11604 Federal Register / Vol. 77, No. 38 / Monday, February 27, 2012 / Notices 

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

12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s intent 

to file the proposed rule change, along with a brief 

description and text of 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. 

13For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

members that voluntarily select these 

service options will be afforded the 

waiver of fees until May 31, 2012. All 

Exchange members have the option to 

select these voluntary co-location 

services. 

Not Unfairly Discriminatory 

The Exchange also believes the 

proposal to waive the 10Gb and 40Gb 

fiber connection installation fee is not 

unfairly discriminatory in that the 

waiver of fees is provided to all 

NASDAQ members that volunteer for 

these particular service options, and 

there is no differentiation among 

members with regard to the waiver of 

fees for these options. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange 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 

Because the foregoing proposed rule 

change does not significantly affect the 

protection of investors or the public 

interest, does not impose any significant 

burden on competition, and, by its 

terms, does not become operative for 30 

days from the date on which it was 

filed, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 11 and Rule 19b– 

4(f)(6) thereunder.12

The Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiver of the operative delay is 

consistent with the protection of 

investors and the public interest 

because such waiver will facilitate 

trading activities by providing members 

an option to enhance the efficiency of 

their trading through the 40Gb 

connectivity. Therefore, the 

Commission designates the proposal 

operative upon filing.13

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–NASDAQ–2012–028 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–2012–028. 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– 

NASDAQ–2012–028, and should be 

submitted on or before March 19, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–4479 Filed 2–24–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66431; File No. SR– 

NASDAQ–2012–026] 

Self-Regulatory Organizations; 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Listing of Strike Prices 

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 

13, 2012, The NASDAQ Stock Market 

LLC (‘‘NASDAQ’’ or the ‘‘Exchange’’) 

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 Exchange. The 

Exchange has designated the proposed 

rule change as constituting a noncontroversial rule change under Rule 

19b–4(f)(6) under the Act,3 which 

renders the proposal effective upon 

filing with the Commission. 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 NASDAQ Stock Market LLC 

proposes to amend Chapter IV, Section 

6 (Series of Options Open for Trading) 

to permit the listing of strike prices in 

$0.50 intervals where the strike price is 

less than $75, and of strike prices in 

$1.00 intervals where the strike price is 


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Federal Register / Vol. 77, No. 38 / Monday, February 27, 2012 / Notices 11605 

4For example, CBOE calculates the CBOE Gold 

ETF Volatility Index (‘‘GVZ’’), which is based on 

the VIX methodology applied to options on the 

SPDR Gold Trust (‘‘GLD’’). The current filing would 

permit $0.50 strike price intervals for GLD options 

where the strike price is $ 75 or less. The Exchange 

is currently permitted to list strike prices in $1 

intervals for GLD options (where the strike price is 

$200 or less), as well as for other exchange-traded 

fund (‘‘ETF’’) options. See Chapter IV, Section 6. 

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

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

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s intent 

to file the proposed rule change, along with a brief 

description and text of 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. 

9See Securities Exchange Act Release No. 64189 

(April 5, 2011), 76 FR 20066 (April 11, 2011) (SR– 

CBOE–2011–008). 

10For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

between $75 and $150 for option series 

used to calculate volatility indexes. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

www.nasdaq.cchwallstreet.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. 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 this filing is to amend 

Chapter IV, Section 6 to permit the 

listing of strike prices in $0.50 intervals 

where the strike price is less than $75, 

and of strike prices in $1.00 intervals 

where the strike price is between $75 

and $150 for option series used to 

calculate volatility indexes. 

The proposal permits the listing of 

strike prices in $0.50 intervals and $1.00 

intervals within specified strike price 

ranges for option series used to calculate 

volatility indexes. Volatility indexes are 

calculated and disseminated by the 

Chicago Board Options Exchange 

(‘‘CBOE’’), which also lists options on 

the resulting index.4 At this time, the 

Exchange has no intention of listing 

volatility options or selecting options on 

any equity securities, Exchange-Traded 

Fund Shares, Trust Issued Receipts, 

Exchange Traded Notes, Index-Linked 

Securities, or indexes to be the basis of 

a volatility index. To the extent that 

CBOE or another exchange selects a 

multiply-listed product as the basis of a 

volatility index, proposed Chapter IV, 

Section 6 would permit the Exchange to 

list and compete in all series listed by 

the CBOE or another Exchange for 

purposes of calculating a volatility 

index. 

The Exchange has analyzed its 

capacity and represents that it believes 

the Exchange and the Options Price 

Reporting Authority (‘‘OPRA’’) have the 

necessary systems capacity to handle 

the additional traffic associated with the 

listing of strike prices in $0.50 intervals 

where the strike price is less than $75, 

and strike prices in $1.00 intervals 

where the strike price is between $75 

and $150 for option series used to 

calculate volatility indexes in securities 

selected by the CBOE or another 

exchange. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 5 in general, and furthers the 

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

in particular, in that 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 

mechanisms of a free and open market 

and a national market system, by 

allowing the Exchange to offer a full 

range of all available option series in a 

given class, including those selected by 

other exchanges to be the basis of a 

volatility index. 

While this proposal may potentially 

generate additional quote traffic, the 

Exchange does not believe that this 

increased traffic will become 

unmanageable since the proposal is 

restricted to a limited number of classes. 

Further, the Exchange does not believe 

that the proposal will result in a 

material proliferation of additional 

series because it is restricted to a limited 

number of classes. 

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 significantly affect the 

protection of investors or the public 

interest, does not impose any significant 

burden on competition, and, by its 

terms, does not become operative for 30 

days from the date on which it was 

filed, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 7 and Rule 19b– 

4(f)(6) thereunder.8

The Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiver of the operative delay is 

consistent with the protection of 

investors and the public interest 

because the proposal is substantially 

similar to those of another exchange that 

has been approved by the Commission 

that permits such exchange to allow 

trading for options series used to 

calculate volatility indexes at $0.50 

strike price intervals where the strike 

price is less than $75 and at $1.00 

intervals where the strike price is 

between $75 and $150 for options 

series.9 Therefore, the Commission 

designates the proposal operative upon 

filing.10

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: 


srobinson on DSK4SPTVN1PROD with NOTICES
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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