22882 Federal Register / Vol. 75, No. 83 / Friday, April 30, 2010 / Notices 

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

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

14See International Securities Exchange, LLC 

Schedule of Fees. 

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

16 17 CFR 240.19b 4(f)(2). 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Category Rebate 

(per contract) 

Specialist, ROT, SQT, 

RSQT ............................ 0.23 

Firms ................................. 0.00 

Broker-Dealers .................. 0.00 

Professional ...................... 0.20 

The Exchange also currently assesses 

a transaction charge of $0.45 per 

contract to Firms and $0.45 per contract 

to broker-dealers that add liquidity, 

which this proposal seeks to eliminate. 

The Exchange also proposes to amend 

the Fee Schedule to remove all 

references to the fees for adding 

liquidity. 

While changes to the Fee Schedule 

pursuant to this proposal are effective 

upon filing, the Exchange has 

designated these changes to be operative 

for transactions settling on or after 

May 3, 2010. 

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. The 

Exchange believes that the elimination 

of the fees for adding liquidity is 

reasonable because the proposal is 

consistent with the current Fee 

Schedule and industry fee assessments 

of member firms that allow for different 

rates to be charged for different order 

types originated by dissimilarly 

classified market participants.14

Additionally, the impact of the proposal 

upon the net fees paid by a particular 

market participant will depend on a 

number of variables, including its 

monthly volumes, the order types it 

uses, and the prices of its quotes and 

orders (i.e., its propensity to add or 

remove liquidity). 

The Exchange operates in a highly 

competitive market in which market 

participants can readily direct order 

flow to competing venues if they deem 

fee levels at a particular venue to be 

excessive. The Exchange believes that 

the fees it charges for options overlying 

the various Symbols remain competitive 

with fees charged by other venues and 

therefore 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 15 and 

paragraph (f)(2) of Rule 19b–416

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–2010–61 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, Station Place, 100 F Street, 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–Phlx–2010–61. 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 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 

publicly available. All submissions 

should refer to File Number SR–Phlx2010–61 and should be submitted on or 

before May 21, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–10029 Filed 4–29–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61971; File No. SR–Phlx– 

2010–62] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Routing Fees 

April 23, 2010. 

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 April 16, 

2010, 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. 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
Federal Register / Vol. 75, No. 83 / Friday, April 30, 2010 / Notices 22883 

3For a complete description of Phlx XL II, see 

Securities Exchange Act Release No. 59995 (May 

28, 2009), 74 FR 26750 (June 3, 2009) (SR–Phlx– 

2009–32). The instant proposed fees will apply only 

to option orders entered into, and routed by, the 

Phlx XL II system. 

4See Securities Exchange Act Release No. 59995 

(May 28, 2009), 74 FR 26750 (June 3, 2009) (SR– 

Phlx–2009–32). 

5A Professional will be treated in the same 

manner as an off-floor broker-dealer for purposes of 

Rules 1014(g) (except with respect to all-or-none 

orders, which will be treated like customer orders), 

1033(e), 1064.02 (except professional orders will be 

considered customer orders subject to facilitation), 

and 1080.08 as well as Options Floor Procedure 

Advices B–6, B–11 and F–5. Member organizations 

must indicate whether orders are for professionals. 

6See NYSE Amex Options Fee Schedule and 

CBOE Fees Schedule. 

7See E-mail from Angela S. Dunn, Assistant 

General Counsel, Phlx, to Richard R. Holley, Senior 

Special Counsel, Johnna B. Dumler, Special 

Counsel, and Daniel T. Gien, Staff Attorney, 

Division of Trading and Markets, Commission, 

dated April 22, 2010 (making clarifying changes to 

this paragraph). 

8See Securities Exchange Act Release No. 61905 

(April 14, 2010), 75 FR 20871 (April 21, 2010) (SR– 

Phlx–2010–55). 

9Each destination market’s transaction charge 

varies and there is a standard clearing charge for 

each transaction incurred by the Exchange. The 

Exchange basis [sic] the above fees on the total of 

these costs for each destination market in assessing 

fees. 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(4). 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

fees governing pricing for Exchange 

members using the Phlx XL II system,3

for routing standardized equity and 

index option customer orders to away 

markets for execution. 

While changes to the Exchange’s Fee 

Schedule pursuant to this proposal are 

effective upon filing, the Exchange has 

designated this proposal to be operative 

for trades settling on or after April 19, 

2010. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqtrader.com/ 

micro.aspx?id=PHLXfilings, on the 

Commission’s Web site at http:// 

www.sec.gov, 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 purpose of the proposed rule 

change is to recoup costs that the 

Exchange incurs for routing and 

executing customer orders in equity and 

index options to away markets. 

In May 2009, the Exchange adopted 

Rule 1080(m)(iii)(A) to establish Nasdaq 

Options Services LLC (‘‘NOS’’), a 

member of the Exchange, as the 

Exchange’s exclusive order router.4 NOS 

is utilized by the Phlx XL II system 

solely to route orders in options listed 

and open for trading on the Phlx XL II 

system to destination markets. 

The Exchange proposes to add a 

‘‘professional’’ fee category to its Routing 

Fees. The Exchange defines a 

‘‘professional’’ as any person or entity 

that (i) is not a broker or dealer in 

securities, and (ii) places more than 390 

orders in listed options per day on 

average during a calendar month for its 

own beneficial account(s) 5 (hereinafter 

‘‘Professional’’). 

The Exchange proposes to charge the 

following Professional Routing Fees: (i) 

A $0.26 per contract side fee for 

Professional orders routed to NYSE 

Amex LLC (‘‘NYSE Amex’’) in all 

options; (ii) a $0.36 per contract side fee 

for Professional orders routed to BATS 

Exchange, Inc. (‘‘BATS’’) in all options; 

(iii) a $.06 per contract side fee for 

Professional orders routed to the Boston 

Options Exchange Group LLC (‘‘BOX’’) 

in all options; (iv) a $0.26 per contract 

fee for Professional orders routed to the 

Chicago Board of Options Exchange, 

Inc. (‘‘CBOE’’) in all options; (v) a $.06 

per contract side fee for Professional 

orders routed to the International 

Securities Exchange, LLC (‘‘ISE’’) in all 

options; (vi) a $0.50 per contract side fee 

for Professional orders routed to NYSE 

Arca, Inc. (‘‘NYSEArca’’) in penny 

options; (vii) a $.06 per contract side fee 

for Professional orders routed to 

NYSEArca in all other options 

(excluding penny options); (viii) a $.40 

per contract side fee for Professional 

orders routed to NASDAQ Options 

Market (‘‘NOM’’) in penny options; and 

(ix) a $.56 per contract side fee for 

Professional orders routed to NOM in 

the NASDAQ 100 Index Option (‘‘NDX’’) 

and the mini NASDAQ 100 Index 

Option (‘‘MNX’’). The proposed 

Professional Routing Fees for NYSE 

Amex and CBOE are higher for a 

Professional as opposed to a customer 

($0.26 versus $0.06) because of the $.20 

transaction fees that both NYSE Amex 

and CBOE assess for Professional 

orders.6 Since these transaction charges 

do not exist for customer orders, the 

customer Routing Fees are lower for 

these away markets as compared to the 

Professional Routing Fees.7

Currently, the Exchange’s Fee 

Schedule includes Routing Fees to the 

aforementioned exchanges for customer 

orders. Professional orders are currently 

assessed these customer Routing Fees.8

The existing customer routing fees will 

be unchanged. 

The Exchange is proposing these 

charges in order to recoup clearing and 

transaction charges which are incurred 

by the Exchange when orders are routed 

to these away markets.9 As with all fees, 

the Exchange may adjust these Routing 

Fees in response to competitive 

conditions by filing a new proposed rule 

change. 

While changes to the Exchange’s Fee 

Schedule pursuant to this proposal are 

effective upon filing, the Exchange has 

designated this proposal to be operative 

for trades settling on or after April 19, 

2010. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its schedule of fees 

is consistent with Section 6(b) of the 

Act 10 in general, and furthers the 

objectives of Section 6(b)(4) of the Act 11

in particular, in that it is an equitable 

allocation of reasonable fees and other 

charges among Exchange members 

because Exchange members would 

equally be assessed the costs incurred 

by the Exchange to route customer 

orders to away markets on behalf of its 

members. 

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. 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
22884 Federal Register / Vol. 75, No. 83 / Friday, April 30, 2010 / Notices 

12 15 U.S.C. 78s(b)(3)(A)(ii). 

13 17 CFR 240.19b–4(f)(2). 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See e.g., Securities Exchange Act Release Nos. 

44521 (July 6, 2001), 66 FR 36809 (July 13, 2001) 

(order approving OLPP); 58205 (July 22, 2008), 73 

FR 43798 (July 28, 2008) (order granting permanent 

approval to amendment no. 1 to the OLPP); 58630 

(September 24, 2008) 73 FR 57166 (October 1, 2008) 

(order granting permanent approval to amendment 

no. 2 to the OLPP); and 60531 (August 19, 2009), 

74 FR 43173 (August 26, 2009) (order approving 

amendment no. 3 to the OLPP). 

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 12 and 

paragraph (f)(2) of Rule 19b–4 13

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–2010–62 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–2010–62. 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 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 Number SR–Phlx– 

2010–62 and should be submitted on or 

before May 21, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–10030 Filed 4–29–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61977; File No. SR– 

NYSEArca–2010–30] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Rule 6.4 and 

Adopting Rule 6.4A 

April 23, 2010. 

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 April 16, 

2010, 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, II, and 

III, 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 

The Exchange proposes to amend 

Rule 6.4 and adopt Rule 6.4A to apply 

uniform objective standards to the range 

of options series exercise (or strike) 

prices available for trading on the 

Exchange, and to amend Rule 6.4(e) to 

delineate the timing for adding new 

Long Term Equity Option Series. 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, at the Commission’s 

Public Reference Room, and on the 

Commission’s Web site at http:// 

www.sec.gov. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this filing is to amend 

Rule 6.4 and adopt Rule 6.4A to apply 

uniform objective standards to the range 

of options series exercise (or strike) 

prices available for trading on the 

Exchange, and to amend Rule 6.4(e) to 

delineate the timing for adding new 

Long Term Equity Option Series. 

The Options Listing Procedures Plan 

(‘‘OLPP’’) was approved by the 

Securities and Exchange Commission 

(the ‘‘Commission’’) on July 6, 2001 and 

has been amended several times.3 The 

OLPP provides procedures for: (i) 

Listing and trading new option classes; 

(ii) selecting new options series; (iii) 

petitioning The Options Clearing 

Corporation (‘‘OCC’’) to review the 

eligibility, pursuant to the exchanges’ 

listing standards, of a selected option 

class without delaying the trading of 

that option class; (iv) determining 

operational details for option contracts 

adjusted pursuant to OCC By-Laws; (v) 

admitting new sponsors; and (vi) losing 

eligibility to participate in the OLPP. 

This current filing is primarily 

concerned with codifying certain 

provisions of the OLPP pertaining to 

selecting new option series and certain 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1