[Federal Register Volume 77, Number 98 (Monday, May 21, 2012)]
[Notices]
[Pages 30043-30044]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-12196]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66993; File No. SR-Phlx-2012-63]


Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Establish 
a Direct Market Data Product, PHLX Orders

May 15, 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 May 7, 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 establish a direct market data product, 
PHLX Orders. PHLX Orders is a data feed that will include full depth of 
orders on the limit order book for all series of options listed on 
PHLX.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.nasdaqtrader.com/micro.aspx?id=PHLXRulefilings, 
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 the proposed rule change is to establish the PHLX 
Orders data product. PHLX Orders is a real-time full limit order book 
data feed that provides pricing information for orders on the PHLX 
limit order book. PHLX Orders is currently provided as part of the PHLX 
Top of PHLX Options (``TOPO'') Plus Orders data product, described 
below. PHLX Orders is a new offering that will provide data that is 
identical to that which is included in the ``Orders'' portion of the 
TOPO Plus Orders data product.
    In October, 2009, the Exchange made the TOPO Plus Orders data feed 
available to all market participants.\3\ TOPO Plus Orders provides 
disseminated Exchange top-of-market data (including orders, quotes and 
trades) to subscribers.
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    \3\ See Securities Exchange Act Release No. 60877 (October 26, 
2009), 74 FR 56255 (October 30, 2009) (SR-Phlx-2009-92).
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    PHLX Orders will provide real-time information to enable users to 
keep track of the single order book(s), single and complex orders,\4\ 
and Complex Order Live Auction (``COLA'') \5\ for all symbols listed on 
PHLX. PHLX Orders will provide real-time data for the entire book to 
its users. It is a compilation of data for limit orders residing on the 
Exchange's limit order book for options traded on the Exchange that the 
Exchange provides through a real-time data feed. The Exchange updates 
the information upon receipt of each displayed limit order or change to 
any order resting on the book.
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    \4\ A Complex Order is an order involving the simultaneous 
purchase and/or sale of two or more different options series in the 
same underlying security, priced as a net debit or credit based on 
the relative prices of the individual components, for the same 
account, for the purpose of executing a particular investment 
strategy. See Exchange Rule 1080.08(a)(i).
    \5\ See Exchange Rule 1080.08(e).
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    The Exchange believes that some users do not wish or need to 
subscribe to the full TOPO Plus Orders market data product; the PHLX 
Orders data product is being offered to those users that want the order 
book information provided in TOPO Plus Orders but don't have the need 
for the entire TOPO Plus Orders data product. Accordingly, the Exchange 
proposes to make available the PHLX Orders data product for any user 
that needs or wants only the order book information. The Exchange will 
continue to offer the TOPO Plus Orders market data product.
    The Exchange represents that it will make PHLX Orders equally 
available to any market participant that wishes to subscribe to it. The 
Exchange will establish monthly fees for the PHLX Orders data product 
by way of a separate proposed rule change, which the Exchange will 
submit after the PHLX Orders product is established.
    PHLX Orders will provide subscribers with specific order book data 
that should enhance their ability to analyze market conditions, and to 
create and test trading models and analytical strategies. The Exchange 
believes that PHLX Orders is a valuable tool that subscribers can use 
to gain comprehensive insight into the limit order book in a particular 
option.
2. Statutory Basis
    PHLX believes that its proposal is consistent with Section 6(b) of 
the Act \6\ in general, and furthers the objectives of

[[Page 30044]]

Section 6(b)(5) of the Act \7\ in particular, in that it is designed to 
promote just and equitable principles of trade, to remove impediments 
to and perfect the mechanism of a free and open market and a national 
market system, and, in general to protect investors and the public 
interest, by establishing a market data product that enhances 
subscribers' ability to make decisions on trading strategy, and by 
providing data that should help bring about such decisions in a timely 
manner.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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    As stated above, the Exchange represents that it will make PHLX 
Orders equally available to any market participant that wishes to 
subscribe to it.

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

    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 does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days after the date of the filing, or such 
shorter time as the Commission may designate, it has become effective 
pursuant to 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) \9\ 
thereunder.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6). 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 Commission notes that 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 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.

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 [email protected]. Please include 
File No. SR-Phlx-2012-63 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-2012-63. 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 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-2012-63 and should be 
submitted on or before June 11, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-12196 Filed 5-18-12; 8:45 am]
BILLING CODE 8011-01-P