Document ID: SEC-2009-0487-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing of Proposed Rule Change, and Amendment No. 1 Thereto, Relating to Increasing Linkage Inbound Principal Orders and Principal Acting as Agent Orders
Posted Date: 2009-04-08T04:00Z

[Federal Register: April 8, 2009 (Volume 74, Number 66)]
[Notices]               
[Page 16026-16027]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08ap09-116]                         

[[Page 16026]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59669; File No. SR-Phlx-2009-24]

 
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of 
Filing of Proposed Rule Change, and Amendment No. 1 Thereto, Relating 
to Increasing Linkage Inbound Principal Orders and Principal Acting as 
Agent Orders

April 1, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on March 24, 2009, NASDAQ OMX PHLX, Inc. (``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. On March 
26, 2009, Phlx submitted Amendment No. 1 to the proposed rule change. 
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 the Equity Options Fees portion of 
its fee schedule relating to 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\
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    \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).
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    Specifically, the Exchange will 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.\6\
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    \6\ 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 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, 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 self-regulatory organization 
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 those 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 parts 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 raise revenue for the 
Exchange by increasing the transaction charge for P/A Orders from the 
current $0.15 per option contract to $0.30 per option contract, and by 
increasing the transaction charge for P Orders from the current $0.25 
per option contract to $0.45 per option contract.
    Consistent with current practice, the Exchange will charge the 
clearing member organization of the sender of P Orders and P/A Orders. 
Also, consistent with current practice, the Exchange 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.''
2. Statutory Basis
    The Exchange believes that its proposal to amend its schedule of 
fees is consistent with Section 6(b) of the Act \7\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \8\ in 
particular, in that it is an equitable allocation of reasonable fees 
and other charges among Exchange members and issuers and other persons 
using its facilities.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 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 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

    No written comments were solicited or received with respect to the 
proposed rule change.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission will:
    (A) By order approve the proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be 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-2009-24 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2009-24. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your

[[Page 16027]]

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 inspection and copying in the Commission's Public 
Reference Room, 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 Number SR-Phlx-2009-24 and should be 
submitted on or before April 29, 2009.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-7865 Filed 4-7-09; 8:45 am]

BILLING CODE 8010-01-P