33006 Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices 

5 In approving this rule change, 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). 

6 15 U.S.C. 78f(b)(5). 

7See SR–NYSEAmex–2009–38 

8 15 U.S.C. 78s(b)(2). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange uses the terms ‘‘specialists’’ and 

‘‘specialist units’’ interchangeably herein. 4See Exchange Rule 1080. 

5FBMS is designed to enable Floor Brokers and/ 

or their employees to enter, route and report 

transactions stemming from options orders received 

on the Exchange. FBMS also is designed to establish 

an electronic audit trail for options orders 

represented and executed by Floor Brokers on the 

Exchange, such that the audit trail provides an 

accurate, time-sequenced record of electronic and 

other orders, quotations and transactions on the 

Exchange, beginning with the receipt of an order by 

the Exchange, and further documenting the life of 

the order through the process of execution, partial 

execution, or cancellation of that order. See 

Exchange Rule 1080, Commentary .06. 

6Linkage is governed by the Options Linkage 

Authority under the conditions set forth under the 

Plan for the Purpose of Creating and Operating an 

Intermarket Option Linkage (the ‘‘Plan’’) approved 

by the Commission. The registered U.S. options 

markets are linked together on a real-time basis 

through a network capable of transporting orders 

and messages to and from each market. 

7This proposal is scheduled to be in effect for the 

same time period as a pilot program relating to fees 

for Linkage Principal Orders and P/A Orders. See 

Securities Exchange Act Release No. 58144 (July 11, 

2008), 73 FR 41394 (July 18, 2008) (SR–Phlx–2008– 

49). See also, SR–Phlx–2009–53 filed June 29, 2009. 

a national securities exchange.5 In 

particular, the Commission finds that 

the proposed rule change is consistent 

with Section 6(b)(4) of the Act,6 which 

requires that the rules of an exchange to 

provide for the equitable allocation of 

reasonable dues, fees and other charges 

among its members and other persons 

using its facilities. 

The Commission finds good cause for 

approving this proposal before the 30th 

day after the publication of notice 

thereof in the Federal Register. The 

proposal seeks to conform Linkage Fees 

with the fees charged on other Broker 

Dealer and Firm executions. The 

Exchange plans to implement this new 

Linkage Fee in conjunction with the 

implementation of the new transactions 

fees on July 1, 2009.7 The reduction of 

transactions fees charged on Linkage 

Orders to conform with the fees charged 

on other Broker Dealer and Firm 

executions does not appear to present 

any new or significant regulatory 

concerns. Therefore, the Commission 

believes that accelerating approval of 

this proposal would allow the Exchange 

to implement this new lower Linkage 

Fee in conjunction with the 

implementation of the new transactions 

fees on July 1, 2009. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,8 that the 

proposed rule change (SR–NYSEAmex2009–33) be, and it hereby is, approved 

on an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16188 Filed 7–8–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60209; File No. SR–Phlx– 

2009–55] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Extension of a Pilot Program Related 

to a Specialist Fee Credit for Linkage 

Orders 

July 1, 2009. 

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 June 29, 

2009, NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’ 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 extend for 

a one-year period until July 31, 2010, its 

current pilot programs relating to: (1) 

An option transaction charge credit of 

$0.21 per contract for Exchange options 

specialist units 3 that incur Phlx option 

transaction charges when a customer 

order is delivered electronically via 

Phlx XL 4 or via the Exchange’s Options 

Floor Broker Management Systems 

(‘‘FBMS’’),5 and is then executed via the 

Intermarket Option Linkage 

(‘‘Linkage’’) 6 as a Principal Acting as 

Agent Order (‘‘P/A Order’’); and (2) the 

Floor Broker Linkage P/A fee and 

Options Specialist Unit Credit, which 

charges floor brokers an amount equal to 

the transaction fee(s) assessed on 

options specialist units by another 

exchange in connection with customer 

orders that are delivered to the limit 

order book via FBMS and executed via 

Linkage as P/A Orders. The Exchange 

then provides to options specialist units 

a credit in an amount equal to the 

transaction fee(s) assessed on them by 

another exchange in connection with 

executing customer orders that are 

delivered to the limit order book via 

FBMS and executed via Linkage as P/A 

Orders. 

While changes to the fee schedule 

pursuant to this proposal are effective 

upon filing, the Exchange has 

designated the changes to be in effect for 

transactions settling on or after July 31, 

2009.7

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 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 currently provides for 

an option transaction charge credit of 

$0.21 per contract for Exchange options 

specialist units that incur Phlx option 

transaction charges when a customer 

order is delivered electronically via 

Phlx XL or via FBMS and then is 


rmajette on DSK29S0YB1 with NOTICES
Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices 33007 

8See Securities Exchange Act Release No. 58234 

(July 25, 2008), 73 FR 45263 (August 4, 2008) (SR– 

Phlx–2008–55). 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(4). 

11 15 U.S.C. 78s(b)(3)(A). 

12 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. 13 17 CFR 200.30–3(a)(12). 

executed via Linkage as a P/A Order. In 

addition, the Exchange charges floor 

brokers an amount equal to the 

transaction fee(s) assessed on options 

specialist units by another exchange in 

connection with customer orders that 

are delivered to the limit order book via 

FBMS and executed via Linkage as P/A 

Orders. Options specialist units are then 

credited an amount equal to the 

transaction fee(s) assessed on them by 

another exchange in connection with 

executing customer orders that are 

delivered to the limit order book via 

FBMS and executed via Linkage as a 

P/A Order. 

The purpose of extending the current 

pilot programs discussed above is to 

encourage the use of Linkage, remain 

competitive with other exchanges with 

respect to the assessment of Linkagerelated fees and to help alleviate the 

potential economic burden of multiple 

transaction charges imposed on 

Exchange specialist units in connection 

with routing these types of Linkage 

orders. Additionally, the purpose of 

assessing a fee on floor brokers who 

send customer orders that are delivered 

to the limit order book via FBMS and 

executed via Linkage as P/A Orders is 

to more equitably assess the applicable 

transaction fee(s) on the member 

originally entering the order to be 

executed. Floor brokers may choose to 

route these orders through other systems 

and not place these orders on the limit 

order book. 

The above-referenced pilot programs 

are currently scheduled to expire on 

July 31, 2009.8 This proposal would 

extend the pilot programs for another 

year, through July 31, 2010. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Act, 9 in general, and furthers 

the objectives of Section 6(b)(4) 10 of the 

Act in particular, in that it is designed 

to provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among Exchange members and other 

persons using its facilities. The 

Exchange believes that these pilot 

programs, in part, help alleviate the 

undue financial burden of multiple 

transaction charges that are incurred by 

specialist units in connection with P/A 

orders executed via Linkage. By 

assessing a fee on floor brokers and 

giving a corresponding credit to 

specialist units allows for the 

transaction fee(s) to be assessed on the 

member who submits the order and for 

the credit to be given to the specialist 

unit that routed the order to another 

exchange in order to obtain the National 

Best Bid or Offer. 

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 either 

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 11 and Rule 19b– 

4(f)(6) thereunder.12

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–Phlx–2009–55 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–2009–55. 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 inspection and copying 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–Phlx–2009–55 and should 

be submitted on or before July 30, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16177 Filed 7–8–09; 8:45 am] 

BILLING CODE 8010–01–P 


rmajette on DSK29S0YB1 with NOTICES