11606 Federal Register / Vol. 77, No. 38 / Monday, February 27, 2012 / Notices 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 66079 

(January 3, 2012), 77 FR 1099. 

4See Exchange Rule 1090, Commentary .01(a). 

5 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

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

7 15 U.S.C. 78s(b)(2). 

8 17 CFR 200.30–3(a)(12). 

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–NASDAQ–2012–026 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–2012–026. 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 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–2012–026 and should be 

submitted on or before March 19, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–4480 Filed 2–24–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66430; File No. SR–Phlx– 

2011–178] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Order 

Approving Proposed Rule Change 

Relating to Stock Execution Clerks 

February 21, 2012. 

On December 20, 2011, NASDAQ 

OMX PHLX LLC (‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to eliminate the stock execution 

clerk registration category from the 

Exchange’s rules. The proposed rule 

change was published for comment in 

the Federal Register on January 9, 

2012.3 The Commission received no 

comments on the proposal. 

The purpose of the proposed rule 

change is to eliminate the category of 

stock execution clerk from the 

Exchange’s rules. Exchange Rule 1090 

currently defines a stock execution clerk 

as any clerk other than a specialist clerk 

on the Exchange trading floor who 

functions as an intermediary in a 

transaction (i) consummated on the 

Exchange; (ii) entered verbally for 

execution other than on the Exchange; 

or (iii) entered into a third party system 

designed to execute transactions other 

than on the Exchange.4 A stock 

execution clerk is intended to provide a 

service to Exchange members on the 

Options Floor by accepting orders for 

the purchase and sale of securities 

underlying options transactions. Once 

such orders are accepted, the stock 

execution clerk forwards such orders to 

the appropriate marketplace for 

execution. According to the Exchange, 

the transactions executed are typically 

hedging transactions in underlying 

stocks for Exchange specialists and 

Registered Options Traders. 

The Exchange has represented that 

this registration capacity is outdated 

and no longer necessary. According to 

the Exchange, the function of a stock 

execution clerk has become largely 

automated, as transactions that were 

handled by stock execution clerks now 

take place off-floor and mostly occur 

electronically. As such, the type of 

business conducted by stock execution 

clerks is not conducted on the 

Exchange’s trading floor today. The 

Exchange stated that there are not 

currently any registered stock execution 

clerks on the Exchange, and there have 

not been for some time. 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange 5 and, in particular, 

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

the Act.6 Specifically, the Commission 

finds that the proposed rule change 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. 

The proposal will eliminate the stock 

execution clerk registration category 

from the Exchange’s rules. There are no 

clerks currently registered as a stock 

execution clerks on the Exchange’s 

trading floor, and there have not been 

for some time. Given that there are 

currently no stock execution clerks 

registered with the Exchange, and that 

transactions that were previously 

handled by stock execution clerks now 

take place off-floor and mostly occur 

electronically, this registration category 

is no longer necessary. As such, deleting 

this category of clerks is reasonably 

designed to provide clarity to members, 

and to keep the Exchange’s rules 

updated. For the foregoing reasons, the 

Commission believes that the proposed 

rule change is consistent with the Act. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,7 that the 

proposed rule change (SR–Phlx–2011– 

178) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–4403 Filed 2–24–12; 8:45 am] 

BILLING CODE 8011–01–P 


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