Document ID: SEC-2010-1522-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX LLC
Posted Date: 2010-10-06T04:00Z

[Federal Register: October 6, 2010 (Volume 75, Number 193)]
[Notices]               
[Page 61802-61806]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06oc10-151]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63023; File No. SR-Phlx-2010-125]

 
 Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Regarding 
Clearly Erroneous Transactions

September 30, 2010.
    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 September 22, 2010, NASDAQ OMX PHLX LLC (``PHLX'' 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 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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[[Page 61803]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend PHLX Rule 3312, governing clearly 
erroneous executions on the NASDAQ OMX PSX system (``PSX''). The text 
of the proposed rule change is available from the Exchange's Web site 
at http://nasdaqomxphlx.cchwallstreet.com, at the Exchange's principal 
office, at 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. The 
text of these statements may be examined at the places specified in 
Item III below, and is set forth in Sections A, B, and C below.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing modifications to its Rule 3312, entitled 
Clearly Erroneous Transactions. Rule 3312 was recently approved by the 
Commission in connection with a proposal to resume trading of NMS 
stocks through the Exchange's PSX system.\3\ The proposed changes are 
designed to conform Rule 3312 to changes that were recently approved to 
the corresponding rules of The NASDAQ Stock Market (the ``NASDAQ 
Exchange'') and NASDAQ OMX BX (``BX''), and other exchanges.\4\ First, 
the Exchange proposes replacing existing paragraph (a)(2)(C)(ii) of 
Rule 3312, entitled ``Unusual Circumstances and Joint Market Rulings'' 
with a new paragraph, entitled ``Multi-Stock Events Involving Twenty or 
More Securities.'' Second, the Exchange is replacing existing paragraph 
(a)(2)(C)(iv) of Rule 3312, entitled ``Numerical Guidelines Applicable 
to Volatile Market Opens'' with a new paragraph, entitled ``Individual 
Stock Trading Pauses.'' Third, the Exchange is proposing changes to 
existing paragraph (b) of Rule 3312 to eliminate the ability of the 
Exchange to deviate from the Numerical Guidelines contained in 
paragraph (a)(2)(C)(i) when deciding which transactions will be 
reviewed by the Exchange as potentially clearly erroneous. Fourth, the 
Exchange proposes modifications to paragraphs (a)(2)(C)(i) and (iii) of 
Rule 3312 consistent with the proposed changes to paragraphs 
(a)(2)(C)(ii) and (iv). Finally, the Exchange proposes amending 
paragraph (c)(1), related to appeals of clearly erroneous execution 
decisions by the Exchange, to preserve non-appealability of all joint 
rulings between the Exchange and one or more other market centers.\5\ 
As proposed, the provisions of paragraph (a)(2)(C), paragraph (b) and 
paragraph (c)(1) of Rule 3312, as amended by this filing, would be in 
effect during a pilot period set to end on December 10, 2010. If the 
pilot is not either extended or made permanent by December 10, 2010, 
the prior versions of paragraph (a)(2)(C), paragraph (b) and paragraph 
(c)(1) of Rule 3312 would be in effect.
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    \3\ Securities Exchange Act Release No. 62877 (September 9, 
2010), 75 FR 56633 (September 16, 2010) (SR-PHLX-2010-79).
    \4\ Securities Exchange Act Release No. 62886 (September 10, 
2010), 75 FR 56613 (September 16, 2010) (File Nos. SR-BATS-2010-016; 
SR-BX-2010-040; SR-CBOE-2010-056; SR-CHX-2010-13; SR-EDGA-2010-03; 
SR-EDGX-2010-03; SR-ISE-2010-62; SR-NASDAQ-2010-076; SR-NSX-2010-07; 
SR-NYSE-2010-47; SR-NYSEAmex-2010-60; SR-NYSEArca-2010-58).
    \5\ The Exchange is also amending text in paragraphs 
(a)(2)(A)(iii)B. and (e)(1) to correct minor typographical errors in 
the text of the rule.
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    The Exchange is proposing the rule changes described below in 
consultation with other markets and Commission staff to provide for 
uniform treatment: (1) Of clearly erroneous execution reviews in Multi-
Stock Events involving twenty or more securities; and (2) in the event 
transactions occur that result in the issuance of an individual stock 
trading pause by the primary market and subsequent transactions that 
occur before the trading pause is in effect on the Exchange. The 
Exchange has also proposed additional changes to Rule 3312 that reduce 
the ability of the Exchange to deviate from the objective standards set 
forth in the Rule. In addition, the Exchange is modifying certain 
defined terms in the rule to match definitions used by other exchanges 
in order to avoid the risk of confusion. The proposed changes are 
described in further detail below.
Revised Paragraph (a)(2)(C)(ii) Related to Multi-Stock Events Involving 
Twenty or More Securities
    The Exchange proposes to eliminate the majority of existing 
paragraph (a)(2)(C)(ii), which provides flexibility to the Exchange to 
use different Numerical Guidelines or Reference Prices in various 
``Unusual Circumstances.'' The Exchange proposes to replace this 
paragraph with new language that would apply to Multi-Stock Events 
involving twenty or more securities whose executions occurred within a 
period of five minutes or less. The revised paragraph would retain 
language making clear that during Multi-Stock Events involving twenty 
or more securities the number of affected transactions may be such that 
immediate finality is necessary to maintain a fair and orderly market 
and to protect investors and the public interest. Accordingly, in such 
circumstances, decisions made by the Exchange in consultation with 
other markets could not be appealed. Further, as proposed, in 
connection with reviews of Multi-Stock Events involving twenty or more 
securities, the Exchange may use a Reference Price other than 
consolidated last sale in its review of potentially clearly erroneous 
executions. With the exception of those securities under review that 
are subject to an individual stock trading pause as described in 
proposed paragraph (a)(2)(C)(iv), and to ensure consistent application 
across market centers when proposed paragraph (a)(2)(C)(ii) is invoked, 
the Exchange will promptly coordinate with the other market centers to 
determine the appropriate review period, which may be greater than the 
period of five minutes or less that triggered application of proposed 
paragraph (a)(2)(C)(ii), as well as select one or more specific points 
in time prior to the transactions in question and use transaction 
prices at or immediately prior to the one or more specific points in 
time selected as the Reference Price. The Exchange will nullify as 
clearly erroneous all transactions that are at prices equal to or 
greater than 30% away from the Reference Price in each affected 
security during the review period selected by the Exchange and other 
markets consistent with the proposed paragraph (a)(2)(C)(ii).
    Because the Exchange and other market centers are adopting a 
different threshold and standards to handle large-scale market events, 
which would include events occurring during times of high volatility at 
the beginning of regular trading hours, the Exchange proposes deletion 
of paragraph (a)(2)(C)(iv) (``Numerical Guidelines Applicable to 
Volatile Market Opens'') of the existing rule. The Exchange believes 
that this provision is no longer necessary, and if maintained, could 
result in extremely high Numerical Guidelines (up to 90%) in certain 
circumstances.

[[Page 61804]]

Revised Paragraph (a)(2)(C)(iv) Related to Individual Stock Trading 
Pauses
    The NASDAQ Exchange and other primary listing markets for U.S. 
stocks recently amended their rules so that they may, from time to 
time, issue a trading pause for an individual security if the price of 
such security moves 10% or more from a sale in a preceding five-minute 
period, and other exchanges have amended their rules to follow these 
trading pauses. In this regard, the Exchange's approved rules for PSX 
pause trading in an individual stock when the primary listing market 
for such stock issues a trading pause, as provided in Rule 
3100(a)(4).\6\ As described above, the Exchange is proposing to 
eliminate existing paragraph (a)(2)(C)(iv) (``Numerical Guidelines 
Applicable to Volatile Market Opens''). The Exchange proposes adopting 
a rule, numbered as (a)(2)(C)(iv) following such elimination, that will 
provide for uniform treatment of clearly erroneous execution reviews in 
the event transactions occur that result in the issuance of an 
individual stock trading pause by the primary listing market and 
subsequent transactions that occur before the trading pause is in 
effect on the Exchange. The proposed rule change is necessary to 
provide greater certainty of the clearly erroneous Reference Price for 
transactions that trigger a trading pause (the ``Trigger Trade'') and 
subsequent transactions occurring between the time of the Trigger Trade 
and the time the trading pause message is received by the Exchange from 
the single plan processor responsible for consolidation and 
dissemination of information for the security and put into effect on 
the Exchange, especially under highly volatile and active market 
conditions.
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    \6\ Prior to the launch of trading on PSX, the Exchange will 
submit a proposed rule change to amend Rule 3100(a)(4) to reflect 
changes recently approved to the corresponding rules of other 
exchanges. Securities Exchange Act Release No. 62884 (September 10, 
2010), 75 FR 56618 (September 16, 2010) (SR-BATS-2010-018; SR-BX-
2010-044; SR-CBOE-2010-065; SR-CHX-2010-14; SR-EDGA-2010-05; SR-
EDGX-2010-05; SR-ISE-2010-66; SR-NASDAQ-2010-079; SR-NYSE-2010-49; 
SR-NYSEAmex-2010-63; SR-NYSEArca-2010-61; SR-NSX-2010-08). 
Securities Exchange Act Release No. 62884 amended trading pause 
rules originally adopted by PSX in SR-PHLX-2010-79, supra n. 3, and 
by other exchanges in Securities Exchange Act Release No. 62252 
(June 10, 2010), 75 FR 34186 (June 16, 2010) (SR-BATS-2010-014; SR-
EDGA-2010-01; SR-EDGX-2010-01; SR-BX-2010-037; SR-ISE-2010-48; SR-
NYSE-2010-39; SR-NYSEAmex-2010-46; SR-NYSEArca-2010-41; SR-NASDAQ-
2010-061; SR-CHX-2010-10; SR-NSX-2010-05; SR-CBOE-2010-047).
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    The Exchange proposes to revise paragraph (a)(2)(C)(iv) of Rule 
3312 to allow the Exchange to use the price that triggered a trading 
pause in an individual stock (the ``Trading Pause Trigger Price'') as 
the Reference Price for clearly erroneous execution reviews of a 
Trigger Trade and transactions that occur immediately after a Trigger 
Trade but before a trading pause is in effect on the Exchange. As 
proposed, the phrase ``Trading Pause Trigger Price'' shall mean the 
price that triggered a trading pause pursuant to PHLX Rule 3100(a)(4). 
The Trading Pause Trigger Price reflects a price calculated by the 
primary listing market over a rolling five-minute period and may differ 
from the execution price of a transaction that triggered a trading 
pause. The Exchange will rely on the primary listing market that issued 
an individual stock trading pause to determine and communicate the 
Trading Pause Trigger Price for such stock. The Exchange proposes to 
make clear in the text that the proposed standards in paragraph 
(a)(2)(C)(iv) apply regardless of whether the security at issue is part 
of a Multi-Stock Event involving five or more securities as described 
in proposed paragraphs (a)(2)(C)(i) and (ii).
    As proposed, the Numerical Guidelines set forth in PHLX Rule 
3312(a)(2)(C)(i), other than those Numerical Guidelines applicable to 
Multi-Stock Events, would apply to reviews of Trigger Trades and 
subsequent transactions. The Exchange proposes to review, on its own 
motion pursuant to paragraph (b)(2) of the Rule, all transactions that 
trigger a trading pause and subsequent transactions occurring before 
the trading pause is in effect on the Exchange. The Exchange has 
proposed to limit such reviews to reviews of transactions that executed 
at a price lower than the Trading Pause Trigger Price in the event of a 
price decline and higher than the Trading Pause Trigger Price in the 
event of a price rise. Because the proposed rules for trading pauses 
would only apply within Regular Trading Hours,\7\ an execution would be 
reviewed and nullified as clearly erroneous if it exceeds the following 
thresholds:
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    \7\ The term ``Regular Trading Hours'' is being renamed from 
``Core Session'' in Rule 3312(a)(2)(B) as the time between 9:30 a.m. 
and 4 p.m. Eastern Time. According to rules of the primary listing 
markets, an individual stock trading pause can be issued based on a 
Trigger Trade that occurs at any time between 9:45 a.m. and 3:35 
p.m. Eastern Time. See NASDAQ Exchange Rule 4120(a)(11), NYSE Rule 
80C, and NYSE Arca Rule 7.11.

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                                          Numerical guidelines (Subject
                                         transaction's % difference from
       Reference price or product           the Trading Pause Trigger
                                                      Price)
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Greater than $0.00 up to and including   10%.
 $25.00.
Greater than $25.00 up to and including  5%.
 $50.00.
Greater than $50.00....................  3%.
Leveraged ETF/ETN securities...........  Regular Trading Hours Numerical
                                          Guidelines multiplied by the
                                          leverage multiplier (i.e.,
                                          2x).
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Revisions to Paragraph (b)
    To be consistent with other exchanges, the Exchange is eliminating 
paragraph (b) and adding new paragraphs (b)(1) and (b)(2) to separate 
System Disruptions from Own Motion situations. Consistent with other 
proposals made in this filing, the Exchange proposes modifying 
paragraph (b) to eliminate the ability of a Senior Official to deviate 
from the Numerical Guidelines contained in the Rule other than under 
very limited circumstances set forth in paragraph (a)(2)(C)(iii).
    New paragraph (b)(1) provides a Senior Official of the Exchange the 
ability on his or her own motion, to review and rule on executions that 
result from ``any disruption or a malfunction in the operation of any 
electronic communications and trading facilities of the Exchange, or 
extraordinary market conditions or other circumstances in which the 
nullification of transactions may be necessary for the maintenance of a 
fair and orderly market or the protection of investors and the public 
interest exist.''
    New paragraph (b)(2) is similar to existing Rule 3312(b) and covers 
other situations where the Exchange may act on its own motion. Without 
modification, the language ``extraordinary market conditions or other 
circumstances * * *'' in current Rule 3312(b) would leave the Exchange 
with broad discretion to deviate from the Numerical Guidelines set 
forth in

[[Page 61805]]

paragraph (a)(2)(C)(i). Thus, the Exchange proposes narrowing the scope 
of paragraph (b) so that it only permits the Exchange to nullify 
transactions consistent with that paragraph (including at a lower 
Numerical Guideline) if there is a disruption or malfunction in the use 
of the Exchange's system covered by proposed Rule 3312(b)(1).
    For the same reason, the Exchange proposes eliminating the words 
``use or'' from the language in subsection (b) to make clear that the 
provision only applies to a disruption or malfunction of the Exchange's 
system (and not of a user of the Exchange's systems).
    Paragraph (b)(2) gives a Senior Official of the Exchange the 
ability on his or her own motion to review transactions as potentially 
clearly erroneous. Consistent with the goal of achieving more objective 
and standard results, the Exchange proposes deleting language in 
existing paragraph (b) that would allow the Exchange to deviate from 
the Numerical Guidelines contained in paragraph (a)(2)(C)(i). In 
addition, the Exchange proposes to make clear that any Senior Official 
reviewing transactions on his or her own motion must follow the 
guidelines set forth in proposed paragraph (a)(2)(C)(iv), if 
applicable. Accordingly, the Exchange proposes to modify paragraph 
(b)(2) to state that an officer must rely on paragraphs (a)(2)(C)(i)-
(iv) of Rule 3312 when reviewing transactions on his or her own motion.
Additional Conforming Revisions to Paragraphs (a)(2)(C)(i) and 
(a)(2)(C)(iii)
    Based on proposed paragraph (a)(2)(C)(ii), the Exchange has 
proposed certain conforming changes to paragraphs (a)(2)(C)(i) and 
(iii) of the existing Rule, as described below.
    Under current Rule 3312, a transaction may be found to be clearly 
erroneous only if the price of the transaction to buy (sell) that is 
the subject of the complaint is greater than (less than) the Reference 
Price by an amount that equals or exceeds the Numerical Guidelines set 
forth in paragraphs (a)(2)(C)(i) of the Rule. The ``Reference Price'' 
is currently defined as ``the consolidated last sale immediately prior 
to the execution(s) under review except for in Unusual Circumstances * 
* * .'' The Exchange proposes modifying paragraph (a)(2)(C)(i) 
consistent with the changes described above such that the Exchange 
shall use the consolidated last sale immediately prior to the 
execution(s) under review as the Reference Price except for: (A) Multi-
Stock Events involving twenty or more securities, as described in 
proposed paragraph (a)(2)(C)(ii); (B) transactions not involving a 
Multi-Stock Event as described in proposed paragraph (a)(2)(C)(ii) that 
trigger a trading pause and subsequent transactions, as described in 
proposed paragraph (a)(2)(C)(iv), in which case the Reference Price 
shall be determined in accordance with that paragraph (a)(2)(C)(iv); 
and (C) in other circumstances, such as, for example, relevant news 
impacting a security or securities, periods of extreme market 
volatility, sustained illiquidity, or widespread system issues, where 
use of a different Reference Price is necessary for the maintenance of 
a fair and orderly market and the protection of investors and the 
public interest. The Exchange also proposes modifying paragraph 
(a)(2)(C)(i) to reduce uncertainty as to the applicability of the 
Numerical Guidelines, by requiring a finding that an execution was 
clearly erroneous if such execution exceeds the Numerical Guidelines, 
subject only to the Additional Factors included in paragraph 
(a)(2)(C)(iii). Moreover, the Exchange proposes revising the existing 
description for Multi-Stock Events that is contained on the Numerical 
Guidelines chart to make clear that different Numerical Guidelines 
apply for Multi-Stock Events involving five or more, but less than 
twenty, securities whose executions occurred within a period of five 
minutes or less. In addition, the Exchange proposes adding to the 
Numerical Guidelines chart a row that contains the Numerical Guidelines 
(30%) for Multi-Stock Events involving twenty or more securities whose 
executions occurred within a period of five minutes or less.
    The Exchange proposes clarifying paragraph (a)(2)(C)(iii) to make 
clear that the additional factors set forth in that paragraph are not 
intended to provide any discretion to an Exchange official to deviate 
from the guidelines that apply to Multi-Stock Events or to transactions 
in securities subject to individual stock trading pauses.
    The Exchange also proposes amending paragraph (c)(1), related to 
appeals of clearly erroneous execution decisions by the Exchange, to 
preserve non-appealability of all joint rulings between the Exchange 
and one or more other market centers. The Exchange believes that 
certainty and consistency is critical to reviews of related executions 
that span multiple market centers. Accordingly, although the Exchange 
has proposed deletion of such language from existing paragraph 
(a)(2)(C)(iii), the Exchange proposes adding such language back in to 
paragraph (c)(1) to make clear that joint market rulings are not 
appealable.
    Finally, the Exchange is amending text in paragraphs 
(a)(2)(A)(iii)B. and (e)(1) to correct minor typographical errors in 
the text of the existing rule.
2. Statutory Basis
    The rule change proposed in this submission is consistent with the 
requirements of the Act and the rules and regulations thereunder that 
are applicable to a national securities exchange, and, in particular, 
with the requirements of Section 6(b) of the Act.\8\ In particular, the 
proposed change is consistent with Section 6(b)(5) of the Act,\9\ 
because it would promote just and equitable principles of trade, remove 
impediments to, and perfect the mechanism of, a free and open market 
and a national market system, and, in general, protect investors and 
the public interest. The proposed rule change is also designed to 
support the principles of Section 11A(a)(1) \10\ of the Act in that it 
seeks to assure fair competition among brokers and dealers and among 
exchange markets. The Exchange believes that the proposed rule meets 
these requirements in that it promotes transparency and uniformity 
across markets concerning reviews of potentially clearly erroneous 
executions in various contexts, including reviews in the context of a 
Multi-Stock Event involving twenty or more securities and reviews 
resulting from a Trigger Trade and any executions occurring immediately 
after a Trigger Trade but before a trading pause is in effect on the 
Exchange. Further, the Exchange believes that the proposed changes 
enhance the objectivity of decisions made by the Exchange with respect 
to clearly erroneous executions.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
    \10\ 15 U.S.C. 78k-1(a)(1).
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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 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

    Written comments were neither solicited nor received.

[[Page 61806]]

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; or (iii) 
become operative for 30 days after the date of the filing, 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\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give 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.
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    The Exchange has requested that the Commission waive the 30-day 
operative delay. The Commission hereby grants that request.\13\ The 
Commission believes that waiver of the operative delay is consistent 
with the protection of investors and the public interest because it has 
recently approved Phlx's proposal to initiate trading on PSX, which it 
plans to do on October 8, 2010, and believes that the proposed rule 
change should be implemented on that date to ensure that the Exchange's 
rules on clearly erroneous trades are consistent with the recently 
approved changes to the clearly erroneous execution rules of the other 
markets.
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    \13\ For 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).
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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 No. SR-Phlx-2010-125 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-2010-125. 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 Web site (http://www.sec.gov/rules/sro.shtml). Copies 
of the submission,\14\ 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 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-2010-125 and should be submitted on or 
before October 27, 2010.
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    \14\ The text of the proposed rule change is available on the 
Commission's Web site at http://www.sec.gov.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-25137 Filed 10-5-10; 8:45 am]
BILLING CODE 8010-01-P