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, Issue 249 (December 29, 2015)
| Page Range | 81405-81407 | |
| FR Document | 2015-32651 |
[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] ----------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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 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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 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. 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\ --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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 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-2015-102 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\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-32651 Filed 12-28-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 249 / Tuesday, December 29, 2015 / Notices 81405
Book and incorporating pass-through IV. Solicitation of Comments For the Commission, by the Division of
fees into the cost of executing a directed Trading and Markets, pursuant to delegated
order is consistent with Section 6(b)(5) Interested persons are invited to authority.25
of the Act. The elimination of these fees submit written data, views and Brent J. Fields,
will be uniformly applied to current and arguments concerning the foregoing, Secretary.
prospective ETP Holders. Thus, the including whether the proposed rule [FR Doc. 2015–32650 Filed 12–28–15; 8:45 am]
proposed reduction or removal of the change is consistent with the Act. BILLING CODE 8011–01–P
fees do not permit unfair discrimination Comments may be submitted by any of
among ETP Holders. Additionally, the following methods:
reducing or removing the fees will serve SECURITIES AND EXCHANGE
Electronic Comments COMMISSION
to decrease cost and increase liquidity,
further removing impediments to and • Use the Commission’s Internet
perfecting the mechanism of a free and comment form (http://www.sec.gov/ [Release No. 34–76737; File No. SR–Phlx–
open market and a national market rules/sro.shtml); or 2015–102]
system.
• Send an email to rule-comments@ Self-Regulatory Organizations;
B. Self-Regulatory Organization’s sec.gov. Please include File Number SR– NASDAQ OMX PHLX LLC; Notice of
Statement on Burden on Competition NSX–2015–07 on the subject line. Filing and Immediate Effectiveness of
Proposed Rule Change To Delete Rule
The Exchange does not believe that Paper Comments
1068, Execution of Multi-Part Orders
the proposed rule change will impose
any burden on competition that is not • Send paper comments in triplicate December 22, 2015.
necessary or appropriate in furtherance to Brent J. Fields, Secretary, Securities Pursuant to Section 19(b)(1) of the
of the purposes of the Exchange Act. and Exchange Commission, 100 F Street Securities Exchange Act of 1934
The proposed rule change seeks to NE., Washington, DC 20549–1090. (‘‘Act’’),1 and Rule 19b–4 thereunder,2
adopt a Fee Schedule that will apply All submissions should refer to File notice is hereby given that on December
uniformly to all ETP Holders accessing Number SR–NSX–2015–07. This file 15, 2015, NASDAQ OMX PHLX LLC
the Exchange. The Exchange further (‘‘Phlx’’ or ‘‘Exchange’’) filed with the
number should be included on the
submits that its proposed execution, Securities and Exchange Commission
subject line if email is used. To help the
regulatory, market data, and (‘‘SEC’’ or ‘‘Commission’’) the proposed
Commission process and review your
connectivity fees have been reasonably rule change as described in Items I, II,
calibrated such that they should impose comments more efficiently, please use
only one method. The Commission will and III, below, which Items have been
no burden on competition. Moreover, prepared by the Exchange. The
the proposed fees and rebates will post all comments on the Commission’s
Commission is publishing this notice to
enhance rather than burden competition Internet Web site (http://www.sec.gov/
solicit comments on the proposed rule
by operating to increase liquidity and rules/sro.shtml). Copies of the
change from interested persons.
improve execution quality on the submission, all subsequent
Exchange through reasonable and amendments, all written statements I. Self-Regulatory Organization’s
equitably allocated economic with respect to the proposed rule Statement of the Terms of Substance of
incentives. change that are filed with the the Proposed Rule Change
Commission, and all written The Exchange proposes to delete Rule
C. Self-Regulatory Organization’s communications relating to the 1068, Execution of Multi-Part Orders, as
Statement on Comments on the
proposed rule change between the described further below.
Proposed Rule Change Received From
Commission and any person, other than The text of the proposed rule change
Members, Participants, or Others
those that may be withheld from the is available on the Exchange’s Web site
The Exchange has neither solicited public in accordance with the at http://
nor received written comments on the provisions of 5 U.S.C. 552, will be nasdaqomxphlx.cchwallstreet.com/, at
proposed rule change. available for Web site viewing and the principal office of the Exchange, and
printing in the Commission’s Public at the Commission’s Public Reference
III. Date of Effectiveness of the Room.
Reference Room, 100 F Street NE.,
Proposed Rule Change and Timing for
Washington, DC 20549, on official II. Self-Regulatory Organization’s
Commission Action
business days between the hours of Statement of the Purpose of, and
The proposed rule change has taken 10:00 a.m. and 3:00 p.m. Copies of the Statutory Basis for, the Proposed Rule
effect upon filing pursuant to Section filing also will be available for Change
19(b)(3)(A)(ii) of the Act 23 and inspection and copying at the principal
In its filing with the Commission, the
subparagraph (f)(2) of Rule 19b–4.24 office of the Exchange. All comments Exchange included statements
At any time within 60 days of the received will be posted without change; concerning the purpose of and basis for
filing of such proposed rule change, the the Commission does not edit personal the proposed rule change and discussed
Commission summarily may identifying information from any comments it received on the
temporarily suspend such rule change if submissions. You should submit only
asabaliauskas on DSK5VPTVN1PROD with NOTICES
proposed rule change. The text of these
it appears to the Commission that such information that you wish to make statements may be examined at the
action is necessary or appropriate in the available publicly. All submissions places specified in Item IV below. The
public interest, for the protection of should refer to File Number SR–NSX– Exchange has prepared summaries, set
investors, or otherwise in furtherance of 2015–07 and should be submitted on or forth in sections A, B, and C below, of
the purposes of the Act. before January 19, 2016.
25 17 CFR 200.30–3(a)(12).
23 15 U.S.C. 78s(b)(3)(A)(ii). 1 15 U.S.C. 78s(b)(1).
24 17 CFR 240.19b–4(f)(2). 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 80, No. 249 / Tuesday, December 29, 2015 / Notices 81407
Reference Room, 100 F Street NE., The Exchange purposes [sic] to Customer and Professional Penny Pilot
Washington, DC 20549, on official remove specific rule text added in SR– Options Rebates To Add Liquidity
business days between the hours of NASDAQ–2015–149,3 which was Today, the Exchange offers
10:00 a.m. and 3:00 p.m. Copies of the applicable only to the mid-month Participants tiered Customer and
filing also will be available for pricing change.4 This proposal removes Professional rebates based on various
inspection and copying at the principal the specific December 2015 dates from criteria, with rebates ranging from $0.20
office of the Exchange. All comments the rule text so the rebates will apply in to $0.48 per contract.6 The Exchange
received will be posted without change; January 2016. While the changes filed SR–NASDAQ–2015–149,7 on
the Commission does not edit personal proposed herein are effective upon December 2, 2015, to amend Tier 8 of
identifying information from filing, the Exchange has designated the the Customer and Professional Penny
submissions. You should submit only amendments [sic] become operative on Pilot Options Rebates to Add Liquidity
information that you wish to make January 4, 2016. tiers. Participants may qualify for
available publicly. All submissions The text of the proposed rule change Customer and Professional Penny Pilot
should refer to File Number SR–Phlx– is available on the Exchange’s Web site Options Rebates to Add Liquidity by
2015–102 and should be submitted on at http://nasdaq.cchwallstreet.com, at adding a certain amount of liquidity as
or before January 19, 2016. the principal office of the Exchange, and specified by each tier.8
For the Commission, by the Division of at the Commission’s Public Reference The Exchange proposes to amend Tier
Trading and Markets, pursuant to delegated Room. 8 of the Customer and Professional
authority.11 II. Self-Regulatory Organization’s Penny Pilot Options Rebate to Add
Brent J. Fields, Statement of the Purpose of, and Liquidity, which states ‘‘Participant
Secretary. Statutory Basis for, the Proposed Rule adds Customer, Professional, Firm, Non-
[FR Doc. 2015–32651 Filed 12–28–15; 8:45 am] Change NOM Market Maker, and/or Broker-
BILLING CODE 8011–01–P In its filing with the Commission, the
2010), 75 FR 25895 (May 10, 2010) (SR–NASDAQ–
Exchange included statements 2010–053) (notice of filing and immediate
concerning the purpose of and basis for effectiveness adding seventy-five classes to Penny
SECURITIES AND EXCHANGE
the proposed rule change and discussed Pilot); 65969 (December 15, 2011), 76 FR 79268
COMMISSION (December 21, 2011) (SR–NASDAQ–2011–169)
any comments it received on the
(notice of filing and immediate effectiveness [sic]
[Release No. 34–76739; File No. SR– proposed rule change. The text of these extension and replacement of Penny Pilot); 67325
NASDAQ–2015–153] statements may be examined at the (June 29, 2012), 77 FR 40127 (July 6, 2012) (SR–
places specified in Item IV below. The NASDAQ–2012–075) (notice of filing and
Self-Regulatory Organizations; The Exchange has prepared summaries, set immediate effectiveness and extension and
NASDAQ Stock Market LLC; Notice of replacement of Penny Pilot through December 31,
forth in sections A, B, and C below, of 2012); 68519 (December 21, 2012), 78 FR 136
Filing and Immediate Effectiveness of the most significant aspects of such (January 2, 2013) (SR–NASDAQ–2012–143) (notice
Proposed Rule Change To Amend statements. of filing and immediate effectiveness and extension
NASDAQ Options Market—Fees and and replacement of Penny Pilot through June 30,
Rebates A. Self-Regulatory Organization’s 2013); 69787 (June 18, 2013), 78 FR 37858 (June 24,
Statement of the Purpose of, and 2013) (SR–NASDAQ–2013–082) (notice of filing
December 22, 2015. and immediate effectiveness and extension and
Statutory Basis for, the Proposed Rule replacement of Penny Pilot through December 31,
Pursuant to Section 19(b)(1) of the Change 2013); 71105 (December 17, 2013), 78 FR 77530
Securities Exchange Act of 1934 (December 23, 2013) (SR–NASDAQ–2013–154)
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 1. Purpose (notice of filing and immediate effectiveness and
notice is hereby given that on December The Exchange proposes to amend extension and replacement of Penny Pilot through
June 30, 2014); 79 FR 31151 [sic] (May 23, 2014),
15, 2015, The NASDAQ Stock Market Chapter XV, Section 2, entitled 79 FR 31151 (May 30, 2014) (SR–NASDAQ–2014–
LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed ‘‘NASDAQ Options Market—Fees and 056) (notice of filing and immediate effectiveness
with the Securities and Exchange Rebates’’ to amend Tier 8 of the and extension and replacement of Penny Pilot
Commission (‘‘SEC’’ or ‘‘Commission’’) Customer and Professional Penny Pilot through December 31, 2014); 73686 (December 2,
2014) [sic], 79 FR 71477 (November 25, 2014) [sic]
the proposed rule change as described Options 5 Rebates to Add Liquidity. The (SR–NASDAQ–2014–115) (notice of filing and
in Items I, II, and III below, which Items proposed rule change is detailed below. immediate effectiveness and extension and
have been prepared by the Exchange. replacement of Penny Pilot through June 30, 2015)
The Commission is publishing this 3 This proposed rule change is not yet published. and 75283 (June 24, 2015), 80 FR 37347 (June 30,
This proposed rule change was filed on December 2015) (SR–NASDAQ–2015–063) (notice of filing
notice to solicit comments on the and immediate effectiveness and extension and
2, 2015.
proposed rule change from interested 4 The Commission notes that after the Exchange replacement of Penny Pilot). See also NOM Rules,
persons. filed this proposal, the notice for SR–NASDAQ– Chapter VI, Section 5.
6 See NOM’s Rules at Chapter XV, Section 2(1).
2015–149 was published for public comment. See
I. Self-Regulatory Organization’s Securities Exchange Act Release No. 76651 7 See note 3 above.
Statement of the Terms of Substance of (December 15, 2015), 80 FR 79387 (December 21, 8 Tiers 6 and 7 are calculated based on Total
the Proposed Rule Change 2015). Volume. Total Volume is defined as Customer,
5 See Securities Exchange Act Release Nos. 57579 Professional, Firm, Broker-Dealer, Non-NOM
The Exchange proposes to amend (March 28, 2008), 73 FR 18587 (April 4, 2008) (SR– Market Maker, and NOM Market Maker volume in
Chapter XV, entitled ‘‘Options Pricing,’’ NASDAQ–2008–026) (notice of filing and Penny Pilot Options and/or Non-Penny Pilot
at Section 2, which governs pricing for immediate effectiveness establishing Penny Pilot); Options which either adds or removes liquidity on
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Exchange members using the NASDAQ 60874 (October 23, 2009), 74 FR 56682 (November NOM. See note ‘‘b’’ in Section 2(1) of Chapter XV.
2, 2009) (SR–NASDAQ–2009–091) (notice of filing The Exchange utilizes data from The Options
Options Market (‘‘NOM’’), the and immediate effectiveness expanding and Clearing Corporation (‘‘OCC’’) to determine the total
Exchange’s facility for executing and extending Penny Pilot); 60965 (November 9, 2009), industry customer equity and ETF options ADV
routing standardized equity and index 74 FR 59292 (November 17, 2009) (SR–NASDAQ– figure. OCC classifies equity and ETF options
options. 2009–097) (notice of filing and immediate volume under the equity options category. Also,
effectiveness adding seventy-five classes to Penny both customer and professional orders that are
Pilot); 61455 (February 1, 2010), 75 FR 6239 transacted on options exchanges clear in the
11 17 CFR 200.30–3(a)(12). (February 8, 2010) (SR–NASDAQ–2010–013) customer range at OCC and therefore both customer
1 15 U.S.C. 78s(b)(1). (notice of filing and immediate effectiveness adding and professional volume would be included in the
2 17 CFR 240.19b–4. seventy-five classes to Penny Pilot); 62029 (May 4, total industry figure to calculate rebate tiers.
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Document Created: 2015-12-29 10:15:36
Document Modified: 2015-12-29 10:15:36
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 81405 |
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