81 FR 18664 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delete Rule 756

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 62 (March 31, 2016)

Page Range		18664-18665
FR Document		2016-07198
Federal Register, Volume 81 Issue 62 (Thursday, March 31, 2016)
[Federal Register Volume 81, Number 62 (Thursday, March 31, 2016)]
[Notices]
[Pages 18664-18665]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-07198]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77443; File No. SR-Phlx-2016-37]


Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Delete Rule 756

March 25, 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 March 18, 2016, NASDAQ 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 delete Rule 756 from the Phlx rules.
    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 purpose of this proposed rule change is to delete Rule 756, 
which deals with accounts of general partners. As discussed below, the 
Exchange has determined that these rules are anachronistic and no 
longer serve a purpose. Consequently, the Exchange is proposing to 
eliminate the rules from the rulebook to avoid any confusion that may 
be caused by retaining them.
Rule 756
    Rule 756 concerns the accounts of general partners. The rule 
requires that no member organization that is a partnership shall carry 
an account for a general partner of another member organization that is 
a partnership without the prior written consent of another general 
partner of such other organization. It also requires that duplicate 
reports and monthly statements shall be sent to a general partner of 
the organization (other than the partner for whom the account is 
carried) designated in such consent.
    Further, the rule requires that all clearance transactions for a 
general partner of another member organization that is a partnership 
shall be reported by the clearing firm to a general partner of such 
other organization who has no interest in such transactions.
    The Exchange believes that the rule is no longer relevant. The rule 
was adopted at a time when the Exchange had a general partner 
membership classification. That classification is no longer in 
existence. Accordingly, the Exchange does not believe the rule serves a 
regulatory purpose and it is accordingly proposing to delete the rule.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\3\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\4\ in particular, in that it is 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 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.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes the proposed changes are consistent with just 
and equitable principles of trade because they delete outdated and 
potentially confusing rules. The rule that the Exchange proposes to 
delete is anachronistic and does not have application to the Exchange's 
current function. Thus, removing it from the rules promotes clarity and 
eliminates potential confusion caused by allowing it to remain.

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

    The proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act. Rather it is designed to promote competition among exchanges 
by removing archaic rules in comparison to the rules of other 
exchanges. Last, the proposed changes promote clarity in the 
application of the Exchange's rules by eliminating unneeded 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 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) of the Act \5\ and Rule 19b-
4(f)(6) thereunder.\6\
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 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. In the 
instant filing, the Commission waives this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) normally 
does not become operative for 30 days after the date of its filing. 
However, pursuant to Rule 19b-4(f)(6)(iii), the Commission may 
designate a shorter

[[Page 18665]]

time if such action is consistent with the protection of investors and 
the public interest. 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 delete unnecessary 
and outdated rule text and therefore reduce confusion in the 
application of the Exchange's rules. Therefore, the Commission hereby 
waives the operative delay and designates the proposed rule change 
operative upon filing.\7\
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    \7\ 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 necessary or 
appropriate in the public interest, for the protection of investors, or 
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-2016-37 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-2016-37. 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 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-2016-37 and should be 
submitted on or before April 21, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-07198 Filed 3-30-16; 8:45 am]
 BILLING CODE 8011-01-P
18664 Federal Register / Vol. 81, No. 62 / Thursday, March 31, 2016 / Notices

should submit only information that statements may be examined at the transactions in securities, to remove
you wish to make available publicly. All places specified in Item IV below. The impediments to and perfect the
submissions should refer to File Exchange has prepared summaries, set mechanism of a free and open market
Number SR–ICC–2016–004 and should forth in sections A, B, and C below, of and a national market system and, in
be submitted on or before April 21, the most significant aspects of such general, to protect investors and the
2016. statements. public interest.
For the Commission, by the Division of
The Exchange believes the proposed
A. Self-Regulatory Organization’s changes are consistent with just and
Trading and Markets, pursuant to delegated Statement of the Purpose of, and
authority.13 equitable principles of trade because
Statutory Basis for, the Proposed Rule they delete outdated and potentially
Brent J. Fields, Change
Secretary. confusing rules. The rule that the
1. Purpose Exchange proposes to delete is
[FR Doc. 2016–07195 Filed 3–30–16; 8:45 am]
The purpose of this proposed rule anachronistic and does not have
BILLING CODE 8011–01–P
change is to delete Rule 756, which application to the Exchange’s current
deals with accounts of general partners. function. Thus, removing it from the
SECURITIES AND EXCHANGE As discussed below, the Exchange has rules promotes clarity and eliminates
COMMISSION determined that these rules are potential confusion caused by allowing
anachronistic and no longer serve a it to remain.
[Release No. 34–77443; File No. SR–Phlx–
2016–37] purpose. Consequently, the Exchange is B. Self-Regulatory Organization’s
proposing to eliminate the rules from Statement on Burden on Competition
Self-Regulatory Organizations; the rulebook to avoid any confusion that The proposed rule change does not
NASDAQ PHLX LLC; Notice of Filing may be caused by retaining them. impose any burden on competition that
and Immediate Effectiveness of Rule 756 is not necessary or appropriate in
Proposed Rule Change To Delete Rule furtherance of the purposes of the Act.
756 Rule 756 concerns the accounts of
general partners. The rule requires that Rather it is designed to promote
March 25, 2016. no member organization that is a competition among exchanges by
Pursuant to Section 19(b)(1) of the partnership shall carry an account for a removing archaic rules in comparison to
Securities Exchange Act of 1934 general partner of another member the rules of other exchanges. Last, the
(‘‘Act’’), 1 and Rule 19b–4 thereunder,2 organization that is a partnership proposed changes promote clarity in the
without the prior written consent of application of the Exchange’s rules by
notice is hereby given that on March 18,
another general partner of such other eliminating unneeded rules.
2016, NASDAQ PHLX LLC (‘‘Phlx’’ or
‘‘Exchange’’) filed with the Securities organization. It also requires that C. Self-Regulatory Organization’s
and Exchange Commission duplicate reports and monthly Statement on Comments on the
(‘‘Commission’’) the proposed rule statements shall be sent to a general Proposed Rule Change Received From
change as described in Items I and II, partner of the organization (other than Members, Participants, or Others
below, which Items have been prepared the partner for whom the account is No written comments were either
by the Exchange. The Commission is carried) designated in such consent.
solicited or received.
publishing this notice to solicit Further, the rule requires that all
comments on the proposed rule change clearance transactions for a general III. Date of Effectiveness of the
from interested persons. partner of another member organization Proposed Rule Change and Timing for
that is a partnership shall be reported by Commission Action
I. Self-Regulatory Organization’s the clearing firm to a general partner of
Statement of the Terms of Substance of Because the foregoing proposed rule
such other organization who has no change does not: (i) Significantly affect
the Proposed Rule Change interest in such transactions. the protection of investors or the public
The Exchange proposes to delete Rule The Exchange believes that the rule is
interest; (ii) impose any significant
756 from the Phlx rules. no longer relevant. The rule was
burden on competition; and (iii) become
The text of the proposed rule change adopted at a time when the Exchange
operative for 30 days from the date on
is available on the Exchange’s Web site had a general partner membership
which it was filed, or such shorter time
at http:// classification. That classification is no
as the Commission may designate, it has
nasdaqomxphlx.cchwallstreet.com/, at longer in existence. Accordingly, the
become effective pursuant to Section
the principal office of the Exchange, and Exchange does not believe the rule
19(b)(3)(A) of the Act 5 and Rule 19b–
at the Commission’s Public Reference serves a regulatory purpose and it is
4(f)(6) thereunder.6
Room. accordingly proposing to delete the rule. A proposed rule change filed
II. Self-Regulatory Organization’s 2. Statutory Basis pursuant to Rule 19b–4(f)(6) normally
Statement of the Purpose of, and The Exchange believes that its does not become operative for 30 days
Statutory Basis for, the Proposed Rule proposal is consistent with Section 6(b) after the date of its filing. However,
Change of the Act,3 in general, and furthers the pursuant to Rule 19b–4(f)(6)(iii), the
objectives of Section 6(b)(5) of the Act,4 Commission may designate a shorter
In its filing with the Commission, the
Exchange included statements in particular, in that it is designed to 5 15 U.S.C. 78s(b)(3)(A).
mstockstill on DSK4VPTVN1PROD with NOTICES

concerning the purpose of and basis for prevent fraudulent and manipulative 6 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
the proposed rule change and discussed acts and practices, to promote just and 4(f)(6)(iii) requires the Exchange to give the
any comments it received on the equitable principles of trade, to foster Commission written notice of the Exchange’s intent
proposed rule change. The text of these cooperation and coordination with to file the proposed rule change, along with a brief
description and text of the proposed rule change,
persons engaged in facilitating 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
1 15 U.S.C. 78s(b)(1). 3 15 U.S.C. 78f(b). as designated by the Commission. In the instant
2 17 CFR 240.19b–4. 4 15 U.S.C. 78f(b)(5). filing, the Commission waives this requirement.

VerDate Sep<11>2014 19:09 Mar 30, 2016 Jkt 238001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 E:\FR\FM\31MRN1.SGM 31MRN1
Document Created: 2016-03-31 00:55:46
Document Modified: 2016-03-31 00:55:46
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		81 FR 18664