81 FR 12160 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Pricing Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 45 (March 8, 2016)

[Federal Register Volume 81, Number 45 (Tuesday, March 8, 2016)]
[Notices]
[Pages 12160-12162]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-05123]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77283; File No. SR-Phlx-2016-30]


Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend the 
Pricing Schedule

March 3, 2016.
    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 February 26, 2016, NASDAQ PHLX LLC (``Phlx'' or the ``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 the Exchange's Pricing Schedule to 
update the Pricing Schedule in various ways, (1) remove unnecessary 
rule text and footnotes; (2) update names of Nasdaq exchanges to 
reflect a recent name change; (3) update the current definitions to add 
detail and rearrange rule text; and (4) rename the Payment for Order 
Flow Fee.
    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.

[[Page 12161]]

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to update its Pricing Schedule in various 
ways, which are explained below, to clarify its pricing. The Exchange 
proposes to specifically (1) remove unnecessary rule text and 
footnotes; (2) update names of the Exchange to reflect a recent name 
change; (3) update the current definitions to add detail and rearrange 
rule text; and (4) rename the Payment of Order Flow Fee.
Remove Unnecessary Rule Text and Footnotes
    The Exchange proposes to remove unnecessary footnote numbers 
throughout the Pricing Schedule. The rule text contained within the 
footnotes will remain in the Pricing Schedule, the actual footnote 
numbers are being removed because the Exchange believes they are 
distracting and do not add clarity to the Pricing Schedule.
    The Exchange also proposes to remove the references to SOX, HGX and 
OSX in Section II of the Pricing Schedule, titled ``Multiply Listed 
Options Fees,'' because these symbols are currently only listed on Phlx 
and there is no confusion that they are Singly Listed symbols. These 
symbols were previously listed on The NASDAQ Options Market, LLC for 
some time, but this is no longer the case. SOX, HGX and OSX will 
continue to be subject to Section III pricing. The Exchange is also 
removing references to XDM, XEH, XEV and XDV in Section III, titled 
``Singly Listed Options,'' as the Exchange no longer lists options 
overlying these securities. These rule changes are non-substantive.
Name Changes
    The Exchange's name was recently updated \3\ from ``NASDAQ OMX PHLX 
LLC'' to ``NASDAQ PHLX LLC.'' The Exchange is amending its name in the 
Pricing Schedule along with references to ``NASDAQ OMX PSX,'' changing 
it to ``NASDAQ PSX,'' and NASDAQ OMX BX, Inc.'s name will be changed to 
NASDAQ BX, Inc.\4\ The Exchange proposes to update these names within 
the Pricing Schedule. The Exchange proposes to remove all references to 
``OMX'' within the Pricing Schedule. These rule changes are non-
substantive.
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    \3\ See Securities Exchange Act Release No. 76654 (December 15, 
2015), 80 FR 79396 (December 21, 2015) (SR-Phlx-2015-105).
    \4\ See Securities Exchange Act Release No. 76656 (December 15, 
2015), 80 FR 79381 (December 21, 2015) (SR-BX-2015-080).
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Definitions
    The Exchange proposes to relocate rule text currently located 
within the footnotes to the text of certain definitions so the Exchange 
may consolidate information. These rule changes are non-substantive.
Rename Payment for Order Flow as Marketing Fee
    The Exchange is proposing to rename the ``Payment for Order Flow'' 
Fee or ``PFOF'' as the ``Marketing Fee.'' The Exchange believes that 
this reference to this fee is more appropriate. This rule change is 
non-substantive.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \5\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \6\ in particular, in that it is designed to promote 
just and equitable principles of trade, 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, 
by bringing additional clarity to the Exchange's rules regarding 
pricing.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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Remove Unnecessary Rule Text and Footnotes
    The Exchange's proposal to remove unnecessary footnote numbers 
throughout the Pricing Schedule will bring clarity to the Pricing 
Schedule. The Exchange believes that removing the actual numbers, while 
retaining the rule text, will remove these distracting footnotes and 
make the Pricing Schedule easier to read. Also, the Exchange proposes 
to remove the references to SOX, HGX and OSX in Section II, titled 
``Multiply Listed Options Fees,'' of the Pricing Schedule. This change 
is consistent with the Act and the protection of investors because 
these symbols are currently only listed on Phlx and there is no 
confusion that they are Singly Listed symbols. These symbols were 
listed on The NASDAQ Options Market, LLC for some time, but this is no 
longer the case. The Exchange's proposal to remove references to XDM, 
XEH, XEV and XDV in Section III, titled ``Singly Listed Options,'' is 
consistent with the Act because the Exchange no longer lists options 
overlying these securities and removing these references will bring 
clarity to the Pricing Schedule. The Exchange believes that these rule 
changes are consistent with the Act because they protect investors and 
the public interest by clarifying rules.
Name Changes
    The Exchange's proposal to update the Exchange's name, the 
references to PSX and NASDAQ BX and remove all references to ``OMX'' 
will also clarify the Pricing Schedule by using the proper updated 
names. The Exchange believes that these rule changes are consistent 
with the Act because they protect investors and the public interest by 
clarifying its rules. These rule changes are non-substantive.
Definitions
    The Exchange's proposal to relocate rule text within the footnotes 
will provide members with consolidated information in one place on the 
Pricing Schedule. The Exchange believes that these rule changes are 
consistent with the Act because they protect investors and the public 
interest by clarifying its rules. The Exchange is not altering the 
definitions; these changes are non-substantive.
Rename Payment for Order Flow as Marketing Fee
    The Exchange's proposal to rename ``Payment for Order Flow'' Fee or 
``PFOF'' as the ``Marketing Fee'' is consistent with the Act because 
this non-substantive change will not impact pricing and is simply a 
name change.

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.
Remove Unnecessary Rule Text and Footnotes
    The Exchange's proposal to remove unnecessary footnotes throughout 
the Pricing Schedule, remove the references to SOX, HGX and OSX in 
Section II and remove references to XDM, XEH, XEV and XDV in Section 
III are non-substantive rule changes which will not impose an undue 
burden on competition.
Name Changes
    The Exchange's proposal to update the Exchange's name, the 
references to PSX and NASDAQ BX and remove references to ``OMX'' are 
non-substantive rule changes which will not impose an undue burden on 
competition.

[[Page 12162]]

Definitions
    The Exchange's proposal to relocate rule text currently located 
within the footnotes will provide members with consolidated information 
in one place on the Pricing Schedule. The relocation of the rule text 
is a non-substantive rule change which will not impose an undue burden 
on competition.
Rename Payment for Order Flow as Marketing Fee
    The Exchange's proposal to rename ``Payment for Order Flow'' or 
``PFOF'' as ``Marketing Fee'' is a non-substantive rule change which 
will not impose an undue burden on competition.

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 \7\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(a)(iii).
    \8\ 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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    The Exchange has asked the Commission to waive the 30-day operative 
delay so that the proposal may become operative immediately upon 
filing. The Exchange has stated that it is requesting this waiver 
because the Exchange would like to update its Pricing Schedule 
immediately to reflect these non-substantive changes and avoid investor 
confusion. The Exchange believes that it is important to immediately 
update its Pricing Schedule to reflect current proposed rule changes to 
that document. Also, the Exchange believes that the amendments will 
bring clarity to the Pricing Schedule. The Commission believes that 
waiving the 30-day operative delay is consistent with the protection of 
investors and the public interest because this waiver will enable the 
Exchange to update its Pricing Schedule immediately with these non-
substantive changes and thereby make the Pricing Schedule clearer for 
investors, avoiding potential points of confusion. For this reason, the 
Commission hereby waives the 30-day operative delay requirement and 
designates the proposed rule change as operative upon filing.\9\
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    \9\ 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).
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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-2016-30 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-2016-30. 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-2016-30, and should be 
submitted on or before March 29, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-05123 Filed 3-7-16; 8:45 am]
 BILLING CODE 8011-01-P