Document ID: SEC-2012-1630-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX LLC
Posted Date: 2012-10-05T04:00Z

[Federal Register Volume 77, Number 194 (Friday, October 5, 2012)]
[Notices]
[Pages 61039-61041]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-24572]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67951; File No. SR-Phlx-2012-114]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Offer the 
QView Service

October 1, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on September 21, 2012, NASDAQ OMX PHLX LLC (``Phlx'' or 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
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 the 
Substance of the Proposed Rule Change

    PHLX proposes to modify its fee schedule concerning NASDAQ OMX PSX 
(``PSX'') fees to offer the QView service. The Exchange is proposing to 
implement the rule change as soon as possible, but in no event greater 
than thirty calendar days from the filing date of this proposal. The 
text of the proposed rule change is available at http://nasdaqomxphlx.cchwallstreet.com, at PHLX's principal office, 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 self-regulatory organization 
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 those statements may be examined at 
the places specified in Item III below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts 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 is proposing to adopt the new QView service. QView is 
a web-based, front-end application, which provides a subscribing member 
firm with increased transparency over its trading activity on the 
Exchange's equities market, NASDAQ OMX PSX (``PSX''), by allowing the 
member firm to track its Exchange order flow.\3\ In particular, a QView 
subscriber is able to track all of its trading activity on the Exchange 
through detailed order and execution summaries. QView provides a 
subscribing member with statistics concerning the total number of 
executions, total volume, dollar value of executions, executions by 
symbol, add versus remove, buy versus sell, display versus non-display, 
number of open orders, use of routing strategies and liquidity code 
designation. QView also provides information concerning how the 
subscribing member firm ranks in PSX market activity as compared to 
other PSX participants. The data provided by QView is available to the 
subscribing member both in real-time and historically. Subscribing 
member firms are also able to export such data from QView to other 
systems.
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    \3\ A subscribing member possessing multiple MPIDs must 
designate the MPIDs for which it would like to receive QView 
information. A subscribing member, however, may elect to monitor 
only the activity occurring through certain ports associated with a 
subscribed MPID. A member firm seeking to subscribe to QView that 
accesses the Exchange through a sponsored arrangement with another 
Exchange member must provide the Exchange with an executed sponsored 
access data agreement prior to subscribing to QView. The sponsored 
access data agreement makes clear that the subscribing member firm 
is permitted to designate the sponsoring firm's MPID for 
subscription to QView. A copy of this form may be found here: http://www.nasdaqtrader.com/content/productsservices/trading/QView/QView_SponsoredAccessAgreement.pdf.
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    A member firm must subscribe to TradeInfo PSX \4\ to subscribe to 
QView. QView was developed to work in conjunction with TradeInfo PSX, 
so that a subscriber to QView is able to

[[Page 61040]]

seamlessly filter down to the specific order or execution information 
of the orders and executions provided in the QView dashboard interface. 
The dashboard also allows a QView subscriber to track his/her 
executions and open orders in real-time, as well as view its executions 
and open orders as an overall summary, with all totals displayed by 
quantity, share volume, or dollar value. As such, QView provides both 
an overall summary of a subscribing member firm's activity, as well as 
detailed order and execution information, thus providing the subscriber 
a comprehensive tool to track its trading activity.\5\
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    \4\ TradeInfo PSX is a web-based tool that, among other things, 
allows users access to all of the PSX order and execution 
information for their entire firm for both equities and options 
through a single interface. TradeInfo PSX is offered complimentary 
as part of the Workstation or separately for a fee of $95 per user, 
per month. See NASDAQ OMX PHLX LLC PRICING SCHEDULE, VIII. NASDAQ 
OMX PSX FEES.
    \5\ For example, QView will inform a subscribing member of its 
executions in a particular day and provide a link to the details of 
those executions, which is provided by TradeInfo.
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    PHLX notes that an identical QView service is currently offered by 
its sister exchange, The NASDAQ Stock Market LLC for a fee of $600 per 
month, per member firm.\6\ PHLX is proposing to offer QView at no cost 
at the present time, but may assess a fee in the future. If it 
determines to assess a fee, the Exchange will file a rule change 
proposal with the Commission.
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    \6\ See NASDAQ Rule 7058.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b)(5) of the Act,\7\ which requires that the rules of an 
exchange be designed to prevent fraudulent and manipulative acts and 
practices, promote just and equitable principles of trade, foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, protect investors and the public interest. The 
Exchange believes the proposed rule change is consistent with these 
requirements because the proposed service provides subscribing members 
with a useful analytical tool with which they may access information 
concerning their order and trade activity occurring on the Exchange. 
With this information, subscribing members may more closely monitor and 
analyze such activity, and make more informed investment decisions. 
Accordingly, the Exchange believes that the proposed service will 
further goals of the Act by providing subscribing members with greater 
transparency with respect to their order activity on the Exchange. As 
noted above, the proposed QView service is identical to the NASDAQ 
QView service currently offered to NASDAQ members.
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    \7\ 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 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended. To 
the contrary, the proposed rule change is pro-competitive in that it 
will allow the Exchange to disseminate a new service on a voluntary 
basis. QView is voluntary on the part of the Exchange, which is not 
required to offer such products and services, and voluntary on the part 
of prospective users that are not required to use it and may obtain the 
information from other sources.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) by its terms does not become operative for 30 days after the 
date of this filing, or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest, the proposed rule change has become effective pursuant to 
Section 19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(6) thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under 19b-4(f)(6) normally may not 
become operative prior to 30 days after the date of filing.\10\ 
However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate 
a shorter time if such action is consistent with the protection of 
investors and the public interest. The Exchange has requested that the 
Commission waive the 30-day operative delay so that it may offer QView 
at the earliest reasonable time possible. The Exchange notes that the 
services offered by PSX QView are identical to services offered by 
NASDAQ's QView. The Commission believes that waiving the 30-day 
operative delay is consistent with the protection of investors and the 
public interest because such waiver would allow the Exchange to 
immediately offer its QView service so members may benefit immediately 
by tracking their order flow on the Exchange. For this reason, the 
Commission designates the proposed rule change to be operative upon the 
operative date of the Filing.\12\
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    \10\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
    \11\ Id.
    \12\ For the purposes only of waiving the 30-day operative 
delay, the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of such 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.

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-2012-114 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.

All submissions should refer to File Number SR-Phlx-2012-114. 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

[[Page 61041]]

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 
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 Number SR-Phlx-2012-114 and should be submitted on or before 
October 26, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-24572 Filed 10-4-12; 8:45 am]
BILLING CODE 8011-01-P