Document ID: SEC-2009-0671-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Order Approving Proposed Rule Change, as Modified by Amendment No. 1 Thereto, Increasing Transaction Fees for Linkage Inbound Principal Orders and Principal Acting as Agent Orders
Posted Date: 2009-05-15T04:00Z

[Federal Register: May 15, 2009 (Volume 74, Number 93)]
[Notices]               
[Page 22990]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15my09-111]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59891; File No. SR-Phlx-2009-24]

 
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Order 
Approving Proposed Rule Change, as Modified by Amendment No. 1 Thereto, 
Increasing Transaction Fees for Linkage Inbound Principal Orders and 
Principal Acting as Agent Orders

May 8, 2009.

I. Introduction

    On March 24, 2009, the NASDAQ OMX PHLX, Inc. (``Phlx'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change seeking to increase transaction fees applicable to 
the execution of Principal Acting as Agent Orders (``P/A Orders'') \3\ 
and Principal Orders (``P Orders'') \4\ sent to the Exchange via the 
Intermarket Options Linkage (``Linkage'') under the Plan for the 
Purpose of Creating and Operating an Intermarket Option Linkage (the 
``Plan'').\5\ On March 26, 2009, Phlx submitted Amendment No. 1 to the 
proposed rule change. The proposed rule change was published for 
comment in the Federal Register on April 8, 2009.\6\ The Commission 
received no comments on the proposal. This order approves the proposed 
rule change, as amended.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ A P/A Order, is an order for the principal account of a 
specialist (or equivalent entity on another Participant Exchange 
that is authorized to represent Public Customer orders), reflecting 
the terms of a related unexecuted Public Customer order for which 
the specialist is acting as agent. See Exchange Rule 1083(k)(i).
    \4\ A P Order is an order for the principal account of an 
Eligible Market Maker. See Exchange Rule 1083(k)(ii).
    \5\ See Securities Exchange Act Release Nos. 43086 (July 28, 
2000), 65 FR 48023 (August 4, 2000) (order approving the Plan) and 
43573 (November 16, 2000), 65 FR 70851 (November 28, 2000) (order 
approving Phlx as a participant in the Plan).
    \6\ See Securities Exchange Act Release No. 59669 (April 1, 
2009), 74 FR 16026.
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II. Description of the Proposal

    The Exchange proposes to amend the Equity Options Fees portion of 
its fee schedule relating to transaction fees applicable to the 
execution of P/A Orders and P Orders sent to the Linkage under the 
Plan. Specifically, the Exchange proposes to increase its transaction 
fees for P/A Orders from the current $0.15 per option contract to $0.30 
per option contract, and for P Orders from the current $0.25 per option 
contract to $0.45 per contract. This proposal is part of an existing 
pilot program, which is scheduled to expire July 31, 2009.\7\
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    \7\ See Securities Exchange Act Release No. 58144 (July 11, 
2008), 73 FR 41394 (July 18, 2008) (SR-Phlx-2008-49).
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    The Exchange states that the purpose of the proposed rule change is 
to raise revenue for the Exchange. The Exchange also represents that, 
consistent with current practice, the Exchange: (i) Will charge the 
clearing member organization of the sender of P Orders and P/A Orders; 
and (ii) will not charge for the execution of Satisfaction Orders sent 
through Linkage.
    The Exchange also proposes a technical amendment to the schedule of 
Equity Option Fees by correcting a typographical error, changing the 
word ``overlaying'' to read ``overlying.''

III. Discussion and Commission Findings

    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange.\8\ In particular, the Commission finds that the proposal is 
consistent with Section 6(b)(4) of the Act,\9\ which requires that an 
exchange have rules that provide for the equitable allocation of 
reasonable dues, fees, and other charges among its members and other 
persons using its facilities. The Commission notes that the Options 
Linkage fees are assessed pursuant to a pilot scheduled to end on July 
31, 2009 and that the Commission is continuing to evaluate whether such 
fees are appropriate.
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    \8\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \9\ 15 U.S.C. 78f(b)(4).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (SR-Phlx-2009-24), as amended, 
is hereby approved.
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    \10\ 15 U.S.C. 78s(b)(2).

    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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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-11357 Filed 5-14-09; 8:45 am]

BILLING CODE 8010-01-P