Document ID: SEC-2011-1250-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX LLC
Posted Date: 2011-08-22T04:00Z

[Federal Register Volume 76, Number 162 (Monday, August 22, 2011)]
[Notices]
[Pages 52371-52373]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-21321]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65142; File No. SR-Phlx-2011-112]

Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating 
to Clarifying Amendments to the Rule Book

August 16, 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 August 8, 2011, NASDAQ OMX PHLX LLC (``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 amend Exchange Rules 625, 3228 and Options 
Procedure Floor Advice (``OFPA'') F-10 to eliminate unnecessary text 
and correct cross-references in Rule text. The Exchange also proposes 
to eliminate an unnecessary title in the Rule Book.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqtrader.com/micro.aspx?id=PHLXfilings, at the 
principal office of the Exchange, at the Commission's Public Reference 
Room, and on the Commission's Web site at http://www.sec.gov.

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.

[[Page 52372]]

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 eliminate unnecessary 
text and correct cross-references in the Rule Book. The various 
amendments relate to cross-references and text in several Rules that 
were not deleted in connection with other rule filings. The Exchange 
proposes four amendments.
    First, the Exchange proposes to amend language in Exchange Rule 
625, entitled ``Training'' to remove a reference to a ``PAU.'' This 
reference relates to a term that was used in connection with XLE, the 
Exchange's former equity trading system, which is no longer utilized. 
The Exchange recently eliminated all references to XLE, including the 
definition of a Participant Authorized User of ``PAU.'' \3\ The 
Exchange proposes to eliminate the reference to a PAU in Exchange Rule 
625 as the term is no longer necessary.
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    \3\ See Securities Exchange Act Release No. 64338 (April 25, 
2011), 76 FR 24069 (April 29, 2011) (SR-Phlx-2011-13).
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    Second, the Exchange proposes to amend a reference in Exchange Rule 
3228, entitled ``Compliance with Rules and Registration Requirements.'' 
The Exchange recently amended Exchange Rule 3211 to move certain text 
in paragraphs (a) through (c) to a new Exchange Rule 911, entitled 
``Member and Member Organization Participation.'' \4\ The Exchange 
proposes to replace the reference to Exchange Rule 3211 with Exchange 
Rule 911 within Exchange Rule 3228 to reflect the current location of 
the referenced text.
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    \4\ See Securities Exchange Act Release No. 65010 (August 2, 
2011), 76 FR 48195 (August 8, 2011) (SR-Phlx-2011-100).
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    Third, the Exchange also proposes to delete text in OFPA F-10, 
entitled ``Unusual Market Conditions.'' The Exchange previously filed a 
proposed rule change to delete Exchange Rule 1015, entitled ``Execution 
Guarantee'' and OFPA A-11, entitled ``Responsibility To Fill Customer 
Orders.'' \5\ The Exchange deleted both Rule 1015 and OFPA A-11 because 
those rules were outdated due to the combination of the adoption of 
firm quote obligations in options and increased automation. The text of 
OFPA F-10 references both Exchange Rule 1015 and OFPA A-11 in the 
second paragraph. The Exchange is proposing to delete this paragraph as 
the text is no longer necessary and outdated.
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    \5\ See Securities Exchange Act Release No. 63064 (October 7, 
2010), 75 FR 63231 (October 14, 2010) (SR-Phlx-2010-136).
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    Fourth, the Exchange is proposing a technical amendment to delete a 
reference to ``ITS Rules'' in the Rule Book. The Exchange previously 
removed references to the Intermarket Trading System (``ITS'') Plan and 
deleted Exchange Rules 2000-2002.\6\ The Exchange proposes to delete 
this reference as it is unnecessary.
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    \6\ See Securities Exchange Act Release No. 55569 (April 2, 
2007), 72 FR 17978 (April 10, 2007) (SR-Phlx-2007-31).
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    While changes pursuant to this proposal are immediately effective, 
the Exchange designates the amendment to Exchange Rule 3228 become 
operative on August 26, 2011.
 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 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, 
by amending the text of the Exchange Rules and OFPA to update cross-
references and remove outdated and unnecessary text. The Exchange 
believes that these amendments will clarify the Exchange's Rules to the 
benefit of the membership.
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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)(1) 
\10\ thereunder, the Exchange has designated this proposal as one that 
constitutes a stated policy, practice or interpretation with respect to 
the meaning, administration, or enforcement of an existing rule of the 
SRO, and therefore has become effective.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(1).
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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 necessary or 
appropriate in the public interest, for the protection of investors, or 
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-2011-112 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-2011-112. 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 the filing also will be available for 
inspection and copying at the principal office of the

[[Page 52373]]

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-2011-112 and should be submitted on or before September 12, 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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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-21321 Filed 8-19-11; 8:45 am]
BILLING CODE 8011-01-P