Federal Register / Vol. 75, No. 84 / Monday, May 3, 2010 / Notices 23313 

1 5 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 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). 

6See Securities Exchange Act Release No. 59545 

(March 9, 2009), 74 FR 11158 (March 16, 2009) (SR– 

Phlx–2009–20). 

7See Securities Exchange Act Release Nos. [sic] 

59243 (January 13, 2009), 74 FR 4272 (January 23, 

2009) (SR–Phlx–2008–86). 

8See Securities Exchange Act Release No. 61337 

(January 12, 2010), 75 FR 2905 (January 19, 2010) 

(SR–Phlx–2009–104). 

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

10 15 U.S.C. 78f(b)(4). 

writing within 60 days of this 

publication. 

Please direct your written comments 

to Charles Boucher, Director/CIO, 

Securities and Exchange Commission, 

C/O Shirley Martinson, 6432 General 

Green Way, Alexandria, VA 22312; or 

send an e-mail to: 

PRA_Mailbox@sec.gov. 

Dated: April 26, 2010. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–10214 Filed 4–30–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61984; File No. SR–Phlx– 

2010–60] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX, Inc. Relating to QNET 

Sector Index Option Fees 

April 26, 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 

(‘‘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 due, fee, or 

other charge applicable only to a 

member 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 

Exchange’s Fee Schedule for Sector 

Index Options by assessing a $.20 per 

contract transaction fee for options 

overlying the NASDAQ Internet Index 

(‘‘QNET’’). The Exchange also proposes 

making other technical clarifications. 

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 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, 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 Exchange proposes to add 

additional transaction fees to Category 

III of its Fee Schedule, titled Sector 

Index Options. The Exchange proposes 

to assess a $.20 per contract transaction 

fee for options overlying QNET for the 

following market participants: 

Customers, registered options traders 

(on-floor), specialists, professionals,5

firms and broker-dealers. The Exchange 

is proposing to assess the $.20 per 

contract fee from trade date April 30, 

2010 through trade date December 30, 

2010. Thereafter, the Exchange proposes 

to assess the options transaction charges 

for sector index options as designated 

by category of market participant on the 

Fee Schedule, beginning on trade date 

December 31, 2010. In other words, the 

Exchange is proposing to eliminate the 

$.20 per contract transaction 

promotional pricing after December 30, 

2010 and instead assess members the 

applicable sector index options 

transaction charges, by market 

participant, on December 31, 2010. For 

example, for transactions in QNET 

sector index options, a customer would 

no longer be assessed the $.20 per 

contract on trade date December 31, 

2010, but instead would be assessed the 

option transaction charge, which is 

currently $.44 per contract. 

The Exchange proposes to assess a 

fixed rate across all market participants 

for a specified period of time to 

incentivize members to trade QNET. 

The Exchange also proposes removing 

certain text from the Fee Schedule that 

was the result of an inadvertent error. 

The Exchange is proposing to delete the 

text, ‘‘Subject to certain thresholds and 

per trade caps’’ from Categories III and 

IV of the Fee Schedule as related to 

Registered Options Traders (on-floor) 

and Specialists in sector index options 

fees and U.S. dollar-settled foreign 

currency option fees. The Exchange 

indicated in a prior proposed rule 

change that the Firm Related Equity 

Option and Index Option Cap would no 

longer be applicable to sector index 

options 6 and U.S. dollar-settled foreign 

currency options 7 and the volume 

threshold.8

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 May 3, 

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 9 in general, and furthers the 

objectives of Section 6(b)(4) of the Act 10

in particular, in that it is an equitable 

allocation of reasonable fees and other 

charges among Exchange members. The 

Exchange believes that the proposed 

$.20 per contract sector index option 

fees for QNET is equitable because all 

market participants would be assessed 

the same fee. The Exchange further 

believes that offering the $.20 per 

contract fee for a specified promotional 

period and thereafter assessing the 

standard sector index option transaction 

fees is also equitable because it is 

intended to encourage trading in QNET. 

In addition, the removal of extraneous 

language in the Fee Schedule should 

provide clarity to members concerning 

fees. 


erowe on DSK5CLS3C1PROD with NOTICES
23314 Federal Register / Vol. 75, No. 84 / Monday, May 3, 2010 / Notices 

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

12 17 CFR 240.19b–4(f)(2). 

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. 61742 

(March 19, 2010), 75 FR 14646 (‘‘Notice’’). 

4See Securities Exchange Act Release No. 57894 

(May 30, 2008), 73 FR 32061 (June 5, 2008) (SR– 

ISE–2008–12). 

5See Securities Exchange Act Release No. 59055 

(December 4, 2008), 73 FR 75148 (December 10, 

2008) (SR–ISE–2008–58). 

6See Securities Exchange Act Release No. 61483 

(February 3, 2010), 75 FR 6753 (February 10, 2010) 

(SR–ISE–2009–106). 

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 11 and 

paragraph (f)(2) of Rule 19b–4 12

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–2010–60 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–Phlx–2010–60. 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 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–2010–60 and should 

be submitted on or before May 24, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–10211 Filed 4–30–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61983; File No. SR–ISE– 

2010–19] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Order Granting Approval of 

Proposed Rule Change To List and 

Trade Options on the ETFS Palladium 

Trust and the ETFS Platinum Trust 

April 26, 2010. 

On March 5, 2010, the International 

Securities Exchange, LLC (‘‘ISE’’ or 

‘‘Exchange’’) 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 

list and trade options on the ETFS 

Palladium Trust and the ETFS Platinum 

Trust (collectively ‘‘ETFS Options’’). The 

proposed rule change was published in 

the Federal Register on March 26, 

2010.3 The Commission received no 

comments on the proposal. This order 

approves the proposed rule change. 

I. Description of Proposal 

Recently, the Commission authorized 

ISE to list and trade options on the 

SPDR Gold Trust,4 the iShares COMEX 

Gold Trust and the iShares Silver 

Trust,5 the ETFS Gold Trust and the 

ETFS Silver Trust.6 Now, the Exchange 

proposes to list and trade options on the 

ETFS Palladium Trust and the ETFS 

Platinum Trust. 

Under current ISE Rule 502(h), only 

Exchange-Traded Fund Shares, or ETFs, 

that are traded on a national securities 

exchange and are defined as an ‘‘NMS’’ 

stock under Rule 600 of Regulation 

NMS, and that: (i) Represent interests in 

registered investment companies (or 

series thereof) organized as open-end 

management investment companies, 

unit investment trusts or similar entities 

that hold portfolios of securities and/or 

financial instruments, including, but not 

limited to, stock index futures contracts, 

options on futures, options on securities 

and indices, equity caps, collars and 

floors, swap agreements, forward 

contracts, repurchase agreements and 

reverse repurchase agreements (the 

‘‘Financial Instruments’’), and money 

market instruments, including, but not 

limited to, U.S. government securities 

and repurchase agreements (the ‘‘Money 

Market Instruments’’) comprising or 

otherwise based on or representing 

investments in broad-based indexes or 

portfolios of securities and/or Financial 

Instruments and Money Market 

Instruments (or that hold securities in 

one or more other registered investment 

companies that themselves hold such 

portfolios of securities and/or Financial 

Instruments and Money Market 

Instruments); or (ii) represent interests 

in a trust that holds a specified non-U.S. 

currency or currencies deposited with 

the trust when aggregated in some 

specified minimum number may be 

surrendered to the trust by the 

beneficial owner to receive the specified 

non-U.S. currency or currencies and 

pays the beneficial owner interest and 

other distributions on the deposited 

non-U.S. currency or currencies, if any, 

declared and paid by the trust (‘‘Funds’’); 

or (iii) represent commodity pool 

interests principally engaged, directly or 

indirectly, in holding and/or managing 


erowe on DSK5CLS3C1PROD with NOTICES