Document ID: SEC-2012-0672-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX LLC
Posted Date: 2012-05-01T04:00Z

[Federal Register Volume 77, Number 84 (Tuesday, May 1, 2012)]
[Notices]
[Pages 25773-25774]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-10392]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66859; File No. SR-Phlx-2012-52]

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

April 25, 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 April 18, 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 amend the Account Fee displayed in the 
Pricing Schedule at Section VI, A entitled ``Membership Fees.''
    While fee changes pursuant to this proposal are effective upon 
filing, the Exchange has designated these changes to be operative on 
May 1, 2012.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to recoup some of the billing and 
processing costs associated with participant accounts. The proposed 
amendment would also encourage members to discontinue holding inactive 
trading accounts, which the Exchange believes should, in turn, 
eliminate the need to expend resources to create additional account 
fields. As a result, the staff time allocated to maintaining account 
records would be reduced, which would allow for a more efficient use of 
staff resources.
    Currently, member organizations receive one free account for each 
permit assigned to the member organization and the Exchange assesses an 
Account Fee of $50.00 for each additional account a member holds. The 
Exchange initially adopted this Account Fee in 2006 to encourage member 
organizations to discontinue holding inactive trading accounts, which 
the Exchange believed would, in turn, eliminate the need to expend 
resources to create additional account.\3\ The Exchange is proposing to 
amend this fee to assess an Account Fee of $50.00 per month for each 
account held by a member organization. The Exchange would remove the 
following text from the Pricing Schedule ``for each account beyond the 
number of permits billed to that member organization.'' While today 
member organizations receive one free account for each permit assigned 
to the member organization, the proposal would bill a member 
organization $50.00 for each account. The Account Fee would cover any 
month, or any part of a month, during which an account is maintained by 
a member.
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    \3\ See Securities Exchange Act Release No. 53046 (January 3, 
2006), 71 FR 1459 (January 9, 2006) (SR-Phlx-2005-89). The Exchange 
noted in its filing that the $50 per month fee would be applicable 
to any part of a month.
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    Member organizations are not restricted in the number of trading 
accounts they may request through the Exchange's Membership Department. 
In many instances, multiple accounts are requested by a member 
organization as a means of tracking various trading activity using the 
Exchange's account numbers or because they have multiple clearing 
arrangements.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Pricing 
Schedule is consistent with Section 6(b) of the Act \4\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \5\ in 
particular, in that it is an equitable allocation of reasonable fees 
and other charges among Exchange members.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that the proposed amendment to the Account 
Fee is reasonable because it seeks to recoup costs incurred by the 
Exchange. Further, the Exchange is seeking to incentivize members to 
discontinue inactive trading accounts. The Exchange also believes that 
the proposed Account Fee is equitable and not unfairly discriminatory 
because it would be uniformly applied to all members.

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.\6\ 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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    \6\ 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

[[Page 25774]]

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-2012-52 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-2012-52. 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 
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-2012-52 and should be 
submitted on or before May 22, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-10392 Filed 4-30-12; 8:45 am]
BILLING CODE 8011-01-P