Daily Rules, Proposed Rules, and Notices of the Federal Government
The Exchange proposes to make it possible for the staff of Phlx to require an immediate answer to their inquiries to floor brokers for client information about the agency orders those floor brokers handle. The text of the proposed rule change is available at
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.
Phlx proposes to have the ability to require an immediate answer to its inquiries to floor brokers related to the identity of the clients behind agency orders that the floor brokers handle. The current text of the rule to be amended provides each member, member organization or associated person a timeframe of two business days to respond to the Exchange's inquiries in order for the response to be deemed as a prompt compliance. However, in the case where a floor broker receives an agency order from his client, the Exchange's regulatory staff must be able to know immediately the identity of that client when the order is subject of a complaint or otherwise requires regulatory review. Such authority is necessary in order for the Phlx regulatory staff to be able to take an action regarding concerns that stem from their observation of order handling, a complaint by a market participant, or a complaint by regulatory staff from another self-regulatory organization that is party to an information sharing agreement with Phlx. Accordingly, Phlx is proposing that the fines provided for in Option Floor Procedure F-8 will be assessed if a floor broker fails to respond immediately to a request for information about its client.
Phlx believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,
Phlx 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.
Written comments were neither solicited nor received.
The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
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.
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:
* Use the Commission's Internet comment form(
* Send an email to
* Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.