Federal Register / Vol. 76, No. 162 / Monday, August 22, 2011 / Notices 52371 

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

10 17 CFR 240.19b–4(f)(2). 11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

The Exchange believes that the 

proposed monthly tier structure for 

Customer Rebates to Add Liquidity in 

Penny Options is equitable and not 

unfairly discriminatory because the 

Exchange would uniformly pay a Rebate 

to Add Liquidity to Customers 

executing Penny Options based on the 

monthly tiers proposed herein. 

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 proposed rebate 

structure and tiers are competitive and 

similar to other rebates and tiers in 

place on other exchanges. The Exchange 

believes that this competitive 

marketplace impacts the rebates present 

on the Exchange today and substantially 

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 9 and paragraph 

(f)(2) of Rule 19b-4 10 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. 

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–2011–112 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–2011–112. 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 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 No. SR–NASDAQ– 

2011–112 and should be submitted on 

or before September 12, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–21319 Filed 8–19–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65142; File No. SR–Phlx– 

2011–112] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX LLC Relating to Clarifying 

Amendments to the Rule Book 

August 16, 2011. 

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 

8, 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 

Exchange Rules 625, 3228 and Options 

Procedure Floor Advice (‘‘OFPA’’) F–10 

to eliminate unnecessary text and 

correct cross-references in Rule text. 

The Exchange also proposes to 

eliminate an unnecessary title in the 

Rule Book. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqtrader.com/ 

micro.aspx?id=PHLXfilings, 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. 


jlentini on DSK4TPTVN1PROD with NOTICES
52372 Federal Register / Vol. 76, No. 162 / Monday, August 22, 2011 / Notices 

3See Securities Exchange Act Release No. 64338 

(April 25, 2011), 76 FR 24069 (April 29, 2011) (SR– 

Phlx–2011–13). 

4See Securities Exchange Act Release No. 65010 

(August 2, 2011), 76 FR 48195 (August 8, 2011) 

(SR–Phlx–2011–100). 

5See Securities Exchange Act Release No. 63064 

(October 7, 2010), 75 FR 63231 (October 14, 2010) 

(SR–Phlx–2010–136). 

6See Securities Exchange Act Release No. 55569 

(April 2, 2007), 72 FR 17978 (April 10, 2007) (SR– 

Phlx–2007–31). 

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

8 15 U.S.C. 78f(b)(5). 

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

10 17 CFR 240.19b–4(f)(1). 

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 eliminate unnecessary text 

and correct cross-references in the Rule 

Book. The various amendments relate to 

cross-references and text in several 

Rules that were not deleted in 

connection with other rule filings. The 

Exchange proposes four amendments. 

First, the Exchange proposes to 

amend language in Exchange Rule 625, 

entitled ‘‘Training’’ to remove a 

reference to a ‘‘PAU.’’ This reference 

relates to a term that was used in 

connection with XLE, the Exchange’s 

former equity trading system, which is 

no longer utilized. The Exchange 

recently eliminated all references to 

XLE, including the definition of a 

Participant Authorized User of ‘‘PAU.’’ 3

The Exchange proposes to eliminate the 

reference to a PAU in Exchange Rule 

625 as the term is no longer necessary. 

Second, the Exchange proposes to 

amend a reference in Exchange Rule 

3228, entitled ‘‘Compliance with Rules 

and Registration Requirements.’’ The 

Exchange recently amended Exchange 

Rule 3211 to move certain text in 

paragraphs (a) through (c) to a new 

Exchange Rule 911, entitled ‘‘Member 

and Member Organization 

Participation.’’ 4 The Exchange proposes 

to replace the reference to Exchange 

Rule 3211 with Exchange Rule 911 

within Exchange Rule 3228 to reflect the 

current location of the referenced text. 

Third, the Exchange also proposes to 

delete text in OFPA F–10, entitled 

‘‘Unusual Market Conditions.’’ The 

Exchange previously filed a proposed 

rule change to delete Exchange Rule 

1015, entitled ‘‘Execution Guarantee’’ 

and OFPA A–11, entitled 

‘‘Responsibility To Fill Customer 

Orders.’’ 5 The Exchange deleted both 

Rule 1015 and OFPA A–11 because 

those rules were outdated due to the 

combination of the adoption of firm 

quote obligations in options and 

increased automation. The text of OFPA 

F–10 references both Exchange Rule 

1015 and OFPA A–11 in the second 

paragraph. The Exchange is proposing 

to delete this paragraph as the text is no 

longer necessary and outdated. 

Fourth, the Exchange is proposing a 

technical amendment to delete a 

reference to ‘‘ITS Rules’’ in the Rule 

Book. The Exchange previously 

removed references to the Intermarket 

Trading System (‘‘ITS’’) Plan and 

deleted Exchange Rules 2000–2002.6

The Exchange proposes to delete this 

reference as it is unnecessary. 

While changes pursuant to this 

proposal are immediately effective, the 

Exchange designates the amendment to 

Exchange Rule 3228 become operative 

on August 26, 2011. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 7 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 8

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 

amending the text of the Exchange Rules 

and OFPA to update cross-references 

and remove outdated and unnecessary 

text. The Exchange believes that these 

amendments will clarify the Exchange’s 

Rules to the benefit of the membership. 

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)(1) 10 thereunder, 

the Exchange has designated this 

proposal as one that constitutes a stated 

policy, practice or interpretation with 

respect to the meaning, administration, 

or enforcement of an existing rule of the 

SRO, and therefore has become 

effective. 

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–2011–112 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–2011–112. 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 


jlentini on DSK4TPTVN1PROD with NOTICES
Federal Register / Vol. 76, No. 162 / Monday, August 22, 2011 / Notices 52373 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(4)(ii). 

5Supra note 3. 

6Supra note 4. 

7The Commission notes that the proposed rule 

change became effective upon filing under Section 

19(b)(3)(A) of the Act. CME’s statement indicates 

that the proposed rule change, which became 

effective on August 5, 2011, will not become 

operative until August 9, 2011. 

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– 

2011–112 and should be submitted on 

or before September 12, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–21321 Filed 8–19–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65141; File No. SR–CME– 

2011–01] 

Self-Regulatory Organizations; 

Chicago Mercantile Exchange, Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Adopt a New Rule 

Regarding Liens on Collateral That 

Relates Solely to Its Futures Clearing 

Operations 

August 16, 2011. 

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 5, 

2011, Chicago Mercantile Exchange Inc. 

(‘‘CME’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change described in 

Items I and II below, which items have 

been prepared primarily by CME. CME 

filed the proposed rule change pursuant 

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

Rule 19b–4(f)(4)(ii) 4 thereunder. 

I. Self-Regulatory Organization’s 

Statement of Terms of Substance of the 

Proposed Rule Change 

The text of the proposed rule change 

is below. Italicized text indicates 

additions; bracketed text indicates 

deletions. 

* * * * * 

Rule 819. [Reserved] Lien on 

Collateral. 

Each Clearing Member hereby grants 

to the Clearing House a first priority and 

unencumbered lien, as security for all 

obligations of such Clearing Member to 

the Clearing House, against any 

property and collateral deposited with 

the Clearing House by the Clearing 

Member which is the property of the 

Clearing Member. Clearing Members 

shall execute any documents required 

by CME to create and enforce such lien. 

II. Self-Regulatory Organization’s 

Statement of 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 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 self-regulatory organization 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 Purpose of, and Statutory 

Basis for, the Proposed Rule Change 

Current CME Rule 902.F provides that 

‘‘[e]ach Clearing Member hereby grants 

to the Clearing House a first priority and 

unencumbered lien against all 

memberships required for clearing 

membership by the Exchange.’’ Other 

CME rules in Chapters 8 and 9 of the 

CME rulebook address the CME Clearing 

House’s security interest in CME 

clearing member’s guaranty fund and 

performance bond deposits (perfected 

by possession of the collateral), but do 

not contain the type of express language 

as appears in Rule 902.F. In order to 

more clearly indicate CME Clearing’s 

security interest in CME clearing 

member’s guaranty fund and 

performance bond deposits, CME 

proposes to adopt new CME Rule 819, 

which states as follows: 

Each Clearing Member hereby grants 

to the Clearing House a first priority and 

unencumbered lien, as security for all 

obligations of such Clearing Member to 

the Clearing House, against any property 

and collateral deposited with the 

Clearing House by the Clearing Member 

which is the property of the Clearing 

Member. Clearing Members shall 

execute any documents required by 

CME to create and enforce such lien. 

The proposed rule language mirrors 

that of CME Rule 8F008 (Lien on 

Collateral), in Chapter 8F (Over-theCounter Derivative Clearing) of the CME 

rule book, which states that ‘‘[e]ach OTC 

Clearing Member hereby grants to CME 

a first priority and unencumbered lien 

against any cash, securities or other 

collateral deposited with the Clearing 

House by the OTC Clearing Member 

which is the property of the OTC 

Clearing Member. OTC Clearing 

Members shall execute any documents 

required by CME to create and enforce 

such lien.’’ 

New proposed Rule 819 only affects 

the futures clearing operations of CME. 

It does not significantly affect any 

securities clearing operations of CME or 

any related rights or obligations of CME 

clearing members. As discussed above, 

current CME Rule 8F008 currently 

applies to CME clearing members and is 

the operative rule covering the subject 

matter of proposed Rule 819 with 

respect to CME’s security-based swaps 

clearing activities. As such, the 

proposed rule change effects a change in 

an existing service of a registered 

clearing agency that primarily affects 

the futures clearing operations of the 

clearing agency with respect to futures 

that are not security futures and does 

not significantly affect any securities 

clearing operations of the clearing 

agency or any related rights or 

obligations of the clearing agency or 

persons using such service. 

CME also submitted a filing to the 

Commodity Futures Trading 

Commission (‘‘CFTC’’) regarding 

proposed Rule 819 pursuant to CFTC 

Regulation 40.6 on July 26, 2011 with a 

proposed effective date of August 9, 

2011 (that is, ten business days after the 

date of the submission). 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CME does not believe that the 

proposed rule change will have any 

impact, or impose any burden, on 

competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

CME has not solicited, and does not 

intend to solicit, comments regarding 

this proposed rule change. CME has not 

received any unsolicited written 

comments from interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has been 

filed pursuant to Section 19(b)(3)(A) 5 of 

the Act and paragraph (f)(4)(ii) of Rule 

19b–4 6 thereunder and will become 

effective on August 9, 2011,7 the same 

date CME’s corresponding filing with 


jlentini on DSK4TPTVN1PROD with NOTICES