15024 Federal Register / Vol. 74, No. 62 / Thursday, April 2, 2009 / Notices 

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

2 17 CFR 240.19b–4. 

3This fee applies to a permit holder who does not 

have physical access to the Exchange’s trading 

floor, is not registered as a Floor Broker, Specialist 

or ROT (on any trading floor) or Off-Floor Trader, 

and whose member organizations submits orders to 

the Exchange. See Exchange Rule 620. 

4Status as an Other Permit Holder requires that 

a permit holder or the member organization for 

which they solely qualify has no transaction 

activity for the applicable monthly billing period. 

Should a permit holder actively transact business 

during a particular month, the highest applicable 

monthly permit fee will apply to such permit 

holder and the member organization for that 

monthly period. The ‘‘other’’ status only applies to 

permit holders who solely qualify their member 

organization, or in other words there is just one 

permit holder in that member organization. If there 

is more than one permit holder in a member 

organization and that permit holder does not fit 

within any of the existing permit fee categories, 

then this ‘‘other’’ category does not apply. Such 

permit holder or the member organization they 

solely qualify for must apply for such ‘‘other’’ status 

in writing to the Membership Department. 

5Permit holders are designated as ‘‘excess’’ 

permit holders in cases where the permit holders 

in the same organization, other than the permit 

holder who qualifies the member organization, are 

either (1) not Floor Brokers, Specialists or ROTs (on 

any trading floor) or Off-Floor Traders; or (2) not 

associated with a member organization that meets 

the definition of an order flow provider. The 

highest applicable permit fee will be assessed each 

month. Therefore, in the same month, if one was 

a floor broker and then became a clerk (and 

therefore, an ‘‘excess’’ permit holder, if one kept his 

or her permit) for the same member organization, 

such person would be charged the higher of the 

possible applicable fees. 

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

7 15 U.S.C. 78f(b)(4). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59641; File No. SR–Phlx– 

2009–26] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX, Inc. Relating to Permit 

Fees 

March 27, 2009. 

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 March 24, 

2009, NASDAQ OMX PHLX, Inc. 

(‘‘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: (i) Increase 

the Order Flow Provider Permit fee to 

$500 and eliminate the distinctions 

related to trading venues; (ii) increase 

the Other Permit Holder fee to $500; and 

(iii) eliminate the Excess Permit Holder 

fee. Additionally, the Exchange 

proposes to delete immaterial language 

in endnotes related to permit fees. 

While changes to the Exchange’s fee 

schedule pursuant to this proposal are 

effective upon filing, the Exchange has 

designated this proposal to be 

implemented beginning April 1, 2009. 

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 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 purpose of the proposed rule 

change is to simplify the Order Flow 

Provider Permit fee 3 by eliminating the 

distinctions related to trading venues, 

which distinctions are no longer 

necessary as the Exchange will no 

longer assess permit fees based on the 

number of trading venues. Additionally, 

the Exchange proposes to increase both 

the Order Flow Provider Permit fee and 

the Other Permit Holders fee to $500. 

The Exchange believes that it can 

continue to attract business even with a 

modest increase, which should raise 

revenue. 

Currently, the Exchange assesses 

members who use an Order Flow 

Provider Permit fee to submit orders to 

the foreign currency options trading 

floor or options trading floor a fee of 

$200. A member who uses the Order 

Flow Provider Permit fee [sic] to submit 

orders to more than one trading venue 

is assessed a fee of $300. The Exchange 

proposes to increase the Order Flow 

Provider Permit fee to $500 for any 

order submitted regardless of the 

number of trading venues. 

The Exchange also proposes to 

increase the Other Permit Holder fee.4

The Other Permit Holder category was 

adopted for billing purposes to address 

the limited situation where permit 

holders did not fall under one of the 

existing permit fee categories. The Other 

Permit Holder Fee is currently $200. 

The Exchange proposes to similarly 

increase this fee to $500 to align this fee 

with the proposed increase to the Order 

Flow Permit fee. 

The Exchange proposes to eliminate 

the Excess Permit Holders fee 5 of $200, 

as the Exchange believes that this 

category of Excess Permit Holders is no 

longer necessary. The Excess Permit 

Holder category was intended to cover 

permit holders who did not fall within 

an existing category to ensure that each 

permit is subject to a permit fee. This 

separate category is no longer necessary 

as all members are currently captured 

by either the Order Flow Permit Fee or 

the Floor Broker, Specialist, ROT, OffFloor Trader, or Market Maker 

Authorized Traders Permit Fee or Other 

Permit Fee categories. 

The Exchange proposes to delete the 

following immaterial language from 

both endnotes 45a and 45b ‘‘[t]hese 

policies will be effective as of February 

2, 2004.’’ The Exchange believes that 

this statement, as to the effectiveness of 

the policies related to those endnotes, is 

irrelevant. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its schedule of fees 

is consistent with Section 6(b) of the 

Act 6 in general, and furthers the 

objectives of Section 6(b)(4) of the Act 7

in particular, in that it is an equitable 

allocation of reasonable fees and other 

charges among Exchange members. The 

Exchange believes that the above 

proposals are equitable in that they 

propose to assess the same fee on 

members who pay either the Order Flow 

Provider Permit Fee or the Other Permit 

Holders Fee. Additionally, the 

elimination of the Excess Permit Holder 

fees should not impact members. The 

Exchange believes that all members 

should be captured under a remaining 

permit fee category. 

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 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 74, No. 62 / Thursday, April 2, 2009 / Notices 15025 

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

9 17 CFR 240.19b–4(f)(2). 

10 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 15 U.S.C. 78s(b)(3)(A)(iii). 

5 17 CFR 240.19b–4(f)(6). 

6See Securities Exchange Act Release No. 55156 

(January 23, 2007), 72 FR 4759 (February 21, 2007); 

Securities Exchange Act Release No. 56568 

(September 27, 2007), 72 FR 56422 (October 3, 

2007). 

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 8 and paragraph 

(f)(2) of Rule 19b–4 9 thereunder. At any 

time within 60 days of the filing of the 

proposed rule change, the Commission 

may summarily abrogate 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 e-mail to rulecomments@sec.gov. Please include File 

Number SR–Phlx–2009–26 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–2009–26. This file 

number should be included on the 

subject line if e-mail 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 inspection and copying 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 will also be available 

for inspection and copying at the 

principal office of the self-regulatory 

organization. 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– 

2009–26 and should be submitted on or 

before April 23, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–7409 Filed 4–1–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59628; File No. SR– 

NYSEArca–2009–26] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending the Option 

Trading Rules in Order To Extend the 

Penny Pilot Program 

March 26, 2009. 

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 March 

25, 2009, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ or the ‘‘Exchange’’) 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 

Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A)(iii) of 

the Act 4 and Rule 19b–4(f)(6) 

thereunder.5 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 

option trading rules in order to extend 

the Penny Pilot in options classes in 

certain issues (‘‘Pilot Program’’) 

previously approved by the Securities 

and Exchange Commission 

(‘‘Commission’’), through July 3, 2009. 

The text of the proposed rule change is 

attached as Exhibit 5 to the 19b–4 form. 

A copy of this filing is available on the 

Exchange’s Web site at http:// 

www.nyse.com, at the Exchange’s 

principal office 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 

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 hereby proposes to 

extend the time period of the Pilot 

Program 6 which is currently scheduled 

to expire on March 27, 2009 through 

July 3, 2009. This filing does not 

propose any substantive changes to the 

Pilot Program: All classes currently 

participating will remain the same and 

all minimum increments will remain 

unchanged. The Exchange believes the 

benefits to public customers and other 

market participants who will be able to 

express their true prices to buy and sell 

options have been demonstrated to 

outweigh the increase in quote traffic. 

The Exchange agrees to submit a 

report to the Commission that includes 

data and written analysis of information 

collected from February 1, 2009 through 

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