Federal Register / Vol. 77, No. 10 / Tuesday, January 17, 2012 / Notices 2329 

4 15 U.S.C. 78f. 

5 15 U.S.C. 78f(b)(4). 6 15 U.S.C. 78s(b)(3)(A)(ii). 7 17 CFR 200.30–3(a)(12). 

share executed with respect to PMOP 

orders that execute at other trading 

venues. The Exchange is proposing to 

reduce the fee for PMOP orders that 

execute at other venues to $0.0031 per 

share executed. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,4

in general, and with Sections 6(b)(4) of 

the Act,5 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among members and issuers and other 

persons using any facility or system 

which Phlx operates or controls. In 

general, routing fees are reasonable 

because they seek to recoup the cost of 

the execution on the other venue, which 

is generally borne by the order router 

and, ultimately, the routing exchange. 

The proposed change reflects a 

reduction in fees in order to make the 

routing services of PSX more attractive 

to potential customers. 

The Exchange also believes that the 

proposed change is equitable. All 

similarly situated members are subject 

to the same fee structure, and access to 

Phlx is offered on fair and nondiscriminatory terms; specifically, the 

same routing fee, credit or pass through 

fee applies to any participant and does 

not differ based on user type (e.g., 

customer or broker-dealer). The 

Exchange further believes that the fee 

for the PMOP routing strategy is 

equitable because PMOP is a complex 

routing strategy that it involves 

ascertaining all venues displaying a 

protected quote and the simultaneous 

routing of orders to the displayed size 

of such quotes; accordingly, the 

Exchange believes that charging a higher 

fee with respect to the strategy as 

compared with other strategies is 

equitable. Nevertheless, the change will 

reduce the difference between PMOP 

fees and fees for the use of other 

strategies, thereby enhancing the 

competiveness of the Exchange’s routing 

services. 

Furthermore, the new routing fees are 

reasonable and equitable in that the 

decision to send routable orders and to 

use PHLX as a router is entirely 

voluntarily; members can avail 

themselves of numerous other means of 

directing orders to other venues, 

including becoming members of those 

markets or using any of a number of 

competitive routing services offered by 

other exchanges and brokers. 

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. 

Because the market for order execution 

and routing is extremely competitive, 

members may readily favor the 

Exchange’s competitors in making order 

routing decisions to the extent that they 

deem PSX’s fees to be excessive. 

Moreover, the Exchange believes that 

the proposal will enhance competition 

through its use of reduced fees to draw 

greater order flow to PSX. 

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.6 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 email to rule-comments@

sec.gov. Please include File No. SR– 

Phlx–2011–186 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 

No. SR–Phlx–2011–186. 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 

available publicly. All submissions 

should refer to File No. SR–Phlx–2011– 

186 and should be submitted on or 

before February 7, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–637 Filed 1–13–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66125; File No. SR–EDGA– 

2011–41] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend EDGA Rule 

1.5(q) 

January 10, 2012. 

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

Securities Exchange Act of 1934 (the 


srobinson on DSK4SPTVN1PROD with NOTICES
2330 Federal Register / Vol. 77, No. 10 / Tuesday, January 17, 2012 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 65196 

(August 25, 2011), 76 FR 54267 (August 31, 2011) 

(SR–EDGA–2011–28). For the purposes of this 

filing, the Exchange will refer to SR–EDGA–2011– 

28 as the ‘‘August 25 Rule Filing.’’ Given that the 

August 25 Rule Filing was immediately effective 

but not operative, the Exchange proposes to amend 

its rule text in this filing. 

4 Id. The Exchange initially proposed to expand 

its operational hours to open the System earlier so 

that Members could enter and execute orders 

beginning at 7 a.m. ET rather than 8 a.m. ET. 

5See The NASDAQ Stock Market LLC Rule 4617 

(opens at 7 a.m. EST). See also NASDAQ OMX BX 

Rule 4617 (opens at 7 a.m. EST); NYSE Arca 

Equities Rule 7.34 (opens at 1 a.m. Pacific Time). 

6See Securities Exchange Act Release No. 65196 

(August 25, 2011), 76 FR 54267 (August 31, 2011) 

(SR–EDGA–2011–28), stating the Exchange will 

provide notice to Members in an information 

circular when the proposed rule change will be 

effective, which will be no later than January 1, 

2012. 

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

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6)(iii). 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on December 

29, 2011, the EDGA Exchange, Inc. (the 

‘‘Exchange’’ or the ‘‘EDGA’’) filed with 

the Securities and Exchange 

Commission (‘‘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 

EDGA Exchange, Inc. (‘‘EDGA’’ or the 

‘‘Exchange’’), proposes to amend EDGA 

Rule 1.5(q) to change the starting time 

of the Pre-Opening Session from 7 a.m. 

Eastern Time (‘‘ET’’) to 8 a.m. ET. The 

Exchange proposes to make a 

conforming amendment to Rule 

14.1(c)(2) to change the reference for the 

starting time of the Pre-Opening Session 

from 7 a.m. ET to 8 a.m. ET. Through 

this filing, the Exchange proposes to 

amend the rule text from SR–EDGA– 

2011–28,3 which proposed to change 

the Pre-Opening Session starting time to 

7 a.m. ET. The text of the proposed rule 

change is attached as Exhibit 5 and is 

available on the Exchange’s Web site at 

www.directedge.com, at the Exchange’s 

principal office, and at the Public 

Reference Room of the Commission. 

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 

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 the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange filed a rule change to 

amend EDGA Rule 1.5(q) to change the 

starting time of the Pre-Opening Session 

from 8 a.m. ET to 7 a.m. ET.4 This 

change would have allowed the 

Exchange to compete with other 

exchanges that open their markets for 

entry of orders prior to 8 a.m. ET.5 The 

Exchange proposes to amend the rule 

text of its August 25 Rule Filing at this 

time in order to accommodate Members 

who initially expressed an interest in 

the change in Pre-Opening Session time 

to begin at 7 a.m. ET; but, after further 

consideration, Members confirmed that 

they were no longer interested because 

the additional costs and resources 

needed to open earlier outweighed any 

incidental benefits from increased 

trading activity that they would incur. 

As such, based on the Exchange’s 

feedback from Members it surveyed in 

September 2011, the Exchange 

confirmed that no Members adversely 

relied upon the August 25 Rule Filing. 

At this time, the Exchange has not 

implemented the 7 a.m. ET starting time 

for the Pre-Opening Session because it 

has not notified its Members pursuant to 

the language in the August 25 Rule 

Filing.6 In addition, the Exchange notes 

Members are not adversely impacted by 

the amendment to the rule text of the 

August 25 Rule Filing as no Members 

were required to incur any costs or 

make any changes to their systems to 

comply with the earlier Pre-Opening 

time if they were not planning to trade 

beginning at 7 a.m. ET. 

Based on the foregoing, the Exchange 

proposes to amend Rule 1.5(q) and make 

a conforming amendment to Rule 

14.1(c)(2) to change the starting time of 

the Pre-Opening Session from 7 a.m. ET 

back to 8 a.m. ET as it appeared before 

the August 25 Rule Filing. 

2. Basis 

The Exchange believes that the 

proposed rule change is consistent with 

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

Act,7 in that the proposal 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 regulating, clearing, 

settling, processing information with 

respect to, and facilitating transactions 

in, securities, 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 

Exchange believes that amending its 

rule text from the August 25 Rule Filing 

will afford the Exchange additional time 

to evaluate the potential benefits of an 

earlier starting time for the Pre-Opening 

Session. In addition, the Exchange 

believes that it is not discriminating 

against its Members given that the 

Exchange contacted Members to discuss 

amending the text of the August 25 Rule 

Filing, and the Exchange confirmed that 

no Members had adjusted their 

infrastructure or incurred any costs in 

reliance on the August 25 Rule Filing. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

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 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) 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 8 and Rule 19b– 

4(f)(6)(iii) thereunder.9

A proposed rule change filed under 

19b–4(f)(6) normally may not become 

operative prior to 30 days after the date 


srobinson on DSK4SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 10 / Tuesday, January 17, 2012 / Notices 2331 

10 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file 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. 

11 Id. 

12See Securities Exchange Act Release No. 65196 

(August 25, 2011), 76 FR 54267 (August 31, 2011) 

(SR–EDGA–2011–28), stating the Exchange will 

provide notice to Members in an information 

circular when the proposed rule change will be 

effective, which will be no later than January 1, 

2012. 

13For the 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. 

3The proposed rule change establishing the 

NYSE Arca Integrated Data Feed was immediately 

Continued 

of filing.10 However, Rule 19b– 

4(f)(6)(iii) 11 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Exchange notes that waiver 

of this requirement will permit the 

Exchange to immediately remove 

language from its rules that could 

otherwise create confusion for Members 

because the 7 a.m. ET start time has not 

been implemented.12 The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest because such waiver would 

allow the Exchange to notify its 

Members by January 1, 2012 as 

prescribed in the August 25 Rule Filing 

and would immediately provide 

certainty with respect to the Exchange’s 

rules regarding the start time for the PreOpening Session. For this reason, the 

Commission designates the proposed 

rule change to be operative upon filing 

with the Commission.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 rule-comments@

sec.gov. Please include File Number SR– 

EDGA–2011–41 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–EDGA–2011–41. 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–EDGA– 

2011–41 and should be submitted on or 

before February 7, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–684 Filed 1–13–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66128; File No. SR– 

NYSEArca–2011–96] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Establish Fees for the 

NYSE Arca Integrated Data Feed 

January 10, 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 December 

28, 2011, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 establish 

fees for the NYSE Arca Integrated Data 

Feed. 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, 

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 establish 

fees for the NYSE Arca Integrated Data 

Feed.3 It is a market data product 


srobinson on DSK4SPTVN1PROD with NOTICES