Federal Register / Vol. 77, No. 43 / Monday, March 5, 2012 / Notices 13159 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

Dated: March 1, 2012. 

Connie M. Downs, 

OPIC Corporate Secretary. 

[FR Doc. 2012–5391 Filed 3–1–12; 4:15 pm] 

BILLING CODE 3210–01–P 

POSTAL SERVICE 

Sunshine Act Meeting Notice: Board of 

Governors 

DATES AND TIMES: Wednesday, March 

21, 2012, at 10 a.m. 

PLACE: Washington, DC, at U.S. Postal 

Service Headquarters, 475 L’Enfant 

Plaza SW., in the Benjamin Franklin 

Room. 

STATUS: Closed. 

Matters To Be Considered 

Wednesday, March 21, at 10 a.m. 

(Closed) 

1. Strategic Issues. 

2. Financial Matters. 

3. Pricing. 

4. Personnel Matters and Compensation 

Issues. 

5. Governors’ Executive Session— 

Discussion of prior agenda items 

and Board Governance. 

CONTACT PERSON FOR MORE INFORMATION: 

Julie S. Moore, Secretary of the Board, 

U.S. Postal Service, 475 L’Enfant Plaza 

SW., Washington, DC 20260–1000. 

Telephone (202) 268–4800. 

Julie S. Moore, 

Secretary. 

[FR Doc. 2012–5327 Filed 3–1–12; 8:45 am] 

BILLING CODE 7710–10–P 

OFFICE OF SCIENCE AND 

TECHNOLOGY POLICY 

Nanoscale Science, Engineering, and 

Technology Subcommittee of the 

Committee on Technology, National 

Science and Technology Council 

Workshop 

ACTION: Notice of public meeting. 

SUMMARY: The National Nanotechnology 

Coordination Office (NNCO), on behalf 

of the Nanoscale Science, Engineering, 

and Technology (NSET) Subcommittee 

of the Committee on Technology, 

National Science and Technology 

Council (NSTC), will hold the ‘‘2012 

Regional, State, and Local (RSL) 

Initiatives in Nanotechnology 

Workshop’’ on May 1–2, 2012. This 

workshop will bring together leaders of 

regional, state, and local organizations 

to engage in dialog with the Federal 

government; economic development 

groups; investors and entrepreneurs; 

technology leaders; and scientists and 

engineers from industry, business, 

government, and academia. The 

discussion will address a wide range of 

resource, organizational, and policy 

issues impacting RSL nanotechnology 

initiatives. 

The workshop, cosponsored by the 

Federal agencies participating in the 

National Nanotechnology Initiative 

(NNI) and the Oregon Nanoscience and 

Microtechnologies Institute (ONAMI), 

will examine the current landscape of 

U.S. RSL nanotechnology initiatives and 

their status; RSL best practices, business 

models, resources, and opportunities for 

partnering; and the role of 

nanotechnology RSLs in future U.S. 

economic growth and job creation. 

Dates and Addresses: The workshop 

will be held at the Embassy Suites 

Portland-Downtown Hotel, 319 SW Pine 

Street, Portland, OR, 97204 on Tuesday, 

May 1, 2012 from 8:30 a.m. until 6 p.m. 

and on Wednesday, May 2, 2012 from 

8:30 a.m. until 6 p.m. For directions, 

please visit www.nano.gov/RSL12. 

Registration: Due to space limitations, 

pre-registration for the workshop is 

required. Individuals planning to attend 

the workshop should register online at 

http://www.nano.gov/rslregistration. 

Written notices of participation by email 

should be sent to RSL12@nnco.nano.gov 

or mailed to RSL 2012 Workshop, c/o 

NNCO, 4201 Wilson Boulevard, Stafford 

II, Suite 405, Arlington, VA 22230. 

Registration is on a first-come, firstserved basis until capacity is reached; 

otherwise registration will close on 

April 27, 2012 at 5 p.m. EST. Those 

interested in presenting 3–5 minutes of 

public comments at the meeting should 

also register at http://www.nano.gov/ 

rslregistration. Written or electronic 

comments should be submitted by email 

to RSL12@nnco.nano.gov until April 27, 

2012. The workshop will include an 

opportunity for any regional, state, or 

local nanotechnology initiative or 

related organization to present a poster 

explaining the activity. 

Meeting Accomodations: Individuals 

requiring special accommodation to 

access this public meeting should 

contact Halyna Paikoush by email 

(RSL12@nnco.nano.gov) or by telephone 

(410–467–9832) at least ten business 

days prior to the meeting so that 

appropriate arrangements can be made. 

FOR FURTHER INFORMATION CONTACT: For 

information regarding this Notice, 

please contact James Kadtke or Halyna 

Paikoush at the National 

Nanotechnology Coordination Office by 

telephone (703–292–8626) or email 

(RSL12@nnco.nano.gov). Additional 

information about the meeting, 

including the agenda, is posted at 

www.nano.gov/RSL12. 

Ted Wackler, 

Deputy Chief of Staff. 

[FR Doc. 2012–5223 Filed 3–2–12; 8:45 am] 

BILLING CODE P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66481; File No. SR– 

NYSEAmex–2012–10] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing of 

Proposed Rule Change Amending 

NYSE Amex Rule 476A To Update Its 

‘‘List of Equities Rule Violations and 

Fines Applicable Thereto’’ 

February 28, 2012. 

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 February 

16, 2012, 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 Rule 476A to update its 

‘‘List of Equities Rule Violations and 

Fines Applicable Thereto.’’ The text of 

the proposed rule change is available at 

the Exchange, the Commission’s Public 

Reference Room, and www.nyse.com. 

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, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those 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, 


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13160 Federal Register / Vol. 77, No. 43 / Monday, March 5, 2012 / Notices 

4The Exchange also proposes to fix a 

typographical error in the entry concerning Rule 

343—NYSE Amex Equities and replace the term 

‘‘officer’’ with ‘‘office.’’ 

5Rule 104 currently operates on a pilot basis, set 

to end on July 31, 2012. The Exchange believes that 

the Rule 476A List should reference those rules that 

are currently operational, even if operating on a 

pilot basis. 

6See Exchange Act Release No. 59022 (Nov. 26, 

2008), 73 FR 73683 (Dec. 3, 2008) (SR–NYSEALTR– 

2008–10) (adopting the NYSE New Market Model 

rules at the Exchange). 

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 

The Exchange proposes to amend 

NYSE Amex Rule 476A to update its 

‘‘List of Equities Rule Violations and 

Fines Applicable Thereto’’ (‘‘Rule 476A 

List’’) to (i) make technical, nonsubstantive changes to conform the list 

to previously-approved changes in 

Exchange rules, (ii) update the rules 

relating to conduct by Designated 

Market Makers (‘‘DMM’’); and (iii) add 

rules relating to conduct by DMMs. 

Background 

Under the Exchange’s Minor Rule 

Violation Plan, NYSE Amex Rule 476A 

(‘‘Rule 476A’’), the Exchange may 

impose a fine, not to exceed $5,000, on 

any member, member organization, 

principal executive, approved person or 

registered or non-registered employee of 

a member or member organization for a 

minor violation of certain specified 

Exchange rules (a ‘‘summary fine’’). 

Summary fines provide a meaningful 

sanction for rule violations when the 

violation calls for stronger discipline 

than an admonition or cautionary letter, 

but the facts and circumstances of the 

violation do not warrant initiation of a 

formal disciplinary proceeding under 

Rule 476. 

Proposed Non-Substantive Changes to 

Rule 476A List 

The Exchange proposes the following 

non-substantive changes to update the 

Rule 476A List, as follows: 

• Update the title of NYSE Amex 

Equities Rule 105 

• Update rule references that have been 

renumbered or harmonized with a 

FINRA rule: NYSE Amex Equities 

Rules 72(b) to 72(d); 79A.30 to 

79A.20; 103.12 to 103.11; and 346(b) 

to 3270 

• Delete references to rules that have 

been deleted: NYSE Amex Equities 

Rules 104.12 (DMM investment 

account rule); 123A.30 (percentage 

orders); 304(h)(2) (reporting rule 

violation); 346(c), (e), and (f) 

(Limitations on member organization 

employment and failure to obtain 

Exchange approval rule violations); 

421 (reporting rule violation); 440F 

(reporting rule violation); and 440G 

(reporting rule violation) 4

• Further harmonize the list with the 

NYSE Minor Rule Violation Plan 

(‘‘NYSE MRVP’’), upon which the 

Rule 476A List is based, by adding a 

[sic] violations not currently included 

in the Exchange’s list: Rule 123C— 

NYSE Amex Equities—Failure to 

adhere to entry and cancellation 

procedures for limit-at-the-close and 

market-at-the-close orders; and Rule 

15—NYSE Amex Equities (PreOpening Indications) 

• Update the description to rules that 

have been amended: NYSE Amex 

Equities Rules 411(b) (replacing the 

description to reflect the amended 

rule); and 345(a)—NYSE Amex 

Equities (deleting the reference to 

Securities Trader Supervisor) 

Proposed Updates to Rule 476A List for 

DMM Conduct Rules 

The current Rule 476A List includes 

rules that govern DMM conduct, e.g., 

NYSE Amex Equities Rules 104(a)(1)(A) 

and 104.10. The Exchange proposes to 

update the Rule 476A List with current 

rules governing DMM conduct, and, in 

conformance with the existing NYSE 

MRVP, add NYSE Amex Equities Rule 

123D (‘‘Rule 123D’’) to the Rule 476A 

List. The Exchange further proposes to 

expand the references to NYSE Amex 

Equities Rules 104 (‘‘Rule 104’’) and 

123D to add new elements to the Rule 

476A List. 

The Exchange believes that the 

updates proposed below will provide 

the Exchange with sufficient flexibility 

to address DMM failure to meet their 

obligations. The Exchange recognizes 

that DMMs may, for many reasons, fail 

to meet their affirmative obligations as 

prescribed under Rules [sic] 104 or 

duties under Rule 123D. In some 

circumstances, formal disciplinary 

measures in accordance with Rule 476 

are warranted. However, in other 

instances, formal discipline may be 

unwarranted, and the Exchange believes 

that the addition of these Rules to Rule 

476A List will provide a more flexible 

and appropriate tool to enforce potential 

failure by DMMs to adhere to the 

requirements set forth in those rules, 

while preserving the Exchange’s 

discretion to seek formal discipline 

under the appropriate circumstances. 

The Exchange believes that the 

proposed updated rule references cover 

the same subject matter as are already 

addressed in the Rule 476A List, albeit 

in outdated references. In addition, the 

Exchange believes it is also appropriate 

to add new elements relating to Rule 

[sic] 104 and 123D to the Rule 476A 

List. 

Rule 104 

Rule 104 requires, inter alia, DMMs 

registered in one or more securities 

traded on the Exchange to engage in a 

course of dealings for their own account 

to assist in the maintenance of a fair and 

orderly market, insofar as reasonably 

practicable, by contributing liquidity 

when lack of price continuity and 

depth, or disparity between supply and 

demand exists or is reasonably to be 

anticipated.5

The Rule 476A List currently includes 

Rule 104(a)(1)(A), which requires DMMs 

to maintain a bid or an offer at the 

National Best Bid and National Best 

Offer (‘‘inside’’) at least 10% of the 

trading day for securities in which the 

DMM unit is registered with a 

consolidated average daily volume of 

less than one million shares, and at least 

5% for securities in which the DMM 

unit is registered with a consolidated 

average daily volume equal to or greater 

than one million shares. 

The Rule 476A List also includes an 

outdated reference to Rule 104.10. 

When the Exchange adopted the New 

Market Model, it adopted current Rule 

104 (on a pilot basis), which does not 

include a rule reference of 104.10 that 

is the same as the former Rule 104.10.6

However, the subject matter formerly 

covered in Rule 104.10 continues in the 

current Rule 104. For example, the text 

of former Rules 104.10(5) and (6) has 

been moved in substantially similar 

form to current Rules 104(g), (h), and (i). 

More generally, although the 

Exchange has deleted former Rule 

104.10(1)—(3), the subject matter of 

those rules has been carried forward in 

various sections of current Rule 104. For 

example, former Rule 104.10 specified 

the functions of DMMs, including the 

maintenance, in so far as reasonably 

practicable, of a fair and orderly market. 

This topic is now covered by Rules 

104(a) and (f). 

More specifically, former Rule 

104.10(1) stated that the maintenance of 

a fair and orderly market implies the 

maintenance of price continuity with 

reasonable depth and the minimizing of 

the effects of temporary disparity 

between supply and demand. This 

subject matter is now covered in Rule 


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Federal Register / Vol. 77, No. 43 / Monday, March 5, 2012 / Notices 13161 

7See Exchange Act Release No. 63255 (Nov. 5, 

2010), 75 FR 69484 (Nov. 12, 2010) (SR– 

NYSEAmex–2010–96). 

8The Exchange notes that it has separately 

proposed to delete NYSE Amex Equities Rule 

104(a)(6). See Securities Exchange Act Release No. 

65735 (Nov. 10, 2011) (SR–NYSEAmex–2011–86). 

The Exchange further notes that other elements of 

Rule 104, i.e., Rule 104(j) and supplementary 

material .05, are not related to DMM obligations, 

but rather reflect operational aspects of the 

Exchange. 

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78f(b)(6). 

104(f)(ii). Former Rule 104.10(2) 

concerned a DMM trading for his or her 

own account when there is [sic] lack of 

price continuity, lack of depth, or 

disparity between supply and demand 

exists or is reasonably to be anticipated. 

This subject matter is similarly covered 

in Rule 104(f)(ii). Finally, former Rule 

104.10(3) provided that DMM dealings 

for his own account must constitute a 

course of dealings reasonably calculated 

to contribute to the maintenance of 

price continuity with reasonable depth, 

and to minimizing the effects of 

temporary disparity between supply and 

demand. This is similarly covered in 

Rule 104(f)(ii). The Exchange further 

believes that Rule 104(f)(iii), which 

provides more details about Depth 

Guidelines, is also related to former 

Rule 104.10(3). In particular, the 

Exchange was publishing Depth 

Guidelines when Rule 104.10 was in 

effect and the only change in the New 

Market Model’s version of the rule is to 

codify this aspect of DMM obligations. 

The Exchange also believes that the 

subject matter of former Rules 

104.10(1)–(3) is now covered in current 

Rules 104(a)(2)–(5). Current Rules 

104(a)(2)–(5) describe with specificity 

how a DMM can meet his or her 

responsibilities and duties to maintain a 

fair and orderly market, including 

facilitating openings and re-openings, 

the close of trading, trading when a 

liquidity replenishment point is 

reached, and trading when a ‘‘gap’’ 

quote procedure is being used. These 

rule provisions simply provide detail of 

how a DMM is to meet its fair and 

orderly obligation. These were functions 

that specialists formerly performed 

when they were subject to former Rule 

104.10(1)–(3), the difference now being 

that these functions have been codified 

in the rule text. 

The Exchange further proposes to add 

to the Rule 476A List Rules 104(b), (c), 

(d), and (e). The Exchange believes that, 

similar to Rule 104(a), (f), (g), (h), and 

(i), the requirements applicable to 

DMMs in Rules 104(b), (c), (d), and (e) 

relate to the functions of the DMMs. 

Because these are DMM obligations for 

which potential violations can range in 

severity, including these elements of 

Rule 104 in the Rule 476A List is 

consistent with the current inclusion of 

other aspects of Rule 104. 

In addition, the Exchange believes it 

is appropriate to add Rule 104(a)(1)(B) 

to the Rule 476A List. Rule 104(a)(1)(B) 

governs the DMM’s new pricing 

obligations, which were implemented 

by all equities markets on December 6, 

2010.7 Accordingly, this provision was 

not previously included in the Minor 

Rule Violation Plan. The Exchange 

believes it is appropriate to add this 

element of Rule 104 to the Minor Rule 

Violation Plan to provide greater 

flexibility with respect to the type of 

disciplinary measures that may be 

invoked if there were a violation of this 

rule. For example, a potential situation 

that may warrant a summary fine rather 

than formal disciplinary action could be 

if a DMM fails to maintain a quote 

consistent with Rule 104(a)(1)(B), but 

which does not result in any harm to the 

market. 

As noted above, summary fines 

provide the Exchange with flexibility to 

impose an appropriate level of 

discipline for violations that are more 

serious than an admonition letter, but 

for which the facts and circumstances 

do not warrant formal discipline. The 

Exchange believes that providing 

flexibility for violations related to the 

DMM’s new pricing obligations and 

Rules 104(b), (c), (d), and (e) is in 

keeping with the spirit of the existing 

Rule 476A List, which already includes 

DMM conduct rules. 

To reflect these changes, the Exchange 

proposes to include a single reference to 

‘‘Rule 104–NYSE Amex Equities 

requirements for the dealings and 

responsibilities of DMMs’’ to the Rule 

476A List, which would include all of 

the subsections of Rule 104 as described 

above.8 The Exchange further notes that 

these summary fines may be imposed, 

as applicable, on either an individual 

DMM, or the DMM unit, as specified in 

the subsections to Rule 104. 

Rule 123D 

The Exchange also proposes to 

include a reference relating to delayed 

openings in the Rule 476A list, which 

is consistent with the existing NYSE 

MRVP. The Exchange further proposes 

to expand the reference to Rule 123D 

and include other elements of that rule 

as being eligible under the Exchange’s 

Minor Rule Violation Plan. 

The NYSE MRVP currently provides 

that ‘‘violations of Exchange policies 

regarding procedures to be followed in 

delayed opening situations’’ are eligible 

for summary fines under the Minor Rule 

Violation Plan. Such policies are 

codified in both NYSE Rule 123D and 

NYSE Amex Equities Rule 123D. The 

Exchange proposes to add the 

requirements of DMMs that are set forth 

in Rule 123D relating not only to 

delayed openings, but also to openings, 

re-openings, trading halts, and tape 

indications to the Rule 476A List. The 

Exchange believes that the additional 

flexibility of determining the 

appropriate level of discipline for DMM 

violations of Rule 123D conforms to the 

purpose of the existing Rule 476A List. 

In particular, the Exchange notes that 

adding Rule 123D in its entirety as it 

relates to DMM conduct is consistent 

both with the NYSE’s proposed rules 

and with the inclusion of NYSE Rule 15 

in the NYSE MRVP, which similarly 

governs DMM’s conduct with respect to 

pre-opening indications and which, as 

discussed above, is being proposed to be 

added to the Rule 476A List. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule changes are consistent 

with, and further the objectives of, 

Section 6(b)(5) of the Securities 

Exchange Act of 1934, as amended,9

(the ‘‘Act’’), in that they are designed to 

prevent fraudulent and manipulative 

acts and practices, 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 proposed rule 

changes also further the objectives of 

Section 6(b)(6),10 in that they provide 

for appropriate discipline for violations 

of provisions of the Act, the rules and 

regulations thereunder, and Exchange 

rules and regulations. 

The Exchange believes that the 

proposed rule changes are designed to 

prevent fraudulent and manipulative 

acts and practices because they will 

provide the Exchange with greater 

regulatory flexibility to enforce the 

DMM requirements set forth in NYSE 

Amex Equities Rules 104 and 123D in 

a more informal manner while also 

preserving the Exchange’s discretion to 

seek formal discipline for more serious 

transgressions as warranted. In addition, 

the proposed rule change removes 

impediments to and perfects the 

mechanism of a free and open market by 

updating the Minor Rule Violation Plan 

by updating rule cite references, 

deleting references to obsolete rules, 

and for DMM-related rules, both 

updating the rule references to reflect 


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13162 Federal Register / Vol. 77, No. 43 / Monday, March 5, 2012 / Notices 

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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5A Specialist is an Exchange member who is 

registered as an options specialist pursuant to Rule 

1020(a). 

the current rules that govern the topics 

currently identified in outdated rule 

references in the Minor Rule Violation 

Plan as well as adding additional 

elements of the rules governing DMM 

conduct. 

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 that is 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 solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve or disapprove 

such proposed rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be 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 email to rulecomments@sec.gov. Please include File 

Number SR–NYSEAmex–2012–10 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–NYSEAmex–2012–10. 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– 

NYSEAmex–2012–10 and should be 

submitted on or before March 26, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–5205 Filed 3–2–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66484; File No. SR–Phlx– 

2012–24] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX LLC To Adopt an 

Administrative Fee for the Payment for 

Order Flow Program 

February 28, 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 

21, 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 

Exchange has designated this proposal 

as one establishing or changing a due, 

fee, or other charge imposed by Phlx 

under Section 19(b)(3)(A)(ii) of the Act 3

and Rule 19b–4(f)(2) thereunder,4 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 Exchange proposes to amend its 

payment for order flow program. Phlx 

proposes to amend Section II of its Fee 

Schedule to adopt an administrative fee, 

as described further below. While 

changes to the Fee Schedule pursuant to 

this proposal are effective upon filing, 

the Exchange has designated these 

changes to be operative on March 1, 

2012. 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 currently has a 

payment-for-order-flow (‘‘PFOF’’) 

program that helps its Specialists 5 and 

Directed Registered Options Traders 


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