Federal Register / Vol. 74, No. 134 / Wednesday, July 15, 2009 / Notices 34383 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). 

12For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

13The Commission is also waiving the five 

business-day pre-filing requirement. 14 14 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

Commission may designate if consistent 

with the protection of investors and the 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 10 and 

Rule 19b–4(f)(6) thereunder.11

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing. In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory 

organization to provide the Commission 

with 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. However, Rule 19b– 

4(f)(6)(iii) permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requests that the Commission 

waive the 30-day operative delay as well 

as the five business-day pre-filing 

requirement so that the benefits of this 

functionality to BATS market 

participants expected from the rule 

change will not be delayed. The 

Commission believes that waiving the 

30-day operative delay12 to make this 

functionality available without delay is 

consistent with the protection of 

investors and the public interest.13

Therefore, the Commission designates 

the proposal operative upon filing. 

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–BATS–2009–022 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–BATS–2009–022. 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 5552, 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 the 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–BATS–2009–022 and 

should be submitted on or before 

August 5, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16713 Filed 7–14–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60262; File No. SR– 

NYSEArca–2009–63] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending NYSE Arca 

Equities Rules 7.31(x) and 7.31(kk) 

July 8, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on July 2, 

2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ or 

the ‘‘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 self-regulatory organization. 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 Arca Equities Rule 7.31(x) and 

7.31(kk) in order to amend the 

functionality of Primary Only Orders 

and Primary Sweep Orders (collectively 

‘‘PO and PSO orders’’) routed to the 

New York Stock Exchange LLC 

(‘‘NYSE’’) [sic] The text of the proposed 

rule change is attached as Exhibit 5 to 

the 19b–4 form. A copy of this filing is 

available on the Exchange’s Web site at 

http://www.nyse.com, at the Exchange’s 

principal office 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. 


sroberts on DSKD5P82C1PROD with NOTICES
34384 Federal Register / Vol. 74, No. 134 / Wednesday, July 15, 2009 / Notices 

4NYSE Arca Equities Rule 1.1(yy). The term 

‘‘User’’ shall mean any ETP Holder or Sponsored 

Participant who is authorized to obtain access to the 

NYSE Arca Marketplace pursuant to Rule 7.29. 

5See NYSE Rule 13, stating that an order marked 

DNS ‘‘will be immediately and automatically 

cancelled if compliance with Exchange rules or 

federal securities laws requires that all or part of 

such order be routed to another market center for 

execution.’’ 

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

7 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

provide the Commission with 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. 

10 17 CFR 240.19b–4(f)(6). 

11 17 CFR 240.19b–4(f)(6)(iii). 

12See SR–NYSEArca–2009–63, Item 7. 

13For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78(c)(f). 

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 Arca Equities Rule 7.31(x) and 

7.31(kk) to offer Users 4 additional 

execution opportunities for their PO and 

PSO orders routed to the NYSE. 

Currently, if PO or PSO orders routed to 

the NYSE are not marked immediate-orcancel (‘‘IOC’’), the orders are not 

returned to the entering party but 

remain at the NYSE, until executed or 

cancelled. For PO and PSO orders 

routed to the NYSE, this executed or 

cancelled functionality is accomplished 

by marking the order as Do-Not-Ship 

(‘‘DNS’’), a designation specific to the 

NYSE, which according to NYSE rules, 

prevents the NYSE from routing the 

order to away market centers.5 The 

Exchange proposes to offer Users the 

opportunity to override this DNS 

designation on PO and PSO orders 

routed to the NYSE. Where Users 

choose to override the DNS designation, 

PO and PSO orders routed to the NYSE 

will remain at the NYSE until executed, 

routed away, or cancelled. 

Whereas the current functionality 

satisfies both the User’s and the 

Exchange’s obligations pursuant to 

Regulation NMS, offering this additional 

functionality for PO and PSO orders 

routed to the NYSE will enhance 

execution opportunities by expanding 

access to available liquidity. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 6 of the 

Securities Exchange Act of 1934 (the 

‘‘Exchange Act’’), in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act,7 in particular, 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 

Exchange believes the proposed 

functionality for PO and PSO orders 

routed to the NYSE will enhance 

execution opportunities for Exchange 

Users by expanding their access to 

available liquidity. 

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: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) by its terms does not become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) 8 of the Act and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.9

A proposed rule change filed under 

Rule 19b–4(f)(6) 10 normally does not 

become operative for 30 days after the 

date of filing. However, Rule 19b– 

4(f)(6)(iii) 11 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requests that the Commission 

waive the 30-day operative delay so that 

the proposal may become operative 

immediately upon filing. The Exchange 

states that the proposed rule change 

does not introduce new or novel 

functionality, but that the Exchange is 

merely offering its Users certain order 

type functionality for PO and PSO 

orders consistent with other current 

order types eligible for routing to or 

entry on the NYSE.12

The Commission believes waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest because such waiver will 

allow implementation of execution 

opportunities for Exchange Users 

without delay.13 Accordingly, the 

Commission designates the proposed 

rule change operative upon filing with 

the Commission. 

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-NYSEArca-2009–63 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–NYSEArca–2009–63. 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 


sroberts on DSKD5P82C1PROD with NOTICES
Federal Register / Vol. 74, No. 134 / Wednesday, July 15, 2009 / Notices 34385 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3A Complex Order is composed of two or more 

components and is priced as a single order (a 

‘‘Complex Order Strategy’’) on a net debit or credit 

basis. See Exchange Rule 1080, Commentary .08. 

For a complete description of the Exchange’s 

Complex Order System. [sic] See also Securities 

Exchange Act Release No. 58361 (August 14, 2008), 

73 FR 49529 (August 21, 2008) (SR–Phlx–2008–50). 

4An SQT is an Exchange Registered Options 

Trader (‘‘ROT’’) who has received permission from 

the Exchange to generate and submit option 

quotations electronically through an electronic 

interface with AUTOM via an Exchange approved 

proprietary electronic quoting device in eligible 

options to which such SQT is assigned. See 

Exchange Rule 1014(b)(ii)(A). 

5An RSQT is an ROT that is a member or member 

organization with no physical trading floor 

presence who has received permission from the 

Exchange to generate and submit option quotations 

electronically through AUTOM in eligible options 

to which such RSQT has been assigned. An RSQT 

may only submit such quotations electronically 

from off the floor of the Exchange. See Exchange 

Rule 1014(b)(ii)(B). 

6A Complex Order is composed of two or more 

components and is priced as a single order (a 

‘‘Complex Order Strategy’’) on a net debit or credit 

basis. See Exchange Rule 1080, Commentary .08. 

For a complete description of the Exchange’s 

Complex Order System. [sic] See also Securities 

Exchange Act Release No. 58361 (August 14, 2008), 

73 FR 49529 (August 21, 2008) (SR–Phlx–2008–50). 

7An SQT is an Exchange Registered Options 

Trader (‘‘ROT’’) who has received permission from 

the Exchange to generate and submit option 

quotations electronically through an electronic 

interface with AUTOM via an Exchange approved 

proprietary electronic quoting device in eligible 

options to which such SQT is assigned. See 

Exchange Rule 1014(b)(ii)(A). 

8See Exchange Rule 1080(l), ‘‘* * * The term 

‘Directed Specialist, RSQT, or SQT’ means a 

specialist, RSQT, or SQT that receives a Directed 

Order.’’ A Directed Participant has a higher quoting 

requirement as compared with a specialist, SQT or 

RSQT who is not acting as a Directed Participant. 

See Exchange Rule 1014. 

9See Exchange Rule 1080(l). ‘‘* * * The term 

‘Order Flow Provider’ (‘OFP’) means any member 

or member organization that submits, as agent, 

customer orders to the Exchange.’’ 

10See Securities Exchange Act Release No. 59995 

(May 28, 2009), 74 FR 26750 (June 3, 2009) (SR– 

Phlx–2009–32). 

11 In addition the Exchange notes that currently 

Registered Option Traders (on-floor) and specialists 

that exceed 4.5 million contracts (‘‘Volume 

Threshold’’) in a given month are assessed $.01 per 

contract on contract volume above the Volume 

Threshold instead of the applicable options 

transaction charges. 

12See Exchange Rule 1080(l), ‘‘* * * The term 

‘Directed Order’ means any customer order (other 

than a stop or stop-limit order as defined in Rule 

1066) to buy or sell which has been directed to a 

particular specialist, RSQT, or SQT by an Order 

Flow Provider, as defined below. To qualify as a 

Directed Order, an order must be delivered to the 

Exchange via AUTOM.’’ See also See [sic] 

Continued 

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 No. 

SR–NYSEArca–2009–63 and should be 

submitted on or before August 5, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16711 Filed 7–14–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60267; File No. SR–Phlx– 

2009–42] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change as Modified by 

Amendment No. 2 Thereto Relating to 

Complex Orders 

July 9, 2009. 

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 June 26, 

2009, 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. On July 2, 

2009, the Exchange filed Amendment 

No. 1 to the proposed rule change. On 

July 7, 2009, Phlx filed Amendment No. 

2 to the proposed rule change and 

withdrew Amendment No. 1. 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 

$.01 per contract fee for Complex 

Orders 3 in equity options that are 

directed to specialists, Streaming Quote 

Traders (‘‘SQTs’’) 4 and Remote 

Streaming Quote Traders (‘‘RSQTs’’) 5

by a member or member organization 

and are executed electronically as part 

of a Complex Order. 

While changes to the Exchange’s fee 

schedule pursuant to this proposal are 

effective upon filing, the Exchange has 

designated this proposal to be effective 

for trades settling on or after July 1, 

2009. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaqtrader.com/

micro.aspx?id=PHLXRulefilings, 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 assess a $.01 per contract 

fee for Complex Orders 6 in equity 

options that are directed to specialists, 

Streaming Quote Traders (‘‘SQTs’’) 7 and 

Remote Streaming Quote Traders 

(‘‘RSQTs’’) (‘‘Directed Participants’’ or 

‘‘Directed Specialists, RSQTs, or 

SQTs’’) 8 by a member or member 

organization (‘‘Order Flow Provider’’ or 

‘‘OFP’’),9 and executed electronically on 

the Exchange’s electronic trading 

platform for options, the Phlx XL II 

system.10 The $0.01 per contract rate 

would be assessed to the Direct [sic] 

Participants, in lieu of the equity 

options transactions fees of $.22 per 

contract side for Registered Option 

Traders (‘‘ROTs’’) (on-floor) and $.21 

per contract side for specialists on 

contracts executed electronically as part 

of a Complex Order.11 This fee 

assessment would not apply to single 

sided Directed Orders 12 pursuant to 


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