80 FR 48592 - Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Update the Public Disclosure of Sources of Data Utilized by PSX

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 156 (August 13, 2015)

[Federal Register Volume 80, Number 156 (Thursday, August 13, 2015)]
[Notices]
[Pages 48592-48594]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-19870]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75640; File No. SR-Phlx-2015-70]


Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Update 
the Public Disclosure of Sources of Data Utilized by PSX

August 7, 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 August 6, 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 update the public disclosure of the 
sources of data that PHLX utilizes when performing (1) order handling 
and execution; (2) order routing; and (3) related compliance processes 
through the inclusion of the National Stock Exchange (``NSX'').
    The text of the proposed rule change is below. Proposed new 
language is italicized.
* * * * *
3304. Data Feeds Utilized
    The PSX System utilizes the below proprietary and network processor 
feeds [utilized by the System] for the handling, routing, and execution 
of orders, as well as for the regulatory compliance processes related 
to those functions. The Secondary Source of data is, where applicable, 
utilized only in emergency market conditions and only until those 
emergency conditions are resolved.

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              Market center                         Primary source                     Secondary source
----------------------------------------------------------------------------------------------------------------
A--NYSE MKT (AMEX).......................  [CQS/UQDF] NYSE MKT OpenBook      [n/a] CQS/UQDF
                                            Ultra.
B--NASDAQ OMX BX.........................  BX ITCH 5.0.....................  CQS/UQDF
C--NSX...................................  CQS/UQDF........................  n/a
D--FINRA ADF.............................  CQS/UQDF........................  n/a
J--DirectEdge A..........................  [EdgeBook] BATS PITCH...........  CQS/UQDF
K--DirectEdge X..........................  [EdgeBook] BATS PITCH...........  CQS/UQDF
M--CSX...................................  CQS/UQDF........................  n/a
N--NYSE..................................  NYSE OpenBook Ultra.............  CQS/UQDF
P--NYSE Arca.............................  [ArcaBook Binary uncompacted]     CQS/UQDF
                                            NYSE ARCA XDP.
T/Q--NASDAQ..............................  ITCH 5.0........................  CQS/UQDF
X--NASDAQ OMX PSX........................  PSX ITCH 5.0....................  CQS/UQDF

[[Page 48593]]

 
Y--BATS Y-Exchange.......................  BATS PITCH......................  CQS/UQDF
Z--BATS Exchange.........................  BATS PITCH......................  CQS/UQDF
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* * * * *
    (b) Not applicable.
    (c) Not applicable.
    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 proposes to update and amend the table in Exchange 
Rule 3304 that sets forth on a market-by-market basis the specific 
network processor and proprietary data feeds that the Exchange utilizes 
for the handling, routing, and execution of orders, and for performing 
the regulatory compliance checks related to each of those functions.
    Specifically, the table will be amended to include National Stock 
Exchange (``NSX''), which has informed the UTP Securities Information 
Processor (``UTP SIP'') that, subject to regulatory approval, it is 
projecting to reactivate its status as an operating participant for 
quotation and trading of NASDAQ-listed securities under the Unlisted 
Trading Privileges (``UTP'') Plan on or about August 31, 2015. The 
other changes to the table merely reflect updates to mirror the current 
network processor and proprietary data feeds utilized by the Exchange 
for the handling, routing, and execution of orders, and for performing 
the regulatory compliance checks related to each of those functions.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\3\ in general and with 
Sections 6(b)(5) of the Act,\4\ in particular in that it is designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and, in general, to 
protect investors and the public interest.
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    \3\ 15 U.S.C. 78f.
    \4\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that its proposal to update the table in 
Exchange Rule 3304 to make certain it is current, as well as to amend 
the table to include NSX, would ensure that Exchange Rule 3304 
correctly identifies and publicly states on a market-by-market basis 
all of the specific network processor and proprietary data feeds that 
the Exchange utilizes for the handling, routing, and execution of 
orders, and for performing the regulatory compliance checks related to 
each of those functions, and that the proposed rule change removes 
impediments to and perfects the mechanism of a free and open market and 
protects investors and the public interest because it provides 
additional specificity, clarity and transparency.

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. To 
the contrary, the Exchange believes the proposal would enhance 
competition because including all of the exchanges enhances 
transparency and enables investors to better assess the quality of the 
Exchange's execution and routing services.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) \5\ of the Act and Rule 19b-
4(f)(6) thereunder.\6\ The Exchange believes that this proposed rule 
change is properly designated as non-controversial because it enhances 
clarity and operational transparency without modifying members' rights 
or obligations. The Exchange provided notice of the proposed rule 
change on July 27, 2015.
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-Phlx-2015-70 on the subject line.

[[Page 48594]]

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-2015-70. 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-2015-70 and 
should be submitted on or before September 3, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
Jill M. Peterson,
Assistant Secretary.
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    \7\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2015-19870 Filed 8-12-15; 8:45 am]
BILLING CODE 8011-01-P