Federal Register / Vol. 75, No. 94 / Monday, May 17, 2010 / Notices 27611 

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

2 17 CFR 240.19b–4. 

3The Penny Pilot was established in January 

2007; and in October 2009, it was expanded and 

extended through December 31, 2010. See 

Securities Exchange Act Release Nos. 55153 

(January 23, 2007), 72 FR 4553 (January 31, 2007) 

(SR–Phlx–2006–74) (approval order establishing 

Penny Pilot); 60873 (October 23, 2009), 74 FR 56675 

(November 2, 2009) (SR–Phlx–2009–91) (expanding 

and extending Penny Pilot); 60966 (November 9, 

2009), 74 FR 59331 (November 17, 2009) (SR–Phlx– 

2009–94) (adding seventy-five classes to Penny 

Pilot); and 61454 (February 1, 2010), 75 FR 6233 

(February 8, 2010) (SR–Phlx–2010–12) (adding 

seventy-five options classes to the Penny Pilot). See 

also Exchange Rule 1034. 

4Electronically delivered orders do not include 

orders delivered through the Floor Broker 

Management System. 

5See Exchange Rules 1014 and 1080. 

6See Exchange Rule 1063. 

7Specifically, broker-dealers are assessed an 

options transaction charge of $.45 per contract fee 

[sic] for electronically delivered orders and an 

options transaction charge of $.25 per contract for 

non-electronically delivered orders. 

8Russell 2000® is a trademark and service mark 

of the Frank Russell Company, used under license. 

Neither Frank Russell Company’s publication of the 

Russell Indexes nor its licensing of its trademarks 

for use in connection with securities or other 

financial products derived from a Russell Index in 

any way suggests or implies a representation or 

opinion by Frank Russell Company as to the 

attractiveness of investment in any securities or 

other financial products based upon or derived 

from any Russell Index. Frank Russell Company is 

not the issuer of any such securities or other 

financial products and makes no express or implied 

warranties of merchantability or fitness for any 

particular purpose with respect to any Russell 

Index or any data included or reflected therein, nor 

as to results to be obtained by any person or any 

entity from the use of the Russell Index or any data 

included or reflected therein. 

9NASDAQ(R), NASDAQ–100(R) and NASDAQ– 

100 Index(R) are registered trademarks of The 

NASDAQ OMX Group, Inc. (which with its 

affiliates are the ‘‘Corporations’’) and are licensed for 

use by Phlx in connection with the trading of 

options products based on the NASDAQ–100 

Index(R). The options products have not been 

passed on by the Corporations as to their legality 

or suitability. The options products are not issued, 

endorsed, sold, or promoted by the Corporations. 

The Corporations make no warranties and bear no 

liability with respect to the options products. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62069; File No. SR–Phlx– 

2010–66] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Equity Option Fees 

May 10, 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 30, 

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. 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 applicable to 

equity options fees by: (i) Adopting an 

options transaction charge and options 

surcharge for non-electronically 

delivered orders for options transactions 

by Registered Options Traders (on-floor) 

and Specialists; (ii) amending the 

current options transaction charge for 

Registered Options Traders (on-floor) 

and Specialists and applying that charge 

and the options surcharge to 

electronically delivered orders; and (iii) 

creating an options transaction charge 

for option orders in the penny pilot 

program (‘‘Penny Pilot’’) 3 that are 

electronically delivered. The Exchange 

also proposes making a technical 

clarification. The text of the proposed 

rule change is available on Phlx’s Web 

site at http://www.nasdaqtrader.com, on 

the Commission’s Web site at http:// 

www.sec.gov, 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 amend Category II of the 

Fee Schedule, Equity Option Fees, to 

create separate fees for electronically 

delivered versus non-electronically 

delivered orders of Registered Options 

Traders (on-floor) and Specialists. A 

transaction resulting from an order that 

was electronically delivered 4 utilizes 

Phlx XL II.5 A transaction resulting from 

an order that is non-electronicallydelivered is represented on the trading 

floor by a floor broker.6 All orders will 

be either electronically or nonelectronically delivered. 

The Exchange currently categorizes its 

broker-dealer fees by electronically and 

non-electronically delivered orders.7

The Exchange proposes to create these 

new fee categories for Registered 

Options Traders and Specialists orders. 

The Exchange is creating these new fee 

categories in further recognition of the 

distinction between the floor order entry 

model and the electronic model and 

also in response to competition along 

the same lines. 

Electronically Delivered 

The Exchange is proposing to adopt 

fees for electronically delivered orders. 

The Exchange proposes to amend its 

current equity options fees to Registered 

Options Traders (on-floor) and 

Specialists by titling those fees as 

‘‘Electronically Delivered.’’ 

The Exchange currently assesses two 

types of equity options transaction 

charges on Registered Options Traders 

(on-floor) and Specialists: (i) A $.22 per 

contract options transaction charge; and 

(ii) a $.15 per contract options surcharge 

for executions in options on the Russell 

2000® Index (the ‘‘Full Value Russell 

Index’’ or ‘‘RUT’’), options on the onetenth value Russell 2000® Index 8 (the 

‘‘Reduced Value Russell Index’’ or 

‘‘RMN’’), options on the Nasdaq 100 

Index 9 traded under the symbol NDX 

(‘‘NDX’’) and options on the one-tenth 

value of the Nasdaq 100 Index traded 

under the symbol MNX (‘‘MNX’’). The 

Exchange proposes increasing its 

current $.22 per contract options 

transaction charge to $.23 per contract 

and amending the title of this fee to 

‘‘Options Transaction Charge (nonPenny Pilot)’’ to indicate this fee would 

be applicable to Registered Options 

Traders (on-floor) and Specialists for a 

transaction resulting from an order that 

was electronically delivered and not in 

the Penny Pilot. In addition, the 

Exchange proposes to adopt a $.22 

transaction charge for Penny Pilot 

options classes for transactions resulting 

from an order that was electronically 

delivered. The Exchange does not 

propose to amend the options surcharge 

for RUT, RMN, MNX or NDX for 

electronically delivered orders. 

Non-Electronically Delivered 

The Exchange is proposing to adopt 

fees for non-electronically delivered 

orders. The Exchange proposes to adopt 

a transaction charge for Registered 


srobinson on DSKHWCL6B1PROD with NOTICES
27612 Federal Register / Vol. 75, No. 94 / Monday, May 17, 2010 / Notices 

10See Securities Exchange Act Release No. 61905 

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

Phlx–2010–55). 

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

12 15 U.S.C. 78f(b)(4). 

13See Securities Exchange Act Release No. 54423 

(September 11, 2006), 71 FR 54701 (September 18, 

2006) (SR–Phlx–2006–54) (originally AUTOMdelivered and non-AUTOM-delivered, the Exchange 

amended its electronic/non-electronic distinction 

for broker-dealer to create a single fee of $.25 for 

non-AUTOM-delivered orders (now known as NonElectronically-Delivered) and a $.45 transaction fee 

for AUTOM-delivered orders (now known as 

Electronically Delivered orders). AUTOM was the 

Exchange’s electronic delivery, routing, execution 

and reporting system which provided [sic] 

14See NYSE Arca’s Fee Schedule. See also 

Securities Exchange Act Release Nos. 60379 (July 

23, 2009), 74 FR 38244 (July 31, 2009) (SR– 

NYSEARca–2009–62); 61894 (April 13, 2010), 75 

FR 20413 (April 19, 2010) (SR–NYSEArca–2010– 

24). 

15See CBOE’s Fees Schedule. See also Securities 

Exchange Act Release No. 55677 (April 27, 2007), 

72 FR 26430 (May 9, 2007) (SR–Phlx–2007–32). 

16The Monthly Cap is currently $650,000. 

17See Securities Exchange Act Release Act No. 

59841 (April 29, 2009), 74 FR 21035 (May 6, 2009) 

(SR–Phlx–2009–38). 

18See Securities Exchange Act Release Act No. 

61664 (March 5, 2010), 75 FR 11957 (March 12, 

2010) (SR–Phlx–2010–32). 

19See NYSE Arca’s Fee Schedule. 

20See NYSE Arca’s Fee Schedule. See also 

Securities Exchange Act Release Nos. 60379 (July 

23, 2009), 74 FR 38244 (July 31, 2009) (SR– 

NYSEArca–2009–62); 61894 (April 13, 2010), 75 FR 

20413 (April 19, 2010) (SR–NYSEArca–2010–24). 

21See CBOE’s Fees Schedule. See also Securities 

Exchange Act Release No. 57094 (January 3, 2008), 

73 FR 1653 (January 9, 2008) (SR–CBOE–2007–154). 

Options Traders (on-floor) and 

Specialists (in Category II, Equity 

Option Fees) applicable to nonelectronically delivered orders and 

titling those fees ‘‘Non-Electronically 

Delivered.’’ The Exchange proposes to 

assess a $.25 per contract transaction 

charge on Registered Options Traders 

(on-floor) and Specialists for 

transactions resulting from an order that 

was non-electronically delivered. The 

Exchange also proposes to continue to 

assess Registered Options Traders (onfloor) and Specialists an options 

surcharge in RUT, RMN, MNX and NDX 

of .15 per contract for orders that are 

non-electronically delivered. 

Currently, the equity options 

transaction charge applicable to 

Registered Options Traders (on-floor) 

and Specialists is subject to a $650,000 

monthly Cap (‘‘Monthly Cap’’). The 

options transaction charges for 

electronically delivered Penny and nonPenny Pilot options classes applicable 

to Registered Options Traders (on-floor) 

and Specialists are proposed to be 

subject to the Monthly Cap. The nonelectronically delivered options 

transaction charge will also be subject to 

the Monthly Cap. 

Finally, the Exchange proposes to 

amend the Professional equity options 

fee by adding the words ‘‘per contract’’ 

after the $.20 fee. These words were 

inadvertently omitted from a previous 

filing.10

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 Fee Schedule is 

consistent with Section 6(b) of the Act 11

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 12 in 

particular, in that it is an equitable 

allocation of reasonable fees and other 

charges among Exchange members. 

The Exchange believes that its 

proposal to categorize orders as 

electronically and non-electronically 

delivered is consistent with the statute. 

First, it is consistent with our longstanding Fee Schedule which has been 

amended from time to time. The 

Exchange has categorized its brokerdealer transaction charges in a similar 

manner since 2006.13 The Exchange has 

two different methods of handling 

orders. The non-electronic model is one 

that is represented on the trading floor 

by a floor broker. An electronic order is 

an entirely different model. Those 

orders are entered by members who are 

connected to the Phlx XL II system. 

These members are assessed different 

rates because the Exchange operates two 

different models, a floor-based model 

and an electronic model, which both 

utilize different processes. The 

Exchange believes that it is appropriate 

to charge each model differently. 

Second, NYSE Arca, Inc. (‘‘NYSE 

Arca’’) and The Chicago Board of 

Options Exchange, Inc. (‘‘CBOE’’) also 

distinguish between electronically and 

non-electronically delivered orders. 

Specifically, NYSE Arca categorizes its 

transaction fees as either electronic or 

manual for its broker-dealer, customer 

and firm order types.14 NYSE Arca 

assesses broker-dealers, customers and 

firm proprietary transactions a different 

rate for manual and electronic orders. 

CBOE assesses broker-dealers who enter 

manual orders a different rate as 

compared to broker-dealers who enter 

electronic orders.15 CBOE assesses 

electronically executed broker-dealer 

orders a transaction charge of $.45 and 

manually executed broker-dealer orders 

a transaction charge of $.25. 

The Exchange believes that assessing 

different transaction fees for electronic 

and non-electronic orders is reasonable 

because the method of handling differs 

and because the fees are consistent with 

other fees assessed by the Exchange. 

The Exchange also believes that these 

fees are equitably allocated because the 

fees are uniformly applied to all 

similarly situated ROTs and Specialists. 

While the Exchange is assessing 

different fees for orders that are 

electronically delivered and nonelectronically delivered, for ROTs and 

Specialists, these charges are subject to 

the Monthly Cap 16 which is the same 

for both methods of delivery. As 

previously cited, other exchanges 

distinguish between delivery methods 

for certain market participants and 

charge different fees depending on the 

method of delivery. This type of 

distinction is not novel and has long 

existed within the industry. While the 

Exchange may be the first to make this 

distinction with respect to ROTs and 

Specialists, other exchanges have 

distinguished between delivery methods 

as to certain market participants and not 

others and charged different rates 

depending on the delivery method. 

In addition, the Exchange believes 

that assessing Registered Options 

Traders (on-floor) and Specialists a $.22 

per contract transaction charge for 

options that are trading in the Penny 

Pilot and increasing the current $.22 per 

contract options transaction charge to 

$.23 per contract for non-Penny Pilot 

options orders that are electronically 

delivered is consistent with other fees in 

the Fee Schedule. The Exchange 

currently makes a similar distinction in 

its Payment for Order Flow Fees 17 and 

also in its Routing Fees.18

Other exchanges also make a similar 

distinction in pricing equity options. 

Both NYSE Arca and CBOE distinguish 

between Penny and Non-Penny Pilot 

fees and assess different rates for Penny 

and Non-Penny Pilot options depending 

on whether the orders were 

electronically or non-electronically 

delivered. NYSE Arca distinguishes 

pricing in Penny Pilot options from its 

pricing for Standard Executions 

(Standard Executions include all 

executions in non-Penny Pilot issues 

and all manual executions in Penny) 19

Pilot issues.20 Likewise CBOE assesses a 

Marketing Fee that differentiates Penny 

Pilot Classes from non-Penny Pilot 

Classes.21

The Exchange believes that assessing 

options transaction charges for Penny 

Pilot and Non-Penny Pilot options with 

different rates is consistent with fees 

assessed in the options industry. The 

proposed rule change is equitable and 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 94 / Monday, May 17, 2010 / Notices 27613 

22 15 U.S.C. 78s(b)(3). 

23 17 CFR 240.19b–4(f)(2). 24 17 CFR 200.30–3(a)(12). 

reasonable because it applies uniformly 

to all similarly situated ROTs and 

Specialists. Additionally the different 

rates that are assessed for electronically 

delivered Penny and Non-Penny Pilot 

transactions and non-electronically 

delivered Penny and Non-Penny Pilot 

transactions are equitable because the 

rates are uniformly applied to similarly 

situated users. The fees are reasonable 

because they are within the range of fees 

assessed by the Exchange. 

The degree of difference between the 

rates charged for different order types is 

the result of competitive forces in the 

marketplace and reflects certain 

competitive differences amongst market 

participants. The Exchange believes that 

the fees it charges for equity options 

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) of 

the Act 22 and Rule 19b–4(f)(2) 23

thereunder. At any time within 60 days 

of the filing of such 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–2010–66 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–2010–66. 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 

will also 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 No. SR–Phlx–2010– 

66 and should be submitted on or before 

June 7, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–11649 Filed 5–14–10; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF STATE 

[Public Notice 7009] 

Culturally Significant Objects Imported 

for Exhibition Determinations: ‘‘The 

Holocaust (Warsaw Ghetto)’’ 

SUMMARY: Notice is hereby given of the 

following determinations: Pursuant to 

the authority vested in me by the Act of 

October 19, 1965 (79 Stat. 985; 22 U.S.C. 

2459), Executive Order 12047 of March 

27, 1978, the Foreign Affairs Reform and 

Restructuring Act of 1998 (112 Stat. 

2681, et seq.; 22 U.S.C. 6501 note, et 

seq.), Delegation of Authority No. 234 of 

October 1, 1999, Delegation of Authority 

No. 236 of October 19, 1999, as 

amended, and Delegation of Authority 

No. 257 of April 15, 2003 [68 FR 19875], 

I hereby determine that the documents 

to be included in the exhibition ‘‘The 

Holocaust (Warsaw Ghetto),’’ imported 

from abroad for temporary exhibition 

within the United States, are of cultural 

significance. The documents are 

imported pursuant to a loan agreement 

with the foreign owner or custodian. I 

also determine that the exhibition or 

display of the documents at the U.S. 

Holocaust Memorial Museum, 

Washington, DC, from on or about June 

2010 until on or about June 2013, and 

at possible additional exhibitions or 

venues yet to be determined, is in the 

national interest. Public Notice of these 

Determinations is ordered to be 

published in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: For 

further information, including a list of 

the exhibit objects, contact Carol B. 

Epstein, Attorney-Adviser, Office of the 

Legal Adviser, U.S. Department of State 

(telephone: 202/632–6473). The address 

is U.S. Department of State, SA–5, L/PD, 

Fifth Floor, Washington, DC 20522– 

0505. 

Dated: May 5, 2010. 

Maura M. Pally, 

Deputy Assistant Secretary for Professional 

and Cultural Exchanges, Bureau of 

Educational and Cultural Affairs, Department 

of State. 

[FR Doc. 2010–11719 Filed 5–14–10; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF STATE 

[Public Notice 7010] 

Notice of Meeting 

Title: Shipping Coordinating 

Committee; Notice of Committee 

Meeting. 

The Shipping Coordinating 

Committee (SHC) will conduct an open 

meeting at 9:30 am on Friday, May 28, 


srobinson on DSKHWCL6B1PROD with NOTICES