30078 Federal Register / Vol. 75, No. 103 / Friday, May 28, 2010 / Notices 

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

2 17 CFR 240.19b–4. 

3The $1 Strike Program was initially approved on 

June 11, 2003 as pilot, and was then extended 

several times until June 5, 2008. See Securities 

Exchange Act Release Nos. 48013 (June 11, 2003), 

68 FR 35933 (June 17, 2003) (SR–Phlx–2002–55) 

(approval of pilot program); 49801 (June 3, 2004), 

69 FR 32652 (June 10, 2004) (SR–Phlx–2004–38); 

51768 (May 31, 2005), 70 FR 33250 (June 7, 2005) 

(SR–Phlx–2005–35); 53938 (June 5, 2006), 71 FR 

34178 (June 13, 2006) (SR–Phlx–2006–36); and 

55666 (April 25, 2007), 72 FR 23879 (May 1, 2007) 

(SR–Phlx–2007–29). The program was subsequently 

expanded and made permanent in 2008. See 

Securities Exchange Act Release No. 57111 (January 

8, 2008), 73 FR 2297 (January 14, 2008) (SR–Phlx– 

2008–01). The program was last expanded in 2009. 

See Securities Exchange Act Release No. 59590 

(March 17, 2009), 74 FR 12412 (March 24, 2009) 

(SR–Phlx–2009–21). The $1 Strike Program is found 

in Commentary .05 to Rule 1012. 

NUCLEAR REGULATORY 

COMMISSION 

[Docket No. 50–271; NRC–2010–0191] 

Entergy Nuclear Operations, Inc.; 

Entergy Nuclear Vermont Yankee, LLC; 

Vermont Yankee Nuclear Power 

Station; License No. DPR–28; Receipt 

of Request for Action Under 10 CFR 

2.206 

Notice is hereby given that by petition 

dated April 19, 2010, Congressman Paul 

W. Hodes (the Petitioner) has requested 

that pursuant to Title 10 of the Code of 

Federal Regulations (10 CFR) 2.206, 

‘‘Requests for Action under this 

Subpart,’’ the U.S. Nuclear Regulatory 

Commission (NRC) take action with 

regard to the Vermont Yankee Nuclear 

Power Station (Vermont Yankee). The 

Petitioner requested that the NRC not 

allow Vermont Yankee, operated by 

Entergy Nuclear Operations, Inc. 

(Entergy or the licensee), to restart after 

its scheduled refueling outage until all 

environmental remediation work and 

relevant reports on leaking tritium at the 

plant have been completed. Specifically, 

the Petitioner requested that Vermont 

Yankee be prevented from resuming 

power production until the following 

work has been completed to the 

Commission’s satisfaction: (1) The 

tritiated groundwater remediation 

process; (2) the soil remediation process 

scheduled to take place during the 

refueling outage, to remove soil 

containing not only tritium, but also 

radioactive isotopes of cesium, 

manganese, zinc, and cobalt; (3) 

Entergy’s ongoing Root Cause Analysis; 

and (4) the Commission’s review of the 

documents presented by Entergy in 

response to the Commission’s demand 

for information, which was issued on 

March 1, 2010. 

The NRC is treating the request under 

10 CFR 2.206 of the Commission’s 

regulations. The request has been 

referred to the Director of the Office of 

Nuclear Reactor Regulation (NRR). By 

letter dated May 20, 2010, the Director 

denied the Petitioner’s request to 

maintain Vermont Yankee shut down. 

As provided by 10 CFR 2.206, the NRC 

will take appropriate action on this 

petition within a reasonable time. 

A copy of the petition is available to 

the public from the NRC’s Agencywide 

Documents Access and Management 

System (ADAMS) in the public 

Electronic Reading Room on the NRC 

Web site at http://www.nrc.gov/readingrm/adams.html under ADAMS 

Accession No. ML101120663, and is 

available for inspection at the 

Commission’s Public Document Room, 

located at One White Flint North, 11555 

Rockville Pike (first floor), Rockville, 

Maryland. 

Dated at Rockville, Maryland this 20th day 

of May 2010. 

For the Nuclear Regulatory Commission. 

Eric J. Leeds, 

Director, Office of Nuclear Reactor 

Regulation. 

[FR Doc. 2010–12884 Filed 5–27–10; 8:45 am] 

BILLING CODE 7590–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold a market 

structure roundtable on Wednesday, 

June 2, 2010 at 9:30 a.m., in the 

Auditorium at SEC headquarters at 100 

F Street, NE. in Washington, DC. The 

roundtable will be open to the public 

with seating on a first-come, first-served 

basis. Visitors will be subject to security 

checks. 

The roundtable discussion will focus 

on key market structure issues, 

including high-frequency trading, 

undisplayed liquidity, and the 

appropriate metrics for evaluating 

market structure performance. 

For further information, please 

contact the Office of the Secretary at 

(202) 551–5400. 

Dated: May 26, 2010. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–13006 Filed 5–26–10; 11:15 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62151; File No. SR–Phlx– 

2010–72] 

Self-Regulatory Organizations; Notice 

of Filing of Proposed Rule Change by 

NASDAQ OMX PHLX, Inc. to Make 

Changes to Expand the $1 Strike 

Program 

May 21, 2010. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1, and Rule 19b–4 2 thereunder, 

notice is hereby given that on May 7, 

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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing with the 

Commission a proposal to modify 

Commentary .05 to Phlx Rule 1012 

(Series of Options Open for Trading) to 

expand the Exchange’s $1 Strike Price 

Program (the ‘‘$1 Strike Program’’ or 

‘‘Program’’) 3 to allow the Exchange to 

select 150 individual stocks on which 

options may be listed at $1 strike price 

intervals. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

nasdaqomxphlx.cchwallstreet.com/ 

NASDAQOMXPHLX/Filings/, 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. 


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Federal Register / Vol. 75, No. 103 / Friday, May 28, 2010 / Notices 30079 

4LEAPS are long-term options that generally have 

up to thirty-nine months from the time they are 

listed until expiration. Commentary .03 to Rule 

1012. Long-term FLEX options and index options 

are considered separately in Rules 1079(a)(6) and 

1101A(b)(iii), respectively. 

5Subsection (C) of Commentary .05 states that: 

The Exchange may list $1 strike prices up to $5 in 

LEAPS(R) in up to 200 option classes on individual 

stocks. See Securities Exchange Act Release No. 

61277 (January 4, 2010), 75 FR 1442 (January 11, 

2009) (SR–Phlx–2009–108)(notice of filing and 

immediate effectiveness). 

6Regarding the $0.50 Strike Program, which 

allows $0.50 strike price intervals for options on 

stocks trading at or below $3.00, see Commentary 

.05(a)(ii) to Rule 1012 and Securities Exchange Act 

Release No. 60694 (September 18, 2009), 74 FR 

49048 (September 25, 2009) (SR–Phlx–2009– 

65)(order approving). See also Securities Exchange 

Act Release No. 61630 (March 2, 2010), 75 FR 

11211 (March 10, 2010) (SR–Phlx–2010–26) (notice 

of filing and immediate effectiveness allowing 

concurrent listing of $3.50 and $4 strikes for classes 

that participate in both the $0.50 Strike Program 

and the $1 Strike Program). 

7See Securities Exchange Act Release Nos. 49801 

(June 3, 2004), 69 FR 32652 (June 10, 2004) (SR– 

Phlx–2004–38); 51768 (May 31, 2005), 70 FR 33250 

(June 7, 2005) (SR–Phlx–2005–35); 53938 (June 5, 

2006), 71 FR 34178 (June 13, 2006) (SR–Phlx–2006– 

36); and 55666 (April 25, 2007), 72 FR 23879 (May 

1, 2007) (SR–Phlx–2007–29). 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to modify Commentary .05 to 

Phlx Rule 1012 to allow the Exchange 

to select 150 individual stocks on which 

options may be listed at $1 strike price 

intervals. 

Currently, the $1 Strike Program 

allows Phlx to select a total of 55 

individual stocks on which option 

series may be listed at $1 strike price 

intervals. In order to be eligible for 

selection into the Program, the 

underlying stock must close below $50 

in its primary market on the previous 

trading day. If selected for the Program, 

the Exchange may list strike prices at $1 

intervals from $3 to $50, but no $1 strike 

price may be listed that is greater than 

$5 from the underlying stock’s closing 

price in its primary market on the 

previous day. The Exchange may also 

list $1 strikes on any other option class 

designated by another securities 

exchange that employs a similar 

Program under their respective rules. 

The restrictions in the current $1 

Strike Program remain and are not 

proposed to be modified by this filing. 

The Exchange may not list $1 strike 

intervals on any issue where the strike 

price is greater than $50. The Exchange 

may not list long-term option series 

(‘‘LEAPS’’) 4 at $1 strike price intervals 

for any class selected for the Program, 

except as specified in subparagraph (C) 

of Commentary .05.5 The Exchange is 

also restricted from listing series with 

$1 intervals within $0.50 of an existing 

strike price in the same series, except 

that strike prices of $2, $3, and $4 shall 

be permitted within $0.50 of an existing 

strike price for classes also selected to 

participate in the $0.50 Strike Program.6

The $1 Strike Program has been 

extremely successful since it was 

initiated as a pilot program in 2003, 

with no substantive problems attributed 

to the Program or listing and trading 

options at $1 strike intervals. During the 

time that the $1 Strike Program was a 

pilot, the Exchange submitted three 

pilot reports to the Commission in 

which the Exchange discussed, among 

other things, the strength and efficacy of 

the Program based upon the steady 

increase in volume and open interest of 

options traded on the Exchange at $1 

strike price intervals; and that the 

Program had not and, in the future, 

should not create capacity problems for 

the Phlx or the Options Price Reporting 

Authority (‘‘OPRA’’) systems.7 This has 

not changed. Moreover, the number of 

$1 strike options traded on the 

Exchange has continued to increase 

since the inception of the Program such 

that these options are now among some 

of the most popular products traded on 

the Exchange. 

There are now approximately 326 $1 

strike price option classes listed (and 

traded) across all options exchanges 

including Phlx; 55 of which are classes 

chosen by Phlx for the $1 Strike 

Program. The Exchange has received 

repeated requests from its members to 

list more issues at $1 strike intervals, 

that is, to expand the $1 Strike Program. 

However, the Exchange is constrained 

from doing so because it has reached the 

limit of 55 individual stocks on which 

option series may be listed at $1 strike 

price intervals per Commentary .05 to 

Rule 1012. It is for this reason that the 

Exchange proposes to expand the 

Program to allow Phlx to select a total 

of 150 individual stocks on which 

option series may be listed at $1 strike 

price intervals. The proposal would 

expand $1 strike offerings to market 

participants (e.g. traders and retail 

investors) and thereby enhance their 

ability to tailor investing and hedging 

strategies and opportunities in a volatile 

market place. The $1 Strike Program 

(including the existing restrictions such 

as not listing any series that would 

result in strike prices being $0.50 apart) 

would otherwise remain unchanged. 

Currently, there are more than 2,000 

options trading on issues priced below 

$50 (generally, the ‘‘low cost options’’) 

that are outside the $1 Strike Program. 

These include high volume options 

such as, for example, Winstream Corp, 

The Mosaic Company, and General 

Growth PPTYS Inc. that traded 26,013 

contracts, 9,826 contracts, and 20,107 

contracts (23-day average volume), 

respectively. Because of the numerical 

limitation on how many issues may be 

chosen by the Exchange to be in the $1 

Strike Program, however, these low cost 

options must trade at $2.50 or wider 

strike price increments. 

The wide strike price increments for 

low cost options, when compared to the 

price of underlying issues, often lead to 

significant negative impact on investors. 

As an example: 

• Sanofi Aventis (SNY), which has 

recently traded at a low of about $33 per 

share, is not currently in the $1 Strike 

Program. This means that options on 

Sanofi Aventis are offered at strike price 

intervals of $2.50. If an investor desired 

to protect 100 shares of Sanofi Aventis 

in the event of a 10% drop in the SNY 

share price for an intermediate time 

period, the investor ideally would want 

the ability to choose between buying a 

September 30 SNY put option, 

September 29 put option, or September 

28 put option. Today, however, at $2.50 

strike price intervals the investor would 

only have the choice of buying 

September 30 put options offered at 

$1.65 or September 25 puts offered at 

$0.45 (approximate numbers). Having 

the ability (choice) to buy 28 strike or 

29 strike puts could significantly lower 

the investor’s monetary outlay to 

purchase the desired insurance 

premium. This is because, as opposed to 

September 30 puts priced at $1.65, 

September 29 puts would be priced at 

approximately $1.10 and September 28 

puts would be priced at approximately 

$0.90, which would potentially reduce 

the hedging cost to the investor by about 

a third. Clearly, options on Sanofi 

Aventis priced at $1 intervals could 

significantly improve the menu of 

hedging choices to the benefit of an 

investor in this issue. 

• Tenaris S A (TS), which has 

recently traded at about $38 per share, 

is not currently in the $1 Strike 

Program. As such, strike intervals for TS 

are mostly in $5 (as well as $2.50) 

increments. If an investor sought to 

enhance his yield from owning 100 

shares of Tenaris S A, the investor could 

sell a call option with a strike price 

approximately 10% higher than the 

current underlying issue price. Ideally, 

the investor could choose between the 

September 45 calls, the September 44 

calls, or the September 43 calls. Not 

being in the $1 Strike Program, 

however, the September 44 and 


jlentini on DSKJ8SOYB1PROD with NOTICES
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8See supra note 3. 

9See, c.f., Securities Exchange Act Release No. 

59590 (March 17, 2009), 74 FR 12412 (March 24, 

2009) (SR–Phlx–2009–21) (more than five-fold 

increase in the number of individual stocks on 

which options may be listed at $1 intervals). 

10Options on ETFs have been trading for about 

a decade. See Securities Exchange Act Release Nos. 

34– (July 1, 1998), 63 FR 37426 (July 10, 1998) (SR– 

AMEX–96–44) (approval order regarding, among 

other things, $1 strike price intervals for ETFs); and 

44055 (March 8, 2001), 66 FR 15310 (March 16, 

2001) (SR–Phlx–01–32) (notice of filing and 

immediate effectiveness regarding, among other 

things, $1 strike price intervals for ETFs). See also 

Commentary .05 to Rule 1012(a)(iv) allowing $1 

strike price intervals for ETF options where the 

strike price is $200 or less. 

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

12 15 U.S.C. 78f(b)(5). 

September 43 call strikes would not be 

available. And, like the Sanofi Aventis 

example, the lack of the September 44 

and September 43 strikes would limit 

the investor’s choices to maximize 

returns or execute the simplest of 

strategies. 

By expanding the $1 Strike Program, 

such investors would be able to better 

enhance returns and manage risk. The 

Exchange feels that, having received 

requests to expand the Program and in 

light of the disparity between non $1 

strike prices and stock prices underlying 

low-cost options, expanding the 

Program as requested would be greatly 

beneficial to investors and the financial 

community. 

As stated in the Commission order 

that initially approved Phlx’s Program 

and in subsequent Program extension 

and expansion approval orders and 

filings (the ‘‘prior orders’’),8 the 

Exchange believes that $1 strike price 

intervals provide investors with 

significantly greater flexibility in the 

trading of equity options that overlie 

lower price stocks by allowing investors 

to establish equity options positions that 

are better tailored to meet their 

investment, trading and risk 

management objectives. These prior 

orders recognized, as we have noted 

pursuant to this proposal, that member 

firms representing customers have 

repeatedly requested that Phlx seek to 

expand the Program in terms of the 

number of classes on which option 

series may be listed at $1 strike price 

intervals. In addition, market conditions 

have led to an increase in the number 

of securities trading below $50, further 

warranting the proposed comparatively 

modest expansion of the $1 Strike 

Program.9

The Exchange notes that, in addition 

to options classes that are trading 

pursuant to the $1 strike programs of 

options exchanges, there are also 

options trading at $1 strike intervals on 

approximately 282 Exchange Traded 

Fund Shares (‘‘ETFs’’),10 ETF options 

trading at $1 intervals has not, however, 

negatively impacted the system capacity 

of the Exchange or OPRA. 

With regard to the impact of this 

proposal on system capacity, Phlx has 

analyzed its capacity and represents that 

it and OPRA have the necessary systems 

capacity to handle the potential 

additional traffic associated with the 

listing and trading of an expanded 

number of series in the $1 Strike 

Program. 

The Exchange believes that the $1 

Strike Program has provided investors 

with greater trading opportunities and 

flexibility and the ability to more 

closely tailor their investment and risk 

management strategies and decisions to 

the movement of the underlying 

security. Furthermore, the Exchange has 

not detected any material proliferation 

of illiquid options series resulting from 

the narrower strike price intervals. For 

these reasons, the Exchange requests an 

expansion of the current Program and 

the opportunity to provide investors 

with additional strikes for investment, 

trading, and risk management purposes. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 11 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 12

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest. The 

Exchange believes that expanding the 

current $ 1 Strike Program will result in 

a continuing benefit to investors by 

giving them more flexibility to closely 

tailor their investment decisions in 

greater number of securities. 

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 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission will: (a) By order 

approve such proposed rule change, or 

(b) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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–2010–72 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–2010–72. 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 the filing also 

will be available for inspection and 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 103 / Friday, May 28, 2010 / Notices 30081 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange assesses its members a Real-time 

Risk Management Fee of $.003 per contract for 

receiving this information. The Exchange is not 

proposing to amend this fee. 

4The information includes, among other things, 

the following: (i) The Clearing Member Trade 

Agreement or ‘‘CMTA’’ or The Options Clearing 

Corporation or ‘‘OCC’’ number; (ii) Exchange badge 

or house number; and (iii) the Exchange internal 

firm identifier. 

5The information related to complex order 

strategy messages includes information that lists the 

legs and the leg ratios, which uniquely defines this 

strategy for an underlying. 

6The Exchange will post the technical 

specifications on its Web site and testing will be 

available. The Exchange intends to send an Options 

Technical Update to notify members of the new 

interface and testing availability. 

7Electronically delivered orders do not include 

orders delivered through the Floor Broker 

Management System, but rather are delivered 

utilizing PHLX XL II. 

8An order that is represented on the trading floor 

by a floor broker. See Exchange Rule 1063. 

9Members that apply for this interface will 

continue to receive only their own trade data and 

data for their customers. Members utilizing RMP 

only receive their own trade data and data for their 

customers. 

10The Exchange assesses a Real-Time Risk 

Management Fee of $.003 per contract to receive 

this information. Currently RMP is available to all 

members. 

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

12 15 U.S.C. 78f(b)(5). 

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– 

2010–72 and should be submitted on or 

before June 18, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12871 Filed 5–27–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62155; File No. SR–Phlx– 

2010–67] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change Relating to 

the Risk Management Interface 

May 24, 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 May 17, 

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 and II 

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 effect an 

information-related enhancement to the 

current Risk Management Feed Interface 

in Phlx XL II. The Exchange is not 

proposing any rule changes. 

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 purpose of the proposed rule 

change is to propose a series of 

enhancements to the interface for 

receiving real-time clearing trade 

updates. A real-time clearing trade 

update is a message that is sent to a 

member after an execution has occurred 

and contains trade details. The message 

containing the trade details is also 

simultaneously sent to the The Options 

Clearing Corporation. 

The Exchange currently provides 

Exchange members with real-time 

clearing trade updates through a Risk 

Management Feed known as the 

‘‘RMP’’.3 The updates include the 

members clearing trade messages on a 

low latency, real-time basis. The trade 

messages are routed to a member’s 

connection containing certain 

information.4 The administrative and 

market event messages include, but are 

not limited to: System event messages to 

communicate operational-related 

events; options directory messages to 

relay basic option symbol and contract 

information for options traded on the 

Exchange; complex strategy messages to 

relay information for those strategies 

traded on the Exchange;5 and trading 

action messages to inform market 

participants when a specific option or 

strategy is halted or released for trading 

on the Exchange. This existing RMP 

interface will be retired in September 

2010. 

In connection with these 

enhancements, the Exchange proposes 

to rename the RMP interface as the 

Clearing Trade Interface (‘‘CTI’’). This 

proposed interface will provide 

increased throughput and significantly 

lower latency for clearing trade 

updates.6 In addition, the new interface 

will contain an indicator which will 

distinguish electronic 7 and nonelectronically 8 delivered orders.9 This 

information will be available to 

members on a real-time basis. 

The Exchange is proposing to 

continue to provide real-time clearing 

trade updates, referred to as CTI, with 

significantly lower latency as well as 

additional information, such as trade 

detail information that distinguishes 

electronically and non-electronically 

delivered orders. This new CTI will be 

made available to users promptly after 

successful testing with the Exchange. 

CTI will be available to all members.10

The Exchange is not proposing any rule 

changes. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 11 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 12

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest, by 

providing members more efficient realtime clearing trade updates. This 

proposal is not a burden on competition 

and serves to protect investors and the 

public interest, in that CTI is a tool for 

members to receive real-time trade 

details and utilize that information to 


jlentini on DSKJ8SOYB1PROD with NOTICES