Document ID: SEC-2011-1042-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX LLC
Posted Date: 2011-07-21T04:00Z

[Federal Register Volume 76, Number 140 (Thursday, July 21, 2011)]
[Notices]
[Pages 43738-43739]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-18341]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64891; File No. SR-Phlx-2011-98]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Correct 
a Typographical Error in Rule 1020

 July 14, 2011.
    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 July 6, 2011, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``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 is filing with the Commission a proposal to amend 
Exchange Rule 1020 (Registration and Function of Options Specialists) 
to correct a typographical error.
    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, on the Commission's 
Web site at http://www.sec.gov, 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 this proposal is to correct a typographical error in 
subsection (a)(v)(B) of Rule 1020. On June 1, 2011, the Exchange filed 
an immediately effective proposal regarding Remote Specialists (the 
``Remote Specialist filing'') that expanded the Remote Specialist 
concept.\3\ By the Remote Specialist filing, the Exchange enhanced the 
existing Remote Specialist \4\ model so that all eligible ROTs \5\ on 
the Exchange could function as Remote Specialists; and eliminated the 
requirement that an option may only be allocated to an RSQT \6\ acting 
as a Remote Specialist if an option cannot be allocated to (or retained 
by) an on-floor specialist. The Exchange confirmed that all of the key 
principles would remain applicable to Remote Specialists: (a) Remote 
Specialists would be subject to all of the obligations and privileges 
of floor-based specialists unless otherwise noted in Exchange rules; 
(b) Remote Specialists and on-floor specialists would have equivalent 
quoting requirements; and (c) RSQTs approved to act as Remote 
Specialists would have heightened quoting obligations when acting as 
Remote Specialists in contrast to when acting as RSQTs. The Exchange 
also established in subsection (a)(v) of Rule 1020 that Remote 
Specialists may have a representative known as a ``Designee'' on the 
trading floor of the Exchange during trading hours that may represent 
the specialist in open outcry trades in a trading crowd.
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    \3\ See Securities Exchange Act Release No. 64591 (June 2, 
2011), 76 FR 33383 (June 8, 2011) (SR-Phlx-2011-79) (notice of 
filing and immediate effectiveness). The rule text proposed in this 
filing reflects language changes made in SR-Phlx-2011-79, which 
became operative on or about July 2, 2011.
    \4\ A Remote Specialist is an options specialist in one or more 
classes that does not have a physical presence on an Exchange floor 
and is approved by the Exchange pursuant to Rule 501. A Remote 
Specialist has all the rights and obligations of an options 
specialist, unless Exchange rules provide otherwise. See Rule 1020.
    \5\ An ROT is a regular member or a foreign currency options 
participant of the Exchange located on the trading floor who has 
received permission from the Exchange to trade in options for his 
own account. See Rule 1014(b)(i).
    \6\ An 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 in options to which such RSQT has been assigned. An 
RSQT may only submit such quotations electronically from off the 
floor of the Exchange. See Rule 1014(b)(ii)(B).
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    There is a typographical error in new subsection (a)(v)(B) of Rule 
1020 as established in the Remote Specialist filing whereby a 
Registered Options Trader is inadvertently referred to as a 
``registered Remote Options Trader.'' The Exchange is hereby correcting 
the error by deleting the word ``Remote'' so that the reference in 
subsection (a)(v)(B) would be to Registered Options Trader. The 
Exchange notes that the proposed change is wholly in conformity with 
the types of traders (market makers) on the Exchange. That is, unlike 
Registered Options Traders, which are defined in Exchange Rules and the 
Remote Specialist filing, there is no defined category of traders on 
the Exchange known as registered Remote Options Traders. Moreover, the 
term Registered Options Trader is used elsewhere in Rule 1020 as well 
as throughout Exchange rules, whereas the term registered Remote 
Options Trader is used only once in error.
    The Exchange believes that it is clear from the context of Rule 
1020, Exchange Rules in general, and the Remote Specialist filing that 
the Exchange intended to refer to Registered Options Trader in Rule 
1020. The Exchange therefore now corrects the noted typographical error 
by referring in

[[Page 43739]]

subsection (a)(v)(B) of Rule 1020 to Registered Options Trader.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \8\ in particular, in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanisms of a free and open 
market and a national market system by correcting an inadvertent error 
in subsection (a)(v)(B) of Rule 1020 regarding the term Registered 
Options Trader.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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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

    Pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(3) 
thereunder,\10\ Phlx has designated this proposal as one that is 
concerned solely with the administration of the self-regulatory 
organization. Accordingly, the Exchange believes that this proposal is 
immediately effective and operative upon filing.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(3).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

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 rule-comments@sec.gov. Please include 
File Number SR-Phlx-2011-98 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-2011-98. 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 Web site viewing and 
printing 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-Phlx-2011-98 and should be 
submitted on or before August 11, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-18341 Filed 7-20-11; 8:45 am]
BILLING CODE 8011-01-P