Document ID: SEC-2009-0347-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX, Inc.
Posted Date: 2009-03-16T04:00Z

[Federal Register: March 16, 2009 (Volume 74, Number 49)]
[Notices]               
[Page 11158-11159]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16mr09-110]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59545; File No. SR-Phlx-2009-20]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating 
to Elimination of Sector Index Options From Monthly Firm Cap

March 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 February 25, 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. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to eliminate the sector index options from 
the Monthly Firm Cap.\3\ Additionally, the Exchange proposes minor 
amendments to its fee schedule to clean up the formatting of its fee 
schedule and correct a typographical error.
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    \3\ Firm Proprietary Options Transaction Charges for equity and 
sector index options, in the aggregate, for one billing month can 
not exceed $75,000 per month, per member organization, except for 
orders of joint back-office participants.
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    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 no longer include the 
options transaction charge associated with the sector index options in 
the $75,000 Firm-Related Equity Option and Index Option Cap 
calculation. The Exchange believes that it can continue to attract this 
business without offering the cap, which should also help to raise 
revenue. Specifically, ``firm-related'' charges include equity option 
firm proprietary transaction charges and index option firm proprietary 
transaction charges (``Monthly Firm Cap''). Currently, such firm-
related charges for equity option and index options, in the aggregate 
for one billing month, would not exceed $75,000 per month per member 
organization. The Monthly Firm Cap excludes orders of joint back-office 
participants.\4\
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    \4\ See Securities Exchange Act Release No. 59393 (February 11, 
2009), 74 FR 7721 (February 19, 2009) (SR-Phlx-2009-12) (increasing 
the Firm-Related Equity Option and Index Option Cap to $75,000 and 
exclude JBO participants).
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    Additionally, the Exchange proposes the following clean-up 
amendments to its Fee Schedule: (1) Removal of the date from the first 
page of the Fee Schedule; (2) removal of page numbers from the Table of 
Contents to be replaced by section numbers; and (3) removal of 
underlining from all section headers on each page of the Fee 
Schedule.\5\ The Exchange believes that these amendments will provide 
for ease of motion in amending the Fee Schedule.
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    \5\ See Securities Exchange Act Release No. 59402 (February 13, 
2009), 74 FR 8134 (February 23, 2009) (SR-Phlx-2009-08) (a proposal 
to create a more user-friendly fee schedule).
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    The Exchange also proposes to amend a typographical error related 
to its Examinations Fee. In filing SR-Phlx-2009-08 \6\, the Exchange 
inadvertently indicated that the Examinations Fee for the number of 
Off-Floor Traders, in the same Member Organization, that exceeded 200 
in number is $12,000 per month.\7\ This fourth tier should have stated 
that the Examinations Fee for the number of Off-Floor Traders, in the 
same Member Organization, that exceeded 200 in number is $12,500 per 
month. The Exchange proposes to amend this tier of the Examinations Fee

[[Page 11159]]

to properly reflect the amount previously filed with the Commission.
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    \6\ Id.
    \7\ See Securities Exchange Act Release No. 54941 (December 14, 
2006), 71 FR 77079 (December 22, 2006) (SR-Phlx-2006-70) (adopting a 
tiered Examinations Fee).
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2. Statutory Basis
    The Exchange believes that its proposal to amend its schedule of 
fees is consistent with Section 6(b) of the Act \8\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \9\ in 
particular, in that it is an equitable allocation of reasonable fees 
and other charges among Exchange members. The Exchange believes that 
the amendment to the Monthly Firm Cap is equitable in that it proposes 
to eliminate all section index options. Additionally, the proposed 
amendments to the formatting of the fee schedule will create a more 
user friendly fee schedule. The proposal to correct the typographical 
error in the Examination Fee should eliminate confusion among members 
as to the amount of the fee.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
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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 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.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \10\ and paragraph (f)(2) of Rule 19b-4 \11\ 
thereunder. 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.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposal 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 rule-comments@sec.gov. Please include 
File No. SR-Phlx-2009-20 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 No. SR-Phlx-2009-20. 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 changes 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 Phlx. 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-Phlx-2009-20 and should be submitted on or 
before April 6, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E9-5571 Filed 3-13-09; 8:45 am]

BILLING CODE 8011-01-P