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)

[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 [email protected]. 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