Document ID: SEC-2012-0130-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX LLC
Posted Date: 2012-01-26T05:00Z

[Federal Register Volume 77, Number 17 (Thursday, January 26, 2012)]
[Notices]
[Pages 4068-4070]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-1584]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66209; File No. SR-Phlx-2012-02]

 Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Reformatting 
the Fee Schedule

January 20, 2012.
    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 January 9, 2012, 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 relocate various fees within the Fee 
Schedule and provide more detail in the Table of Contents in order to 
group fees with other similar types of fees.
    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 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to relocate various fees 
within the Fee Schedule and add more detail to the Table of Contents to 
group fees so that those fees may be easily located within the Fee 
Schedule. The Exchange is not proposing any substantive amendments, but 
rather proposes to merely rearrange text within the Fee Schedule and 
add detail to the Table of Contents.
    Specifically, the Exchange is proposing revisions to the Table of 
Contents, Section IV, entitled ``PIXL Pricing'', Section VI, entitled 
``Access Service, Cancellation, Membership, Regulatory and other 
Fees'', and Section VIII, entitled, ``Other Member Fees,'' as specified 
below.
Table of Contents
    The Exchange proposes to amend the title of Section IV ``PIXL 
Pricing'' to ``Other Transaction Fees'' and also add three subsections: 
(1) A. PIXL Pricing; (2) B. Cancellation Fee; and (3) C. Options 
Regulatory Fee. The Exchange

[[Page 4069]]

is proposing to amend the title of Section VI ``Access Service, 
Cancellation, Membership, Regulatory and other Fees'' to ``Member 
Fees'' and also add three subsections: (1) A. Permit and Registration 
Fees; (2) B. Streaming Quote Trader (``SQT'') Fees; and (3) C. Remote 
Streaming Quote Trader (``RSQT'') Fees. The Exchange also proposes to 
amend Section VII, which is currently reserved, as ``Other Member 
Fees'' and also add four subsections: (1) A. Options Trading Floor 
Fees; (2) B. Port Fees; (3) C. FINRA Fees; and (4) D. Appeal Fees.
Section IV. PIXL Pricing
    The Exchange proposes to rename Section IV as ``Other Transaction 
Fees.'' The PIXL Pricing will remain in this Section as subsection A. 
The Exchange also proposes to add a subsection B for Cancellation Fees 
and a subsection C for the Options Regulatory Fees. The Cancellation 
Fees and the Options Regulatory Fees are currently located in Section 
VI, Access Service, Cancellation, Membership, Regulatory, and other 
Fees. The Exchange believes that these transaction fees are better 
suited to newly titled Section IV, Other Transaction Fees, because 
these fees would be located with other transaction fees in the front 
portion of the Fee Schedule.
Section VI. Access Service, Cancellation, Membership, Regulatory and 
Other Fees
    The Exchange proposes to rename Section VI as ``Membership Fees.'' 
Currently Section VI contains numerous types of Fees including the: 
Cancellation Fee, Real-time Risk Management Fee, Options Regulatory 
Fee, Permit and Registration Fees,\3\ Streaming Quote Trader (``SQT'') 
Fees, Remote Streaming Quote Trader (``RSQT'') Fees, Options Trading 
Floor Fees,\4\ Port Fees,\5\ FINRA Fees \6\ and Appeal Fees.\7\ The 
Exchange proposes to relocate the Cancellation Fee and the Options 
Regulatory Fee to newly named Section IV, Other Transaction Fees, as 
mentioned above. The Exchange proposes to create a subsection A for 
Permit and Registration Fees, a subsection B for SQT Fees and a 
subsection C for RSQT Fees. All other fees, including the Options 
Trading Floor Fees, Port Fees, FINRA Fees and Appeal Fees, will be 
relocated to a newly titled Section VII.
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    \3\ The Permit and Registration Fees include the: Permit Fee, 
Application Fee, Application Fee for Lapsed Applications, Transfer 
of Affiliation Fee, Account Fee, Initiation Fee, Inactive Nominee 
Fee and Clerk Fee.
    \4\ The Options Trading Floor Fees include the: Trading/
Administrative Booths; Specialist Post Fee, Floor Facility Fees, 
Computer Equipment Services, Repairs and Replacements, Computer 
Relocation Requests and Controller Space Fee.
    \5\ Port Fees include the: Order Entry Port Fee; Active SQF Port 
Fee and Real-Time Risk Management Fee, which is noted herein.
    \6\ FINRA Fees include the: Continuing Education Fee, CRD 
Processing Fee, Disclosure Processing Fee; Annual System Processing 
Fee and Fingerprint Card Processing Fees.
    \7\ The Appeal Fees include the: Review/Process Subordinated 
Loans Fees, Forum Fee Pursuant to Rule 60 and the Review Fee 
Pursuant to Rule 124.
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Section VII. Reserved
    The Exchange proposes to rename Section VII, which is currently 
reserved, as ``Other Member Fees.'' The Exchange proposes to relocate 
the Options Trading Floor Fees, \8\ Port Fees,\9\ FINRA Fees \10\ and 
Appeal Fees \11\ from Section VI. The Exchange proposes to group these 
fees into four subsections: A subsection A for Options Floor Fees, a 
subsection B for Port Fees, a subsection C for FINRA Fees and a 
subsection D for Appeal Fees for ease of reference.
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    \8\ See note 4.
    \9\ See note 5.
    \10\ See note 6.
    \11\ See note 7.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \12\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \13\ 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 organizing its Rules in such a way as to make them easy to 
locate by grouping transaction fees with other transaction fees and 
creating other categories of fees, such as Options Trading Floor Fees, 
Port Fees and Appeals Fees, which provide members an ability to view 
fees, which may be applicable to them, in one section or subsection of 
the Fee Schedule. The Exchange believes that also enhancing the Table 
of Contents, by renaming certain sections and adding subsections, 
provides greater clarity to the Fee Schedule and allows members to 
readily locate fees within the Fee Schedule.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act.\14\ 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.
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    \14\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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 email to rule-comments@sec.gov. Please include 
File No. SR-Phlx-2012-02 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-2012-02. This file 
number should be included on the subject line if email 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

[[Page 4070]]

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-2012-02 and should be 
submitted on or before February 16, 2012.

    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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-1584 Filed 1-25-12; 8:45 am]
BILLING CODE 8011-01-P