80_FR_34588 80 FR 34473 - Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Exchange's Pricing Schedule Under Section VIII With Respect to Execution and Routing of Orders in Securities Priced at $1 or More Per Share

80 FR 34473 - Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Exchange's Pricing Schedule Under Section VIII With Respect to Execution and Routing of Orders in Securities Priced at $1 or More Per Share

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 115 (June 16, 2015)

Page Range34473-34475
FR Document2015-14671

Federal Register, Volume 80 Issue 115 (Tuesday, June 16, 2015)
[Federal Register Volume 80, Number 115 (Tuesday, June 16, 2015)]
[Notices]
[Pages 34473-34475]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-14671]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75142; File No. SR-Phlx-2015-48]


Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating to 
the Exchange's Pricing Schedule Under Section VIII With Respect to 
Execution and Routing of Orders in Securities Priced at $1 or More Per 
Share

June 10, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\, and Rule 19b-4 \2\ thereunder, notice is hereby given 
that, on June 1, 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 Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the Exchange's Pricing Schedule 
under Section VIII, entitled ``NASDAQ OMX PSX FEES,'' with respect to 
execution and routing of orders in securities priced at $1 or more per 
share.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqomxphlx.cchwallstreet.com/, 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to amend the charges 
assessed and credits provided for the execution of securities priced at 
$1 or more. Specifically, the Exchange is amending what it assesses a 
member organization entering order that executes in NASDAQ OMX PSX 
System (``PSX''), and it is eliminating the additional credit provided 
to a member firm with a displayed quotes/order with a size of 2,000 or 
more shares.
    The Exchange currently assesses a member organization a charge of 
$0.0029 per share executed for an order entered by a member 
organization that executes on PSX, regardless of the exchange that the 
security is listed on. The Exchange had previously applied different 
charges for execution of an order based on listing venue, but recently 
harmonized the charge for all orders that execute on PSX.\3\ The 
Exchange is now proposing to reduce the charge assessed a member 
organization for receiving an execution on PSX in a Nasdaq-listed 
security from $0.0029 per share executed to $0.0028 per share executed. 
The Exchange is also proposing to reduce the charge for receiving an 
execution on PSX in New York Stock Exchange (``NYSE'')-listed 
securities and securities listed on

[[Page 34474]]

exchanges other than Nasdaq or NYSE from $0.0029 per share executed to 
$0.0027 per share executed.
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    \3\ See Securities Exchange Act Release No. 74880 (May 6, 2015), 
80 FR 27207 (May 12, 2015) (SR-NASDAQ-2015-45).
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    The Exchange is also proposing to eliminate the additional credit 
it provides for certain displayed quotes and orders. Currently, the 
Exchange provides a $0.0001 credit per share executed in addition to 
other credits provided for displayed quotes and orders, if the order 
size is at least 2,000 shares. Orders modified by the PSX participant 
entering the order or by the PSX System processes so that after such 
modification the unexecuted order size is below 2,000 shares will no 
longer qualify for the credit. The credit is designed to provide 
additional incentive to PSX participants to provide market improving 
participation in the form of displayed orders and quotes. The Exchange 
has observed that the credit has not significantly improved market 
quality, so it is eliminating it accordingly.
2. Statutory Basis
    The Exchange believes that the proposed rule changes are consistent 
with the provisions of Section 6 of the Act,\4\ in general, and with 
Sections 6(b)(4) and 6(b)(5) of the Act,\5\ in particular, in that it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among members and issuers and other persons using any 
facility or system which the Exchange operates or controls, and 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; and are not 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \4\ 15 U.S.C. 78f.
    \5\ 15 U.S.C. 78f(b)(4) and (5).
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    The proposed reduction in the charge currently assessed for 
execution on PSX is reasonable because the two new reduced charges are 
designed to attract order flow to PSX, thereby increasing liquidity to 
the benefit of all market participants. The Exchange believes that 
reducing the charge assessed for NYSE-listed securities and securities 
listed on exchanges other than Nasdaq or NYSE more than it is reducing 
the charge for Nasdaq-listed securities is reasonable because it is 
reflective of the Exchange's desire to provide greater incentive to 
market participants to enter orders into the PSX System in NYSE-listed 
securities and securities listed on exchanges other than Nasdaq or 
NYSE. The Exchange believes that the proposed reduction to the charge 
assessed for execution of an order on PSX is consistent with an 
equitable allocation of fees and is not unfairly discriminatory because 
the lower charges apply to all member organizations that enter orders 
that execute in PSX, based on the listing venue of the security. 
Moreover, the Exchange believes that assessing different charges based 
on the listing venue of the security is consistent with an equitable 
allocation of fees and is not unfairly discriminatory because it is 
reflective of the Exchange's use of fees and credits to provide 
incentive to market participants to improve market quality. In the 
instant case, the Exchange is reducing the charge assessed for orders 
that execute in PSX in NYSE-listed securities and securities listed on 
exchanges other than Nasdaq or NYSE more than it is reducing the 
analogous charge for the execution of orders Nasdaq-listed securities 
in an effort to provide greater incentive to all market participants to 
remove liquidity in securities listed on NYSE and securities listed on 
exchanges other than Nasdaq or NYSE.
    The Exchange believes that eliminating the additional $0.0001 per 
share executed credit provided to market participants that enter 
displayed quotes and orders with an order size of 2,000 or more shares 
is reasonable because the credit has not had a significant impact in 
improving market quality in displayed orders and quotes. The Exchange 
must always assess the effectiveness of its transaction pricing in the 
form credits and reduced charges in improving market quality. To the 
extent such pricing does not significantly or efficiently achieve the 
goal of attracting liquidity and improving market quality, the Exchange 
will, as is the case here, eliminate the incentive pricing. The 
Exchange believes that eliminating the additional $0.0001 per share 
executed credit is consistent with an equitable allocation of fees and 
is not unfairly discriminatory because it will apply to all PSX 
participants equally. In this regard, the Exchange notes that the 
additional credit was available to any PSX participant that chose to 
enter orders or quotes that qualified for the credit. Additionally, the 
Exchange notes that PSX participants will continue to receive a credit 
of $0.0020 per share executed for a displayed quote or order, and may 
be eligible to receive other higher credits for displayed quotes and 
orders if they meet the criteria of each credit.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule changes will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended.\6\ 
Phlx notes that it operates in a highly competitive market in which 
market participants can readily favor dozens of different competing 
exchanges and alternative trading systems if they deem charges at a 
particular venue to be excessive, or credit opportunities available at 
other venues to be more favorable. In such an environment, the Exchange 
must continually adjust its charges and credits to remain competitive 
with other exchanges. Because competitors are free to modify their own 
charges and credits in response, and because market participants may 
readily adjust their order routing practices, the Exchange believes 
that the degree to which changes to charges and credits in this market 
may impose any burden on competition is extremely limited.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b)(8).
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    In this instance, the Exchange is proposing to reduce the charge 
assessed for removing liquidity from PSX and eliminating an ineffective 
credit that has not significantly improved market quality. These 
changes do not impose a burden on competition because participation in 
PSX is optional and is the subject of competition from other exchanges. 
The reduced charges are reflective of the Exchange's intent to increase 
the order flow on PSX. Eliminating an ineffective credit frees the 
Exchange to apply different pricing incentives to attract liquidity to 
PSX. For these reasons, the Exchange does not believe that any of the 
proposed changes will impair the ability of members or competing order 
execution venues to maintain their competitive standing in the 
financial markets. Moreover, because there are numerous competitive 
alternatives to the use of the Exchange, it is likely that the PSX will 
lose market share as a result of the changes if they are unattractive 
to market participants.
    Accordingly, Phlx does not believe that the proposed rule changes 
will impair the ability of members or competing order execution venues 
to maintain their competitive standing in the financial markets.

[[Page 34475]]

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act.\7\ 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

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-2015-48 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-Phlx-2015-48. 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 the 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-2015-48 and should be 
submitted on or July 7, 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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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-14671 Filed 6-15-15; 08:45 am]
 BILLING CODE 8011-01-P



                                                                                   Federal Register / Vol. 80, No. 115 / Tuesday, June 16, 2015 / Notices                                                    34473

                                                    this proposed rule change. The                          available for Web site viewing and                      and routing of orders in securities
                                                    Commission believes that waiving the                    printing in the Commission’s Public                     priced at $1 or more per share.
                                                    30-day operative delay 8 is consistent                  Reference Room, 100 F Street NE.,                          The text of the proposed rule change
                                                    with the protection of investors and the                Washington, DC 20549, on official                       is available on the Exchange’s Web site
                                                    public interest and designates the                      business days between the hours of                      at http://
                                                    proposal operative on filing.                           10:00 a.m. and 3:00 p.m. Copies of the                  nasdaqomxphlx.cchwallstreet.com/, at
                                                       At any time within 60 days of the                    filing also will be available for                       the principal office of the Exchange, and
                                                    filing of the proposed rule change, the                 inspection and copying at the principal                 at the Commission’s Public Reference
                                                    Commission summarily may                                office of the Exchange. All comments                    Room.
                                                    temporarily suspend such rule change if                 received will be posted without change;                 II. Self-Regulatory Organization’s
                                                    it appears to the Commission that such                  the Commission does not edit personal                   Statement of the Purpose of, and
                                                    action is necessary or appropriate in the               identifying information from                            Statutory Basis for, the Proposed Rule
                                                    public interest, for the protection of                  submissions. You should submit only                     Change
                                                    investors, or otherwise in furtherance of               information that you wish to make
                                                    the purposes of the Act. If the                         available publicly. All submissions                        In its filing with the Commission, the
                                                    Commission takes such action, the                       should refer to File Number SR–                         Exchange included statements
                                                    Commission will institute proceedings                   NASDAQ–060 and should be submitted                      concerning the purpose of and basis for
                                                    to determine whether the proposed rule                  on or before July 7, 2015.                              the proposed rule change and discussed
                                                    change should be approved or                                                                                    any comments it received on the
                                                                                                              For the Commission, by the Division of                proposed rule change. The text of these
                                                    disapproved.                                            Trading and Markets, pursuant to delegated              statements may be examined at the
                                                    IV. Solicitation of Comments                            authority.9
                                                                                                                                                                    places specified in Item IV below. The
                                                                                                            Robert W. Errett,                                       Exchange has prepared summaries, set
                                                      Interested persons are invited to                     Deputy Secretary.
                                                    submit written data, views and                                                                                  forth in sections A, B, and C below, of
                                                    arguments concerning the foregoing,
                                                                                                            [FR Doc. 2015–14670 Filed 6–15–15; 8:45 am]             the most significant aspects of such
                                                    including whether the proposed rule                     BILLING CODE 8011–01–P                                  statements.
                                                    change is consistent with the Act.                                                                              A. Self-Regulatory Organization’s
                                                    Comments may be submitted by any of                     SECURITIES AND EXCHANGE                                 Statement of the Purpose of, and
                                                    the following methods:                                  COMMISSION                                              Statutory Basis for, the Proposed Rule
                                                    Electronic Comments                                                                                             Change
                                                                                                            [Release No. 34–75142; File No. SR–Phlx–
                                                      • Use the Commission’s Internet                                                                               1. Purpose
                                                                                                            2015–48]
                                                    comment form (http://www.sec.gov/                                                                                  The purpose of the proposed rule
                                                    rules/sro.shtml); or                                    Self-Regulatory Organizations;                          change is to amend the charges assessed
                                                      • Send an email to rule-comments@                     NASDAQ OMX PHLX LLC; Notice of                          and credits provided for the execution
                                                    sec.gov. Please include File Number SR–                 Filing and Immediate Effectiveness of                   of securities priced at $1 or more.
                                                    NASDAQ–2015–060 on the subject line.                    Proposed Rule Change Relating to the                    Specifically, the Exchange is amending
                                                                                                            Exchange’s Pricing Schedule Under                       what it assesses a member organization
                                                    Paper Comments                                          Section VIII With Respect to Execution                  entering order that executes in
                                                       • Send paper comments in triplicate                  and Routing of Orders in Securities                     NASDAQ OMX PSX System (‘‘PSX’’),
                                                    to Secretary, Securities and Exchange                   Priced at $1 or More Per Share                          and it is eliminating the additional
                                                    Commission, 100 F Street NE.,                                                                                   credit provided to a member firm with
                                                    Washington, DC 20549–1090.                              June 10, 2015.
                                                                                                                                                                    a displayed quotes/order with a size of
                                                                                                               Pursuant to Section 19(b)(1) of the                  2,000 or more shares.
                                                    All submissions should refer to File
                                                                                                            Securities Exchange Act of 1934                            The Exchange currently assesses a
                                                    Number SR–NASDAQ–2015–060. This
                                                                                                            (‘‘Act’’) 1, and Rule 19b–4 2 thereunder,               member organization a charge of
                                                    file number should be included on the
                                                                                                            notice is hereby given that, on June 1,                 $0.0029 per share executed for an order
                                                    subject line if email is used. To help the
                                                                                                            2015, NASDAQ OMX PHLX LLC                               entered by a member organization that
                                                    Commission process and review your
                                                                                                            (‘‘Phlx’’ or ‘‘Exchange’’) filed with the               executes on PSX, regardless of the
                                                    comments more efficiently, please use
                                                                                                            Securities and Exchange Commission                      exchange that the security is listed on.
                                                    only one method. The Commission will
                                                                                                            (‘‘SEC’’ or ‘‘Commission’’) the proposed                The Exchange had previously applied
                                                    post all comments on the Commission’s
                                                                                                            rule change as described in Items I, II,                different charges for execution of an
                                                    Internet Web site (http://www.sec.gov/
                                                                                                            and III below, which Items have been                    order based on listing venue, but
                                                    rules/sro.shtml). Copies of the
                                                                                                            prepared by the Exchange. The                           recently harmonized the charge for all
                                                    submission, all subsequent
                                                                                                            Commission is publishing this notice to                 orders that execute on PSX.3 The
                                                    amendments, all written statements
                                                                                                            solicit comments on the proposed rule                   Exchange is now proposing to reduce
                                                    with respect to the proposed rule
                                                                                                            change from interested persons.                         the charge assessed a member
                                                    change that are filed with the
                                                    Commission, and all written                             I. Self-Regulatory Organization’s                       organization for receiving an execution
                                                    communications relating to the                          Statement of the Terms of Substance of                  on PSX in a Nasdaq-listed security from
                                                    proposed rule change between the                        the Proposed Rule Change                                $0.0029 per share executed to $0.0028
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    Commission and any person, other than                                                                           per share executed. The Exchange is
                                                                                                              The Exchange proposes to amend the                    also proposing to reduce the charge for
                                                    those that may be withheld from the                     Exchange’s Pricing Schedule under
                                                    public in accordance with the                                                                                   receiving an execution on PSX in New
                                                                                                            Section VIII, entitled ‘‘NASDAQ OMX                     York Stock Exchange (‘‘NYSE’’)-listed
                                                    provisions of 5 U.S.C. 552, will be                     PSX FEES,’’ with respect to execution                   securities and securities listed on
                                                      8 For purposes only of waiving the 30-day
                                                                                                              9 17 CFR 200.30–3(a)(12).
                                                    operative delay, the Commission has considered the                                                                3 See Securities Exchange Act Release No. 74880
                                                                                                              1 15 U.S.C. 78s(b)(1).
                                                    proposed rule’s impact on efficiency, competition,                                                              (May 6, 2015), 80 FR 27207 (May 12, 2015) (SR–
                                                    and capital formation. See 15 U.S.C. 78c(f).              2 17 CFR 240.19b–4.                                   NASDAQ–2015–45).



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                                                    34474                                Federal Register / Vol. 80, No. 115 / Tuesday, June 16, 2015 / Notices

                                                    exchanges other than Nasdaq or NYSE                        desire to provide greater incentive to                 and may be eligible to receive other
                                                    from $0.0029 per share executed to                         market participants to enter orders into               higher credits for displayed quotes and
                                                    $0.0027 per share executed.                                the PSX System in NYSE-listed                          orders if they meet the criteria of each
                                                       The Exchange is also proposing to                       securities and securities listed on                    credit.
                                                    eliminate the additional credit it                         exchanges other than Nasdaq or NYSE.
                                                    provides for certain displayed quotes                                                                             B. Self-Regulatory Organization’s
                                                                                                               The Exchange believes that the
                                                    and orders. Currently, the Exchange                                                                               Statement on Burden on Competition
                                                                                                               proposed reduction to the charge
                                                    provides a $0.0001 credit per share                        assessed for execution of an order on                     The Exchange does not believe that
                                                    executed in addition to other credits                      PSX is consistent with an equitable                    the proposed rule changes will result in
                                                    provided for displayed quotes and                          allocation of fees and is not unfairly                 any burden on competition that is not
                                                    orders, if the order size is at least 2,000                discriminatory because the lower                       necessary or appropriate in furtherance
                                                    shares. Orders modified by the PSX                         charges apply to all member                            of the purposes of the Act, as amended.6
                                                    participant entering the order or by the                   organizations that enter orders that                   Phlx notes that it operates in a highly
                                                    PSX System processes so that after such                    execute in PSX, based on the listing                   competitive market in which market
                                                    modification the unexecuted order size                     venue of the security. Moreover, the                   participants can readily favor dozens of
                                                    is below 2,000 shares will no longer                       Exchange believes that assessing                       different competing exchanges and
                                                    qualify for the credit. The credit is                      different charges based on the listing                 alternative trading systems if they deem
                                                    designed to provide additional incentive                   venue of the security is consistent with               charges at a particular venue to be
                                                    to PSX participants to provide market                      an equitable allocation of fees and is not             excessive, or credit opportunities
                                                    improving participation in the form of                     unfairly discriminatory because it is                  available at other venues to be more
                                                    displayed orders and quotes. The                           reflective of the Exchange’s use of fees               favorable. In such an environment, the
                                                    Exchange has observed that the credit                      and credits to provide incentive to                    Exchange must continually adjust its
                                                    has not significantly improved market                      market participants to improve market                  charges and credits to remain
                                                    quality, so it is eliminating it                           quality. In the instant case, the                      competitive with other exchanges.
                                                    accordingly.                                               Exchange is reducing the charge                        Because competitors are free to modify
                                                    2. Statutory Basis                                         assessed for orders that execute in PSX                their own charges and credits in
                                                                                                               in NYSE-listed securities and securities               response, and because market
                                                       The Exchange believes that the
                                                                                                               listed on exchanges other than Nasdaq                  participants may readily adjust their
                                                    proposed rule changes are consistent
                                                                                                               or NYSE more than it is reducing the                   order routing practices, the Exchange
                                                    with the provisions of Section 6 of the
                                                                                                               analogous charge for the execution of                  believes that the degree to which
                                                    Act,4 in general, and with Sections
                                                                                                               orders Nasdaq-listed securities in an                  changes to charges and credits in this
                                                    6(b)(4) and 6(b)(5) of the Act,5 in
                                                                                                               effort to provide greater incentive to all             market may impose any burden on
                                                    particular, in that it provides for the
                                                                                                               market participants to remove liquidity                competition is extremely limited.
                                                    equitable allocation of reasonable dues,
                                                    fees and other charges among members                       in securities listed on NYSE and                          In this instance, the Exchange is
                                                    and issuers and other persons using any                    securities listed on exchanges other than              proposing to reduce the charge assessed
                                                    facility or system which the Exchange                      Nasdaq or NYSE.                                        for removing liquidity from PSX and
                                                    operates or controls, and is designed to                      The Exchange believes that                          eliminating an ineffective credit that has
                                                    prevent fraudulent and manipulative                        eliminating the additional $0.0001 per                 not significantly improved market
                                                    acts and practices, to promote just and                    share executed credit provided to                      quality. These changes do not impose a
                                                    equitable principles of trade, to foster                   market participants that enter displayed               burden on competition because
                                                    cooperation and coordination with                          quotes and orders with an order size of                participation in PSX is optional and is
                                                    persons engaged in regulating, clearing,                   2,000 or more shares is reasonable                     the subject of competition from other
                                                    settling, processing information with                      because the credit has not had a                       exchanges. The reduced charges are
                                                    respect to, and facilitating transactions                  significant impact in improving market                 reflective of the Exchange’s intent to
                                                    in securities, to remove impediments to                    quality in displayed orders and quotes.                increase the order flow on PSX.
                                                    and perfect the mechanism of a free and                    The Exchange must always assess the                    Eliminating an ineffective credit frees
                                                    open market and a national market                          effectiveness of its transaction pricing in            the Exchange to apply different pricing
                                                    system, and, in general, to protect                        the form credits and reduced charges in                incentives to attract liquidity to PSX.
                                                    investors and the public interest; and                     improving market quality. To the extent                For these reasons, the Exchange does
                                                    are not designed to permit unfair                          such pricing does not significantly or                 not believe that any of the proposed
                                                    discrimination between customers,                          efficiently achieve the goal of attracting             changes will impair the ability of
                                                    issuers, brokers, or dealers.                              liquidity and improving market quality,                members or competing order execution
                                                       The proposed reduction in the charge                    the Exchange will, as is the case here,                venues to maintain their competitive
                                                    currently assessed for execution on PSX                    eliminate the incentive pricing. The                   standing in the financial markets.
                                                    is reasonable because the two new                          Exchange believes that eliminating the                 Moreover, because there are numerous
                                                    reduced charges are designed to attract                    additional $0.0001 per share executed                  competitive alternatives to the use of the
                                                    order flow to PSX, thereby increasing                      credit is consistent with an equitable                 Exchange, it is likely that the PSX will
                                                    liquidity to the benefit of all market                     allocation of fees and is not unfairly                 lose market share as a result of the
                                                    participants. The Exchange believes that                   discriminatory because it will apply to                changes if they are unattractive to
                                                                                                               all PSX participants equally. In this                  market participants.
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    reducing the charge assessed for NYSE-
                                                    listed securities and securities listed on                 regard, the Exchange notes that the                       Accordingly, Phlx does not believe
                                                    exchanges other than Nasdaq or NYSE                        additional credit was available to any                 that the proposed rule changes will
                                                    more than it is reducing the charge for                    PSX participant that chose to enter                    impair the ability of members or
                                                    Nasdaq-listed securities is reasonable                     orders or quotes that qualified for the                competing order execution venues to
                                                    because it is reflective of the Exchange’s                 credit. Additionally, the Exchange notes               maintain their competitive standing in
                                                                                                               that PSX participants will continue to                 the financial markets.
                                                      4 15   U.S.C. 78f.                                       receive a credit of $0.0020 per share
                                                      5 15   U.S.C. 78f(b)(4) and (5).                         executed for a displayed quote or order,                6 15   U.S.C. 78f(b)(8).



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                                                                                        Federal Register / Vol. 80, No. 115 / Tuesday, June 16, 2015 / Notices                                           34475

                                                    C. Self-Regulatory Organization’s                          those that may be withheld from the                     solicit comments on the proposed rule
                                                    Statement on Comments on the                               public in accordance with the                           change from interested persons.
                                                    Proposed Rule Change Received From                         provisions of 5 U.S.C. 552, will be
                                                                                                                                                                       I. Self-Regulatory Organization’s
                                                    Members, Participants, or Others                           available for Web site viewing and
                                                                                                                                                                       Statement of the Terms of Substance of
                                                      No written comments were either                          printing in the Commission’s Public
                                                                                                                                                                       the Proposed Rule Change
                                                    solicited or received.                                     Reference Room, 100 F Street, NE.,
                                                                                                               Washington, DC 20549, on official                          The Exchange proposes to amend its
                                                    III. Date of Effectiveness of the                          business days between the hours of                      Price List to revise (i) fees and credits
                                                    Proposed Rule Change and Timing for                        10:00 a.m. and 3:00 p.m. Copies of the                  for Mid-Point Passive Liquidity Orders
                                                    Commission Action                                          filing also will be available for                       and Non-Displayed Reserve Orders; (ii)
                                                       The foregoing rule change has become                    inspection and copying at the principal                 credits applicable to certain transactions
                                                    effective pursuant to Section                              office of the Exchange. All comments                    at the open; (iii) credits applicable to
                                                    19(b)(3)(A)(ii) of the Act.7 At any time                   received will be posted without change;                 certain Designated Market Maker
                                                    within 60 days of the filing of the                        the Commission does not edit personal                   transactions; and (iv) credits applicable
                                                    proposed rule change, the Commission                       identifying information from                            to Supplemental Liquidity Providers.
                                                    summarily may temporarily suspend                          submissions. You should submit only                     The Exchange proposes to implement
                                                    such rule change if it appears to the                      information that you wish to make                       the fee change effective June 1, 2015.
                                                    Commission that such action is                             available publicly. All submissions                     The text of the proposed rule change is
                                                    necessary or appropriate in the public                     should refer to File Number SR–Phlx–                    available on the Exchange’s Web site at
                                                    interest, for the protection of investors,                 2015–48 and should be submitted on or                   www.nyse.com, at the principal office of
                                                    or otherwise in furtherance of the                         July 7, 2015.                                           the Exchange, and at the Commission’s
                                                    purposes of the Act. If the Commission                                                                             Public Reference Room.
                                                                                                                 For the Commission, by the Division of
                                                    takes such action, the Commission shall                    Trading and Markets, pursuant to delegated              II. Self-Regulatory Organization’s
                                                    institute proceedings to determine                         authority.8                                             Statement of the Purpose of, and
                                                    whether the proposed rule should be                        Robert W. Errett,                                       Statutory Basis for, the Proposed Rule
                                                    approved or disapproved.                                   Deputy Secretary.                                       Change
                                                    IV. Solicitation of Comments                               [FR Doc. 2015–14671 Filed 6–15–15; 08:45 am]               In its filing with the Commission, the
                                                      Interested persons are invited to                        BILLING CODE 8011–01–P                                  self-regulatory organization included
                                                    submit written data, views and                                                                                     statements concerning the purpose of,
                                                    arguments concerning the foregoing,                                                                                and basis for, the proposed rule change
                                                    including whether the proposed rule                        SECURITIES AND EXCHANGE                                 and discussed any comments it received
                                                    change is consistent with the Act.                         COMMISSION                                              on the proposed rule change. The text
                                                    Comments may be submitted by any of                                                                                of those statements may be examined at
                                                                                                               [Release No. 34–75139; File No. SR–NYSE–                the places specified in Item IV below.
                                                    the following methods:                                     2015–28]
                                                                                                                                                                       The Exchange has prepared summaries,
                                                    Electronic Comments                                                                                                set forth in sections A, B, and C below,
                                                                                                               Self-Regulatory Organizations; New
                                                      • Use the Commission’s Internet                          York Stock Exchange LLC; Notice of                      of the most significant parts of such
                                                    comment form (http://www.sec.gov/                          Filing and Immediate Effectiveness of                   statements.
                                                    rules/sro.shtml); or                                       Proposed Rule Change Amending the                       A. Self-Regulatory Organization’s
                                                      • Send an email to rule-comments@                        Price List To Revise Fees and Credits                   Statement of the Purpose of, and the
                                                    sec.gov. Please include File Number SR–                    for Mid-Point Passive Liquidity Orders                  Statutory Basis for, the Proposed Rule
                                                    Phlx–2015–48 on the subject line.                          and Non Displayed Reserve Orders                        Change
                                                    Paper Comments                                             and To Revise Credits Applicable to
                                                                                                                                                                       1. Purpose
                                                      • Send paper comments in triplicate                      Certain Transactions at the Open,
                                                                                                               Certain Designated Market Maker                            The Exchange proposes to amend its
                                                    to Secretary, Securities and Exchange                                                                              Price List to revise (i) fees and credits
                                                    Commission, 100 F Street, NE.,                             Transactions, and Certain
                                                                                                               Supplemental Liquidity Provider                         for Mid-Point Passive Liquidity (‘‘MPL’’)
                                                    Washington, DC 20549–1090.                                                                                         Orders and Non-Displayed Reserve
                                                                                                               Transactions
                                                    All submissions should refer to File                                                                               Orders; (ii) credits applicable to certain
                                                    Number SR–Phlx–2015–48. This file                          June 10, 2015.                                          transactions at the open; (iii) credits
                                                    number should be included on the                              Pursuant to Section 19(b)(1) 1 of the                applicable to certain Designated Market
                                                    subject line if email is used. To help the                 Securities Exchange Act of 1934 (the                    Maker (‘‘DMM’’) transactions; and (iv)
                                                    Commission process and review your                         ‘‘Act’’) 2 and Rule 19b–4 thereunder,3                  credits applicable to Supplemental
                                                    comments more efficiently, please use                      notice is hereby given that, on May 27,                 Liquidity Providers (‘‘SLPs’’).
                                                    only one method. The Commission will                       2015, New York Stock Exchange LLC
                                                    post all comments on the Commission’s                      (‘‘NYSE’’ or the ‘‘Exchange’’) filed with               MPL Orders and Non-Displayed Reserve
                                                    Internet Web site (http://www.sec.gov/                     the Securities and Exchange                             Orders
                                                    rules/sro.shtml). Copies of the                            Commission (the ‘‘Commission’’) the                       An MPL Order is an undisplayed
                                                    submission, all subsequent                                 proposed rule change as described in                    limit order that trades at the mid-point
                                                    amendments, all written statements                                                                                 of the best protected bid (‘‘PBB’’) and
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                                                                               Items I, II, and III below, which Items
                                                    with respect to the proposed rule                          have been prepared by the self-                         best protected offer (‘‘PBO’’), as such
                                                    change that are filed with the                             regulatory organization. The                            terms are defined in Regulation NMS
                                                    Commission, and all written                                Commission is publishing this notice to                 Rule 600(b)(57) (together, ‘‘PBBO’’).
                                                    communications relating to the                                                                                       The Exchange currently charges
                                                    proposed rule change between the                             8 17 CFR 200.30–3(a)(12).                             $0.0025 per share for all MPL Orders,
                                                    Commission and any person, other than                        1 15 U.S.C. 78s(b)(1).                                not designated as ‘‘retail’’ under Rule
                                                                                                                 2 15 U.S.C. 78a.                                      13, for securities priced $1.00 or more
                                                      7 15   U.S.C. 78s(b)(3)(A)(ii).                            3 17 CFR 240.19b–4.                                   that remove liquidity from the


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Document Created: 2018-02-22 10:23:00
Document Modified: 2018-02-22 10:23:00
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 34473 

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