80 FR 18875 - Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Move the Rule Text of Current Rule 1070, Customer Complaints, Into Rule 1028, Confirmations, To Accommodate an Upcoming Rulebook Reorganization

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 67 (April 8, 2015)

Page Range		18875-18877
FR Document		2015-07959

Federal Register, Volume 80 Issue 67 (Wednesday, April 8, 2015)

[Federal Register Volume 80, Number 67 (Wednesday, April 8, 2015)]
[Notices]
[Pages 18875-18877]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2015-07959]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74631; File No. SR-PHLX-2015-31]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to Move the
Rule Text of Current Rule 1070, Customer Complaints, Into Rule 1028,
Confirmations, To Accommodate an Upcoming Rulebook Reorganization

April 2, 2015.
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 March 24, 2015, 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 the
Substance of the Proposed Rule Change

The Exchange proposes to move the rule text of current Rule 1070,
Customer Complaints, into Rule 1028, Confirmations, to accommodate an
upcoming rulebook reorganization. No

[[Page 18876]]

substantive changes are proposed for Rule 1070 or Rule 1028.
The text of the proposed rule change is below; proposed new
language is italicized; proposed deletions are in brackets.
* * * * *
Rule 1028. Confirmations and Complaints
(a) Every member and member organization shall promptly furnish to
each customer a written confirmation of each transaction in option
contracts for such customer's account. Each such confirmation shall
show the type of option, the underlying stock, Exchange-Traded Fund
Share or foreign currency, as the case may be, the expiration month,
the exercise price, the number of option contracts, the premium,
commissions, the transaction and settlement dates, whether the
transaction was a purchase or a sale (writing) transaction, whether the
transaction was an opening or a closing transaction, and whether the
transaction was effected on a principal or agency basis. The
confirmation shall by appropriate symbols distinguish between Exchange
options transactions and other transactions in option contracts though
such confirmation does not need to specify the exchange or exchanges on
which such option contracts were executed.
(b) Every member organization conducting a customer business shall
maintain and keep current a separate central log, index or other file
for all options-related complaints, through which these complaints can
easily be identified and retrieved. The central file shall be located
at the principal place of business of the member organization or such
other principal office as shall be designated by the member
organization. At a minimum, the central file shall include: (i)
Identification of complaint; (ii) date complaint was received; (iii)
identification of Registered Representative servicing the account; (iv)
a general description of the matter complained of, and (v) a record of
what action, if any, has been taken by the member organization with
respect to the complaint. The term ``options-related complaint'' shall
mean any written statement by a customer or person acting on behalf of
a customer alleging a grievance arising out of or in connection with
listed options. Each options-related complaint received by a branch
office of a member organization shall be forwarded to the office in
which the separate, central file is located no later than 30 days after
receipt by the branch office. A copy of every options-related complaint
shall be maintained at the branch office that is the subject of the
complaint.
(1) The provisions of this Rule shall be applicable to index
warrants.
* * * * *
Rule 1070. [Customer Complaints] Reserved.
[Every member organization conducting a customer business shall
maintain and keep current a separate central log, index or other file
for all options-related complaints, through which these complaints can
easily be identified and retrieved. The central file shall be located
at the principal place of business of the member organization or such
other principal office as shall be designated by the member
organization. At a minimum, the central file shall include: (i)
Identification of complaint; (ii) date complaint was received; (iii)
identification of Registered Representative servicing the account; (iv)
a general description of the matter complained of, and (v) a record of
what action, if any, has been taken by the member organization with
respect to the complaint. The term ``options-related complaint'' shall
mean any written statement by a customer or person acting on behalf of
a customer alleging a grievance arising out of or in connection with
listed options. Each options-related complaint received by a branch
office of a member organization shall be forwarded to the office in
which the separate, central file is located no later than 30 days after
receipt by the branch office. A copy of every options-related complaint
shall be maintained at the branch office that is the subject of the
complaint.
(a) the provisions of this Rule shall be applicable to index
warrants.]
* * * * *

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
Statutory Basis for, the Proposed Rule Change

1. Purpose
The purpose of this filing is to reorganize the rulebook, moving
text from Rule 1070 to Rule 1028, so that the Rule 1070 rule number
will be available for subsequent rulebook organizational changes. This
proposed rule change is purely administrative. No substantive changes
are proposed.
The text of current Rule 1070 will be moved to a new section (b) of
Rule 1028. Existing Rule 1028 text will be preserved as new Rule 1028,
section (a). The text imported from current Rule 1070 will be set forth
in Rule 1028(b). The title of current Rule 1028 will be changed to read
``Confirmations and Complaints'' and Rule 1070 will be shown as
``[Reserved]''.\3\
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\3\ The Exchange is redesignating the sentence currently found
in Rule 1070(a) as Rule 1028(b)(1).
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2. Statutory Basis
Phlx believes that the proposed rule change is consistent with the
provisions of Section 6 of the Act,\4\ in general, and with Section
6(b)(5) of the Act \5\ in particular, in that the proposal is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, 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.
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\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(5).
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The proposal is designed simply to rearrange rulebook language in
order to lay the groundwork for subsequent, more comprehensive
organizational changes. No substantive changes are proposed to be made
at this time.

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. The Exchange's proposal to
renumber the rule will simply help to streamline the rulebook by
accommodating a larger reorganization and will therefore result in
administrative efficiencies for the Exchange. No substantive changes
are being proposed.

[[Page 18877]]

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 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 from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(ii) [sic] of the Act \6\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\7\
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\6\ 15 U.S.C. 78s(b)(3)(a)(ii). [sic]
\7\ 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 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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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 rule-comments@sec.gov. Please include
File Number SR-PHLX-2015-31 on the subject line.

Paper Comments

Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-PHLX-2015-31. 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 offices 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-2015-31,
and should be submitted on or before April 29, 2015.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-07959 Filed 4-7-15; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 67 / Wednesday, April 8, 2015 / Notices 18875

reasonable and is designed to remove filing of the proposed rule change or printing in the Commission’s Public
impediments to and perfect the such shorter time as designated by the Reference Room, 100 F Street NE.,
mechanism of a free and open market by Commission,15 the proposed rule Washington, DC 20549 on official
harmonizing the manner by which the change has become effective pursuant to business days between the hours of
Exchanges permits member Section 19(b)(3)(A) of the Act 16 and 10:00 a.m. and 3:00 p.m. Copies of the
organizations to aggregate volume with Rule 19b–4(f)(6) thereunder.17 filing will also be available for
other exchanges. In particular, the At any time within 60 days of the inspection and copying at the NYSE’s
Exchange notes that NASDAQ, PHLX filing of the proposed rule change, the principal office and on its Internet Web
and BX all have the same standard that Commission summarily may site at www.nyse.com. All comments
the Exchange is proposing to adopt. temporarily suspend such rule change if received will be posted without change;
it appears to the Commission that such the Commission does not edit personal
B. Self-Regulatory Organization’s
action is necessary or appropriate in the identifying information from
Statement on Burden on Competition
public interest, for the protection of submissions. You should submit only
In accordance with Section 6(b)(8) of investors, or otherwise in furtherance of information that you wish to make
the Act,14 the Exchange does not believe the purposes of the Act. If the available publicly. All submissions
that the proposed rule change will Commission takes such action, the should refer to File Number SR–NYSE–
impose any burden on intermarket or Commission will institute proceedings 2015–13 and should be submitted on or
intramarket competition that is not to determine whether the proposed rule before April 29, 2015.
necessary or appropriate in furtherance change should be approved or For the Commission, by the Division of
of the purposes of the Act. As stated disapproved. Trading and Markets, pursuant to delegated
above, the proposed rule change, which authority.18
applies equally to all member IV. Solicitation of Comments
Brent J. Fields,
organizations, is intended to reduce the Interested persons are invited to Secretary.
Exchange’s administrative burden in submit written data, views, and [FR Doc. 2015–07968 Filed 4–7–15; 8:45 am]
applying volume price discounts for arguments concerning the foregoing,
BILLING CODE 8011–01–P
firms which have requested aggregation including whether the proposed rule
with that of an affiliate member change is consistent with the Act.
organization, and is substantially Comments may be submitted by any of SECURITIES AND EXCHANGE
similar to rules adopted by other the following methods: COMMISSION
exchanges. Because the market for order
execution and routing is extremely Electronic Comments [Release No. 34–74631; File No. SR–PHLX–
competitive, member organizations may • Use the Commission’s Internet 2015–31]
readily opt to disfavor the Exchange if comment form (http://www.sec.gov/
rules/sro.shtml); or Self-Regulatory Organizations;
they believe that alternatives offer them
• Send an email to rule-comments@ NASDAQ OMX PHLX LLC; Notice of
better value. The Exchange does not Filing and Immediate Effectiveness of
believe the proposed changes will sec.gov. Please include File Number SR–
NYSE–2015–13 on the subject line. Proposed Rule Change to Move the
impair the ability of member Rule Text of Current Rule 1070,
organizations or competing order Paper Comments Customer Complaints, Into Rule 1028,
execution venues to maintain their Confirmations, To Accommodate an
competitive standing in the financial • Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities Upcoming Rulebook Reorganization
markets.
and Exchange Commission, 100 F Street April 2, 2015.
C. Self-Regulatory Organization’s NE., Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the
Statement on Comments on the All submissions should refer to File Securities Exchange Act of 1934
Proposed Rule Change Received From Number SR–NYSE–2015–13. This file (‘‘Act’’) 1, and Rule 19b–4 thereunder,2
Members, Participants, or Others number should be included on the notice is hereby given that on March 24,
No written comments were solicited subject line if email is used. To help the 2015, NASDAQ OMX PHLX LLC
or received with respect to the proposed Commission process and review your (‘‘Phlx’’ or ‘‘Exchange’’) filed with the
rule change. comments more efficiently, please use Securities and Exchange Commission
only one method. The Commission will (‘‘SEC’’ or ‘‘Commission’’) the proposed
III. Date of Effectiveness of the
post all comments on the Commission’s rule change as described in Items I, II,
Proposed Rule Change and Timing for
Internet Web site (http://www.sec.gov/ and III, below, which Items have been
Commission Action
rules/sro.shtml). Copies of the prepared by the Exchange. The
Because the foregoing rule does not (i) submission, all subsequent Commission is publishing this notice to
significantly affect the protection of amendments, all written statements solicit comments on the proposed rule
investors or the public interest; (ii) with respect to the proposed rule change from interested persons.
impose any significant burden on change that are filed with the
competition; and (iii) become operative Commission, and all written I. Self-Regulatory Organization’s
for 30 days from the date on which it communications relating to the Statement of the Terms of the Substance
was filed, or such shorter time as the proposed rule change between the of the Proposed Rule Change
Commission may designate if consistent
asabaliauskas on DSK5VPTVN1PROD with NOTICES

Commission and any person, other than The Exchange proposes to move the
with the protection of investors and the those that may be withheld from the rule text of current Rule 1070, Customer
public interest, provided that the self- public in accordance with the Complaints, into Rule 1028,
regulatory organization has given the provisions of 5 U.S.C. 552, will be Confirmations, to accommodate an
Commission written notice of its intent available for Web site viewing and upcoming rulebook reorganization. No
to file the proposed rule change at least
five business days prior to the date of 15 The Exchange has fulfilled this requirement. 18 17 CFR 200.30–3(a)(12).
16 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
14 15 U.S.C. 78f(b)(8). 17 17 CFR 240.19b–4(f)(6). 2 17 CFR 240.19b-4.

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Document Created: 2018-02-21 10:07:11
Document Modified: 2018-02-21 10:07:11

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 18875