52558 Federal Register / Vol. 75, No. 165 / Thursday, August 26, 2010 / Notices 

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

2 17 CFR 240.19b–4. 

3Electronically delivered orders are delivered 

through the Exchange’s options trading platform 

known as PHLX XL II. 

4Currently, a Professional is treated in the same 

manner as an off-floor broker-dealer for purposes of 

Rules 1014(g) (except with respect to AON orders, 

which will be treated like Customer orders), 

1033(e), 1064.02 (except professional orders will be 

considered Customer orders subject to facilitation), 

and 1080.08 as well as Options Floor Procedure 

Advices B–6, B–11 and F–5. Member organizations 

must indicate whether orders are for professionals. 

5 Id. 

6For purposes of assessing the Cancellation Fee, 

Customer orders from the same member 

organization in the same series on the same side of 

the market that are executed at the same price 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62688A; File Nos. SR– 

BATS–2010–018; SR–BX–2010–044; SR– 

CBOE–2010–065; SR–CHX–2010–14; SR– 

EDGA–2010–05; SR–EDGX–2010–05; SR– 

FINRA–2010–033; SR–ISE–2010–66; SR– 

NYSE–2010–49; SR–NYSEAmex-2010–63; 

SR–NYSEArca–2010–61; SR–NASDAQ– 

2010–079; SR–NSX–2010–08] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Chicago Board 

Options Exchange, Incorporated; 

Chicago Stock Exchange, Inc.; EDGA 

Exchange, Inc.; EDGX Exchange, Inc.; 

Financial Industry Regulatory 

Authority, Inc.; International Securities 

Exchange LLC; NASDAQ OMX BX, 

Inc.; The NASDAQ Stock Market LLC; 

National Stock Exchange, Inc.; New 

York Stock Exchange LLC; NYSE 

Amex LLC; NYSE Arca, Inc.; 

Correction 

August 19, 2010. 

The Securities and Exchange 

Commission published a document in 

the Federal Register of August 18, 2010, 

concerning a Notice of Designation of 

Longer Period for Commission Action 

on Proposed Rule Changes Relating to 

Trading Pauses Due to Extraordinary 

Market Volatility by BATS Exchange, 

Inc.; Chicago Board Options Exchange, 

Incorporated; Chicago Stock Exchange, 

Inc.; EDGA Exchange, Inc.; EDGX 

Exchange, Inc.; Financial Industry 

Regulatory Authority, Inc.; International 

Securities Exchange LLC; NASDAQ 

OMX BX, Inc.; The NASDAQ Stock 

Market LLC; National Stock Exchange, 

Inc.; New York Stock Exchange LLC; 

NYSE Amex LLC; and NYSE Arca, Inc. 

The document contained a 

typographical error in the signature 

block. 

In the Federal Register of August 18, 

2010, in FR Doc. 2010–20366, on page 

51138, in the 3rd column, correct the 

signature block to read ‘‘By the 

Commission’’ and remove footnote 7. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–21176 Filed 8–25–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62744; File No. SR–Phlx– 

2010–105] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Cancellation Fee 

August 19, 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 August 

13, 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 assess a 

Cancellation Fee on all electronically 

delivered all-or-none (‘‘AON’’) orders 

that are submitted by a Professional and 

subsequently cancelled by the party that 

originally submitted the order. 

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, 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 the manner in 

which the Cancellation Fee is assessed 

on members. The Exchange proposes to 

assess a Cancellation Fee of $1.10 on all 

electronically delivered 3 AON orders 

that are submitted by a Professional 4

(hereafter ‘‘Professional AON’’) and 

subsequently cancelled by the party that 

originally submitted the order. The 

Exchange has observed that the number 

of cancelled Professional AON orders 

greatly exceeds the normal order 

cancellation activity on the Exchange 

for all other order types, and thus affects 

the automated order handling capacity 

of the Exchange’s systems. The 

Exchange proposes to include 

Professional AON orders into the 

calculation of cancelled orders to assess 

the Cancellation Fee to recover costs 

associated with system issues that are 

attributable to cancelled AON orders. A 

Professional order is treated, for 

purposes of priority, as a Customer 

order.5

Currently, the Exchange assesses a 

Cancellation Fee of $2.10 per order on 

member organizations for each 

cancelled electronically delivered 

Customer order that exceeds the number 

of Customer orders executed on the 

Exchange by that member organization 

in a given month. The Exchange 

calculates the Cancellation Fee by 

aggregating all Customer orders and 

cancellations received from a member 

organization in a particular calendar 

month. At least 500 Customer 

cancellations must be made in a given 

month by a member organization in 

order for a member organization to be 

assessed the Cancellation Fee (‘‘500 

Threshold’’). The Cancellation Fee is not 

assessed in a month in which fewer 

than 500 electronically delivered 

Customer orders 6 are cancelled. Simple 

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