80 FR 55667 - 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 179 (September 16, 2015)
Federal Register Volume 80, Issue 179 (September 16, 2015)
| Page Range | 55667-55668 | |
| FR Document | 2015-23218 |
[Federal Register Volume 80, Number 179 (Wednesday, September 16, 2015)] [Notices] [Pages 55667-55668] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-23218] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75889; File No. SR-Phlx-2015-78] 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 September 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 September 1, 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 September 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 a charge and 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 proposes to slightly decrease the charge to a member organization entering an order that executes in PSX from $0.0027 to $0.0026 per share executed in securities on exchanges other than Nasdaq and NYSE. Phlx also proposes to increase the credit for non-displayed orders from $0.0020 to $0.0023 per share executed for all orders with midpoint pegging that provide liquidity, but simultaneously decrease the credit from $0.0005 to $0.0000 per share executed for other non-displayed orders that provide liquidity. 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 Section 6(b)(4) and 6(b)(5) of the Act,\4\ 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. --------------------------------------------------------------------------- \3\ 15 U.S.C. 78f. \4\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The proposed changes to the charge and 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 believes that the slight decrease in the charge to a member organization entering an order that executes in PSX from $0.0027 to $0.0026 per share executed in securities on exchanges other than Nasdaq and NYSE is reasonable because it provides such member organizations with a modest benefit of entering orders on the PSX System of securities listed on exchanges other than Nasdaq and NYSE and should incentivize more participants in the market. Phlx also believes that this proposed rule changes is consistent with an equitable allocation of fees and are not unfairly discriminatory because it is uniformly available to all members entering order that execute on PSX for securities listed on exchanges other than Nasdaq and NYSE and affects all such members equally and in the same way. The Exchange is also proposing to increase the non-displayed order credit for non-displayed orders from $0.0020 to $0.0023 per share executed for all orders with midpoint pegging that provide liquidity, but simultaneously decrease the credit from $0.0005 to $0.0000 per share executed for other non-displayed orders that provide liquidity. The Exchange believes the proposed change to increase the credit for all non-displayed orders with midpoint pegging that provide liquidity is reasonable because it provides [[Page 55668]] member organizations with a 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. The Exchange believes that the proposed change to decrease to the credit for other non- displayed orders that provide liquidity is reasonable because the Exchange no longer needs to provide an incentive for members to provide liquidity in other non-displayed orders. The Exchange also believes the proposed change will incentivize greater use of midpoint orders over other non-displayed orders and thus increase the activity at the midpoint on the market, which, is beneficial to all members. The Exchange believes that the proposed rule changes to non- displayed order credits are consistent with an equitable allocation of fees and are not unfairly discriminatory because they are uniformly available to all members and affect 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.\5\ 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. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- In this instance, the slight decrease to the charge to member organizations entering orders in the PSX System and to credits for non- displayed orders with midpoint pegging that provide liquidity and for other non-displayed orders that provide liquidity do not impose a burden on competition because Exchange membership is optional and is the subject of competition from other exchanges. These adjustments are 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.\6\ 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. --------------------------------------------------------------------------- \6\ 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 rule-comments@sec.gov. Please include File Number SR-Phlx-2015-78 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-2015-78. 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-2015-78 and should be submitted on or before October 7, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\7\ --------------------------------------------------------------------------- \7\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-23218 Filed 9-15-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 179 / Wednesday, September 16, 2015 / Notices 55667
rules/sro.shtml). Copies of the The Commission is publishing this simultaneously decrease the credit from
submission, all subsequent notice to solicit comments on the $0.0005 to $0.0000 per share executed
amendments, all written statements proposed rule change from interested for other non-displayed orders that
with respect to the proposed rule persons. provide liquidity.
change that are filed with the
I. Self-Regulatory Organization’s 2. Statutory Basis
Commission, and all written
communications relating to the Statement of the Terms of Substance of The Exchange believes that the
proposed rule change between the the Proposed Rule Change proposed rule change is consistent with
Commission and any person, other than The Exchange proposes to amend the the provisions of Section 6 of the Act,3
those that may be withheld from the Exchange’s Pricing Schedule under in general, and with Section 6(b)(4) and
public in accordance with the Section VIII, entitled ‘‘NASDAQ OMX 6(b)(5) of the Act,4 in particular, in that
provisions of 5 U.S.C. 552, will be PSX FEES,’’ with respect to execution it provides for the equitable allocation
available for Web site viewing and and routing of orders in securities of reasonable dues, fees and other
printing in the Commission’s Public priced at $1 or more per share. charges among members and issuers and
Reference Room, 100 F Street NE., While the changes proposed herein other persons using any facility or
Washington, DC 20549, on official are effective upon filing, the Exchange system which the Exchange operates or
business days between the hours of has designated that the amendments be controls, and is not designed to permit
10:00 a.m. and 3:00 p.m. Copies of such operative on September 1, 2015. unfair discrimination between
filing also will be available for The text of the proposed rule change customers, issuers, brokers, or dealers.
inspection and copying at the principal is available on the Exchange’s Web site The proposed changes to the charge
office of the Exchange. All comments at http:// and credits in the fee schedule under
received will be posted without change; nasdaqomxphlx.cchwallstreet.com/, at the Exchange’s Pricing Schedule under
the Commission does not edit personal the principal office of the Exchange, and Section VIII are reflective of the
identifying information from at the Commission’s Public Reference Exchange’s ongoing efforts to use
submissions. You should submit only Room. pricing incentive programs to attract
information that you wish to make order flow to the Exchange and improve
available publicly. All submissions II. Self-Regulatory Organization’s market quality. The goal of these pricing
should refer to File Number SR– Statement of the Purpose of, and incentives is to provide meaningful
NYSEArca–2015–75 and should be Statutory Basis for, the Proposed Rule incentives for members to increase their
submitted on or before October 7, 2015. Change participation on the Exchange.
In its filing with the Commission, the The Exchange believes that the slight
For the Commission, by the Division of
Trading and Markets, pursuant to delegated Exchange included statements decrease in the charge to a member
authority.15 concerning the purpose of and basis for organization entering an order that
Robert W. Errett, the proposed rule change and discussed executes in PSX from $0.0027 to
Deputy Secretary. any comments it received on the $0.0026 per share executed in securities
proposed rule change. The text of these on exchanges other than Nasdaq and
[FR Doc. 2015–23214 Filed 9–15–15; 8:45 am]
statements may be examined at the NYSE is reasonable because it provides
BILLING CODE 8011–01–P
places specified in Item IV below. The such member organizations with a
Exchange has prepared summaries, set modest benefit of entering orders on the
SECURITIES AND EXCHANGE forth in sections A, B, and C below, of PSX System of securities listed on
COMMISSION the most significant aspects of such exchanges other than Nasdaq and NYSE
statements. and should incentivize more
[Release No. 34–75889; File No. SR–Phlx– participants in the market.
2015–78] A. Self-Regulatory Organization’s Phlx also believes that this proposed
Statement of the Purpose of, and rule changes is consistent with an
Self-Regulatory Organizations; Statutory Basis for, the Proposed Rule equitable allocation of fees and are not
NASDAQ OMX PHLX LLC; Notice of Change unfairly discriminatory because it is
Filing and Immediate Effectiveness of
1. Purpose uniformly available to all members
Proposed Rule Change Relating to the
entering order that execute on PSX for
Exchange’s Pricing Schedule Under The purpose of the proposed rule securities listed on exchanges other than
Section VIII With Respect to Execution change is to amend a charge and certain Nasdaq and NYSE and affects all such
and Routing of Orders in Securities credits for order execution and routing members equally and in the same way.
Priced at $1 or More Per Share applicable to the use of the order The Exchange is also proposing to
September 10, 2015. execution and routing services of the increase the non-displayed order credit
Pursuant to Section 19(b)(1) of the NASDAQ OMX PSX System (‘‘PSX’’) by for non-displayed orders from $0.0020
Securities Exchange Act of 1934 member organizations for all securities to $0.0023 per share executed for all
(‘‘Act,’’) 1 and Rule 19b–4 2 thereunder, traded at $1 or more per share. orders with midpoint pegging that
notice is hereby given that, on The Exchange proposes to slightly provide liquidity, but simultaneously
September 1, 2015, NASDAQ OMX decrease the charge to a member decrease the credit from $0.0005 to
PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed organization entering an order that $0.0000 per share executed for other
executes in PSX from $0.0027 to
asabaliauskas on DSK7TPTVN1PROD with NOTICES
with the Securities and Exchange non-displayed orders that provide
Commission (‘‘Commission’’) the $0.0026 per share executed in securities liquidity. The Exchange believes the
proposed rule change as described in on exchanges other than Nasdaq and proposed change to increase the credit
Items I, II, and III, below, which Items NYSE. for all non-displayed orders with
have been prepared by the Exchange. Phlx also proposes to increase the midpoint pegging that provide liquidity
credit for non-displayed orders from is reasonable because it provides
15 17 CFR 200.30–3(a)(12). $0.0020 to $0.0023 per share executed
1 15 U.S.C. 78s(b)(1). for all orders with midpoint pegging 3 15 U.S.C. 78f.
2 17 CFR 240.19b–4. that provide liquidity, but 4 15 U.S.C. 78f(b)(4) and (5).
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![55668 Federal Register / Vol. 80, No. 179 / Wednesday, September 16, 2015 / Notices
member organizations with a credit exchanges. These adjustments are Paper Comments
designed to incentivize increased reflective of the intent to increase the • Send paper comments in triplicate
midpoint liquidity on PSX. order flow on the Exchange. For these to Secretary, Securities and Exchange
Additionally, the Exchange believes reasons, the Exchange does not believe Commission, 100 F Street NE.,
providing a greater credit will act as an that the proposed changes will impair Washington, DC 20549–1090.
incentive for members to increase their the ability of members or competing All submissions should refer to File
participation on the Exchange. The order execution venues to maintain Number SR–Phlx–2015–78. This file
Exchange believes that the proposed their competitive standing in the number should be included on the
change to decrease to the credit for other financial markets. Moreover, because subject line if email is used. To help the
non-displayed orders that provide there are numerous competitive Commission process and review your
liquidity is reasonable because the alternatives to the use of the Exchange, comments more efficiently, please use
Exchange no longer needs to provide an it is likely that the Exchange will lose only one method. The Commission will
incentive for members to provide market share as a result of the changes post all comments on the Commission’s
liquidity in other non-displayed orders. if they are unattractive to market Internet Web site (http://www.sec.gov/
The Exchange also believes the participants. rules/sro.shtml). Copies of the
proposed change will incentivize greater Accordingly, Phlx does not believe submission, all subsequent
use of midpoint orders over other non- that the proposed rule changes will amendments, all written statements
displayed orders and thus increase the impair the ability of members or with respect to the proposed rule
activity at the midpoint on the market, competing order execution venues to change that are filed with the
which, is beneficial to all members. maintain their competitive standing in Commission, and all written
The Exchange believes that the
the financial markets. communications relating to the
proposed rule changes to non-displayed
proposed rule change between the
order credits are consistent with an C. Self-Regulatory Organization’s
Commission and any person, other than
equitable allocation of fees and are not Statement on Comments on the
those that may be withheld from the
unfairly discriminatory because they are Proposed Rule Change Received From
uniformly available to all members and public in accordance with the
Members, Participants, or Others
affect all members equally and in the provisions of 5 U.S.C. 552, will be
same way. No written comments were either available for Web site viewing and
solicited or received. printing in the Commission’s Public
B. Self-Regulatory Organization’s Reference Room, 100 F Street NE.,
Statement on Burden on Competition III. Date of Effectiveness of the Washington, DC 20549, on official
Proposed Rule Change and Timing for business days between the hours of
The Exchange does not believe that Commission Action
the proposed rule change will result in 10:00 a.m. and 3:00 p.m. Copies of such
any burden on competition that is not The foregoing rule change has become filing also will be available for
necessary or appropriate in furtherance effective pursuant to Section inspection and copying at the principal
of the purposes of the Act, as amended.5 19(b)(3)(A)(ii) of the Act.6 At any time office of the Exchange. All comments
Phlx notes that it operates in a highly within 60 days of the filing of the received will be posted without change;
competitive market in which market proposed rule change, the Commission the Commission does not edit personal
participants can readily favor dozens of summarily may temporarily suspend identifying information from
different competing exchanges and such rule change if it appears to the submissions. You should submit only
alternative trading systems if they deem Commission that such action is information that you wish to make
charges at a particular venue to be necessary or appropriate in the public available publicly. All submissions
excessive, or credit opportunities interest, for the protection of investors, should refer to File Number SR–Phlx–
available at other venues to be more or otherwise in furtherance of the 2015–78 and should be submitted on or
favorable. In such an environment, the purposes of the Act. If the Commission before October 7, 2015.
Exchange must continually adjust its takes such action, the Commission shall For the Commission, by the Division of
charges and credits to remain institute proceedings to determine Trading and Markets, pursuant to delegated
competitive with other exchanges. whether the proposed rule should be authority.7
Because competitors are free to modify approved or disapproved. Robert W. Errett,
their own charges and credits in Deputy Secretary.
response, and because market IV. Solicitation of Comments
[FR Doc. 2015–23218 Filed 9–15–15; 8:45 am]
participants may readily adjust their Interested persons are invited to BILLING CODE 8011–01–P
order routing practices, the Exchange submit written data, views, and
believes that the degree to which arguments concerning the foregoing,
changes to charges and credits in this including whether the proposed rule SECURITIES AND EXCHANGE
market may impose any burden on change is consistent with the Act. COMMISSION
competition is extremely limited. Comments may be submitted by any of
In this instance, the slight decrease to [Release No. 75886]
the following methods:
the charge to member organizations Securities Exchange Act of 1934; In the
entering orders in the PSX System and Electronic Comments
Matter of the Options Clearing
to credits for non-displayed orders with
asabaliauskas on DSK7TPTVN1PROD with NOTICES
midpoint pegging that provide liquidity • Use the Commission’s Internet Corporation; Order Discontinuing the
comment form (http://www.sec.gov/ Automatic Stay
and for other non-displayed orders that
provide liquidity do not impose a rules/sro.shtml); or September 10, 2015.
burden on competition because • Send an email to rule-comments@ This matter comes before the
Exchange membership is optional and is sec.gov. Please include File Number SR– Commission on the Options Clearing
the subject of competition from other Phlx–2015–78 on the subject line. Corporation’s (‘‘OCC’’) motion to lift the
5 15 U.S.C. 78f(b)(8). 6 15 U.S.C. 78s(b)(3)(A)(ii). 7 17 CFR 200.30–3(a)(12).
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Document Created: 2018-02-26 10:16:30
Document Modified: 2018-02-26 10:16:30
| 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 55667 |
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