31496 Federal Register / Vol. 75, No. 106 / Thursday, June 3, 2010 / Notices 

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

13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the self-regulatory organization 

to submit to the Commission written notice of its 

intent to file the proposed rule change, along with 

a brief description and text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. The 

Exchange has satisfied this requirement. 

14See e.g., Securities Exchange Act Release No. 

44512 (July 3, 2001), 66 FR 36812 (July 13, 2001) 

(SR–NASD–00–39). 

15For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

16 17 CFR 200.30–3(a)(12) and 200.30–3(a)(44). 

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

2 17 CFR 240.19b–4. 

3The Exchange’s corporate affiliate, NYSE Amex 

LLC (‘‘NYSE Amex’’), submitted a companion rule 

filing proposing corresponding amendments to 

NYSE Amex Disciplinary Rule 476A. See SR– 

NYSEAmex–2010–44. 

4See Securities Exchange Act Release No. 58673 

(September 29, 2008), 73 FR 57707 (October 3, 

become effective pursuant to Section 

19(b)(3)(A) of the Act 12 and Rule 19b– 

4(f)(6) thereunder.13

The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest, 

because the proposal raises no novel 

issues and is consistent with prior 

approved rules on which it is based.14

Therefore, the Commission designates 

the proposal operative upon filing.15

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–NYSEAmex–2010–43 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–NYSEAmex–2010–43. 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– 

NYSEAmex–2010–43 and should be 

submitted on or before June 24, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–13340 Filed 6–2–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62167; File No. SR–NYSE– 

2010–37] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Add Certain 

Violations of Its Communications and 

Give-Up Policies to Its MRVP 

May 25, 2010. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’)1 and Rule 19b–4 thereunder,2

notice is hereby given that, on May 12, 

2010, the New York Stock Exchange 

LLC (‘‘NYSE’’ 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 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 

NYSE Rule 476A to add Rule 36 

(Communications Between Exchange 

and Members’ Offices) to its List of 

Exchange Rule Violations and Fines 

Applicable Thereto (‘‘Minor Rule 

Violation Plan’’).3 The text of the 

proposed rule change is available on 

NYSE’s Web site at http:// 

www.nyse.com, on the Commission’s 

Web site at http://www.sec.gov, at 

NYSE, 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 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

NYSE Rule 476A to add Rule 36 

(Communications Between Exchange 

and Members’ Offices) to its Minor Rule 

Violation Plan. 

Background 

Effective October 1, 2008, the 

Exchange’s parent company, NYSE 

Euronext, acquired the parent company 

of NYSE Amex pursuant to an 

Agreement and Plan of Merger (the 

‘‘Merger’’).4 In connection with the 


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2008) (SR–NYSE–2008–60 and SR–Amex–2008–62) 

(order approving the Merger). 

5See Securities Exchange Act Release No. 58705 

(October 1, 2008), 73 FR 58995 (October 8, 2008) 

(SR–Amex–2008–63) (order approving the Equities 

Relocation). 

6See Securities Exchange Act Release No. 59472 

(February 27, 2009), 74 FR 9843 (March 6, 2009) 

(SR–NYSEALTR–2008–14) (order approving the 

Options Relocation). 

7Although the Exchange does not currently trade 

‘‘basket’’ securities, as defined in Rule 800, Rule 36 

provides that Floor brokers trading such securities 

may establish phone lines at the basket trading 

location. 

8Rule 6A defines ‘‘Trading Floor’’ as the 

restricted-access physical areas designated by the 

Exchange for the trading of equities securities, 

commonly known as the ‘‘Main Room’’ and the 

‘‘Garage.’’ The Exchange’s Trading Floor does not 

include the areas where NYSE Amex-listed options 

are traded, commonly known as the ‘‘Blue Room’’ 

and the ‘‘Extended Blue Room,’’ also known as the 

‘‘NYSE Amex Options Trading Floor.’’ 

9The Exchange does not currently list or trade 

any Investment Company Units or Trust Issued 

Receipts. 

Merger, on December 1, 2008, NYSE 

Amex relocated all equities trading 

conducted on its legacy trading systems 

and facilities located at 86 Trinity Place, 

New York, New York to systems and 

facilities located at 11 Wall Street, New 

York, New York (the ‘‘Equities 

Relocation’’).5 Similarly, on March 2, 

2009, NYSE Amex relocated all its 

options trading to trading systems and 

facilities located at 11 Wall Street, New 

York, New York (the ‘‘Options 

Relocation’’).6 As a result of the Equities 

and Options Relocations, the NYSE and 

NYSE Amex Equities Trading Floors are 

located within the 11 Wall Street 

building in a room adjacent to the NYSE 

Amex Options Trading Floor. 

Current NYSE Rule 36 

NYSE Rule 36 governs two primary 

areas: (i) Communications between the 

Floor and other locations, and (ii) the 

use and/or possession of portable or 

wireless communication or trading 

devices. 

First, Rule 36 broadly prohibits 

members and member organizations 

from establishing or maintaining any 

telephonic or electronic communication 

between the Floor and any other 

location without Exchange approval. In 

addition, there are several 

supplementary provisions that provide 

more detailed prescriptions for members 

and member firms. 

Rule 36.10 advises members and 

member organizations that the phone 

company will not install or disconnect 

any line between the Floor and any 

other location without Exchange 

approval and that such requests should 

be sent to the Exchange’s Market 

Operations Division. Rule 36.60 further 

prohibits members and member 

organizations from listing a phone line 

in the name of a non-member. 

Rule 36.20 provides that Floor brokers 

may maintain a phone line at their 

booth locations on the Floor, or use an 

Exchange issued and authorized 

portable phone, to communicate with 

non-members off the Floor. Only 

Exchange issued and authorized 

portable phones may be used on the 

Floor in accordance with the 

prescriptions of Rule 36.21, and the use 

of personal phones is expressly 

prohibited.7 Rule 36.21 provides that 

Floor brokers using an Exchange issued 

and authorized portable phone may 

communicate directly from the point of 

sale on the Floor with someone offFloor. In addition to processing orders, 

Floor brokers may also provide ‘‘market 

look’’ observations over the phone. 

When taking orders over the phone, 

Floor brokers must comply with Rule 

123(e), which requires entry of the order 

into an electronic system, as well as any 

and all other record retention 

requirements under Exchange Rules and 

the federal securities laws. Exchange 

issued phones do not permit callforwarding or call-waiting and may not 

block a caller’s identification. 

Notwithstanding the prescriptions of 

Rule 36.20, Rule 36.23 provides that 

members and employees of member 

organizations may use personal portable 

or wireless communications devices, 

including phones, outside the Exchange 

Trading Floor.8 In addition, members 

and employees of member organizations 

may not use personal portable or 

wireless communication devices on the 

NYSE Amex Options Trading Floor 

unless they are also registered to trade 

options on NYSE Amex. 

Rule 36.30 provides that, subject to 

Exchange approval, a DMM Unit may 

maintain a phone line at its post to 

communicate with its off-Floor business 

operations and/or its clearing firm. For 

trading purposes, a DMM Unit’s phone 

line may only be used to enter hedging 

orders through the firm’s off-Floor office 

or clearing firm, or through a member of 

an options or futures exchange as 

permitted under Rules 98 and 105. 

Under Rule 36.30, a DMM Unit may 

also maintain a wired or wireless device 

that has been registered with the 

Exchange, such as a computer terminal 

or laptop, to communicate with the 

DMM Unit’s off-Floor algorithms. A 

DMM Unit using such a wired or 

wireless device must certify that the 

device operates in accordance with all 

SEC and Exchange rules, policies, and 

procedures. In addition, the DMM Unit 

must create and maintain records of all 

messages generated by the wired or 

wireless device in compliance with 

NYSE Rule 440 and SEC Rules 17a–3 

and 17a–4. 

In addition, a DMM Unit registered in 

an Investment Company Unit (as 

defined in Section 703.16 of the Listed 

Company Manual) or a Trust Issued 

Receipt (as defined in Rule 1200) may 

use a telephone connection or order 

entry terminal at its post to enter 

proprietary orders in (i) the Investment 

Company Unit or Trust Issued Receipt 

in another market center, (ii) a 

component security of such a Unit or 

Receipt, or (iii) options or futures 

related to such Unit or Receipt, and may 

also use the phone to obtain market 

information with respect to such 

securities. Any such order executed on 

the Exchange must be entered and 

executed in compliance with Exchange 

Rule 112.20 and SEC Rule 11a2–2(T) 

and may only be entered for hedging 

purposes.9

To address concerns regarding 

improper information sharing between 

the Exchange’s Trading Floor and the 

adjacent NYSE Amex Options Trading 

Floor, Rule 36.70 prohibits members 

and member firm employees from (i) 

using or possessing any wireless trading 

device that may be used to view or enter 

orders into the Exchange’s trading 

systems while on the NYSE Amex 

Options Trading Floor, and (ii) using or 

possessing any wireless trading device 

that may be used to view or enter orders 

into the NYSE Amex Options trading 

systems while on the Exchange’s 

Trading Floor. These prohibitions apply 

to any and all wireless trading devices, 

including devices issued by the 

Exchange or NYSE Amex, as well as 

devices that are proprietary to a 

member, member organization or other 

entity. 

Finally, Rules 36.40 and 36.50 

prescribe certain timing and handling 

requirements for ‘‘give-up’’ or ‘‘step out’’ 

transactions, whereby a member or 

member organization executes a 

customer trade on behalf of another 

member. While not directly related to 

member or member organization 

communications or the use and/or 

possession of portable or wireless 

communication or trading devices, these 

requirements are important for ensuring 

that members and member organizations 

properly document these types of 

transactions. 

Proposed Rule Change 

As noted above, the Exchange 

proposes to add NYSE Rule 36 to its 


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10The Exchange’s Minor Rule Violation Plan was 

originally adopted by the Exchange and approved 

by the Commission in 1985. See Securities 

Exchange Act Release No. 34–21688 (January 25, 

1985), 50 FR 5025–01 (February 5, 1985) (SR– 

NYSE–84–27). It has been amended numerous 

times since its adoption. 

11 15 U.S.C. 78f(b)(5). 

12 15 U.S.C. 78f(b)(6). 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b4(f)(6)(iii) requires the self-regulatory organization 

to submit to the Commission written notice of its 

intent to file the proposed rule change, along with 

a brief description and text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. The 

Exchange has satisfied this requirement. 

Minor Rule Violation Plan under Rule 

476A. 

Under the Exchange’s Minor Rule 

Violation Plan, the Exchange may 

impose a fine, not to exceed $5,000, on 

any member, member organization, 

allied member, approved person, or 

registered or non-registered employee of 

a member or member organization for a 

minor violation of specified Exchange 

rules. Such fines provide a meaningful 

sanction for rule violations where the 

facts and circumstances of the violation 

do not warrant the initiation of a formal 

disciplinary procedure under Rule 476, 

but do require a regulatory response that 

is more significant than an admonition 

letter.10

Currently, because Rule 36 is not part 

of the Exchange’s Minor Rule Violation 

Plan, if a member or member firm 

employee were to violate the 

prohibitions set forth in Rule 36 the 

Exchange would be limited to issuing 

either an admonition letter or initiating 

formal proceedings under Rule 476. 

This is the case whether or not the 

member or member firm employee 

violated the rule once or many times, 

and regardless of whether he or she 

made an inadvertent error or an 

intentional one. 

The Exchange believes that the 

current regulatory approach for dealing 

with Rule 36 violations is too inflexible. 

The Exchange recognizes that members 

or member firm employees may violate 

the prescriptions of Rule 36 

intentionally, as well as accidentally or 

inadvertently. When a violation is 

intentional, formal disciplinary 

measures in accordance with Rule 476 

may be warranted. However, while an 

admonition letter might be appropriate 

for an isolated accidental or inadvertent 

violation, in other cases an admonition 

letter would be inadequate even though 

a formal proceeding may not be 

warranted. The Exchange believes that 

the addition of Rule 36 to its Minor Rule 

Violation Plan under Rule 476A will 

provide a more flexible and appropriate 

enforcement tool that preserves the 

Exchange’s discretion to seek formal 

discipline under appropriate 

circumstances. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with, 

and furthers the objectives of, Section 

6(b)(5) of the Act,11 in that it is designed 

to prevent fraudulent and manipulative 

acts and practices, 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 proposed rule 

change also furthers the objectives of 

Section 6(b)(6) of the Act,12 in that it 

provides for appropriate discipline for 

violations of Exchange rules and 

regulations. 

The Exchange believes that the 

proposed rule change will provide the 

Exchange with greater regulatory 

flexibility to enforce the prescriptions of 

NYSE Rule 36 in a more informal 

manner while also preserving the 

Exchange’s discretion to seek formal 

discipline for more serious 

transgressions as warranted. 

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 that is 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 solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change: (i) Does not significantly affect 

the protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, does not become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, if 

consistent with the protection of 

investors and the public interest, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 13 and Rule 19b– 

4(f)(6) thereunder.14

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–NYSE–2010–37 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–NYSE–2010–37. 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 


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15 17 CFR 200.30–3(a)(12) and 200.30–3(a)(44). 

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

2 17 CFR 240.19b–4. 

3The Exchange also proposes removing all 

references to ‘‘per contract’’ after each fee in the 

table. 

4The 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 SR–Phlx–2010–65 (adding additional seventyfive option classes to the Penny Pilot). See also 

Exchange Rule 1034. 

available publicly. All submissions 

should refer to File Number SR–NYSE– 

2010–37 and should be submitted on or 

before June 24, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–13338 Filed 6–2–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62179; File No. SR–Phlx– 

2010–77] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change Relating to 

Reformatting the Fee Schedule 

May 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 May 25, 

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 proposes to amend its 

existing NASDAQ OMX PHLX, Inc. Fee 

Schedule (‘‘fee schedule’’) solely to 

create a more user-friendly Fee 

Schedule. 

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 reformat the Fee Schedule 

to make it more user-friendly. The 

newly proposed Fee Schedule includes 

the current fees, which remain 

unchanged. In the process of 

reformatting the Fee Schedule, 

additional connecting language was 

added where appropriate to provide 

clarity to the end-user. The proposal 

eliminates the current endnotes. The 

Exchange believes that by placing the 

language that is currently contained in 

endnotes into the text of the fees better 

displays any exceptions or exclusions 

referenced in those endnotes by more 

prominently displaying them in the text. 

Table of Contents 

The Exchange proposes to replace the 

descriptive term ‘‘Category’’ with a new 

term, ‘‘Sections’’, in the table of contents. 

This is being done solely to eliminate 

confusion in the use of the word 

‘‘category’’ which is utilized in different 

ways by the Exchange in its fee 

proposals. The Exchange is also 

combining the Sector Index Options 

Fees and the U.S. Dollar-Settled Foreign 

Currency (‘‘WCO’’) Options Fees into 

one section on the Fee Schedule. 

Equity Options Fees 

The Exchange converted the current 

equity options fees into a table format 

for ease of reference.3 Currently, the 

Exchange does not separately display an 

options transaction charge for penny 

pilot program options (‘‘Penny Pilot’’) 4

and Non-Penny Pilot options for 

customers, professionals and firms. The 

Exchange is proposing to display the 

separate categories in this revised Fee 

Schedule although the fees remain 

unchanged. The Exchange’s proposal 

displays a similar fee for Penny Pilot 

and non-Penny Pilot options 

transactions charges for customer, 

professionals and firms to make clear 

that there is no price distinction for 

those market participants between 

Penny and non-Penny options. The 

Exchange is not proposing any 

amendments to its fees. 

Additionally, the Exchange proposes 

to transplant endnotes (C) and (5) from 

the endnote section of the Fee Schedule, 

which the Exchange proposes to 

eliminate, into the Equity Options Fees 

section to clarify which notes apply to 

the displayed fees. The Exchange also 

proposes a similar change in the 

Payment for Order Flow Fees section of 

the Equity Option Fees with respect to 

endnotes (30) and (32). Additional nonsubstantive language has been added 

where appropriate to indicate what 

section of the Fee Schedule the 

transplanted endnote refers to in the Fee 

Schedule. For example, the words 

‘‘Payment for Order Flow Fees will be’’ 

was added to the beginning of endnote 

(30) to clarify the context of that 

transplanted endnote with respect to the 

Payment for Order Flow Fees. The 

Exchange added similar language to the 

beginning of endnotes throughout the 

Fee Schedule when transplanting that 

text to add reference for the reader and 

for purposes of clarity. 

Sector Index Options Fees and U.S. 

Dollar-Settled Foreign Currency Options 

Fees 

The Exchange similarly converted the 

current fees into a table for ease of 

reference and combined the sector index 

and U.S. dollar-settled foreign currency 

option fees into the same section of the 

Fee Schedule. 

Access Service, Cancellation, 

Membership, Regulatory and Other Fees 

The Exchange reformatted this section 

of the Fee Schedule to reorder these fees 

for ease of reference. The Options 

Regulatory Fee was relocated after the 

Real-Time Risk Management Fee with 

no changes. Next, all permit related fees 

were grouped together with the 

endnotes weaved into this section with 

the clarifying language added to each 

endnote as described herein. The 

Streaming Quote Trader and Remote 

Streaming Quote Trader Fees were 


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