80 FR 64462 - Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Options Floor Broker Management System
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 205 (October 23, 2015)
Federal Register Volume 80, Issue 205 (October 23, 2015)
| Page Range | 64462-64464 | |
| FR Document | 2015-26911 |
[Federal Register Volume 80, Number 205 (Friday, October 23, 2015)] [Notices] [Pages 64462-64464] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-26911] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76187; File No. SR-Phlx-2015-80] Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Options Floor Broker Management System October 19, 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 October 7, 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to extend the implementation rollout of its enhanced Options Floor Broker Management System, described in more detail below. 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 Currently and until November 3, 2015, the Exchange operates two Floor Broker Management Systems concurrently on the options trading floor: The original Floor Broker Management System operating since 2005 (``FBMS 1''); and the enhanced Floor Broker Management System (``FBMS 2''). The purpose of the proposal is to continue the concurrent operation of FBMS 1 and FBMS 2 for a temporary period ending April 1, 2016 for the reasons stated below; otherwise the Exchange's concurrent operation of FBMS 1 and FBMS 2 would expire November 3, 2015. FBMS 1 enables Floor Brokers and/or their employees to enter, route, and report transactions stemming from options orders received on the Exchange. FBMS 1 also establishes an electronic audit trail for options orders represented by Floor Brokers on the Exchange. Floor Brokers can also use FBMS 1 to submit orders to Phlx XL, rather than executing the orders in the trading crowd. FBMS 2 was launched in March 2014. With FBMS 2, all options transactions on the Exchange involving at least one Floor Broker are required to be executed by FBMS 2. In connection with order execution, the Exchange allows FBMS 2 to execute two-sided orders entered by Floor Brokers, including multi-leg orders up to 15 legs, after the Floor Broker has represented the orders in the trading crowd. FBMS 2 also provides Floor Brokers with an enhanced functionality called the complex calculator that calculates and displays a suggested price of each individual component of a multi-leg order, up to 15 legs, submitted on a net debit or credit basis. The Exchange received approval to implement FBMS 2 as of June 1, 2013,\3\ and delayed its implementation until July 2013,\4\ until September 2013,\5\ until December 2013,\6\ and until March 2014.\7\ Implementation began on March 7, 2014, with FBMS 2 operating concurrently with FBMS 1. The Exchange intended to retire FBMS 1 after a specified implementation period for FBMS 2. FBMS 2 has been fully rolled out to all Floor Brokers and in all options. Nevertheless, the Exchange delayed the retirement of FBMS 1 until September 1, 2014,\8\ November 3, 2014.\9\ and, most recently, until November 3, 2015,\10\ for reasons relating to the performance of FBMS 2.\11\ --------------------------------------------------------------------------- \3\ Securities Exchange Act Release No. 69471 (April 29, 2013), 78 FR 26096 (May 3, 2013) (SR-Phlx-2013-09). \4\ Securities Exchange Act Release No. 69811 (June 20, 2013), 78 FR 38422 (June 26, 2013) (SR-Phlx-2013-67). \5\ Securities Exchange Act Release No. 70141 (August 8, 2013), 78 FR 49565 (August 14, 2013) (SR-Phlx-2013-83). \6\ Securities Exchange Act Release No. 70629 (October 8, 2013), 78 FR 62852 (October 22, 2013) (SR-Phlx-2013-100). \7\ Securities Exchange Act Release No. 71212 (December 31, 2013), 79 FR 888 (January 7, 2014) (SR-Phlx-2013-129). \8\ Securities Exchange Act Release No. 72135 (May 9, 2014), 79 FR 27966 (May 15, 2014) (SR-Phlx-2014-33). \9\ Securities Exchange Act Release No. 73246 (September 29, 2014), 79 FR 59874 (October 3, 2014) (SR-Phlx-2014-59). \10\ Securities Exchange Act Release No. 73586 (November 13, 2014), 79 FR 68931 (November 19, 2014) (SR-Phlx-2014-71). \11\ The Exchange previously described those performance issues. Id. --------------------------------------------------------------------------- The purpose of the delay was originally to repair FBMS 2, and then ultimately the Exchange determined to replace it with a new system. The Exchange contracted with a third-party entity to provide an alternative system (``FBMS 3'') to ultimately replace both FBMS 1 and FBMS 2. The Exchange had intended to implement FBMS 3 by November 3, 2015, but, based on recent estimates from the third-party entity, it will not be ready until March 2016. There were inadvertent delays in the construction of the new system. During this additional time period, the Exchange will continue to permit Floor Brokers to use both FBMS 1 and FBMS 2 based on their business needs and Floor Brokers can choose whether to use one or both. Both FBMS 1 and FBMS 2 will continue to be available in [[Page 64463]] all options and to all Floor Brokers. For example, a Floor Broker will be able to use FBMS 1 for one order and FBMS 2 for the next order. Accordingly, the Exchange believes that the performance issues with FBMS 2 are less likely and should decrease because the Floor Broker also has the option to use FBMS 1. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \12\ in general, and furthers the objectives of Section 6(b)(5) of the Act \13\ in particular, in that it is designed to promote just and equitable principles of trade and protect investors and the public interest, by providing options Floor Brokers with two different FBMS offerings for order entry and processing. Despite its performance issues, FBMS 2 offers many beneficial features to the Floor Brokers that FBMS 1 does not, such as the complex calculator and increased automation described above, such that the Exchange has determined not to shut down FBMS 2. Having two options for order entry and processing should enable Floor Brokers to operate their businesses and comply with the relevant rules, which is consistent with the protection of investors and the public interest. Continuing to operate both FBMS 1 and FBMS 2 concurrently for a temporary period should also promote just and equitable principles of trade by providing Floor Brokers with the tools to enter and process their orders efficiently. The proposal is not unfairly discriminatory because all Floor Brokers will be able to use both FBMS 1 and FBMS 2. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f(b). \13\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes that permitting Floor Brokers to use both FBMS 1 and FBMS 2 for an additional period of time while the Exchange receives delivery of a new system should allow it to compete with other floor-based exchanges and help the Exchange's Floor Brokers compete with floor brokers on other options exchanges. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No comments were solicited. One comment letter was received by the Exchange when the Exchange communicated to the Floor Brokers that the old FBMS would be retired on September 1, 2014.\14\ The Comment Letter requested the Commission and Phlx postpone the implementation rollout of the new FBMS from September 1, 2014 to a later date. The Comment Letter alleges that the Floor Brokers did not have proper notice of the end of the implementation period resulting in the termination of the old FBMS. This is not relevant to the proposal at hand. Also, the Comment Letter requests that the new FBMS be postponed to ensure the public outcry system is maintained. The Exchange notes that under FBMS 2, orders will continue to be represented in the trading crowd; order exposure has not been eliminated. The Exchange is merely modernizing how orders are executed and reported to support enhancements to the maintenance of an accurate audit trail. --------------------------------------------------------------------------- \14\ See letter from various Phlx Floor Brokers to Mary Jo White, Chairwoman of the Securities and Exchange Commission, dated August 28, 2014 (``Comment Letter''). --------------------------------------------------------------------------- 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)(iii) of the Act \15\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\16\ A proposed rule change filed under Rule 19b-4(f)(6) normally does not become operative prior to 30 days after the date of filing.\17\ Rule 19b-4(f)(6)(iii), however, permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest.\18\ --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(a)(iii). \16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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. The Exchange has satisfied this requirement. \17\ 17 CFR 240.19b-4(f)(6)(iii). \18\ Id. --------------------------------------------------------------------------- The Exchange has requested that the Commission waive the 30-day operative delay. The Exchange has indicated that it has experienced performance issues with FBMS 2 and that it needs additional time to implement the new FBMS 3. Until FBMS 3 becomes available, the Exchange represents that it will continue to operate FBMS 1 and FBMS 2 concurrently and that all Floor Brokers may use either FBMS. Based on the foregoing, the Commission has determined to waive the 30-day operative date so that the proposal may take effect upon filing.\19\ --------------------------------------------------------------------------- \19\ For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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.\20\ If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved.\21\ --------------------------------------------------------------------------- \20\ 15 U.S.C. 78s(b)(3)(C). \21\ Id. --------------------------------------------------------------------------- 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-2015-80 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-2015-80. 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 [[Page 64464]] 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 offices 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-2015-80, and should be submitted on or before November 13, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-26911 Filed 10-22-15; 8:45 am] BILLING CODE 8011-01-P
![64462 Federal Register / Vol. 80, No. 205 / Friday, October 23, 2015 / Notices
of Amendment No. 1 to the proposed I. Self-Regulatory Organization’s Floor Brokers with an enhanced
rule change and an order instituting Statement of the Terms of the Substance functionality called the complex
proceedings under Section 19(b)(2)(B) of of the Proposed Rule Change calculator that calculates and displays a
the Act 6 to determine whether to The Exchange proposes to extend the suggested price of each individual
approve or disapprove the proposed implementation rollout of its enhanced component of a multi-leg order, up to 15
rule change, as modified by Amendment Options Floor Broker Management legs, submitted on a net debit or credit
No. 1 thereto.7 On September 2, 2015, System, described in more detail below. basis.
pursuant to Section 19(b)(2) of the Act,8 The Exchange received approval to
II. Self-Regulatory Organization’s implement FBMS 2 as of June 1, 2013,3
the Commission designated a longer Statement of the Purpose of, and and delayed its implementation until
period within which to either approve Statutory Basis for, the Proposed Rule July 2013,4 until September 2013,5 until
or disapprove the proposed rule Change December 2013,6 and until March
change.9 2014.7 Implementation began on March
In its filing with the Commission, the
On October 13, 2015, the Exchange Exchange included statements 7, 2014, with FBMS 2 operating
withdrew the proposed rule change concerning the purpose of and basis for concurrently with FBMS 1. The
(SR–NYSEArca–2015–02), as modified the proposed rule change and discussed Exchange intended to retire FBMS 1
by Amendment No. 1 thereto. any comments it received on the after a specified implementation period
proposed rule change. The text of these for FBMS 2. FBMS 2 has been fully
For the Commission, by the Division of
statements may be examined at the rolled out to all Floor Brokers and in all
Trading and Markets, pursuant to delegated
places specified in Item IV below. The options. Nevertheless, the Exchange
authority.10
Exchange has prepared summaries, set delayed the retirement of FBMS 1 until
Robert W. Errett, September 1, 2014,8 November 3, 2014.9
forth in sections A, B, and C below, of
Deputy Secretary. and, most recently, until November 3,
the most significant aspects of such
[FR Doc. 2015–26910 Filed 10–22–15; 8:45 am]
statements. 2015,10 for reasons relating to the
BILLING CODE 8011–01–P performance of FBMS 2.11
A. Self-Regulatory Organization’s The purpose of the delay was
Statement of the Purpose of, and originally to repair FBMS 2, and then
SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule ultimately the Exchange determined to
COMMISSION Change replace it with a new system. The
Exchange contracted with a third-party
1. Purpose
entity to provide an alternative system
[Release No. 34–76187; File No. SR–Phlx– Currently and until November 3, (‘‘FBMS 3’’) to ultimately replace both
2015–80] 2015, the Exchange operates two Floor FBMS 1 and FBMS 2. The Exchange had
Broker Management Systems intended to implement FBMS 3 by
Self-Regulatory Organizations;
concurrently on the options trading November 3, 2015, but, based on recent
NASDAQ OMX PHLX LLC; Notice of floor: The original Floor Broker estimates from the third-party entity, it
Filing and Immediate Effectiveness of Management System operating since will not be ready until March 2016.
Proposed Rule Change Relating to the 2005 (‘‘FBMS 1’’); and the enhanced There were inadvertent delays in the
Options Floor Broker Management Floor Broker Management System construction of the new system.
System (‘‘FBMS 2’’). The purpose of the During this additional time period,
October 19, 2015.
proposal is to continue the concurrent the Exchange will continue to permit
operation of FBMS 1 and FBMS 2 for a Floor Brokers to use both FBMS 1 and
Pursuant to Section 19(b)(1) of the temporary period ending April 1, 2016 FBMS 2 based on their business needs
Securities Exchange Act of 1934 for the reasons stated below; otherwise and Floor Brokers can choose whether
(‘‘Act’’), 1 and Rule 19b–4 thereunder,2 the Exchange’s concurrent operation of to use one or both. Both FBMS 1 and
notice is hereby given that on October FBMS 1 and FBMS 2 would expire FBMS 2 will continue to be available in
7, 2015, NASDAQ OMX PHLX LLC November 3, 2015.
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the FBMS 1 enables Floor Brokers and/or 3 Securities Exchange Act Release No. 69471
Securities and Exchange Commission their employees to enter, route, and (April 29, 2013), 78 FR 26096 (May 3, 2013) (SR–
report transactions stemming from Phlx–2013–09).
(‘‘SEC’’ or ‘‘Commission’’) the proposed 4 Securities Exchange Act Release No. 69811
rule change as described in Items I and options orders received on the (June 20, 2013), 78 FR 38422 (June 26, 2013) (SR–
II, below, which Items have been Exchange. FBMS 1 also establishes an Phlx–2013–67).
prepared by the Exchange. The electronic audit trail for options orders 5 Securities Exchange Act Release No. 70141
Commission is publishing this notice to represented by Floor Brokers on the (August 8, 2013), 78 FR 49565 (August 14, 2013)
Exchange. Floor Brokers can also use (SR–Phlx–2013–83).
solicit comments on the proposed rule 6 Securities Exchange Act Release No. 70629
FBMS 1 to submit orders to Phlx XL,
change from interested persons. (October 8, 2013), 78 FR 62852 (October 22, 2013)
rather than executing the orders in the (SR–Phlx–2013–100).
6 15
trading crowd. 7 Securities Exchange Act Release No. 71212
U.S.C. 78s(b)(2)(B). FBMS 2 was launched in March 2014. (December 31, 2013), 79 FR 888 (January 7, 2014)
7 See Securities Exchange Act Release No. 75115 With FBMS 2, all options transactions (SR–Phlx–2013–129).
(Jun. 5, 2015), 80 FR 33309. 8 Securities Exchange Act Release No. 72135 (May
on the Exchange involving at least one
8 15 U.S.C. 78s(b)(2). 9, 2014), 79 FR 27966 (May 15, 2014) (SR–Phlx–
mstockstill on DSK4VPTVN1PROD with NOTICES
9 See Securities Exchange Act Release No. 75813,
Floor Broker are required to be executed 2014–33).
80 FR 54330 (Sept. 9, 2015). The Commission
by FBMS 2. In connection with order 9 Securities Exchange Act Release No. 73246
designated November 5, 2015 as the date by which execution, the Exchange allows FBMS 2 (September 29, 2014), 79 FR 59874 (October 3,
to execute two-sided orders entered by 2014) (SR–Phlx–2014–59).
the Commission should either approve or 10 Securities Exchange Act Release No. 73586
disapprove the proposed rule change. Floor Brokers, including multi-leg
(November 13, 2014), 79 FR 68931 (November 19,
10 17 CFR 200.30–3(a)(57). orders up to 15 legs, after the Floor 2014) (SR–Phlx–2014–71).
1 15 U.S.C. 78s(b)(1). Broker has represented the orders in the 11 The Exchange previously described those
2 17 CFR 240.19b–4. trading crowd. FBMS 2 also provides performance issues. Id.
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![64464 Federal Register / Vol. 80, No. 205 / Friday, October 23, 2015 / Notices
amendments, all written statements I. Self-Regulatory Organization’s Mini Options on Google’s, now
with respect to the proposed rule Statement of the Terms of Substance of Alphabet’s Class A shares. The
change that are filed with the the Proposed Rule Change Exchange is proposing to make this
Commission, and all written The Exchange proposes to amend change because, on October 5, 2015
communications relating to the Commentary .13 to Rule 1012 (Series of Google reorganized and as a result
proposed rule change between the Options Open for Trading), entitled underwent a name change.
Commission and any person, other than ‘‘Mini Options Contracts.’’ Specifically, The purpose of this change is to
those that may be withheld from the the Exchange proposes to replace the ensure that Commentary .13 to Rule
public in accordance with the name ‘‘Google Inc.’’ with ‘‘Alphabet 1012 properly reflects the intention and
provisions of 5 U.S.C. 552, will be Inc.’’ practice of the Exchange to trade Mini
available for Web site viewing and The Exchange requests that the Options on only an exhaustive list of
printing in the Commission’s Public Commission waive the 30-day operative underlying securities outlined in
Reference Room, 100 F Street NE., delay period contained in Exchange Act Commentary .13 to Rule 1012. This
Washington, DC 20549 on official Rule 19b–4(f)(6)(iii).3 change is meant to continue the
business days between the hours of The text of the proposed rule change inclusion of Class A shares of Google in
10:00 a.m. and 3:00 p.m. Copies of such is available on the Exchange’s Web site the current list of underlying securities
filing also will be available for at http:// that Mini Options can be traded on,
inspection and copying at the principal nasdaqomxphlx.cchwallstreet.com/, at while continuing to make clear that
offices of the Exchange. All comments the principal office of the Exchange, and class C shares of Google are not part of
received will be posted without change; at the Commission’s Public Reference that list as that class of options has not
the Commission does not edit personal Room. been approved for Mini Options trading.
identifying information from As a result, the proposed change will
II. Self-Regulatory Organization’s
submissions. You should submit only help avoid confusion.
Statement of the Purpose of, and
information that you wish to make
Statutory Basis for, the Proposed Rule 2. Statutory Basis
available publicly. All submissions Change
should refer to File Number SR–Phlx– The Exchange believes the proposed
2015–80, and should be submitted on or In its filing with the Commission, the rule change is consistent with the
before November 13, 2015. Exchange included statements Securities Exchange Act of 1934 (the
concerning the purpose of and basis for ‘‘Act’’) and the rules and regulations
For the Commission, by the Division of
the proposed rule change and discussed thereunder applicable to the Exchange
Trading and Markets, pursuant to delegated
authority.22 any comments it received on the and, in particular, the requirements of
proposed rule change. The text of these Section 6(b) of the Act.5 Specifically,
Robert W. Errett,
statements may be examined at the the Exchange believes the proposed rule
Deputy Secretary.
places specified in Item IV below. The change is consistent with the Section
[FR Doc. 2015–26911 Filed 10–22–15; 8:45 am] Exchange has prepared summaries, set
BILLING CODE 8011–01–P
6(b)(5) 6 requirements that the rules of
forth in sections A, B, and C below, of an exchange be designed to prevent
the most significant aspects of such fraudulent and manipulative acts and
statements. practices, to promote just and equitable
SECURITIES AND EXCHANGE
COMMISSION A. Self-Regulatory Organization’s principles of trade, to foster cooperation
Statement of the Purpose of, and and coordination with persons engaged
[Release No. 34–76191; File No. SR–PHLX– Statutory Basis for, the Proposed Rule in regulating, clearing, settling,
2015–82] Change processing information with respect to,
and facilitating transactions in
1. Purpose
Self-Regulatory Organizations; securities, to remove impediments to
NASDAQ OMX PHLX LLC; Notice of The Exchange proposes to amend and perfect the mechanism of a free and
Filing and Immediate Effectiveness of Commentary .13 to Rule 1012, regarding open market and a national market
Proposed Rule Change Relating to Mini Options traded on Phlx, to replace system, and, in general, to protect
Mini Options the name ‘‘Google Inc.’’ with ‘‘Alphabet investors and the public interest.
Inc.’’ Google Inc. (‘‘Google’’) recently Additionally, the Exchange believes the
October 19, 2015. announced plans to reorganize and proposed rule change is consistent with
Pursuant to Section 19(b)(1) of the create a new public holding company, the Section 6(b)(5) 7 requirement that
Securities Exchange Act of 1934 which will be called Alphabet Inc. the rules of an exchange not be designed
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 (‘‘Alphabet’’). As a result of the holding to permit unfair discrimination between
notice is hereby given that on October company reorganization, each share of customers, issuers, brokers, or dealers.
13, 2015, NASDAQ OMX PHLX LLC Class A Common Stock (‘‘GOOGL’’), In particular, the proposed rule
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the which the Exchange has listed as a Mini change to change the name Google to
Securities and Exchange Commission Option, will automatically convert into Alphabet to reflect the new ownership
(‘‘Commission’’) the proposed rule an equivalent corresponding share of structure is consistent with the Act
change as described in Items I and II Alphabet Inc. stock.4 The symbol because the proposed change is merely
below, which Items have been prepared ‘‘GOOGL’’ remains unchanged. updating the current name associated
The Exchange is proposing to make
mstockstill on DSK4VPTVN1PROD with NOTICES
by the Exchange. The Commission is with the stock symbol GOOGL to allow
publishing this notice to solicit this change to Commentary .13 to Rule for continued mini option trading on
comments on the proposed rule change 1012 to enable the continued trading of Google’s class A shares. The proposed
from interested persons. 3 17
change will allow for continued benefit
CFR 240.19b–4(f)(6)(iii).
4 The Class C Capital Stock (‘‘GOOG’’) which is
22 17 CFR 200.30–3(a)(12). 5 15 U.S.C. 78f(b).
also impacted by the reorganization are not eligible
1 15 U.S.C. 78s(b)(1). 6 15 U.S.C. 78f(b)(5).
to be listed as Mini Options on the Exchange, only
2 17 CFR 240.19b–4. the Class A Common Stock. 7 Id.
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Document Created: 2015-12-14 15:31:50
Document Modified: 2015-12-14 15:31:50
| 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 64462 |
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