Federal Register / Vol. 75, No. 83 / Friday, April 30, 2010 / Notices 22881 

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). 

5The fees and rebates for adding and removing 

liquidity are applicable to executions in options 

overlying AA, AAPL, AIG, ALL, AMD, AMR, 

AMZN, BAC, C, CAT, CSCO, DELL, DIA, DRYS, EK, 

F, FAS, FAZ, GDX, GE, GLD, GS, INTC, IWM, JPM, 

LVS, MGM, MSFT, MU, NEM, PALM, PFE, POT, 

QCOM, QQQQ, RIMM, SBUX, SKF, SLV, SMH, 

SNDK, SPY, T, UAUA, UNG, USO, UYG, VZ, 

WYNN, X and XLF (‘‘Symbols’’). 

6An SQT is an Exchange Registered Options 

Trader (‘‘ROT’’) who has received permission from 

the Exchange to generate and submit option 

quotations electronically through an electronic 

interface with AUTOM via an Exchange approved 

proprietary electronic quoting device in eligible 

options to which such SQT is assigned. See 

Exchange Rule 1014(b)(ii)(A). 

7An RSQT is 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 through AUTOM in eligible options 

to which such RSQT has been assigned. An RSQT 

may only submit such quotations electronically 

from off the floor of the Exchange. See Exchange 

Rule 1014(b)(ii)(B). 

8This applies to all customer orders, directed and 

non-directed. 

9For purposes of the fees and rebates related to 

adding and removing liquidity, A Directed 

Participant is a Specialist, SQT, or RSQT that 

executes a customer order that is directed to them 

by an Order Flow Provider and is executed 

electronically on PHLX XL II. 

10See Exchange Rule 1080(l), ‘‘ * * * The term 

‘Directed Specialist, RSQT, or SQT’ means a 

specialist, RSQT, or SQT that receives a Directed 

Order.’’ A Directed Participant has a higher quoting 

requirement as compared with a specialist, SQT or 

RSQT who is not acting as a Directed Participant. 

See Exchange Rule 1014. 

11The 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) (hereinafter 

‘‘Professional’’). 

recorded fully in the minute books of 

the appropriate Investing Management 

Company. 

11. Any sales charges and/or service 

fees charged with respect to shares of an 

Investing Fund will not exceed the 

limits applicable to a fund of funds as 

set forth in NASD Conduct Rule 2830. 

12. No Fund will acquire securities of 

any investment company or company 

relying on section 3(c)(1) or 3(c)(7) of 

the Act in excess of the limits contained 

in section 12(d)(1)(A) of the Act. 

For the Commission, by the Division of 

Investment Management, pursuant to 

delegated authority. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–10033 Filed 4–29–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61961; File No. SR–Phlx– 

2010–61] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change Relating to 

Fees and Rebates for Adding and 

Removing Liquidity 

April 22, 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 22, 

2010, NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. Phlx has 

designated this proposal as one 

establishing or changing a member due, 

fee, or other charge imposed under 

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 proposes to amend the 

fees and rebates for adding and 

removing liquidity for options overlying 

various select symbols. 

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. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqtrader.com/ 

micro.aspx?id=PHLXfilings, at the 

principal office of the Exchange, 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 

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 its 

current fees and rebates for adding and 

removing liquidity by eliminating the 

fees for adding liquidity. Specifically, 

the Exchange proposes to eliminate the 

current $0.45 Firm and $0.45 BrokerDealer per-contract fees for adding 

liquidity. 

The Exchange currently assesses a 

per-contract transaction charge in 

various select symbols 5 on six different 

categories of market participants that 

submit orders and/or quotes that 

remove, or ‘‘take,’’ liquidity from the 

Exchange: (i) Specialists, Registered 

Options Traders (‘‘ROTs’’), Streaming 

Quote Traders (‘‘SQTs’’) 6 and Remote 

Streaming Quote Traders (‘‘RSQTs’’); 7

(ii) customers; 8 (iii) specialists, SQTs 

and RSQTs that receive Directed Orders 

(‘‘Directed Participants’’ 9 or ‘‘Directed 

Specialists, RSQTs, or SQTs’’ 10); (iv) 

Firms; (v) broker-dealers; and (vi) 

Professionals.11 The current percontract transaction charge depends on 

the category of market participant 

submitting an order or quote to the 

Exchange that removes liquidity. 

The per-contract transaction charges 

that are currently assessed on 

participants who submit proprietary 

quotes and/or orders that remove 

liquidity in the applicable Symbols are, 

by category: 

Category Charge 

(per contract) 

Customer .......................... $0.25 

Directed Participants ........ 0.30 

Specialist, ROT, SQT, 

RSQT ............................ 0.32 

Firms ................................. 0.45 

Broker-Dealers .................. 0.45 

Professional ...................... 0.40 

The Exchange also currently assesses 

a per-contract rebate relating to 

transaction charges for orders or 

quotations that add liquidity in the 

select Symbols. The amount of the 

rebate depends on the category of 

participant whose order or quote was 

executed as part of the Phlx Best Bid 

and Offer. Specifically, the per-contract 

rebates are, by category: 

Category Rebate 

(per contract) 

Customer .......................... $0.20 

Directed Participants ........ 0.25 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
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