Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Notices 23531 

31 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. 58828 

(October 21, 2008), 73 FR 63749 (October 27, 2008) 

(SR–CBOE–2008–107). 

4See Securities Exchange Act Release No. 60854 

(October 21, 2009) 74 FR 55613 (October 28, 2009) 

(SR–ISE–2009–84). 

5A Streaming Quote Trader (‘‘SQT’’) is defined in 

Exchange Rule 1014(b)(ii)(A) as an ROT who has 

received permission from the Exchange to generate 

and submit option quotations electronically in 

options to which such SQT is assigned. 

6A Remote Streaming Quote Trader (‘‘RSQT’’) is 

defined Exchange Rule in 1014(b)(ii)(B) as an ROT 

that is a member or member organization with no 

physical trading floor presence who has received 

permission from the Exchange to generate and 

submit option quotations electronically in options 

to which such RSQT has been assigned. An RSQT 

may only submit such quotations electronically 

from off the floor of the Exchange. 

7See ISE Rule 804, CBOE Rules 6.2B, 8.7, 8.14, 

8.15A, NYSEArca Rule 6.37B and NOM Rulebook 

Chapter VII, Section 6(a). 

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– 

2012–46 and should be submitted on or 

before May 10, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–9406 Filed 4–18–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66806; File No. SR–Phlx– 

2012–49] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend Rule 

1014 

April 13, 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 April 4, 

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 

Section (b)(ii)(D)(3) of Rule 1014, 

Obligations and Restrictions Applicable 

to Specialists and Registered Options 

Traders, a rule pertaining to the 

minimum size requirement for 

quotations. 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

This proposed rule change is based on 

filings previously submitted by the 

Chicago Board Options Exchange 

(‘‘CBOE’’) 3 and the International 

Securities Exchange (‘‘ISE’’) 4 that were 

effective on filing. 

The purpose of the proposed rule 

change is to amend Section (b)(ii)(D)(3) 

of Rule 1014, Obligations and 

Restrictions Applicable to Specialists 

and Registered Options Traders, in 

order to change a minimum quoting size 

requirement. Rule 1014(b)(ii)(D) sets 

forth certain market making obligations 

that apply to Streaming Quote Traders 

(‘‘SQTs’’), 5 Remote Streaming Quote 

Traders (‘‘RSQTs’’) 6 and specialists. For 

example, Rule 1014(b)(ii)(D)(1) provides 

that, in addition to other obligations and 

with certain exceptions, an SQT and an 

RSQT shall be responsible to quote twosided markets in not less than 60% of 

the series in which such SQT or RSQT 

is assigned. Likewise, Rule 

1014(b)(ii)(D)(2) provides that a 

specialist must quote two-sided markets 

in the lesser of 99% of the series or 

100% of the series minus one call-put 

pair in each option in which such 

specialist is assigned. 

Currently Rule 1014(b)(ii)(D)(3) 

provides that SQTs, RSQTs and the 

specialist assigned in an option shall 

submit electronic quotations for such 

option with a size of not less than 10 

contracts. The Exchange proposes to 

eliminate the 10 contract minimum size 

and to provide instead that the 

minimum number of contracts shall be 

specified by the Exchange for each 

option. The proposed change would 

allow the Exchange to set a minimum 

quotation size requirement for quotes on 

a class by class basis, provided the 

minimum set by the Exchange is at least 

one contract. Phlx would not impose a 

minimum quotation size requirement 

greater than 10 contracts. 

The Exchange believes it should have 

the flexibility to change the minimum 

size requirement on a class by class 

basis depending on market conditions 

and the trading and liquidity in a 

particular option class and its 

underlying security. Phlx notes that the 

minimum quotation size requirement 

for market makers on ISE, CBOE, NYSE 

Arca, Inc. (‘‘NYSE Arca’’) and the 

Nasdaq Options Market (‘‘NOM’’) is 

only one contract.7 As a result, Phlx 

believes the proposed rule change is 

based on and similar to the rules of 

other options exchanges. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

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23532 Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Notices 

8 15 U.S.C. 78f(b). 

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

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). 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. 17 CFR 240.19b-4(f)(6). 

12 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. 66481 

(February 28, 2012), 77 FR 13159 (‘‘Notice’’). 

of the Act 8 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 9

in particular, in that it 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 

proposed rule change would permit the 

Exchange to set a minimum quotation 

size requirement on a class by class 

basis, provided the minimum size is at 

least one contract. Phlx believes that 

this flexibility will enable the Exchange 

to take into consideration market 

conditions and the trading and liquidity 

in a particular option class and its 

underlying security. 

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: (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 after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to 19(b)(3)(A) 

of the Act 10 and Rule 19b–4(f)(6) 11

thereunder. 

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–2012–49 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–2012–49. 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– 

2012–49 and should be submitted on or 

before May 10, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–9407 Filed 4–18–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66809; File No. SR– 

NYSEAmex–2012–10] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Order Granting Approval of 

a Proposed Rule Change Amending 

NYSE Amex Rule 476A To Update Its 

‘‘List of Equities Rule Violations and 

Fines Applicable Thereto’’ 

April 13, 2012. 

I. Introduction 

On February 16, 2012, NYSE Amex 

LLC (‘‘Exchange’’ or ‘‘NYSE Amex’’) 

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 amend NYSE Amex Rule 

476A to update its ‘‘List of Equities Rule 

Violations and Fines Applicable 

Thereto.’’ The proposed rule change was 

published for comment in the Federal 

Register on March 5, 2012.3 The 

Commission received no comment 

letters on the proposed rule change. 

This order approves the proposed rule 

change. 

II. Description 

By way of background, NYSE Amex 

Rule 476 governs disciplinary 

proceedings involving charges against 

members, member organizations, 

principal executives, approved persons, 

employees, or others for violations of 

the federal securities laws, Exchange 

rules and agreements with the 

Exchange, and other offenses listed in 

the rule. 

NYSE Amex Rule 476A, ‘‘Imposition 

of Fines for Minor Violation(s) of 

Rules,’’ provides that, in lieu of 

commencing a disciplinary proceeding 

under Rule 476, the Exchange may 

(subject to specified requirements) 

‘‘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 

mstockstill on DSK4VPTVN1PROD with NOTICES