 

(’’SLV’’); (xi) Financial Select Sector 

SPDR (’’XLF’’); and (xii) Ford Motor 

Company (‘‘F’’) (taken together, 

‘‘Designated Options’’). The Exchange 

also proposes to waive the Customer 

Complex Order Fee for Removing 

Liquidity of $0.25 per contract for the 

following symbols: BAC, C, GLD, INTC, 

JPM, SLV, XLF and F. The Exchange 

believes that increasing the Customer 

Complex Order Rebate to Add Liquidity 

and waiving the Customer Complex 

Order Fee for Removing Liquidity for 

the symbols listed above, respectively, 

would attract additional Customer order 

flow to the Exchange. 

Currently, the Exchange pays a 

Customer Complex Order Rebate for 

Adding Liquidity of $0.25 per contract 

in certain Select Symbols, namely SPY, 

QQQ, AAPL and IWM. The Exchange 

currently pays a Customer Complex 

Order Rebate for Adding Liquidity 5 of 

$0.24 per contract in all other Select 

Symbols, excluding SPY, QQQ, AAPL 

and IWM.6 The Exchange also currently 

waives the Customer Complex Order 

Fee for Removing Liquidity for options 

overlying SPY, QQQ, AAPL and IWM.7

The proposal would increase the 

Customer Rebate for Adding Liquidity 

to $0.26 per contract for all Designated 

Options.8 In addition, the proposal 

would extend the current waiver of the 

Customer Complex Order Fee for 

Removing Liquidity to include the 

following symbols: BAC, C, GLD, INTC, 

JPM, SLV, XLF and F. 

Under this proposal, the Exchange 

will pay Customer Complex Orders a 

Rebate for Adding Liquidity of $0.24 per 

contract, in any Select Symbol, except 

the Designated Options. The Exchange 

will also assess the Customer Complex 

Order Fee for Removing Liquidity of 

$0.25 per contract, in any Select 

Symbol, except the Designated Options. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Fee Schedule is 

consistent with Section 6(b) of the Act 9

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 10 in 

particular, in that it is an equitable 

allocation of reasonable fees and other 

charges among Exchange members. The 

Exchange also believes that there is an 

equitable allocation of reasonable 

rebates among Exchange members. 

The Exchange believes that it is 

reasonable and equitable to only pay a 

Complex Order Rebate for Adding 

Liquidity to Customers, as compared to 

other market participants, because the 

Customer rebate will attract Customer 

order flow to the Exchange for the 

benefit of all market participants. 

Likewise, the Exchange believes that it 

is reasonable to waive the Complex 

Order Fee for Removing Liquidity for 

Customers transacting BAC, C, GLD, 

INTC, JPM, SLV, XLF and F, because by 

waiving the fee, this also will attract 

Customer order flow to the Exchange 

which in turn also benefits all market 

participants. 

The Exchange believes that these 

proposals are equitable and not unfairly 

discriminatory because by paying an 

increased Rebate for Adding Liquidity 

to Customers transacting Complex 

Orders in certain symbols and waiving 

Fees for Adding Liquidity to Customers 

transacting Complex Orders in certain 

additional symbols, all market 

participants will benefit from the 

increased liquidity which increased 

Customer order flow would bring to the 

Exchange. 

With respect to the Customer 

Complex Order Rebate for Adding 

Liquidity the Exchange believes that it 

is reasonable to pay a different rebate for 

transacting equity options in certain 

symbols and with respect to the 

Customer Complex Order Fee for 

Removing Liquidity the Exchange 

believes that it is reasonable to assess a 

different Fee for Removing Liquidity in 

certain symbols. The Exchange 

currently pays a different Customer 

Complex Order Rebate for Adding 

Liquidity and assesses a different 

Customer Complex Order Fee for 

Removing Liquidity in SPY, QQQ, IWM 

and AAPL as compared to other Select 

Symbols. Trading in these Select 

Symbols is different from trading in 

other symbols in that they are more 

liquid, have higher volume and 

competition for executions is more 

intense. The Exchange believes the same 

rationale applies in paying a different 

Customer Complex Order Rebate for 

Adding Liquidity and assessing a 

different Customer Complex Order Fee 

for Removing Liquidity in BAC, C, GLD, 

INTC, JPM, SLV, XLF and F in that 

these symbols are also more liquid, have 

higher volume and competition for 

executions is more intense. 


srobinson on DSK4SPTVN1PROD with NOTICES
49812 Federal Register / Vol. 76, No. 155 / Thursday, August 11, 2011 / Notices 

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

12 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. 

The Exchange believes that its 

proposal to pay a higher rebate for 

transactions in equity options in the 

Designated Options, as compared to the 

other Select Symbols, is equitable and 

not unfairly discriminatory because the 

Exchange would uniformly pay the 

same Customer Complex Order Rebate 

for Adding Liquidity for all Customer 

Complex Orders in all Designated 

Options. The Exchange believes that 

waiving the Customer Complex Order 

Fee for Removing Liquidity for the 

following additional symbols: BAC, C, 

GLD, INTC, JPM, SLV, XLF and F is 

equitable and not unfairly 

discriminatory because the Exchange is 

uniformly waiving the Customer 

Complex Order Fee for Removing 

Liquidity. 

The Exchange operates in a highly 

competitive market comprised of nine 

U.S. options exchanges in which 

sophisticated and knowledgeable 

market participants can readily send 

order flow to competing exchanges if 

they deem fee levels at a particular 

exchange to be excessive. The Exchange 

believes that the Complex Order fees 

and rebates it pays/assesses must be 

competitive with fees and rebates in 

place on other exchanges. The Exchange 

believes that this competitive 

marketplace impacts the fees and 

rebates present on the Exchange today 

and influences the proposals set forth 

above. 

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.11 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–2011–103 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-2011–103. 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– 

2011–103 and should be submitted on 

or before September 1, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20376 Filed 8–10–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65047; File No. SR– 

NYSEAmex–2011–56] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending NYSE Amex 

Options Rule 985NY To Permit 

Qualified Contingent Cross Orders To 

Be Electronically Submitted to the 

NYSE Amex System From the Floor of 

the Exchange for Potential Execution 

August 5, 2011. 

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 August 1, 

2011, 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 Options Rule 985NY to 

permit Qualified Contingent Cross 

Orders (‘‘QCCs’’) to be electronically 

submitted to the NYSE Amex System 

from the Floor of the Exchange for 

potential [sic]. The text of the proposed 

rule change is available at the 

Exchange’s Web site at http:// 

www.nyse.com, on the Commission’s 

Web site at http://www.sec.gov, at the 

Exchange’s principal office, 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, 


srobinson on DSK4SPTVN1PROD with NOTICES