20090 Federal Register / Vol. 77, No. 64 / Tuesday, April 3, 2012 / Notices 

28 17 CFR 240.10A–3. 

29 15 U.S.C. 78f(b)(5). 

30 15 U.S.C. 78s(b)(2). 

31 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Section II of the Fee Schedule includes options 

overlying equities, ETFs, ETNs, indexes and 

HOLDRs which are Multiply Listed. 

4Section III of the Fee Schedule includes options 

overlying equities, ETFs, ETNs, indexes and 

HOLDRs which are not listed on another exchange. 

5RUT represents the options on the Russell 

2000® Index (the ‘‘Full Value Russell Index’’ or 

‘‘RUT’’). 

6MNX represents options on the one-tenth value 

of the Nasdaq 100 Index traded under the symbol 

MNX (‘‘MNX’’). 

7NDX represents options on the Nasdaq 100 

Index1 traded under the symbol NDX (‘‘NDX’’). 

8BKX represents the KBW Bank Index. 

trading the Shares. Specifically, the 

Information Bulletin will discuss the 

following: (a) The procedures for 

purchases and redemptions of Shares in 

Creation Unit aggregations (and that 

Shares are not individually redeemable); 

(b) NYSE Arca Equities Rule 9.2(a), 

which imposes a duty of due diligence 

on its ETP Holders to learn the essential 

facts relating to every customer prior to 

trading the Shares; (c) the risks involved 

in trading the Shares during the 

Opening and Late Trading Sessions 

when an updated Portfolio Indicative 

Value will not be calculated or publicly 

disseminated; (d) how information 

regarding the Portfolio Indicative Value 

is disseminated; (e) the requirement that 

Equity Trading Permit Holders deliver a 

prospectus to investors purchasing 

newly issued Shares prior to or 

concurrently with the confirmation of a 

transaction; and (f) trading information. 

(5) For initial and/or continued 

listing, the Fund will be in compliance 

with Rule 10A–3 under the Exchange 

Act,28 as provided by NYSE Arca 

Equities Rule 5.3. 

(6) The Fund will invest only in U.S.- 

registered equity securities and nonU.S.-registered equity securities that 

trade in markets that are members of the 

ISG or are parties to a comprehensive 

surveillance sharing agreement with the 

Exchange; the Fund’s investments will 

be consistent with its investment 

objective and will not be used to 

enhance leverage; and consistent with 

the Exemptive Order, the Fund will not 

invest in options contracts, futures 

contracts, or swap agreements. 

(7) The Fund may hold in the 

aggregate up to 15% of its net assets in: 

(a) Illiquid securities, which include 

delayed funding loans, revolving credit 

facilities, fixed- and floating-rate loans, 

and loan participations and 

assignments; and (b) Rule 144A 

securities. 

(8) A minimum of 100,000 Shares of 

the Fund will be outstanding at the 

commencement of trading on the 

Exchange. 

This approval order is based on all of 

the Exchange’s representations. 

For the foregoing reasons, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act 29 and the rules and 

regulations thereunder applicable to a 

national securities exchange. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,30 that the 

proposed rule change (SR–NYSEArca– 

2012–09) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–7913 Filed 4–2–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66668; File No. SR–Phlx– 

2012–35] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Equity Options Fees and Singly Listed 

Option Fee 

March 28, 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 March 

16, 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, 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 amend: (i) 

Section II 3 of the Fee Schedule entitled 

‘‘Equity Options Fees’’ to assess 

Professionals an Options Surcharge in 

certain Multiply Listed Options; (ii) 

amend Section III 4 of the Fee Schedule 

entitled ‘‘Singly Listed Options’’ to 

specify certain options that would be 

subject to the fees in this section; and 

(iii) amend the title of the Fee Schedule. 

While changes to the Fee Schedule 

pursuant to this proposal are effective 

upon filing, the Exchange has 

designated these changes to be operative 

on April 2, 2012. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Section II of the Fee Schedule to assess 

Professionals an Options Surcharge for 

transactions in RUT,5 MNX,6 NDX 7 and 

BKX.8 The Exchange believes that these 

surcharges will assist the Exchange in 

remaining competitive in these options. 

The Exchange also proposes to amend 

Section III of the Fee Schedule to 

specify that the following options: 

PHLX Semiconductor SectorSM

(SOX SM), PHLX Housing SectorTM

(HGX SM) and PHLX Oil Service 

SectorSM (OSX SM) are subject to the 

Singly Listed Options Transaction 

Charge even though these options will 

no longer be Singly Listed. These abovereferenced options are proprietary 

indexes. These options will be listed on 

the NASDAQ Options Market LLC 

(‘‘NOM’’) commencing on April 2, 2012. 

The Exchange seeks to continue to 

recoup fees associated with maintaining 

these proprietary indexes. The Exchange 

is also proposing to amend the title of 

the Fee Schedule to more specifically 

describe the document. 

Section II Amendments 

The Exchange currently assesses an 

Options Surcharge for transactions in 

RUT, MNX and NDX of $.15 per 

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Federal Register / Vol. 77, No. 64 / Tuesday, April 3, 2012 / Notices 20091 

9The term ‘‘Market Maker’’ is utilized herein to 

describe fees and rebates applicable to Specialists, 

Registered Options Traders, Streaming Quote 

Traders and Remote Streaming Quote Traders. 10Currently, Professionals are not assessed an 

Options Surcharge for transactions in RUT, MNX or 

NDX. 

11Currently, Professionals are not assessed an 

Options Surcharge for transactions in BKX. 

12 15 U.S.C. 78f(b). 

13 15 U.S.C. 78f(b)(4). 

14Broker-dealers pay registration and 

membership fees in self-regulatory organizations 

(‘‘SRO’’) and incur costs to comply and assure that 

their associated persons comply with the Act and 

SRO rules. 

15The Penny Pilot was established in January 

2007; and in October 2009, it was expanded and 

extended through June 30, 2012. See Securities 

Exchange Act Release Nos. 55153 (January 23, 

2007), 72 FR 4553 (January 31, 2007) (SR–Phlx– 

2006–74) (notice of filing and approval order 

establishing Penny Pilot); 60873 (October 23, 2009), 

74 FR 56675 (November 2, 2009) (SR–Phlx–2009– 

91) (notice of filing and immediate effectiveness 

expanding and extending Penny Pilot); 60966 

(November 9, 2009), 74 FR 59331 (November 17, 

2009) (SR–Phlx–2009–94) (notice of filing and 

immediate effectiveness adding seventy-five classes 

to Penny Pilot); 61454 (February 1, 2010), 75 FR 

6233 (February 8, 2010) (SR–Phlx–2010–12) (notice 

of filing and immediate effectiveness adding 

seventy-five classes to Penny Pilot); 62028 (May 4, 

2010), 75 FR 25890 (May 10, 2010) (SR–Phlx–2010– 

65) (notice of filing and immediate effectiveness 

adding seventy-five classes to Penny Pilot); 62616 

(July 30, 2010), 75 FR 47664 (August 6, 2010) (SR– 

Phlx–2010–103) (notice of filing and immediate 

effectiveness adding seventy-five classes to Penny 

Pilot); 63395 (November 30, 2010), 75 FR 76062 

(December 7, 2010) (SR–Phlx–2010–167) (notice of 

filing and immediate effectiveness extending the 

Penny Pilot); and 65976 (December 15, 2011), 76 FR 

79247 (December 21, 2011) (SR–Phlx–2011–172) 

(notice of filing and immediate effectiveness 

extending the Penny Pilot). See also Exchange Rule 

1034. 

16Customers are not assessed an Options 

Transaction Charge for either Penny Pilot Options 

or non-Penny Pilot Options while Professionals are 

assessed $.20 per contract for both Penny and nonPenny Pilot Options. 

17The Exchange continues to incur costs for 

maintaining these proprietary indexes including 

marketing expenses. 

18The Options Transaction Charges for nonPenny Multiply Listed Options are as follows: 

Customers pays $.00 per contract, a Professional 

pays $.20 per contract, a Market maker pays $.23 

per contract for electronic transactions and $.25 per 

contract for non-electronic transactions, a BrokerDealer pays $.50 per contract for electronic 

transactions and $.25 per contract for nonelectronic transactions and a Firm pays $.40 per 

contract for electronic transactions and $.25 per 

contract for non-electronic transactions. See Section 

II of the Fee Schedule. 

19The Broker-Dealer non-Penny options 

transaction charge for a Multiply Listed Option is 

$.50 per contract as compared to the Broker-Dealer 

fee of $0.45 per contract for Singly Listed Options. 

contract for Market Makers,9 BrokerDealers and Firms.10 The Exchange also 

currently assesses an Options Surcharge 

for transactions in BKX of $.10 per 

contract for Market Makers, BrokerDealers and Firms.11 The Exchange is 

proposing to assess Professionals an 

Options Surcharge for transactions in 

RUT, MNX and NDX of $.15 per 

contract and an Options Surcharge for 

transactions in BKX of $.10 per contract. 

Customers will continue not to be 

assessed an Options Surcharge in RUT, 

MNX, NDX and BKX. 

Section III Amendments 

Currently, SOX, HGX and OSX are 

Singly Listed Options subject to the 

following fees in Section III of the Fee 

Schedule: 

Customer Professional Market maker Firm Broker-dealer 

Options Transaction Charge ............................ $0.35 $0.45 $0.35 $0.45 $0.45 

On April 2, 2012, NOM will list SOX, 

HGX and OSX and therefore these 

options will become Multiply Listed. 

The Exchange proposes to continue to 

assess SOX, HGX and OSX the Singly 

Listed Options Transaction Charges in 

Section III by specifying that these 

index options will be subject to Section 

III fees, even though they will no longer 

be Singly Listed. The Exchange also 

proposes to indicate in Section II of the 

Fee Schedule that SOX, HGX and OSX 

would be subject to the fees in Section 

III. 

Other Amendments 

The Exchange is also proposing to 

amend the title of the ‘‘Fee Schedule’’ 

to ‘‘Pricing Schedule’’ to more 

specifically describe this document. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Fee Schedule is 

consistent with Section 6(b) of the Act 12

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 13 in 

particular, in that it is an equitable 

allocation of reasonable fees and other 

charges among Exchange members and 

other persons using its facilities. 

The Exchange’s proposal to assess 

Professionals a $.15 per contract 

Options Surcharge for transactions in 

RUT, MNX and NDX and a $.10 per 

contract Options Surcharge for 

transactions in BKX is reasonable 

because Professionals would be assessed 

a fee that is less favorable than a 

Customer but equivalent to all other 

market participants because it has been 

established that Professionals have 

access to more information than a 

Customer. It can be argued that 

Professionals have the same 

technological and informational 

advantages as broker-dealers trading for 

their own account. The Exchange 

believes that Professionals, who are 

considered sophisticated algorithmic 

traders, utilize the advantaged Customer 

pricing they receive to effectively 

compete with Market Makers and 

Broker-Dealers 14 without the 

obligations of either. Also, the Exchange 

believes that unlike Customers, 

Professionals are able to shoulder the 

burden of fees as effectively as other 

market participants. 

The Exchange’s proposal to assess 

Professionals a $.15 per contract 

Options Surcharge for transactions in 

RUT, MNX and NDX and a $.10 per 

contract Options Surcharge for 

transactions in BKX is equitable and not 

unfairly discriminatory because all 

market participants, except for 

Customers, would be uniformly 

assessed the Options Surcharge fees for 

RUT, MNX, NDX and BKX, respectively. 

A lower Customer fee benefits all 

market participants by incentivizing 

market participants to transact a greater 

number of Customer orders, which 

results in increased liquidity. 

Additionally, today Professionals are 

assessed a higher fee as compared to 

Customers in both Penny Pilot 

Options 15 and non-Penny Pilot 

Options.16

The Exchange’s proposal to continue 

to assess SOX, HGX and OSX the fees 

in Section III for Singly Listed Options 

is reasonable because the Exchange is 

seeking to continue to recoup the 

operation and development costs 

associated with these proprietary 

indexes.17

The Exchange believes that its 

proposal to continue to assess SOX, 

HGX and OSX the fees in Section III for 

Singly Listed Options is equitable and 

not unfairly discriminatory because all 

market participants would be assessed 

the Singly Listed Options Transaction 

Charges for transacting options on these 

indexes instead of the Options 

Transaction Charges in Section II.18

Specifically, all market participants 

would be assessed the higher fees in 

Section III, as compared to the fees in 

Section II, with the exception of a 

Broker-Dealer electronically transacting 

options on these indexes.19 The 

Exchange has previously stated that it 

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20092 Federal Register / Vol. 77, No. 64 / Tuesday, April 3, 2012 / Notices 

20See Securities Exchange Release Act No. 64096 

(March 18, 2011), 76 FR 16646 (March 24, 2011) 

(SR–Phlx–2011–34). 

21See CBOE’s Comment Letter dated June 21, 

2010 to the Proposed Amendments to Rule 610 of 

Regulation NMS, File No. S7–09–10. CBOE further 

noted that options exchanges expend considerable 

resources on research and development related to 

new product offerings and options exchanges incur 

large licensing costs for many products. 

22See CBOE’s Fees Schedule. 23 15 U.S.C. 78s(b)(3)(A)(ii). 24 17 CFR 200.30–3(a)(12). 

incurs higher costs for Singly Listed 

Options as compared to Multiply Listed 

Options.20 The Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’) noted 

in a comment letter dated June 21, 2010 

that CBOE relies upon fees to, among 

other things, generate returns on its 

investments for its own popular 

proprietary products (such as The CBOE 

Volatility Index® (‘‘VIX®’’) Options).21

In addition, the Exchange believes that 

the proposed fees are reasonable, 

equitable and not unfairly 

discriminatory because the fees are 

consistent with price differentiation that 

exists today at all option exchanges. For 

example, CBOE assesses different rates 

for certain proprietary indexes as 

compared to other index products 

transacted at CBOE. VIX options and 

The S&P 500® Index options (‘‘SPXSM’’) 

are assessed different fees than other 

indexes.22

The Exchange believes that its 

proposal to rename the ‘‘Fee Schedule’’ 

as the ‘‘Pricing Schedule’’ is reasonable, 

equitable and not unfairly 

discriminatory because the Exchange 

believes that the changing the title to 

‘‘Pricing Schedule’’ more specifically 

describes the fees, rebates and other 

charges reflected in the document 

termed ‘‘Fee Schedule.’’ 

The Exchange operates in a highly 

competitive market, comprised of nine 

exchanges, in which market participants 

can easily and readily direct order flow 

to competing venues if they deem fee 

levels at a particular venue to be 

excessive. Accordingly, the fees that are 

assessed by the Exchange must remain 

competitive with fees charged by other 

venues and therefore must continue to 

be reasonable and equitably allocated to 

those members that opt to direct orders 

to the Exchange rather than competing 

venues. 

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 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.23 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 rulecomments@sec.gov. Please include File 

Number SR–Phlx–2012–35 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–Phlx–2012–35. 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–Phlx– 

2012–35 and should be submitted on or 

before April 24, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–7914 Filed 4–2–12; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #13052 and #13053] 

Illinois Disaster #IL–00035 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the State of ILLINOIS dated 03/22/ 

2012. 

Incident: Severe Storms and 

Tornadoes. 

Incident Period: 02/29/2012 through 

03/02/2012. 

Effective Date: 03/22/2012. 

Physical Loan Application Deadline 

Date: 05/21/2012. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 12/24/2012. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

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