Document ID: SEC-2009-0638-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX, Inc.
Posted Date: 2009-05-12T04:00Z

[Federal Register: May 12, 2009 (Volume 74, Number 90)]
[Notices]               
[Page 22190-22191]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12my09-68]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59857; File No. SR-Phlx-2009-41]

 
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating to 
Elimination of Options Transaction Charge for Customer Executions in 
Options on RUT, RMN, MNX and NDX

May 4, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934,\1\ notice is hereby given that on April 29, 2009, NASDAQ OMX 
PHLX, Inc. (``Phlx'' or the ``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 Phlx. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested parties.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to eliminate the options transaction charge 
of $.12 per contract side for customer executions in options on the 
Russell 2000[supreg] Index (the ``Full Value Russell Index'' or 
``RUT''), options on the one-tenth value Russell 2000[supreg] Index \2\ 
(the ``Reduced Value Russell Index'' or ``RMN''), options on the Nasdaq 
100 Index \3\ traded under the symbol NDX (``NDX'') and options on the 
one-tenth value of the Nasdaq 100 Index traded under the symbol MNX 
(``MNX'').
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    \2\ Russell 2000[supreg] is a trademark and service mark of the 
Frank Russell Company, used under license. Neither Frank Russell 
Company's publication of the Russell Indexes nor its licensing of 
its trademarks for use in connection with securities or other 
financial products derived from a Russell Index in any way suggests 
or implies a representation or opinion by Frank Russell Company as 
to the attractiveness of investment in any securities or other 
financial products based upon or derived from any Russell Index. 
Frank Russell Company is not the issuer of any such securities or 
other financial products and makes no express or implied warranties 
of merchantability or fitness for any particular purpose with 
respect to any Russell Index or any data included or reflected 
therein, nor as to results to be obtained by any person or any 
entity from the use of the Russell Index or any data included or 
reflected therein.
    \3\ NASDAQ[supreg], NASDAQ-100[supreg] and NASDAQ-100 
Index[supreg] are registered trademarks of The NASDAQ OMX Group, 
Inc. (which with its affiliates are the ``Corporations'') and are 
licensed for use by NASDAQ OMX PHLX, Inc. in connection with the 
trading of options products based on the NASDAQ-100 Index[supreg]. 
The options products have not been passed on by the Corporations as 
to their legality or suitability. The options products are not 
issued, endorsed, sold, or promoted by the Corporations. The 
Corporations make no warranties and bear no liability with respect 
to the options products.
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    While changes to the Fee Schedule pursuant to this proposal are 
effective upon filing, the Exchange has designated these changes to be 
operative for transactions settling on or after May 1, 2009.
    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, Phlx 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 Phlx 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, Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to eliminate the options 
transaction charge of $.12 per contract side for customer executions in 
options on the Russell 2000[supreg] Index (the ``Full Value Russell 
Index'') traded under the symbol RUT, options on the one-tenth value 
Russell 2000[supreg] Index (the ``Reduced Value Russell Index'') traded 
under the symbol RMN (together referred to as ``Russell Products''), 
options on the Nasdaq 100 Index traded under the symbol NDX and options 
on the one-tenth value of the Nasdaq 100 Index traded under the symbol 
MNX (together referred to as ``Nasdaq Products''), in order that the 
Exchange may remain competitive and continue to attract order flow.
    The Exchange currently assesses an options transaction charge for 
customer executions in options on the Nasdaq Products, namely NDX and 
MNX,\4\ and options on the Russell Products, namely, RUT and RMN,\5\ of 
$.12 per contract side. The Exchange will continue to assess payment 
for order flow fees \6\ and surcharge fees \7\ on the Russell Products 
and the Nasdaq Products. The Exchange proposes to

[[Page 22191]]

eliminate the $.12 per contract side options transaction charge for 
customer executions in options on NDX, MNX, RUT and RMN to remain 
competitive with other exchanges and attract additional order flow to 
the Exchange.
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    \4\ See Securities Exchange Release No. 58049 (June 27, 2008), 
73 FR 38286 (July 3, 2008) (SR-Phlx-2008-46). See also Securities 
Exchange Act Release No. 57936 (June 6, 2008), 73 FR 33481 (June 12, 
2008) (SR-Phlx-2008-36) (proposed rule change relating to the 
listing and trading of options on the Nasdaq Products).
    \5\ See Securities Exchange Act Release No. 59243 (January 13, 
2009), 74 FR 4272 (January 23, 2009) (SR-Phlx-2008-86). See also 
Securities Exchange Act Release No. 55305 (February 15, 2007), 72 FR 
8240 (February 23, 2007) (SR-Phlx-2006-65).
    \6\ See proposed rule change SR-Phlx-2009-39. See also 
Securities Exchange Act Release No. 57851 (May 22, 2008), 73 FR 
31177 (May 30, 2008) (SR-Phlx-2008-38).
    \7\ See Securities Exchange Act Release No. 58772 (October 10, 
2008), 73 FR 63037 (October 22, 2008) (SR-Phlx-2008-72).
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Securities Exchange Act of 1934 (``Act''),\8\ in general, and furthers 
the objectives of Section 6(b)(4) \9\ of the Act in particular, in that 
it is designed to provide for the equitable allocation of reasonable 
dues, fees, and other charges among Exchange members and other persons 
using its facilities. By eliminating the $.12 per contract side options 
transaction charge, the Exchange believes that members will benefit by 
not having an options transaction charge for customer executions in 
options on RUT, RMN, NDX and MNX and the Exchange will benefit by 
attracting order flow.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 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 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

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by the Exchange, it has become effective 
pursuant to Section 19(b)(3)(A) of the Act \10\ and subparagraph (f)(2) 
of Rule 19b-4 \11\ thereunder. At any time within 60 days of the filing 
of the proposed rule change, the Commission may summarily abrogate 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.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(2).
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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 e-mail to rule-comments@sec.gov. Please include 
File Number SR-Phlx-2009-41 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-2009-41. This file 
number should be included on the subject line if e-mail 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 inspection and copying 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 the filing also will be available for inspection and 
copying at the principal office of Phlx. 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-2009-41 and 
should be submitted on or before June 2, 2009.

    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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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-10993 Filed 5-11-09; 8:45 am]