11608 Federal Register / Vol. 77, No. 38 / Monday, February 27, 2012 / Notices 

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

8 15 U.S.C. 78q–1. In approving this proposed 

rule change, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. 15 U.S.C. 78c(f). 

9 15 U.S.C. 78q–1(b)(3)(F). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

procedures with those of DTCC and the 

Clearing Members. No change is made 

to the rights or obligations of Clearing 

Members in respect of CDS Contracts, 

and no change is made to the custody 

or guarantee fund functions of ICE Clear 

Europe. 

ICE Clear Europe has engaged in a 

public consultation process in relation 

to all the changes, pursuant to the 

circular referred to above, as it was 

required to do under applicable U.K. 

law. This public consultation involved 

the publication of such circular on a 

publicly accessible portion of the 

Internet Web site of ICE Clear Europe. 

ICE Clear Europe has received no 

opposing views from its Clearing 

Members in relation to the proposed 

rule amendments and received no 

responses to its public consultations 

during the consultation period. The 

proposed rule change is not inconsistent 

with the existing rules of ICE Clear 

Europe, including any other rules 

proposed to be amended. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

ICE Clear Europe does not believe the 

proposed rule change would 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 

Written comments relating to the 

proposed rule change have been 

solicited by ICE Clear Europe pursuant 

to public consultation processes in the 

circulars referred to above. No 

comments have been received, 

presumably in light of the extensive 

discussions that preceded the public 

consultations. The time period for the 

public consultation has closed so ICE 

Clear Europe does not expect to receive 

any further written comments as a result 

of this process. 

III. 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 email to rulecomments@sec.gov. Please include File 

Number SR–ICEEU–2012–02 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–ICEEU–2012–02. This file 

number should be included on the 

subject line if email 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 Section, 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 filings 

will also be available for inspection and 

copying at the principal office of ICE 

Clear Europe and on ICE Clear Europe’s 

Web site at https://www.theice.com/ 

publicdocs/regulatory_filings/ 

ICE_Clear_Europe_Rule_Amendments

_2012_02.pdf. 

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–ICEEU–2012–02 and 

should be submitted on or before March 

19, 2012. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of 

Proposed Rule Change 

Section 19(b) of the Act 7 directs the 

Commission to approve a proposed rule 

change of a self-regulatory organization 

if it finds that such proposed rule 

change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

such organization. The Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act, in particular the requirements of 

Section 17A of the Act,8 and the rules 

and regulations thereunder applicable to 

ICE Clear Europe. Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

17A(b)(3)(F) of the Act,9 which requires, 

among other things, that the rules of a 

registered clearing agency be designed 

to promote the prompt and accurate 

clearance and settlement of derivative 

agreements, contracts, and transactions 

because it should permit ICE Clear 

Europe to align its restructuring credit 

event processing with the system used 

by the repository for processing notices 

related to such credit events. 

ICE Clear Europe has requested that 

the Commission approve the proposed 

rule change on an accelerated basis for 

good cause shown. The Commission 

finds good cause for accelerating 

approval because ICE Clear Europe must 

have operational procedures that match 

the operational procedures of the system 

used by the repository for processing 

notices of restructuring credit events in 

order to process such credit events 

efficiently and effectively. 

V. Conclusion 

It is therefore ordered pursuant to 

Section 19(b)(2) of the Act that the 

proposed rule change (SR–ICEEU–2012– 

02) be, and hereby is, approved on an 

accelerated basis. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Kevin O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–4421 Filed 2–24–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66427; File No. SR–BATS– 

2012–011] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Adopting Rebates for the 

Competitive Liquidity Provider 

Program 

February 21, 2012. 

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 February 


srobinson on DSK4SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 38 / Monday, February 27, 2012 / Notices 11609 

3See Securities Exchange Act Release No. 65225 

(August 30, 2011), 76 FR 55148 (September 6, 2011) 

(SR–BATS–2011–018). 

4See Securities Exchange Act Release No. 66307 

(February 2, 2012), 77 FR 6608 (February 8, 2012) 

(SR–BATS–2011–051). 

8, 2012, BATS Exchange, Inc. (‘‘BATS’’ 

or ‘‘Exchange’’) 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 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to institute a 

fee change in connection with an 

incentive program for Exchangeregistered market makers (‘‘Market 

Makers’’) in securities listed on the 

Exchange. Changes to the Exchange’s 

fees pursuant to this proposal will be 

effective upon filing. 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at http://www.batstrading.com, 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On August 30, 2011, the Exchange 

received approval of rules applicable to 

the qualification, listing and delisting of 

securities of issuers on the Exchange.3

More recently, the Exchange received 

approval to operate a program that is 

designed to incentivize certain market 

makers registered with the Exchange as 

Competitive Liquidity Providers 

(‘‘CLPs’’) to enhance liquidity on the 

Exchange in securities listed on the 

Exchange (the ‘‘Competitive Liquidity 

Provider Program’’ or ‘‘CLP Program’’).4

The Exchange proposes to adopt 

financial incentives for the Competitive 

Liquidity Provider Program, as 

described below. These incentives 

include competition amongst CLPs for 

daily rebates awarded based on quoting 

activity and the ability to earn free 

executions in Exchange auctions of 

Exchange-listed securities. 

Daily Rebates 

Pursuant to the CLP Program, the 

Exchange will measure the performance 

of CLPs in assigned securities by 

calculating Size Event Tests (‘‘SETs’’) in 

each second of trading during every day 

on which the Exchange is open for 

business. At a randomly selected point 

in time during Regular Trading Hours, 

at least once per second, the Exchange 

will measure each CLP’s quoted size at 

the NBB and NBO. The CLP with the 

greatest aggregate size at the NBB and 

NBO at each SET (i.e., the combined 

size at the NBB and NBO) will be 

considered to have a ‘‘winning SET.’’ A 

CLP must have at least 10% of the 

winning SETs on any trading day in 

order meet its daily quoting requirement 

and to be eligible for the daily rebates 

proposed below. As proposed, any 

Market Maker registered in a security as 

a CLP that has satisfied the daily 

quoting requirement will be eligible to 

receive a single daily financial rebate for 

each day’s quoting activity as follows: 

Class of security Amount of total daily rebate Allocation of daily rebate 

Tier I Securities Listed on the Exchange Pursuant to 

Rule 14.8 for Six Months Commencing from the Date 

of Initial Listing on the Exchange.

$500 per day ...................... 80% ($400) to CLP with highest number of winning 

SETs; 20% ($100) to CLP with second highest number of winning SETs. 

Tier I Securities Listed on the Exchange Pursuant to 

Rule 14.8 for Remaining Time Subject to CLP Program.

250 per day ........................ 80% ($200) to CLP with highest number of winning 

SETs; 20% ($50) to CLP with second highest number of winning SETs. 

Tier II Securities Listed on the Exchange Pursuant to 

Rule 14.9.

100 per day ........................ 100% to CLP with highest number of winning SETs. 

ETPs Listed Pursuant to Rule 14.11 ................................ 250 per day ........................ 80% ($200) to CLP with highest number of winning 

SETs; 20% ($50) to CLP with second highest number of winning SETs. 

As set forth in the chart above, for all 

Tier I securities and exchange traded 

products (‘‘ETPs’’) listed on the 

Exchange, the Exchange proposes to 

offer quoting incentives to the two CLPs 

with the highest number of winning 

SETs during Regular Trading Hours on 

the Exchange. For each award, the 

Exchange will provide 80% of the 

incentive to the first-place CLP and 20% 

of the incentive to the second-place 

CLP. In the event only one CLP is 

eligible for the daily rebate, 100% of 

such rebate will be provided to such 

CLP. In the event that multiple CLPs 

have an equal number of winning SETs, 

the CLP with the highest executed 

volume in the security will be awarded 

the applicable daily rebate. For Tier II 

securities listed on the Exchange, the 

Exchange will provide 100% of the 

quoting incentive to the first-place CLP. 

The Exchange proposes to offer a 

daily quoting incentive of $500 for CLPs 

($400 for the first-place CLP and $100 

for the second-place CLP) CLPs for the 

first six months that a Tier I corporate 

security is listed on the Exchange 

pursuant to Rule 14.8. Such listing 

could either be the result of an issuers 

initial public offering (‘‘IPO’’) on the 

Exchange or due to the transfer of an 

issuer from another exchange to the 

Exchange. For the remainder of the time 

a Tier I corporate security is listed on 

the Exchange, and for all ETPs, the 

Exchange proposes to offer a $250 daily 

quoting incentive ($200 for the firstplace CLP and $50 for the second-place 

CLP). Finally, the Exchange proposes to 

offer a daily quoting incentive of $100 

for Tier II securities listed on the 

Exchange pursuant to Rule 14.9. 


srobinson on DSK4SPTVN1PROD with NOTICES
11610 Federal Register / Vol. 77, No. 38 / Monday, February 27, 2012 / Notices 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(4) and (b)(5). 7 15 U.S.C. 78f(b)(5). 

Waiver of Fees for Auction Executions 

In order to further incentivize 

Members to register as CLPs and 

participate in the CLP Program, the 

Exchange proposes to waive applicable 

execution fees in Exchange auctions for 

any CLP that receives a daily rebate for 

a specific Exchange-listed security on at 

least two (2) trading days during a 

calendar month. The auction fee waiver 

will be provided on a security-bysecurity basis in the subsequent 

calendar month for CLPs that qualify. 

Further, because a CLP cannot qualify 

for this incentive until at least the 

second calendar month of a security’s 

listing, in the initial calendar month of 

a security’s listing on the Exchange, a 

CLP that is assigned the security will 

not be charged for any executions in the 

security that occur in any auction of the 

security that is conducted by the 

Exchange pursuant to Rule 11.23. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder that 

are applicable to a national securities 

exchange, and, in particular, with the 

requirements of Section 6 of the Act.5

Specifically, the Exchange believes that 

the proposed rule change is consistent 

with Sections 6(b)(4) and (b)(5) of the 

Act,6 in that it provides for the equitable 

allocation of reasonable dues, fees and 

other charges among issuers, and it does 

not unfairly discriminate between 

customers, issuers, brokers or dealers. 

At the outset, the Exchange believes 

that the proposal is not unfairly 

discriminatory due to the fact that 

registration as an Exchange Market 

Maker, and, in turn, as a CLP, is equally 

available to all Members that satisfy the 

requirements of Rule 11.8. The 

Exchange believes that by allocating 

pricing benefits to CLPs that make 

tangible commitments to enhancing 

market quality for securities listed on 

the Exchange, the proposal will 

encourage the development of new 

financial products, provide a better 

trading environment for investors in 

Exchange-listed securities, and 

generally encourage greater competition 

between listing venues. 

As proposed, the CLP Program is 

designed to enhance the Exchange’s 

competitiveness as a listing venue and 

to strengthen its market quality for 

Exchange-listed securities. The 

Exchange is launching its listings 

business at a time in which there are 

two dominant primary listing venues, 

the New York Stock Exchange and 

Nasdaq. The Exchange believes that the 

proposed change would increase 

competition by incenting Exchange 

Market Makers to register as CLPs, 

which will enhance the quality of 

quoting in Exchange-listed securities 

and will further assist the Exchange to 

develop an alternative to Nasdaq and 

the New York Stock Exchange for an 

issuer seeking to list its securities. 

Accordingly, the Exchange believes that 

the proposal will compliment the 

Exchange’s program for listing securities 

on the Exchange, which will, in turn, 

provide issuers with another option for 

raising capital in the public markets, 

thereby promoting the principles 

discussed in Section 6(b)(5) of the Act.7

The Exchange believes that the 

proposed quoting incentives are fair and 

equitable in that registered CLPs will be 

competing for rewards that are 

calculated based solely on the 

Exchange’s measurement of SETs, and 

the quoting incentive provided varies 

only depending on the type of security 

for which such CLP is registered. The 

Exchange further believes that 

differentiation between various types of 

Exchange-listed securities is fair and 

equitable and not unreasonably 

discriminatory because the risks and 

necessary incentives for a market maker 

to make a market in different securities 

vary, as described in further detail 

below. 

The Exchange proposes a lower 

quoting incentive for Tier II corporate 

issues than other Exchange listed 

securities. Specifically, the Exchange 

proposes to provide an incentive of 

$100 per day for the CLP with the 

highest number of winning SETs during 

the applicable trading day with respect 

to a Tier II corporate issue subject to the 

CLP Program. The Exchange has also 

chosen not to offer a quoting incentive 

to the CLP with the second highest 

number of winning SETs during the 

applicable trading day for Tier II 

corporate issues. The Exchange believes 

that this quoting incentive structure for 

Tier II corporate issues is reasonable 

because the Exchange does not expect to 

have as many registered CLPs for Tier II 

corporate issues as compared to Tier I 

corporate issues and ETPs. This is 

because if there is indeed less 

competition in Tier II issues, then the 

registered CLPs in Tier II issues will 

have a better opportunity to receive the 

daily quoting incentive. Also, because 

the quoting incentive is lower, the 

Exchange believes it is reasonable to 

simply provide a single quoting 

incentive to the CLP with the highest 

number of winning SETs during the 

applicable trading day for Tier II 

corporate issues. 

The Exchange proposes a daily 

quoting incentive of $250 per day for 

ETPs listed pursuant to Exchange Rule 

14.11, with $200 for the first-place CLP 

and $50 for the second-place CLP. The 

Exchange believes that this quoting 

incentive is reasonable because the 

Exchange expects to have several 

competing CLPs for each ETP, and thus, 

the daily quoting incentive must be 

slightly larger (to incent competition 

even by CLPs that may receive the 

incentive less frequently). Due to the 

additional competition, the Exchange 

also believes it is reasonable to provide 

a quoting incentive to both the first and 

second-place CLP for ETPs. 

The Exchange also expects to have 

several competing CLPs for Tier I 

corporate issues. While the value of an 

ETP can be readily monitored and 

updated based on analysis conducted of 

the underlying securities or products, 

market making for a corporate issue 

requires additional analysis and 

imposes different risks. Due to the 

additional risks, the Exchange believes 

that additional incentives are necessary 

and appropriate in order to encourage 

CLPs to register as CLPs for Tier I 

corporate issues listed on the Exchange 

pursuant to Rule 14.8 for a six-month 

period commencing from the date of 

initial listing on the Exchange. Based on 

the additional risks and the additional 

competition, the Exchange believes that 

the proposed quoting incentive for Tier 

I corporate issues of $500 is reasonable 

for the first six months that a security 

is listed on the Exchange. After six 

months, because CLPs should become 

more familiar with the market for the 

applicable issue, the Exchange believes 

it is reasonable to provide the same 

quoting incentive as it provides for 

ETPs. 

Finally, as described above, in order 

to further incentivize Members to 

register as CLPs and participate in the 

CLP Program, the Exchange proposes to 

waive applicable execution fees in 

Exchange auctions for any CLP that 

receives a daily rebate for a specific 

Exchange-listed security on at least two 

(2) trading days during a calendar 

month. The Exchange believes that the 

waiver of auction fees is equitable and 

not unreasonably discriminatory 

because it will be available to all CLPs 

registered for the applicable issue and 

will be awarded based on objective 

criteria. Also, as noted above, 

registration as an Exchange Market 

Maker, and, in turn, as a CLP, is equally 

available to all Members that satisfy the 

requirements of Rule 11.8. The 


srobinson on DSK4SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 38 / Monday, February 27, 2012 / Notices 11611 

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. 

3All co-location services are provided by 

NASDAQ Technology Services LLC. 

Exchange believes that the waiver of 

auction fees is reasonable because it is 

based on a relatively low threshold, and 

thus, will help to incentivize Members 

to register as CLPs and participate in the 

CLP Program and to stay registered in 

the CLP Program even if such Members 

rarely receive the applicable daily 

quoting incentive. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change imposes any 

burden on competition. 

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. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

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

the Act 8 and Rule 19b–4(f)(2) 

thereunder,9 the Exchange has 

designated this proposal as establishing 

or changing a due, fee, or other charge 

applicable to the Exchange’s Members 

and non-members, which renders the 

proposed rule change effective upon 

filing. 

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 email to rulecomments@sec.gov. Please include File 

Number SR–BATS–2012–011 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–BATS–2012–011. This file 

number should be included on the 

subject line if email 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 

publicly available. All submissions 

should refer to File Number SR–BATS– 

2012–011 and should be submitted on 

or before March 19, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–4401 Filed 2–24–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66429; File No. SR–Phlx– 

2012–20] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX LLC To Modify 

Connectivity Options and Fees 

February 21, 2012. 

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 February 

15, 2012, 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 and 

II 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to modify the 

Phlx Fee Schedule, Section X(b) 

regarding Exchange connectivity 

options and fees. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to modify the 

Phlx Fee Schedule, Section X(b) 

regarding connectivity to The NASDAQ 

Stock Market LLC (‘‘NASDAQ’’).3

Specifically, the Exchange proposes to 

(i) establish a connectivity fee for a 

40Gb enhanced bandwidth option; and 

(ii) provide a waiver of installation fees 

for upgrades. 

Enhanced Bandwidth Option 

The Exchange currently offers various 

bandwidth options for connectivity to 

the Exchange, including a 10Gb fiber 


srobinson on DSK4SPTVN1PROD with NOTICES