[Federal Register Volume 74, Number 115 (Wednesday, June 17, 2009)]
[Notices]
[Page 28745]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-14169]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60084; File No. SR-Phlx-2009-37]


Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Order 
Granting Approval of Proposed Rule Change Relating to Quoting 
Requirements for Streaming Quote Traders, Remote Streaming Quote 
Traders and Specialists

June 10, 2009.
    On April 21, 2009, NASDAQ OMX PHLX, Inc. (``Phlx'' 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 
modify the quoting requirements for Streaming Quote Traders (``SQTs''), 
Remote Streaming Quote Traders (``RSQTs''), and specialists. The 
proposed rule change was published for comment in the Federal Register 
on May 6, 2009.\3\ The Commission received no comments on the proposed 
rule change. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 59842 (April 29, 
2009), 74 FR 21037.
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    The Exchange proposes to replace its continuous quoting requirement 
for SQTs, RSQTs, and specialists with a reference to the portion of the 
trading day when a quote must be available. Specifically, a market 
participant that is currently subject to continuous quoting obligations 
would, instead, be required to maintain a two-sided quote in a series 
for a total time equal to at least 90% (or higher, if so announced by 
the Exchange in advance) of the duration of the trading day. If a 
technical failure or limitation of a system of the Exchange prevents a 
participant from maintaining, or prevents a participant from 
communicating to the Exchange, timely and accurate quotes, the duration 
of such failure or limitation would not be included in any of the 
calculations with respect to the affected quotes. The Exchange would 
have the ability to consider other exceptions to the quoting 
requirements based on demonstrated legal or regulatory requirements or 
other mitigating circumstances.
    The Exchange also proposes to modify the requirement applicable to 
Directed SQTs (``DSQTs''), Directed RSQTs (``DRSQTs''), and specialists 
to quote 99% of their assigned series. Specifically, the Exchange 
proposes to replace the 99% requirement in all of these instances with 
the lesser of two alternatives: 99% of the series, or 100% minus a 
single call-and-put ``pair.'' The eligible pair in this case would 
consist of two individual options, one call and one put, which cover 
the same underlying instrument and have the same expiration date and 
exercise price.
    The Commission notes that the Exchange's proposal would make minor 
adjustments to the quoting requirements of SQTs, RSQTs, DSQTs, DRSQTs, 
and specialists. The Commission finds that the proposed rule change is 
consistent with the requirements of the Act and the rules and 
regulations thereunder that are applicable to a national securities 
exchange.\4\ In particular, the Commission believes that the proposed 
rule change is consistent with Section 6(b)(5) of the Act,\5\ 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. In addition, the Commission notes 
that it has approved similar quoting requirements applicable to market 
makers on other options exchanges.\6\
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    \4\ In approving this rule, the Commission notes that it has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ See, e.g., Securities Exchange Act Release Nos. 57109 
(January 7, 2008), 73 FR 2295 (January 14, 2008) (SR-CBOE-2007-134); 
and 57186 (January 22, 2008), 73 FR 4931 (January 28, 2008) (SR-
NYSEArca-2007-121).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-Phlx-2009-37) be, and it 
hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-14169 Filed 6-16-09; 8:45 am]
BILLING CODE 8010-01-P