Document ID: SEC-2012-2075-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX LLC
Posted Date: 2012-12-17T05:00Z

[Federal Register Volume 77, Number 242 (Monday, December 17, 2012)]
[Notices]
[Pages 74699-74700]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-30271]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68402; File No. SR-Phlx-2012-137]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating to 
Rebates and Fees for Adding and Removing Liquidity

December 11, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\, and Rule 19b-4 \2\ thereunder, notice is hereby given 
that, on December 3, 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 file Section I of the Exchange's Pricing 
Schedule entitled ``Rebates and Fees for Adding and Removing Liquidity 
in Select Symbols'' in order to preserve amendments to the Pricing 
Schedule that became effective after the suspension of certain fees on 
April 30, 2012.
    The Exchange has designated the proposed amendment to be operative 
on December 3, 2012.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.nasdaqtrader.com/micro.aspx?id=PHLXfilings, 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange filed two immediately effective rule changes, SR-Phlx-
2012-27 and SR-Phlx-2012-54,\3\ to amend certain fees and rebates in 
Section I, which filings were temporarily suspended by the Commission 
as of April 30, 2012 (``Suspension Order'').\4\ In order to continue 
the effectiveness of certain fees and rebates that were contained in 
SR-Phlx-2012-27, but not the subject of the Suspension Order, the 
Exchange filed a rule change on April 30, 2012.\5\ On November 9, 2012, 
the Commission approved SR-Phlx-2012-27 and SR-Phlx-2012-54, as 
modified by Amendment No. 1, on a one-year pilot basis, with such fees 
being operative on December 3, 2012 (``Approval Order'').\6\
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    \3\ See Securities Exchange Act Release Nos. 66551 (March 9, 
2012), 77 FR 15400 (March 15, 2012) (SR-Phlx-2012-27) and 66883 
(April 30, 2012), 77 FR 26591 (May 4, 2012) (SR-Phlx-2012-54).
    \4\ By order dated April 30, 2012, the Commission suspended SR-
Phlx-2012-27 and SR-Phlx-2012-54. See Securities Exchange Release 
No. 66884 (April 30, 2012), 77 FR 26595 (May 4, 2012) (SR-Phlx-2012-
27 and SR-Phlx-2012-54).
    \5\ See Securities Exchange Act Release No. 66968 (May 11, 
2012), 77 FR 29425 (May 17, 2012) (SR-Phlx-2012-57).
    \6\ See Securities Exchange Act Release No. 68202 (November 9, 
2012), 77 FR 68856 (November 16, 2012) (SR-Phlx-2012-27 and SR-Phlx-
2012-54).
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    The Approval Order reinstated the fees that were proposed by the 
Exchange in SR-Phlx-2012-27.\7\ Since the date of the suspension, the 
Exchange filed multiple amendments to Section I of the Pricing Schedule 
which became effective after the Suspension Order.\8\ The Exchange 
proposes to preserve the amendments to Section I of the Pricing 
Schedule that became effective after the Suspension Order in order to 
continue the effectiveness of the current fees and rebates which were 
not the subject of the Approval Order. The fees for executions of 
Complex Orders by Directed Participants and Market Makers, which were 
the subject of the Approval Order, will be addressed in a separate 
filing proposed to be operative on December 3, 2012 and are not 
included in this filing.
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    \7\ Specifically, SR-Phlx-2012-27 proposed to: (1) Increase the 
Customer Complex Order Rebate for Adding Liquidity from $0.30 to 
$0.32 per contract, (2) create a new Complex Order Rebate for 
Removing Liquidity and specifically pay a Customer a $0.06 Complex 
Order Rebate for Removing Liquidity, and (3) increase the Complex 
Order Fees for Removing Liquidity for Firms, Broker-Dealers and 
Professionals from $0.35 per contract to $0.38 per contract.
    \8\ See Securities Exchange Act Release Nos. 66985 (May 14, 
2012), 77 FR 29726 (May 18, 2012) (SR-Phlx-2012-61); 67047 (May 23, 
2012), 77 FR 32165 (May 31, 2012) (SR-Phlx-2012-70); 67189 (June 12, 
2012), 77 FR 36310 (June 18, 2012) (SR-Phlx-2012-77); 67439 (July 
13, 2012), 77 FR 42541 (July 19, 2012) (SR-Phlx-2012-90); 67633 
(August 9, 2012), 77 FR 49040 (August 15, 2012) (SR-Phlx-2012-104); 
67830 (September 11, 2012), 77 FR 57169 (September 17, 2012) (SR-
Phlx-2012-112); and SR-Phlx-2012-125) (not yet published).
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2. Statutory Basis
    The Exchange believes that its proposal to amend its Pricing 
Schedule is consistent with Section 6(b) of the Act \9\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \10\ in 
particular, in that it is concerned solely with the administration of 
the Exchange. This filing serves to preserve the current pricing that 
has been filed with the Commission notwithstanding the Approval Order 
that was issued by the Commission. The Exchange believes this proposal 
is a technical and non-substantive rule change with the sole purpose of 
preserving the current fees and rebates in Section I. The fees that 
were the subject of the Approval Order, which related to fees for 
executions of Complex Orders by Directed Participants and Market 
Makers, will be addressed in a separate filing. This proposal maintains 
the status quo, which would be otherwise altered by the Approval Order.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 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 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

[[Page 74700]]

19(b)(3)(A)(iii) of the Act.\11\ 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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    \11\ 15 U.S.C. 78s(b)(3)(A)(iii).
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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 Number SR-Phlx-2012-137 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-2012-137. 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 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 
10:00 a.m. and 3:00 p.m. Copies of the 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-2012-137 and should be 
submitted on or before January 7, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-30271 Filed 12-14-12; 8:45 am]
BILLING CODE 8011-01-P