80 FR 64464 - Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Mini Options

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 205 (October 23, 2015)

Page Range		64464-64465
FR Document		2015-26915

Federal Register, Volume 80 Issue 205 (Friday, October 23, 2015)

[Federal Register Volume 80, Number 205 (Friday, October 23, 2015)]
[Notices]
[Pages 64464-64465]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2015-26915]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76191; File No. SR-PHLX-2015-82]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Mini Options

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 13, 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 and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange proposes to amend Commentary .13 to Rule 1012 (Series
of Options Open for Trading), entitled ``Mini Options Contracts.''
Specifically, the Exchange proposes to replace the name ``Google Inc.''
with ``Alphabet Inc.''
The Exchange requests that the Commission waive the 30-day
operative delay period contained in Exchange Act Rule 19b-
4(f)(6)(iii).\3\
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\3\ 17 CFR 240.19b-4(f)(6)(iii).
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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 amend Commentary .13 to Rule 1012,
regarding Mini Options traded on Phlx, to replace the name ``Google
Inc.'' with ``Alphabet Inc.'' Google Inc. (``Google'') recently
announced plans to reorganize and create a new public holding company,
which will be called Alphabet Inc. (``Alphabet''). As a result of the
holding company reorganization, each share of Class A Common Stock
(``GOOGL''), which the Exchange has listed as a Mini Option, will
automatically convert into an equivalent corresponding share of
Alphabet Inc. stock.\4\ The symbol ``GOOGL'' remains unchanged.
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\4\ The Class C Capital Stock (``GOOG'') which is also impacted
by the reorganization are not eligible to be listed as Mini Options
on the Exchange, only the Class A Common Stock.
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The Exchange is proposing to make this change to Commentary .13 to
Rule 1012 to enable the continued trading of Mini Options on Google's,
now Alphabet's Class A shares. The Exchange is proposing to make this
change because, on October 5, 2015 Google reorganized and as a result
underwent a name change.
The purpose of this change is to ensure that Commentary .13 to Rule
1012 properly reflects the intention and practice of the Exchange to
trade Mini Options on only an exhaustive list of underlying securities
outlined in Commentary .13 to Rule 1012. This change is meant to
continue the inclusion of Class A shares of Google in the current list
of underlying securities that Mini Options can be traded on, while
continuing to make clear that class C shares of Google are not part of
that list as that class of options has not been approved for Mini
Options trading. As a result, the proposed change will help avoid
confusion.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\5\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \6\ requirements that the rules of an exchange be
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. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \7\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
\7\ Id.
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In particular, the proposed rule change to change the name Google
to Alphabet to reflect the new ownership structure is consistent with
the Act because the proposed change is merely updating the current name
associated with the stock symbol GOOGL to allow for continued mini
option trading on Google's class A shares. The proposed change will
allow for continued benefit

[[Page 64465]]

to investors by providing them with additional investment alternatives.

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

Phlx does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed change does not
impose any burden on intra-market competition because it applies to all
members and member organizations uniformly. There is no burden on
inter-market competition because the Exchange is merely attempting to
continue to permit trading of GOOGL as a Mini Options, as is the case
today. As a result, there will be no substantive changes to the
Exchange's operations or its rules.

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

No written comments were either solicited or received.

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

Because the proposed rule change does not (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6)
thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Commission deems this requirement to have been met.
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A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii) \11\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
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The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Commission believes that waiving the 30-day operative delay
is consistent with the protection of investors and the public interest,
as it will allow the Exchange to continue to list mini options on the
Google Class A shares, now Alphabet's Class A shares, following
Google's reorganization. For this reason, the Commission designates the
proposed rule change to be operative upon filing.\12\
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\12\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

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 rule-comments@sec.gov. Please include
File Number SR-PHLX-2015-82 on the subject line.

Paper Comments

Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-PHLX-2015-82. 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-2015-82, and should be
submitted on or before November 13, 2015.
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\13\ 17 CFR 200.30-3(a)(12).

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-26915 Filed 10-22-15; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 205 / Friday, October 23, 2015 / Notices 64465

to investors by providing them with filing. The Commission believes that available for Web site viewing and
additional investment alternatives. waiving the 30-day operative delay is printing in the Commission’s Public
consistent with the protection of Reference Room, 100 F Street NE.,
B. Self-Regulatory Organization’s
investors and the public interest, as it Washington, DC 20549 on official
Statement on Burden on Competition
will allow the Exchange to continue to business days between the hours of
Phlx does not believe that the list mini options on the Google Class A 10:00 a.m. and 3:00 p.m. Copies of such
proposed rule change will impose any shares, now Alphabet’s Class A shares, filing also will be available for
burden on competition that is not following Google’s reorganization. For inspection and copying at the principal
necessary or appropriate in furtherance this reason, the Commission designates office of the Exchange. All comments
of the purposes of the Act. The the proposed rule change to be operative received will be posted without change;
proposed change does not impose any upon filing.12 the Commission does not edit personal
burden on intra-market competition At any time within 60 days of the identifying information from
because it applies to all members and filing of the proposed rule change, the submissions. You should submit only
member organizations uniformly. There Commission summarily may information that you wish to make
is no burden on inter-market temporarily suspend such rule change if available publicly. All submissions
competition because the Exchange is it appears to the Commission that such should refer to File Number SR–PHLX–
merely attempting to continue to permit action is necessary or appropriate in the 2015–82, and should be submitted on or
trading of GOOGL as a Mini Options, as public interest, for the protection of before November 13, 2015.
is the case today. As a result, there will investors, or otherwise in furtherance of
For the Commission, by the Division of
be no substantive changes to the the purposes of the Act.
Trading and Markets, pursuant to delegated
Exchange’s operations or its rules. authority.13
IV. Solicitation of Comments
C. Self-Regulatory Organization’s Interested persons are invited to Robert W. Errett,
Statement on Comments on the submit written data, views, and Deputy Secretary.
Proposed Rule Change Received From arguments concerning the foregoing, [FR Doc. 2015–26915 Filed 10–22–15; 8:45 am]
Members, Participants, or Others including whether the proposed rule BILLING CODE 8011–01–P
No written comments were either change is consistent with the Act.
solicited or received. Comments may be submitted by any of
the following methods: SECURITIES AND EXCHANGE
III. Date of Effectiveness of the COMMISSION
Proposed Rule Change and Timing for Electronic Comments
Commission Action • Use the Commission’s Internet [Release No. 34–76189; File No. SR–FINRA–
Because the proposed rule change comment form (http://www.sec.gov/ 2015–038]
does not (i) significantly affect the rules/sro.shtml); or
• Send an email to rule-comments@ Self-Regulatory Organizations;
protection of investors or the public
sec.gov. Please include File Number SR– Financial Industry Regulatory
interest; (ii) impose any significant
PHLX–2015–82 on the subject line. Authority, Inc.; Notice of Filing and
burden on competition; and (iii) become
Immediate Effectiveness of a Proposed
operative for 30 days from the date on Paper Comments Rule Change Relating to the Series 27
which it was filed, or such shorter time
as the Commission may designate if • Send paper comments in triplicate Examination Program
consistent with the protection of to Brent J. Fields, Secretary, Securities
October 19, 2015.
investors and the public interest, the and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the
proposed rule change has become Securities Exchange Act of 1934 (‘‘Act’’
effective pursuant to Section 19(b)(3)(A) All submissions should refer to File
or ‘‘SEA’’) 1 and Rule 19b–4
of the Act 8 and Rule 19b–4(f)(6) Number SR–PHLX–2015–82. This file
thereunder,2 notice is hereby given that
thereunder.9 number should be included on the
on October 13, 2015, Financial Industry
A proposed rule change filed under subject line if email is used. To help the
Regulatory Authority, Inc. (‘‘FINRA’’)
Rule 19b–4(f)(6) 10 normally does not Commission process and review your
filed with the Securities and Exchange
become operative for 30 days after the comments more efficiently, please use
Commission (‘‘SEC’’ or ‘‘Commission’’)
date of filing. However, pursuant to only one method. The Commission will
the proposed rule change as described
Rule 19b–4(f)(6)(iii) 11 the Commission post all comments on the Commission’s
in Items I, II, and III below, which Items
may designate a shorter time if such Internet Web site (http://www.sec.gov/
have been prepared by FINRA. FINRA
action is consistent with the protection rules/sro.shtml). Copies of the
has designated the proposed rule change
of investors and the public interest. submission, all subsequent
as ‘‘constituting a stated policy,
The Exchange has asked the amendments, all written statements
practice, or interpretation with respect
Commission to waive the 30-day with respect to the proposed rule
to the meaning, administration, or
operative delay so that the proposal may change that are filed with the
enforcement of an existing rule’’ under
become operative immediately upon Commission, and all written
Section 19(b)(3)(A)(i) of the Act 3 and
communications relating to the
Rule 19b–4(f)(1) thereunder,4 which
8 15 U.S.C. 78s(b)(3)(A). proposed rule change between the
renders the proposal effective upon
9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– Commission and any person, other than
4(f)(6)(iii) requires the Exchange to give the receipt of this filing by the Commission.
those that may be withheld from the
mstockstill on DSK4VPTVN1PROD with NOTICES

Commission written notice of the Exchange’s intent The Commission is publishing this
public in accordance with the
to file the proposed rule change, along with a brief notice to solicit comments on the
description and text of the proposed rule change, provisions of 5 U.S.C. 552, will be
at least five business days prior to the date of filing
13 17 CFR 200.30–3(a)(12).
of the proposed rule change, or such shorter time 12 For purposes only of waiving the 30-day
1 15 U.S.C. 78s(b)(1).
as designated by the Commission. The Commission operative delay, the Commission has also
deems this requirement to have been met. considered the proposed rule’s impact on
2 17 CFR 240.19b–4.
10 17 CFR 240.19b–4(f)(6). 3 15 U.S.C. 78s(b)(3)(A)(i).
efficiency, competition, and capital formation. See
11 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). 4 17 CFR 240.19b–4(f)(1).

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Document Created: 2015-12-14 15:32:04
Document Modified: 2015-12-14 15:32:04

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 64464