80 FR 42156 - Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt a Midpoint Peg Post-Only Order Under Rule 3301A(b)

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 136 (July 16, 2015)

Page Range		42156-42158
FR Document		2015-17397
Federal Register, Volume 80 Issue 136 (Thursday, July 16, 2015)
[Federal Register Volume 80, Number 136 (Thursday, July 16, 2015)]
[Notices]
[Pages 42156-42158]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-17397]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75424; File No. SR-Phlx-2015-56]


Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Adopt a 
Midpoint Peg Post-Only Order Under Rule 3301A(b)

July 10, 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 June 26, 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 and II 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 adopt a Midpoint Peg Post-Only Order under 
Rule 3301A(b).
    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 Exchange is proposing to adopt a Midpoint Peg Post-Only Order 
\3\ for use on the Exchange's NASDAQ OMX PSX System (``PSX System'' or 
``PSX''), which is based on the Midpoint Peg Post-Only Order of the 
NASDAQ Stock Market (``NASDAQ'').\4\ A Midpoint Peg Post-Only Order is 
a Non-Displayed \5\ Order that is priced at the midpoint between the 
National Best Bid and Offer (``NBBO'') and that will execute upon entry 
against locking or crossing quotes only in circumstances where 
economically beneficial to the party entering the Midpoint Peg Post-
Only Order. Because the Order is priced at the midpoint, it can provide 
price improvement to incoming Orders when it is executed after posting 
to the PSX book. The Midpoint Peg Post-Only Order will be available 
during regular market hours (9:30 a.m. until 4:00 p.m. ET) only.
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    \3\ The term ``Order'' is defined in Rule 3301(e).
    \4\ The Exchange notes that the proposed rule text is based on 
newly-amended NASDAQ rule text, which provides a clearer and more 
detailed description of its Midpoint Peg Post-Only Order 
functionality than its prior rule. See Securities Exchange Act 
Release No. 75252 (June 22, 2015) (not yet published in the Federal 
Register) (Order approving SR-NASDAQ-2015-024).
    \5\ See Rule 3301B(k).
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    A Midpoint Peg Post-Only Order must be assigned a limit price. When 
a Midpoint Peg Post-Only Order is entered, it will be priced at the 
midpoint between the NBBO, unless such midpoint is higher than (lower 
than) the limit price of an Order to buy (sell), in which case the 
Midpoint Peg Post-Only Order will be priced at its limit price. If the 
NBBO is locked, the Midpoint Peg Post-Only Order will be priced at the 
locking price, if the NBBO is crossed, it will nevertheless be priced 
at the midpoint between the NBBO (provided, however, that the Order may 
execute as described below), and if there is no NBBO,\6\ the Midpoint 
Peg Post-Only Order will be rejected. The Midpoint Peg Post-Only Order 
will post to the PSX book unless it is a buy (sell) Order that is 
priced higher than (lower than) a sell (buy) Order on the PSX book, in 
which case it will execute at the price of the Order on the PSX book; 
provided, however, that if the Order has

[[Page 42157]]

a Time-in-Force of IOC, the Order will be cancelled after determining 
whether it can be executed. For example, if the Best Bid was $11 and 
the Best Offer was $11.06, the price of the Midpoint Peg Post-Only 
Order to buy would be $11.03. If there was a Non-Displayed Order (or 
another Order with a Non-Display Order Attribute) on the PSX book to 
sell at $11.02, the incoming Midpoint Peg Post-Only Order to buy would 
execute against it at $11.02. However, if there was a Non-Displayed 
Order (or another Order with a Non-Display Order Attribute) to sell at 
$11.03, the Midpoint Peg Post-Only Order to buy would post at $11.03. 
While a Midpoint Peg Post-Only Order that posts to the PSX book is 
locking a preexisting Order, the Midpoint Peg Post-Only Order will 
execute against an incoming Order only if the price of the incoming 
sell (buy) Order is lower (higher) than the price of the preexisting 
Order. Thus, in the previous example, if the incoming Midpoint Peg 
Post-Only Order locked the preexisting Non-Displayed Order at $11.03, 
the Midpoint Peg Post-Only Order could execute only against an incoming 
Order to sell priced at less than $11.03.
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    \6\ That is, if no market center is disseminating a displayed 
bid or a displayed offer, such that it is impossible to determine a 
midpoint price.
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    A Midpoint Peg Post-Only Order that would be assigned a price of $1 
or less per share will be rejected or canceled, as applicable.
    If a Midpoint Peg Post-Only Order is entered through RASH or FIX, 
the Midpoint Peg Post-Only Order may be repriced in the following 
manner after initial entry and posting to the PSX book:
     The price of the Midpoint Peg Post-Only Order will be 
updated repeatedly to equal the midpoint between the NBBO; provided, 
however, that the Order will not be priced higher (lower) than the 
limit price of an Order to buy (sell). In the event that the midpoint 
between the NBBO becomes higher than (lower than) the limit price of an 
Order to buy (sell), the price of the Order will stop updating and the 
Order will post (with a Non-Display Order Attribute) at its limit 
price, but will resume updating if the midpoint becomes lower than 
(higher than) the limit price of an Order to buy (sell). Similarly, if 
a Midpoint Peg Post-Only Order is on the PSX book and subsequently 
there is no NBBO, the Order will be cancelled. The Midpoint Peg Post-
Only Order receives a new timestamp each time its price is changed.
    If a Midpoint Peg Post-Only Order is entered through OUCH or FLITE, 
the Midpoint Peg Post-Only Order may be repriced in the following 
manner after initial entry and posting to the PSX book:
     The price at which the Midpoint Peg Post-Only Order is 
ranked on the PSX book is the midpoint between the NBBO, unless the 
Order has a limit price that is lower than the midpoint between the 
NBBO for an Order to buy (higher than the midpoint between the NBBO for 
an Order to sell), in which case the Order will be ranked on the PSX 
book at its limit price and will be available for potential execution 
at its limit price. The price of the Order will not thereafter be 
repriced based on changes to the NBBO. If, after being posted to the 
PSX book, the NBBO changes such that the midpoint of the NBBO is no 
longer equal to the price at which the Midpoint Peg Post-Only Order is 
posted, the Order will be cancelled back to the Participant. For 
example, if the Best Bid is $11 and the Best Offer is $11.06, a 
Midpoint Peg Post-Only Order to buy would post at $11.03. If, 
thereafter, the Best Offer is reduced to $11.05, the Midpoint Peg Post-
Only Order will be cancelled back to the Participant.
    The following Order Attributes may be assigned to a Midpoint Peg 
Post-Only Order:
     Price of more than $1 per share.
     Size.\7\
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    \7\ See Rule 3301B(b).
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     Time-in-Force; \8\ provided, however, that a Midpoint Peg 
Post-Only Order with a Time-in-Force of IOC may not be entered through 
RASH or FIX, and provided further, that regardless of the Time-in-Force 
entered, a Midpoint Post-Only Order may not be active outside of the 
Regular Market Session. A Midpoint Peg Post-Only Order entered prior to 
the beginning of the Regular Market Session will be rejected. A 
Midpoint Peg Post-Only Order remaining on the System book at 4:00 p.m. 
ET will be cancelled by the System.
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    \8\ See Rule 3301B(a).
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     Pegging \9\ to the midpoint is required for Midpoint Peg 
Post-Only Orders entered through RASH or FIX. As discussed above, the 
price of a Midpoint Peg Post-Only Order entered through OUCH or FLITE 
will be pegged to the midpoint upon entry and not repriced thereafter.
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    \9\ See Rule 3301B(d).
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     Minimum Quantity.\10\
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    \10\ See Rule 3301B(e).
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     Non-Displayed. All Midpoint Peg Post-Only Orders are Non-
Displayed.
    The Exchange is proposing to implement the new Midpoint Peg Post-
Only Order on July 1, 2015. The Exchange notes that it has completed 
the development and testing needed to implement the change. Moreover, 
Exchange participants are interested in utilizing the new order type. 
As such, the Exchange believes it is appropriate to implement the 
change at the earliest time possible.
2. Statutory Basis
    PHLX believes that the proposed rule changes are consistent with 
the provisions of section 6 of the Act,\11\ in general, and with 
section 6(b)(5) of the Act,\12\ 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; and also in 
that it is not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \11\ 15 U.S.C. 78f.
    \12\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that offering market participants with an 
additional Order Type, which is currently available to NASDAQ market 
participants, will allow PSX market participants greater control over 
their executions and is indicative of the Exchange's maturation as an 
equities market. Allowing PSX market participants the ability to more 
precisely select the conditions in which their Order may be executed 
removes impediments to and perfects the mechanism of a free and open 
market and a national market system because it benefits all market 
participants and ensures that PHLX is able to compete with other market 
venues by providing similar tools and functionality. This functionality 
is nearly identical to the Midpoint Peg Post-Only Order of NASDAQ \13\ 
that has been available on NASDAQ since 2011 \14\ and is well known to 
its market participants. As noted above, the Exchange is copying newly-
amended NASDAQ rule text, which provides a clearer and more detailed 
description of its Midpoint Peg Post-Only Order functionality than its 
prior rule.\15\ Lastly, offering Midpoint Peg Post-Only Order to PSX 
market participants raises no issues concerning unfair discrimination 
as the new Order

[[Page 42158]]

Type is available to all PSX market participants.
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    \13\ The Exchange notes that NASDAQ uses a cross in its opening, 
closing and halt processes, which is accounted for in its Midpoint 
Peg Post-Only Order rule. PSX does not have such processes.
    \14\ See Securities Exchange Act Release No. 64430 (May 6, 
2011), 76 FR 27699 (May 12, 2011) (SR-NASDAQ-2011-059).
    \15\ Supra note 4.
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    The Exchange notes that, like a Post-Only Order, a Midpoint Peg 
Post-Only Order allows a market participant to control its trading 
costs by executing upon entry when receiving price improvement but 
otherwise posting to the PSX book pegged to the midpoint subject to its 
limit price. Thereafter, the Order Type serves to provide price 
improvement to other incoming Orders by executing a price between the 
NBBO. As such, the Exchange believes the Midpoint Peg Post-Only Order 
further perfects the mechanism of a free and open market and promotes 
the public interest by both providing greater control to a market 
participant and improving market quality for all participants.

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

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. Specifically, 
the Exchange believes that the proposal will enhance Phlx's 
competitiveness by providing its market participants with an additional 
control over the circumstances in which their Orders may be executed. 
As discussed above, the Midpoint Peg Post-Only Order is available on 
NASDAQ, and providing it on PSX will allow Phlx to compete with NASDAQ 
and any other market venue that provides a similar Order Type. This 
may, in turn, increase the extent of liquidity available on PSX and 
increase its ability to compete with other execution venues to attract 
Orders to PSX. The Exchange further believes that the introduction of 
the Midpoint Peg Post-Only Order will not impair in any manner the 
ability of market participants or other execution venues to compete.

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 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) of the Act \16\ and Rule 19b-4(f)(6) thereunder.\17\
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    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of 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.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \18\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \19\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has asked the Commission to waive the 30-day operative delay so that 
the proposal may become operative immediately upon filing. The Exchange 
believes that waiver of the operative delay would provide PSX market 
participants with an additional option to designate the circumstances 
in which their Orders may be executed, thus giving them more control 
over the nature of their Orders. The Exchange stated that the 
programming changes needed to implement the proposed rule change are 
now ready and market participants have been provided notice of the 
change. The Commission believes the waiver of the operative delay is 
consistent with the protection of investors and the public interest. 
Therefore, the Commission hereby waives the operative delay and 
designates the proposal operative upon filing.\20\
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    \18\ 17 CFR 240.19b-4(f)(6).
    \19\ 17 CFR 240.19b-4(f)(6)(iii).
    \20\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule change 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-2015-56 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-2015-56. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-Phlx-2015-56, and should be 
submitted on or before August 6, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-17397 Filed 7-15-15; 8:45 am]
BILLING CODE 8011-01-P
42156 Federal Register / Vol. 80, No. 136 / Thursday, July 16, 2015 / Notices

Reference Room, 100 F Street NE., For the Commission, by the Division of the most significant aspects of such
Washington, DC 20549, on official Trading and Markets, pursuant to delegated statements.
business days between the hours of authority.17
Jill M. Peterson, A. Self-Regulatory Organization’s
10:00 a.m. and 3:00 p.m. Copies of such Statement of the Purpose of, and
filing also will be available for Assistant Secretary.
Statutory Basis for, the Proposed Rule
inspection and copying at the principal [FR Doc. 2015–17398 Filed 7–15–15; 8:45 am]
Change
office of the CBOE. All comments BILLING CODE 8011–01–P
received will be posted without change; 1. Purpose
the Commission does not edit personal The Exchange is proposing to adopt a
identifying information from SECURITIES AND EXCHANGE
Midpoint Peg Post-Only Order 3 for use
COMMISSION
submissions. You should submit only on the Exchange’s NASDAQ OMX PSX
information that you wish to make [Release No. 34–75424; File No. SR–Phlx– System (‘‘PSX System’’ or ‘‘PSX’’),
available publicly. All submissions 2015–56] which is based on the Midpoint Peg
should refer to File Number SR–CBOE– Post-Only Order of the NASDAQ Stock
Self-Regulatory Organizations; Market (‘‘NASDAQ’’).4 A Midpoint Peg
2015–044 and should be submitted on
NASDAQ OMX PHLX LLC; Notice of Post-Only Order is a Non-Displayed 5
or before August 6, 2015.
Filing and Immediate Effectiveness of Order that is priced at the midpoint
V. Accelerated Approval of Proposed Proposed Rule Change To Adopt a between the National Best Bid and Offer
Rule Change, as Modified by Midpoint Peg Post-Only Order Under (‘‘NBBO’’) and that will execute upon
Amendment No. 1 Rule 3301A(b) entry against locking or crossing quotes
July 10, 2015. only in circumstances where
The Commission finds good cause to economically beneficial to the party
approve the proposed rule change, as Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 entering the Midpoint Peg Post-Only
modified by Amendment No. 1, prior to Order. Because the Order is priced at
the thirtieth day after the date of (‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 26, the midpoint, it can provide price
publication of notice of the amendment improvement to incoming Orders when
in the Federal Register. Amendment 2015, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the it is executed after posting to the PSX
No. 1 modifies the proposed rule change book. The Midpoint Peg Post-Only
Securities and Exchange Commission
by removing proposed amendments to Order will be available during regular
(‘‘SEC’’ or ‘‘Commission’’) the proposed
the strategy-based customer margin rule change as described in Items I and market hours (9:30 a.m. until 4:00 p.m.
requirements in CBOE Rule 12.3 and II below, which Items have been ET) only.
removing references to portfolio prepared by the Exchange. The A Midpoint Peg Post-Only Order must
margining. The Commission believes Commission is publishing this notice to be assigned a limit price. When a
that the removal of the proposed margin solicit comments on the proposed rule Midpoint Peg Post-Only Order is
requirements for Asian and Cliquet change from interested persons. entered, it will be priced at the
FLEX Broad-Based Index options, set midpoint between the NBBO, unless
forth in Amendment No. 1, simply I. Self-Regulatory Organization’s such midpoint is higher than (lower
clarify that the Exchange would apply Statement of the Terms of the Substance than) the limit price of an Order to buy
the existing strategy-based customer of the Proposed Rule Change (sell), in which case the Midpoint Peg
margin requirements for broad-based The Exchange proposes to adopt a Post-Only Order will be priced at its
index options to Asian and Cliquet Midpoint Peg Post-Only Order under limit price. If the NBBO is locked, the
options. In addition, the Commission Rule 3301A(b). Midpoint Peg Post-Only Order will be
notes that the Exchange has represented The text of the proposed rule change priced at the locking price, if the NBBO
is available on the Exchange’s Web site is crossed, it will nevertheless be priced
that it will monitor trading in the
at http:// at the midpoint between the NBBO
proposed products and would continue
nasdaqomxphlx.cchwallstreet.com/, at (provided, however, that the Order may
to evaluate the strategy-based customer execute as described below), and if there
margin levels.14 Accordingly, the the principal office of the Exchange, and
at the Commission’s Public Reference is no NBBO,6 the Midpoint Peg Post-
Commission finds good cause, pursuant Only Order will be rejected. The
Room.
to section 19(b)(2) of the Act,15 to Midpoint Peg Post-Only Order will post
approve the proposed rule change, as II. Self-Regulatory Organization’s to the PSX book unless it is a buy (sell)
modified by Amendment No. 1, on an Statement of the Purpose of, and Order that is priced higher than (lower
accelerated basis. Statutory Basis for, the Proposed Rule than) a sell (buy) Order on the PSX
Change book, in which case it will execute at
VI. Conclusion
In its filing with the Commission, the the price of the Order on the PSX book;
It is therefore ordered, pursuant to Exchange included statements provided, however, that if the Order has
section 19(b)(2) of the Act,16 that the concerning the purpose of and basis for
3 The term ‘‘Order’’ is defined in Rule 3301(e).
proposed rule change (SR–CBOE–2015– the proposed rule change and discussed
4 The Exchange notes that the proposed rule text
044), as modified by Amendment No. 1, any comments it received on the
is based on newly-amended NASDAQ rule text,
be, and it hereby is, approved on an proposed rule change. The text of these which provides a clearer and more detailed
accelerated basis. statements may be examined at the description of its Midpoint Peg Post-Only Order
tkelley on DSK3SPTVN1PROD with NOTICES

places specified in Item IV below. The functionality than its prior rule. See Securities
Exchange has prepared summaries, set Exchange Act Release No. 75252 (June 22, 2015)
(not yet published in the Federal Register) (Order
forth in sections A, B, and C below, of approving SR–NASDAQ–2015–024).
5 See Rule 3301B(k).
14 See Amendment No. 1. 17 17 CFR 200.30–3(a)(12). 6 That is, if no market center is disseminating a
15 15 U.S.C. 78s(b)(2). 1 15 U.S.C. 78s(b)(1). displayed bid or a displayed offer, such that it is
16 15 U.S.C. 78s(b)(2). 2 17 CFR 240.19b–4. impossible to determine a midpoint price.

VerDate Sep<11>2014 17:39 Jul 15, 2015 Jkt 235001 PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 E:\FR\FM\16JYN1.SGM 16JYN1
42158 Federal Register / Vol. 80, No. 136 / Thursday, July 16, 2015 / Notices

Type is available to all PSX market become effective pursuant to section change is consistent with the Act.
participants. 19(b)(3)(A) of the Act 16 and Rule 19b– Comments may be submitted by any of
The Exchange notes that, like a Post- 4(f)(6) thereunder.17 the following methods:
Only Order, a Midpoint Peg Post-Only A proposed rule change filed
Order allows a market participant to pursuant to Rule 19b–4(f)(6) under the Electronic Comments
control its trading costs by executing Act 18 normally does not become • Use the Commission’s Internet
upon entry when receiving price operative for 30 days after the date of its comment form (http://www.sec.gov/
improvement but otherwise posting to filing. However, Rule 19b–4(f)(6)(iii) 19 rules/sro.shtml); or
the PSX book pegged to the midpoint permits the Commission to designate a
subject to its limit price. Thereafter, the shorter time if such action is consistent • Send an email to rule-comments@
Order Type serves to provide price with the protection of investors and the sec.gov. Please include File Number SR–
improvement to other incoming Orders public interest. The Exchange has asked Phlx–2015–56 on the subject line.
by executing a price between the NBBO. the Commission to waive the 30-day Paper Comments
As such, the Exchange believes the operative delay so that the proposal may
Midpoint Peg Post-Only Order further become operative immediately upon • Send paper comments in triplicate
perfects the mechanism of a free and filing. The Exchange believes that to Brent J. Fields, Secretary, Securities
open market and promotes the public waiver of the operative delay would and Exchange Commission, 100 F Street
interest by both providing greater provide PSX market participants with NE., Washington, DC 20549–1090.
control to a market participant and an additional option to designate the
improving market quality for all circumstances in which their Orders All submissions should refer to File
participants. may be executed, thus giving them more Number SR–Phlx–2015–56. This file
control over the nature of their Orders. number should be included on the
B. Self-Regulatory Organization’s subject line if email is used. To help the
Statement on Burden on Competition The Exchange stated that the
programming changes needed to Commission process and review your
The Exchange does not believe that implement the proposed rule change are comments more efficiently, please use
the proposed rule change will result in now ready and market participants have only one method. The Commission will
any burden on competition that is not been provided notice of the change. The post all comments on the Commission’s
necessary or appropriate in furtherance Commission believes the waiver of the Internet Web site (http://www.sec.gov/
of the purposes of the Act. Specifically, operative delay is consistent with the rules/sro.shtml). Copies of the
the Exchange believes that the proposal protection of investors and the public submission, all subsequent
will enhance Phlx’s competitiveness by interest. Therefore, the Commission amendments, all written statements
providing its market participants with hereby waives the operative delay and with respect to the proposed rule
an additional control over the designates the proposal operative upon change that are filed with the
circumstances in which their Orders filing.20 Commission, and all written
may be executed. As discussed above, At any time within 60 days of the communications relating to the
the Midpoint Peg Post-Only Order is filing of the proposed rule change, the proposed rule change between the
available on NASDAQ, and providing it Commission summarily may Commission and any person, other than
on PSX will allow Phlx to compete with temporarily suspend such rule change if those that may be withheld from the
NASDAQ and any other market venue it appears to the Commission that such public in accordance with the
that provides a similar Order Type. This action is necessary or appropriate in the provisions of 5 U.S.C. 552, will be
may, in turn, increase the extent of public interest, for the protection of available for Web site viewing and
liquidity available on PSX and increase investors, or otherwise in furtherance of printing in the Commission’s Public
its ability to compete with other the purposes of the Act. If the Reference Room, 100 F Street NE.,
execution venues to attract Orders to Commission takes such action, the Washington, DC 20549 on official
PSX. The Exchange further believes that Commission shall institute proceedings business days between the hours of
the introduction of the Midpoint Peg to determine whether the proposed rule 10:00 a.m. and 3:00 p.m. Copies of such
Post-Only Order will not impair in any change should be approved or filing also will be available for
manner the ability of market disapproved. inspection and copying at the principal
participants or other execution venues office of the Exchange. All comments
to compete. IV. Solicitation of Comments
received will be posted without change;
C. Self-Regulatory Organization’s Interested persons are invited to the Commission does not edit personal
Statement on Comments on the submit written data, views, and identifying information from
Proposed Rule Change Received From arguments concerning the foregoing, submissions. You should submit only
Members, Participants, or Others including whether the proposed rule information that you wish to make
No written comments were either available publicly. All submissions
16 15
U.S.C. 78s(b)(3)(A).
solicited or received. 17 17
should refer to File Number SR–Phlx–
CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
2015–56, and should be submitted on or
III. Date of Effectiveness of the Commission with written notice of its intent to file before August 6, 2015.
Proposed Rule Change and Timing for the proposed rule change, along with a brief
Commission Action description and the text of the proposed rule
For the Commission, by the Division of
change, at least five business days prior to the date Trading and Markets, pursuant to delegated
Because the proposed rule change of filing of the proposed rule change, or such authority.21
tkelley on DSK3SPTVN1PROD with NOTICES

does not (i) significantly affect the shorter time as designated by the Commission. Jill M. Peterson,
protection of investors or the public 18 17 CFR 240.19b–4(f)(6).

interest; (ii) impose any significant 19 17 CFR 240.19b–4(f)(6)(iii). Assistant Secretary.
burden on competition; and (iii) become 20 For purposes only of waiving the 30-day [FR Doc. 2015–17397 Filed 7–15–15; 8:45 am]
operative delay, the Commission has also
operative for 30 days from the date on considered the proposed rule’s impact on
BILLING CODE 8011–01–P
which it was filed, or such shorter time efficiency, competition, and capital formation. See
as the Commission may designate, it has 15 U.S.C. 78c(f). 21 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 17:39 Jul 15, 2015 Jkt 235001 PO 00000 Frm 00074 Fmt 4703 Sfmt 9990 E:\FR\FM\16JYN1.SGM 16JYN1
Document Created: 2015-12-15 13:13:10
Document Modified: 2015-12-15 13:13:10
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 42156