80 FR 81405 - Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delete Rule 1068, Execution of Multi-Part Orders

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 249 (December 29, 2015)

[Federal Register Volume 80, Number 249 (Tuesday, December 29, 2015)]
[Notices]
[Pages 81405-81407]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32651]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76737; File No. SR-Phlx-2015-102]


Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Delete 
Rule 1068, Execution of Multi-Part Orders

December 22, 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 December 15, 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 delete Rule 1068, Execution of Multi-Part 
Orders, as described further below.
    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

[[Page 81406]]

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 filing is to update the Exchange's rulebook by 
deleting Rule 1068, Execution of Multi-Part Orders.\3\ This rule 
pertains to the execution of a foreign currency options--futures multi-
part order, which is a type of spread order that consists of multiple 
components.\4\ Rule 1068 was adopted when the Exchange operated a 
trading floor for both foreign currency options and foreign currency 
futures (which were traded on the Philadelphia Board of Trade 
(``PBOT''), a futures exchange). The rule enumerates the process for 
representing and executing a foreign currency options--futures multi-
part order in the trading crowd.
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    \3\ See Securities Exchange Act Release No. 28117 (June 14, 
1990), 55 FR 25188 (June 20, 1990) (SR-Phlx-89-58).
    \4\ In Rule 1066(c), the Exchange previously defined a multi-
part order as an order to buy and/or sell a stated number of foreign 
currency option contracts and a stated number of foreign currency 
futures contracts. This order type was deleted. See Securities 
Exchange Act Release No. 69471 (April 29, 2013), 78 FR 26096 (May 3, 
2013) (SR-Phlx-2013-09).
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    PBOT has long been replaced by successive futures exchanges (NASDAQ 
Futures Exchange, Inc. and, most recently, NASDAQ Futures, Inc. 
(collectively ``NFX'')). NFX operates as an all-electronic futures 
exchange, such that no trading floor exists \5\ upon which an order 
with a futures component can be executed. Although foreign currency 
options can be executed on the options trading floor, futures orders 
cannot. Rule 1068 refers to the execution of this order pursuant to NFX 
Rule 327, which no longer exists.\6\
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    \5\ See SR-NFX-2009-04. This rule self-certification was filed 
with the Commodity Futures Trading Commission on March 26, 2009 and 
eliminated open outcry rules in connection with the termination of 
floor trading.
    \6\ Id.
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    Rule 1068 inadvertently remained in the rulebook after NFX no 
longer operated with a trading floor, and is now proposed to be 
deleted.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \8\ in particular, in that it is designed to promote 
just and equitable principles of trade and protect investors and the 
public interest, by eliminating an obsolete rule and thereby preventing 
confusion as to whether such a multi-part order can be executed. 
Eliminating the execution rule associated with multi-part orders 
promotes just and equitable principles of trade, because the order type 
itself was previously deleted, and because it is impossible to trade. 
Eliminating this rule is also consistent with the protection of 
investors and the public interest because investors would not 
reasonably expect to be able to execute such an order and there has 
been no demand for this order.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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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. There are no market 
participants impacted by the deletion of this rule. This rule was 
specifically intended to permit NFX members to transact business on a 
trading floor, which no longer exists. Further, the Exchange does not 
list these products and therefore no market participant may transact 
foreign currency futures. Those Phlx members desiring to transact 
foreign currency options may continue to trade those securities on 
Phlx. Accordingly, there is no impact on intra-market competition. 
Market participants who seek to trade in foreign currency options along 
with foreign currency futures can do so by submitting separate orders 
to various securities and futures exchanges.

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)(iii) of the Act \9\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(a)(iii).
    \10\ 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.
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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-2015-102 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-2015-102. 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

[[Page 81407]]

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-2015-102 and should be submitted on or before 
January 19, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-32651 Filed 12-28-15; 8:45 am]
 BILLING CODE 8011-01-P