80 FR 42862 - 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 138 (July 20, 2015)
Federal Register Volume 80, Issue 138 (July 20, 2015)
| Page Range | 42862-42863 | |
| FR Document | 2015-17657 |
[Federal Register Volume 80, Number 138 (Monday, July 20, 2015)] [Notices] [Pages 42862-42863] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-17657] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75446; File No. SR-Phlx-2015-58] 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 July 14, 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 30, 2015, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'') filed with the Securities and Exchange Commission (``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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- 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. While the changes proposed herein are effective upon filing, the Exchange has designated that the amendments be operative on July 1, 2015. 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 certain credits for order execution and routing applicable to the use of the order execution and routing services of the NASDAQ OMX PSX System (``PSX'') by member organizations for all securities traded at $1 or more per share. The Exchange will increase non-displayed order credits for all orders with midpoint pegging that provide liquidity through PSX. Specifically, the credit tiers for non-displayed orders of a $0.0015 per share executed credit for orders with midpoint pegging that provide liquidity entered by a member organization that provides 1,000,000 shares or more average daily volume of non-displayed liquidity during the month and the credit tier for non-displayed orders of $0.0010 per share executed will be replaced with a single credit tier of $0.0020 per share executed for all orders with midpoint pegging \3\ that provide liquidity to create further incentives to provide midpoint liquidity on PSX for the benefit of investors and other market participants. --------------------------------------------------------------------------- \3\ Including the Midpoint Peg Post-Only Order recently filed with the Commission, once effective and operative. See SR-PHLX-2015- 056 (as recently filed). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,\4\ in general, and with Section 6(b)(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 not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f. \5\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The proposed increases to the credits in the fee schedule under the Exchange's Pricing Schedule under Section VIII are reflective of the Exchange's ongoing efforts to use pricing incentive programs to attract order flow to the Exchange and improve market quality. The goal of these pricing incentives is to provide meaningful incentives for members to increase their participation on the Exchange. The Exchange is proposing to increase non-displayed order credits for all orders with midpoint pegging that provide liquidity through PSX by replacing the existing two such tiers with a single tier. Specifically, the credit tiers for non-displayed orders of a $0.0015 per share executed credit for orders with midpoint pegging that provide liquidity entered by a member organization that provides 1,000,000 shares or more average daily volume of non-displayed liquidity during the month and the credit tier for non-displayed orders of $0.0010 per share executed will be replaced with a single credit tier of $0.0020 per share executed for all orders with midpoint pegging that provide liquidity. The Exchange believes the proposed change is reasonable because the increase to the credit for all orders with midpoint pegging that provide liquidity provides member organizations with a uniform credit designed to incentivize increased midpoint liquidity on PSX. Additionally, the Exchange believes providing a greater credit will act as an incentive for members to increase their participation on the Exchange. [[Page 42863]] The Exchange believes that the proposed rule change is consistent with an equitable allocation of fees and is not unfairly discriminatory because the single credit for all orders with midpoint pegging that provide liquidity is uniformly available to all members and affects all members equally and in the same way. 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, 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). --------------------------------------------------------------------------- In this instance, the changes to the credits for all orders with midpoint pegging that provide liquidity do not impose a burden on competition because Exchange membership is optional and is the subject of competition from other exchanges. The increased credit is reflective of the intent to increase the order flow on the Exchange. For these reasons, the Exchange does not believe that 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 Exchange 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. 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. --------------------------------------------------------------------------- \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 CommentsUse 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-2015-58 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-2015-58. 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-2015-58 and should be submitted on or before August 10, 2015. --------------------------------------------------------------------------- \8\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\8\ Robert W. Errett, Deputy Secretary. [FR Doc. 2015-17657 Filed 7-17-15; 8:45 am] BILLING CODE 8011-01-P
![42862 Federal Register / Vol. 80, No. 138 / Monday, July 20, 2015 / Notices
Internet Web site (http://www.sec.gov/ Commission is publishing this notice to executed will be replaced with a single
rules/sro.shtml). Copies of the solicit comments on the proposed rule credit tier of $0.0020 per share executed
submission, all subsequent change from interested persons. for all orders with midpoint pegging 3
amendments, all written statements that provide liquidity to create further
I. Self-Regulatory Organization’s
with respect to the proposed rule incentives to provide midpoint liquidity
Statement of the Terms of Substance of
change that are filed with the on PSX for the benefit of investors and
Commission, and all written the Proposed Rule Change other market participants.
communications relating to the The Exchange proposes to amend the
2. Statutory Basis
proposed rule change between the Exchange’s Pricing Schedule under
Commission and any person, other than Section VIII, entitled ‘‘NASDAQ OMX The Exchange believes that the
those that may be withheld from the PSX FEES,’’ with respect to execution proposed rule change is consistent with
public in accordance with the and routing of orders in securities the provisions of Section 6 of the Act,4
provisions of 5 U.S.C. 552, will be priced at $1 or more per share. in general, and with Section 6(b)(4) and
available for Web site viewing and While the changes proposed herein 6(b)(5) of the Act,5 in particular, in that
printing in the Commission’s Public are effective upon filing, the Exchange it provides for the equitable allocation
Reference Section, 100 F Street NE., has designated that the amendments be of reasonable dues, fees and other
Washington, DC 20549–1090. Copies of operative on July 1, 2015. charges among members and issuers and
the filing will also be available for The text of the proposed rule change other persons using any facility or
inspection and copying at the NYSE’s is available on the Exchange’s Web site system which the Exchange operates or
principal office and on its Internet Web at http:// controls, and is not designed to permit
site at www.nyse.com. All comments nasdaqomxphlx.cchwallstreet.com/, at unfair discrimination between
received will be posted without change; the principal office of the Exchange, and customers, issuers, brokers, or dealers.
the Commission does not edit personal at the Commission’s Public Reference The proposed increases to the credits
identifying information from Room. in the fee schedule under the
submissions. You should submit only Exchange’s Pricing Schedule under
information that you wish to make II. Self-Regulatory Organization’s Section VIII are reflective of the
available publicly. All submissions Statement of the Purpose of, and Exchange’s ongoing efforts to use
should refer to File Number SR– Statutory Basis for, the Proposed Rule pricing incentive programs to attract
NYSEARCA–2015–55 and should be Change order flow to the Exchange and improve
submitted on or before August 7, 2015. In its filing with the Commission, the market quality. The goal of these pricing
Exchange included statements incentives is to provide meaningful
For the Commission, by the Division of
Trading and Markets, pursuant to delegated concerning the purpose of and basis for incentives for members to increase their
authority.15 the proposed rule change and discussed participation on the Exchange.
any comments it received on the The Exchange is proposing to increase
Robert W. Errett,
proposed rule change. The text of these non-displayed order credits for all
Deputy Secretary.
orders with midpoint pegging that
[FR Doc. 2015–17660 Filed 7–17–15; 8:45 am] statements may be examined at the
provide liquidity through PSX by
places specified in Item IV below. The
BILLING CODE 8011–01–P replacing the existing two such tiers
Exchange has prepared summaries, set
with a single tier. Specifically, the credit
forth in sections A, B, and C below, of
tiers for non-displayed orders of a
SECURITIES AND EXCHANGE the most significant aspects of such
$0.0015 per share executed credit for
COMMISSION statements.
orders with midpoint pegging that
[Release No. 34–75446; File No. SR–Phlx– A. Self-Regulatory Organization’s provide liquidity entered by a member
2015–58] Statement of the Purpose of, and organization that provides 1,000,000
Statutory Basis for, the Proposed Rule shares or more average daily volume of
Self-Regulatory Organizations; Change non-displayed liquidity during the
NASDAQ OMX PHLX LLC; Notice of month and the credit tier for non-
Filing and Immediate Effectiveness of 1. Purpose displayed orders of $0.0010 per share
Proposed Rule Change Relating to the The purpose of the proposed rule executed will be replaced with a single
Exchange’s Pricing Schedule under change is to amend certain credits for credit tier of $0.0020 per share executed
Section VIII With Respect to Execution order execution and routing applicable for all orders with midpoint pegging
and Routing of Orders in Securities to the use of the order execution and that provide liquidity.
Priced at $1 or More per Share routing services of the NASDAQ OMX The Exchange believes the proposed
July 14, 2015. PSX System (‘‘PSX’’) by member change is reasonable because the
Pursuant to Section 19(b)(1) of the organizations for all securities traded at increase to the credit for all orders with
Securities Exchange Act of 1934 $1 or more per share. midpoint pegging that provide liquidity
(‘‘Act’’),1 and Rule 19b–4 2 thereunder, The Exchange will increase non- provides member organizations with a
notice is hereby given that, on June 30, displayed order credits for all orders uniform credit designed to incentivize
2015, NASDAQ OMX PHLX LLC with midpoint pegging that provide increased midpoint liquidity on PSX.
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the liquidity through PSX. Specifically, the Additionally, the Exchange believes
Securities and Exchange Commission credit tiers for non-displayed orders of providing a greater credit will act as an
incentive for members to increase their
mstockstill on DSK4VPTVN1PROD with NOTICES
(‘‘Commission’’) the proposed rule a $0.0015 per share executed credit for
change as described in Items I, II, and orders with midpoint pegging that participation on the Exchange.
III, below, which Items have been provide liquidity entered by a member
3 Including the Midpoint Peg Post-Only Order
prepared by the Exchange. The organization that provides 1,000,000
recently filed with the Commission, once effective
shares or more average daily volume of and operative. See SR–PHLX–2015–056 (as recently
15 17 CFR 200.30–3(a)(12). non-displayed liquidity during the filed).
1 15 U.S.C. 78s(b)(1). month and the credit tier for non- 4 15 U.S.C. 78f.
2 17 CFR 240.19b–4. displayed orders of $0.0010 per share 5 15 U.S.C. 78f(b)(4) and (5).
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![Federal Register / Vol. 80, No. 138 / Monday, July 20, 2015 / Notices 42863
The Exchange believes that the C. Self-Regulatory Organization’s those that may be withheld from the
proposed rule change is consistent with Statement on Comments on the public in accordance with the
an equitable allocation of fees and is not Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be
unfairly discriminatory because the Members, Participants, or Others available for Web site viewing and
single credit for all orders with No written comments were either printing in the Commission’s Public
midpoint pegging that provide liquidity solicited or received. Reference Room, 100 F Street NE.,
is uniformly available to all members Washington, DC 20549, on official
and affects all members equally and in III. Date of Effectiveness of the business days between the hours of
the same way. Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of such
Commission Action filing also will be available for
B. Self-Regulatory Organization’s The foregoing rule change has become inspection and copying at the principal
Statement on Burden on Competition effective pursuant to Section office of the Exchange. All comments
The Exchange does not believe that 19(b)(3)(A)(ii) of the Act.7 At any time received will be posted without change;
the proposed rule change will result in within 60 days of the filing of the the Commission does not edit personal
any burden on competition that is not proposed rule change, the Commission identifying information from
necessary or appropriate in furtherance summarily may temporarily suspend submissions. You should submit only
of the purposes of the Act, as amended.6 such rule change if it appears to the information that you wish to make
Phlx notes that it operates in a highly Commission that such action is available publicly. All submissions
necessary or appropriate in the public should refer to File Number SR-Phlx-
competitive market in which market
interest, for the protection of investors, 2015–58 and should be submitted on or
participants can readily favor dozens of
or otherwise in furtherance of the before August 10, 2015.
different competing exchanges and
purposes of the Act. If the Commission For the Commission, by the Division of
alternative trading systems if they deem
takes such action, the Commission shall Trading and Markets, pursuant to delegated
charges at a particular venue to be
institute proceedings to determine authority.8
excessive, or credit opportunities
whether the proposed rule should be Robert W. Errett,
available at other venues to be more
approved or disapproved. Deputy Secretary.
favorable. In such an environment, the
Exchange must continually adjust its IV. Solicitation of Comments [FR Doc. 2015–17657 Filed 7–17–15; 8:45 am]
charges and credits to remain Interested persons are invited to BILLING CODE 8011–01–P
competitive with other exchanges. submit written data, views, and
Because competitors are free to modify arguments concerning the foregoing,
their own charges and credits in including whether the proposed rule DEPARTMENT OF STATE
response, and because market change is consistent with the Act. [Public Notice: 9196]
participants may readily adjust their Comments may be submitted by any of
order routing practices, the Exchange the following methods: Culturally Significant Objects Imported
believes that the degree to which for Exhibition Determinations: ‘‘New
changes to charges and credits in this Electronic Comments
Objectivity: Modern German Art in the
market may impose any burden on • Use the Commission’s Internet Weimar Republic 1919–1933’’
competition is extremely limited. comment form (http://www.sec.gov/ Exhibition
In this instance, the changes to the rules/sro.shtml); or
credits for all orders with midpoint • Send an email to rule-comments@ SUMMARY: Notice is hereby given of the
sec.gov. Please include File Number SR– following determinations: Pursuant to
pegging that provide liquidity do not
Phlx–2015–58 on the subject line. the authority vested in me by the Act of
impose a burden on competition
October 19, 1965 (79 Stat. 985; 22 U.S.C.
because Exchange membership is Paper Comments 2459), E.O. 12047 of March 27, 1978, the
optional and is the subject of • Send paper comments in triplicate Foreign Affairs Reform and
competition from other exchanges. The to Secretary, Securities and Exchange Restructuring Act of 1998 (112 Stat.
increased credit is reflective of the Commission, 100 F Street NE., 2681, et seq.; 22 U.S.C. 6501 note, et
intent to increase the order flow on the Washington, DC 20549–1090. seq.), Delegation of Authority No. 234 of
Exchange. For these reasons, the
All submissions should refer to File October 1, 1999, Delegation of Authority
Exchange does not believe that the
Number SR-Phlx-2015–58. This file No. 236–3 of August 28, 2000 (and, as
proposed changes will impair the ability
number should be included on the appropriate, Delegation of Authority No.
of members or competing order
subject line if email is used. To help the 257 of April 15, 2003), I hereby
execution venues to maintain their
Commission process and review your determine that the objects to be
competitive standing in the financial
comments more efficiently, please use included in the exhibition ‘‘New
markets. Moreover, because there are
only one method. The Commission will Objectivity: Modern German Art in the
numerous competitive alternatives to
post all comments on the Commission’s Weimar Republic 1919–1933,’’ imported
the use of the Exchange, it is likely that
Internet Web site (http://www.sec.gov/ from abroad for temporary exhibition
the Exchange will lose market share as
rules/sro.shtml). Copies of the within the United States, are of cultural
a result of the changes if they are
submission, all subsequent significance. The objects are imported
unattractive to market participants.
amendments, all written statements pursuant to loan agreements with the
Accordingly, Phlx does not believe
mstockstill on DSK4VPTVN1PROD with NOTICES
with respect to the proposed rule foreign owners or custodians. I also
that the proposed rule changes will change that are filed with the determine that the exhibition or display
impair the ability of members or Commission, and all written of the exhibit objects at the Los Angeles
competing order execution venues to communications relating to the County Museum of Art, Los Angeles,
maintain their competitive standing in proposed rule change between the California, from on or about October 4,
the financial markets. Commission and any person, other than 2015, until on or about January 18,
6 15 U.S.C. 78f(b)(8). 7 15 U.S.C. 78s(b)(3)(A)(ii). 8 17 CFR 200.30–3(a)(12).
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Document Created: 2015-12-15 12:57:42
Document Modified: 2015-12-15 12:57:42
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 42862 |
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