Document ID: SEC-2012-1014-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX LLC
Posted Date: 2012-06-28T04:00Z

[Federal Register Volume 77, Number 125 (Thursday, June 28, 2012)]
[Notices]
[Pages 38699-38701]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-15808]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67245; File No. SR-Phlx-2012-80]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating to 
Technical and Conforming Amendments to the Pricing Schedule

June 22, 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 June 14, 2012, NASDAQ OMX PHLX LLC

[[Page 38700]]

(``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 make various technical amendments to the 
Pricing Schedule to format pricing the same throughout the Pricing 
Schedule, correct a reference to Section IV fees and add the term 
``Specialist'' to Section V.
    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 proposes to make clarifying amendments to the Pricing 
Schedule. The Exchange proposes to amend Section II entitled ``Multiply 
Listed Options'' to reformat the rebates and fees from the current 
format, ``$.xx,'' to the format utilized in Section I, ``$0.xx,'' to 
conform the pricing format throughout the Pricing Schedule.
    The Exchange also proposes to amend Section IV, A entitled ``PIXL 
Pricing'' to correct a reference which was inadvertently not amended in 
a prior filing to refer to Section II fees as ``Multiply Listed 
Options.'' The Exchange recently amended the title of Section II from 
``Equity Options Fees'' to ``Multiply Listed Options Fees.'' \3\ 
Finally, the Exchange proposes to amend Section V entitled ``Routing 
Fees'' to add the term ``Specialist'' to the category ``Firm/Broker 
Dealer/Market Maker.'' The Exchange recently amended the Pricing 
Schedule to redefine its market participant categories and separate the 
Specialist category from that of Market Maker.\4\ At that time, the 
Exchange also filed SR-Phlx-2012-75, a filing pertaining to Routing 
Fees, and noted in that filing that for the purposes of Routing Fees, a 
Market Maker includes Specialists.\5\ At this time the Exchange 
proposes to indicate that a Specialist shall be as defined in the 
Pricing Schedule and add the Specialist category to the Routing Fees. 
The Exchange believes that using the defined terms for purposes of the 
Routing Fees will provide more clarity to the Pricing Schedule and 
therefore proposes to add the term Specialist to the fees instead of 
utilizing the term Market Maker to define a Specialist solely for the 
Routing Fees.
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    \3\ See Securities Exchange Act Release No. 67189 (June 12, 
2012) (SR-Phlx-2012-77).
    \4\ Id.
    \5\ See Securities Exchange Act Release No. 67123 (June 5, 
2012), 77 FR 35092 (June 12, 2012) (SR-Phlx-2012-75). Specifically, 
see note 3.
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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 \6\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \7\ in 
particular, in that it is an equitable allocation of reasonable fees 
and other charges among Exchange members and other persons using its 
facilities.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
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    The Exchange's amendments to Section II are reasonable, equitable 
and not unfairly discriminatory because the amendments are not 
substantive in nature, but merely conform the manner in which the 
pricing is displayed so that the format is similar throughout the 
Pricing Schedule.
    The Exchange's amendment to Section IV is reasonable, equitable and 
not unfairly discriminatory because this amendment clarifies the 
Pricing Schedule by correcting a reference that was inadvertently 
omitted in a prior filing to refer to Section II fees.
    The Exchange's amendment to Section V is reasonable, equitable and 
not unfairly discriminatory because it also clarifies the Pricing 
Schedule by reverting to the terms as defined in the Preface. Today, a 
Specialist is defined in the Pricing Schedule as a separately defined 
market participant apart from a Market Maker,\8\ although the Exchange 
noted in a separate filing that for purposes of Routing Fees a Market 
Maker includes a Specialist.\9\ The Exchange now proposes to utilize 
the definition of Specialist, as defined in the Preface of the Pricing 
Schedule, for consistency. The Routing Fees which are applicable to a 
Specialist will remain the same.
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    \8\ See SR-Phlx-2012-77.
    \9\ See Securities Exchange Act Release No. 67123 (June 5, 
2012), 77 FR 35092 (June 12, 2012) (SR-Phlx-2012-75). Specifically, 
see note 3.
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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.\10\ 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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    \10\ 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 Number SR-Phlx-2012-80 on the subject line.

[[Page 38701]]

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-2012-80. 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-2012-80 and should be 
submitted on or before July 19, 2012.
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    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
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pursuant to delegated authority.\11\

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-15808 Filed 6-27-12; 8:45 am]
BILLING CODE 8011-01-P