Document ID: SEC-2009-0934-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Extension of a Pilot Program Relating to Fees Applicable to "P" and "P/A" Orders
Posted Date: 2009-07-09T04:00Z

[Federal Register: July 9, 2009 (Volume 74, Number 130)]
[Notices]               
[Page 32989-32990]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09jy09-123]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60210; File No. SR-Phlx-2009-53]

 
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating to 
the Extension of a Pilot Program Relating to Fees Applicable to ``P'' 
and ``P/A'' Orders

July 1, 2009.
    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 June 29, 2009, NASDAQ OMX PHLX, Inc. (``Phlx'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``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 extend for a one-year period until July 
31, 2010, a pilot program relating to transaction fees applicable to 
the execution of Principal Acting as Agent Orders (``P/A Orders'') \3\ 
and Principal Orders (``P Orders'') \4\ sent to the Exchange via the 
Intermarket Option Linkage (``Linkage'') under the Plan for the Purpose 
of Creating and Operating an Intermarket Option Linkage (the 
``Plan'').\5\ The current pilot plan is scheduled to expire July 31, 
2009.\6\
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    \3\ A P/A order is an order for the principal account of a 
specialist (or equivalent entity on another participant exchange 
that is authorized to represent public customer orders), reflecting 
the terms of a related unexecuted Public Customer order for which 
the specialist is acting as agent. See Exchange Rule 1083(k)(i).
    \4\ A Principal Order is an order for the principal account of 
an Eligible Market Maker and is not a P/A Order. See Exchange Rule 
1083(k)(ii).
    \5\ See Securities Exchange Act Release Nos. 44482 (July [sic] 
27, 2001), 66 FR 35470 (July 5, 2001) (Amendment to Plan to Conform 
to the Requirements of Securities Exchange Act Rule 11Acl-7); 43573 
(November 16, 2000), 65 FR 70851 (November 28, 2000) (Notice [sic] 
of Phlx Joining the Plan); and 43086 (July 28, 2000), 65 FR 48023 
(August 4, 2000) (Approval of the Plan).
    \6\ See Securities Exchange Act Release No. 58144 (July 11, 
2008), 73 FR 41394 (July 18, 2008) (SR-Phlx-2008-49).
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    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, 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 those 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 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 purpose of the proposed rule change is to extend the current 
pilot program for one year, through July 31, 2010. No substantive 
changes are being made to the pilot as it currently operates other than 
to extend the pilot through July 31, 2010.
    Currently, the Exchange charges $0.45 per option contract for P 
Orders sent to the Exchange and $0.30 per option contract for P/A 
Orders.\7\
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    \7\ In May 2009, the Exchange increased its transaction fees for 
P/A Orders from $0.15 per option contract to $0.30 per option 
contract, and for P Orders from $0.25 per option contract to $0.45 
per contract. The fee increase was made part of the current pilot 
program, which is scheduled to expire July 31, 2009. See Securities 
Exchange Act Release No. 59891 (May 8, 2009), 74 FR 22990 (May 15, 
2009) (SR-Phlx-2009-24).
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    By extending the current pilot program, the Exchange should remain 
competitive with other exchanges that charge fees for P Orders and P/A 
Orders. Consistent with current practice, the Exchange will charge the 
clearing member organization of the sender of P Orders and P/A Orders. 
Also, consistent with current practice, the Exchange will not charge 
for the execution of Satisfaction Orders sent through Linkage.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the 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. The Exchange believes that its proposal to extend the pilot 
program relating to transaction fees for Linkage P and P/A Orders 
provides for the equitable allocation of reasonable dues, fees, and 
other charges among its members by charging the same fees to all such 
members using the Exchange's facilities for transaction services 
relating to Linkage P Orders, and by charging the same fees to all such 
members using the Exchange's facilities for transaction services 
relating to Linkage P/A Orders.
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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 the purposes of the Act.

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

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

    Because the foregoing proposed rule change: (i) Does not 
significantly affect the protection of investors or the public 
interest; (ii) does not impose any significant burden on competition; 
and (iii) by its terms, does not become operative for 30 days from the 
date on which it was filed, or such shorter time as the Commission may 
designate, if consistent with the protection of investors and the 
public interest, it has become effective pursuant to Section 
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the self-regulatory organization to submit to the 
Commission written notice of its intent to file the proposed rule 
change, along with a brief description and text of 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.
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    At any time within 60 days of the filing of the proposed rule 
change, the

[[Page 32990]]

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.

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-2009-53 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-2009-53. 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 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-2009-53 and should be 
submitted on or before July 30, 2009.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-16178 Filed 7-8-09; 8:45 am]

BILLING CODE 8010-01-P