1906 Federal Register / Vol. 78, No. 6 / Wednesday, January 9, 2013 / Notices 

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

12 17 CFR 240.19b–4(f). 

13 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. 68217 

(November 13, 2012), 77 FR 69525. 

4Exchange Rule 1080.01(a) provides that ‘‘[a] 

specialist, [remote streaming quote trader] or 

[streaming quote trader] may establish an option 

pricing model via a specialized connection, which 

is known as a specialized quote feed (‘SQF’). 

Specialists, [streaming quote traders] and [remote 

streaming quote traders] individually determine 

which model to select per option and may change 

models during the trading day. Each pricing model 

requires the specialist, [streaming quote traders] 

and [remote streaming quote traders] to input 

various parameters, such as interest rates, 

volatilities (delta, vega, theta, gamma, etc.) and 

dividends.’’ 

further funding the Exchange regulatory 

program. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

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) 

of the Act 11 and paragraph (f) of Rule 

19b–4 12 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. 

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–C2–2012–046 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–C2–2012–046. 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 

10:00 a.m. and 3:00 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–C2– 

2012–046 and should be submitted on 

or before January 30, 2013. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2013–00198 Filed 1–8–13; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–68574; File No. SR–Phlx– 

2012–130] 

Self-Regulatory Organizations; 

NASDAQ OX PHLX LLC; Order 

Approving Proposed Rule Change To 

Amend Performance Evaluations With 

Respect to Quote Submissions of 

Streaming Quote Traders and Remote 

Streaming Quote Traders 

January 3, 2013. 

I. Introduction 

On October 31, 2012, NASDAQ OMX 

PHLX LLC (‘‘Exchange’’ or ‘‘Phlx’’) 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 performance 

evaluations with respect to Streaming 

Quote Traders (‘‘SQTs’’) and Remote 

Streaming Quote Traders (‘‘RSQTs’’). 

The proposed rule change was 

published for comment in the Federal 

Register on November 19, 2012.3 The 

Commission received no comments on 

the proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

The Exchange proposes to amend the 

performance evaluations with respect to 

SQTs and RSQTs. Exchange Rule 510 

sets forth standards by which the 

Exchange periodically conducts an 

evaluation of SQTs and RSQTs to 

determine whether they have fulfilled 

performance standards relating to, 

among other things, quality of markets, 

efficient quote submission to the 

Exchange (including quotes submitted 

through a third party vendor), 

competition among market makers, 

observance of ethical standards, and 

administrative factors. 

Specifically, the Exchange proposes to 

amend the evaluation standards with 

respect to quote submission. According 

to the Exchange, Phlx reviews the 

percentage of total quotes that represent 

the Phlx best bid or offer, quoting 

requirements pursuant to Exchange Rule 

1014, the number of requests for a quote 

spread parameter and efficient quote 

submission. To evaluate efficient quote 

submission, the Exchange currently 

considers how an SQT or RSQT 

optimizes the submission of quotes 

through the Specialized Quote Feed 4 by 

evaluating the number of individual 

quotes per quote block received by the 

Exchange. 

Instead of evaluating the number of 

individual quotes per quote block, the 

Exchange proposes to utilize quote-totrade and quote-to-contracts traded 

ratios to evaluate SQTs and RSQTs. 

According to the Exchange, the quoteto-trade and quote-to-contract traded 

data would provide statistical 

information on spreads and efficiency, 

which would allow the Exchange to 

obtain more precise information to 

evaluate performance. 

III. Discussion and Commission 

Findings 

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 national 


srobinson on DSK4SPTVN1PROD with 
Federal Register / Vol. 78, No. 6 / Wednesday, January 9, 2013 / Notices 1907 

5 In approving the 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). 

7See email from Angela Dunn, Associate General 

Counsel, Phlx, to Steve Kuan, Special Counsel, 

Commission, dated January 3, 2013. 

8 15 U.S.C. 78s(b)(2). 

9 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). 

5Auction Transactions are those transactions 

executed through the Price Improvement Period 

(‘‘PIP’’), Solicitation, and Facilitation auction 

mechanisms. 

6Professional customers are charged $0.33 per 

contract for Select Symbols on the International 

Securities Exchange (‘‘ISE’’), $0.32 per contract for 

taking liquidity on NYSE Amex, and $0.45 or more 

per contract on the NASDAQ Options Market 

(‘‘NOM’’) for adding or removing liquidity in nonContinued 

securities exchanges.5 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,6 which requires that 

the rules of an exchange be designed, 

among other things, to promote just and 

equitable principles of trade, to prevent 

fraudulent and manipulative acts, to 

remove impediments to and to perfect 

the mechanism for a free and open 

market and a national market system, 

and, in general, to protect investors and 

the public interest. 

The Commission believes that the 

proposal should provide the Exchange 

with a better metric to evaluate the 

quote submission quality of SQTs and 

RSQTs. In particular, the Exchange 

represented that it could capture the 

following data in a report for each SQT 

and RSQT: executed contracts, trade 

count, total quotes, executed contract to 

quote ratio and trade count to quote 

ratio. The Commission believes that 

such additional information, which is 

not available today, should enable the 

Exchange to better judge the quality of 

quotes provided. The proposal would 

analyze the number of contracts 

executed, in addition to the number of 

quotes received by the Exchange. The 

Commission believes that the number of 

executed contracts to quote ratio should 

provide the Exchange with more useful 

information to judge actual liquidity 

supplied on the Exchange. The proposal 

would also analyze the number of trades 

to quotes. The Commission believes that 

this aspect of the proposal is reasonably 

designed to enable the Exchange to 

better evaluate smaller participants, 

who may execute lesser size, but who 

may still have a high trade-to-quote ratio 

if they are present at the national best 

bid or offer. Finally, the Exchange has 

represented that these standards which 

would be applied to all members and 

member organizations of the Exchange 

in a uniform matter that is equitable and 

not unfairly discriminatory.7

For the reasons stated above, the 

Commission believes that the proposal 

is consistent with the requirements of 

the Act and is designed to promote just 

and equitable principles of trade, to 

remove impediments to and to perfect 

the mechanism for a free and open 

market and a national market system, 

and, in general, to protect investors and 

the public interest. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,8 that the 

proposed rule change (SR–Phlx–2012– 

130), be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2013–00201 Filed 1–8–13; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–68578; File No. SR–BOX– 

2012–025] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Amend 

the Fee Schedule for Trading on BOX 

DATE: January 3, 2013. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on December 

26, 2012, BOX Options Exchange LLC 

(the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II and III 

below, which Items have been prepared 

by the Exchange. The Exchange filed the 

proposed rule change pursuant to 

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 is filing with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

to amend the Fee Schedule for trading 

on BOX. In particular, the Exchange 

proposes to amend certain Exchange 

Fees for Professionals set forth in 

Section I of the Fee Schedule so that 

Professional accounts are assessed the 

same fees as Broker-Dealers. While 

changes to the Fee Schedule pursuant to 

this proposal will be effective upon 

filing, the changes will become 

operative on January 2, 2013. The text 

of the proposed rule change is available 

from the principal office of the 

Exchange, at the Commission’s Public 

Reference Room and also on the 

Exchange’s Internet Web site at http:// 

boxexchange.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 

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 the 

Fee Schedule for trading on BOX. In 

particular, the Exchange proposes to 

amend certain Exchange Fees for 

Professionals set forth in Section I of the 

Fee Schedule so that Professional 

accounts are assessed the same fees as 

Broker-Dealers. 

For Auction Transactions,5 the 

Exchange proposes to increase 

Professional fees for Improvement 

Orders in the PIP and Responses in the 

Solicitation and Facilitation 

mechanisms from $0.15 to $0.35, the 

same fee Broker-Dealers are currently 

charged. Note that Exchange Fees for 

Primary Improvement Orders, 

Facilitation Orders, and Solicitation 

Orders will continue to be based upon 

a Participant’s monthly average daily 

volume (‘‘ADV’’) in Auction 

Transactions as calculated at the end of 

each month as set forth in Section I.A. 

of the Fee Schedule. The Exchange 

notes that the proposed fees for 

Professionals are within the range of 

Professional fees presently assessed in 

the industry.6


srobinson on DSK4SPTVN1PROD with