81 FR 21631 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule ChangeTo Amend Rule 1064

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 70 (April 12, 2016)

Page Range		21631-21632
FR Document		2016-08305
Federal Register, Volume 81 Issue 70 (Tuesday, April 12, 2016)
[Federal Register Volume 81, Number 70 (Tuesday, April 12, 2016)]
[Notices]
[Pages 21631-21632]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-08305]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77545; File No. SR-Phlx-2016-44]


Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule ChangeTo Amend Rule 1064

April 6, 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 April 1, 2016, NASDAQ 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 two incorrect cross-references in 
Rule 1064, Crossing, Facilitation and Solicited Orders.
    The text of the proposed rule change is detailed below: Proposed 
new language is in italics and proposed deletions are in brackets.
* * * * *
NASDAQ PHLX Rules
* * * * *
Options Rules
Rules Applicable To Trading of Options on Stocks, Exchange-Traded Fund 
Shares and Foreign Currencies (Rules 1000-1095)
* * * * *
Rule 1064. Crossing, Facilitation and Solicited Orders
    (a)-(c) No change.
    (d) No change.
    (i)-(ii) No change.
    (iii) No change.
    (A)-(F) No change.
    (G) prior to entering tied hedge orders on behalf of customers, the 
member or member organization must deliver to the customer a written 
notification informing the customer that his order may be executed 
using the Exchange's tied hedge procedures. The written notification 
must disclose the terms and conditions contained [in this Commentary] 
herein and be in a form approved by the Exchange. A combination option 
and hedging position offered in reliance on this [Commentary .04] 
provision shall be referred to as a ``tied hedge'' order.
    (H)-(I) No change.
    (e) No change.
       Commentary: ------------------
    .01-.02 No change.
* * * * *

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 the filing is to correct Rule 1064 by deleting two 
references to the ``commentary'' to the rule, which no longer exists. 
The Exchange recently deleted Commentary .04 \3\ by incorporating its 
provisions into paragraph (d)(iii), because it was related to the 
anticipatory hedging provisions in paragraph (d). The Exchange 
inadvertently omitted the deletion of these two references to 
Commentary .04 in new Rule 1064(d)(iii)(G). Accordingly, this provision 
refers to a commentary that does not exist.
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    \3\ Securities Exchange Act Release No. 76984 (January 28, 
2016), 81 FR 5796 (February 3, 2016) (SR-Phlx-2016-07).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \4\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \5\ in particular, in that it is designed to promote 
just and equitable principles of trade and to protect investors and the 
public interest by correcting a provision, which should help prevent 
confusion and ensure the accuracy of the rulebook.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).

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[[Page 21632]]

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. This minor correction does not 
impact 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 \6\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\7\
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    \6\ 15 U.S.C. 78s(b)(3)(a)(iii).
    \7\ 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-2016-44 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-2016-44. 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-2016-44 and should be 
submitted on or before May 3, 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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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-08305 Filed 4-11-16; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 70 / Tuesday, April 12, 2016 / Notices 21631

compliance with the applicable listing SECURITIES AND EXCHANGE Commentary] herein and be in a form
requirements, the Exchange will COMMISSION approved by the Exchange. A
commence delisting procedures under combination option and hedging
[Release No. 34–77545; File No. SR–Phlx–
the Nasdaq 5800 Series. This approval 2016–44]
position offered in reliance on this
order is based on all of the Exchange’s [Commentary .04] provision shall be
representations, including those set Self-Regulatory Organizations; referred to as a ‘‘tied hedge’’ order.
forth above, in the Notice, and in NASDAQ PHLX LLC; Notice of Filing (H)–(I) No change.
Amendment Nos. 1, 2, and 3 to the and Immediate Effectiveness of (e) No change.
proposed rule change. The Commission Proposed Rule ChangeTo Amend Rule
notes that the Funds and the Shares 1064 • • • Commentary: ------------------
must comply with the requirements of .01–.02 No change.
April 6, 2016.
Nasdaq Rule 5735, including those set Pursuant to Section 19(b)(1) of the * * * * *
forth in this proposed rule change, as Securities Exchange Act of 1934 II. Self-Regulatory Organization’s
modified by Amendment Nos. 1, 2, and (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Statement of the Purpose of, and
3 thereto, to be listed and traded on the notice is hereby given that on April 1, Statutory Basis for, the Proposed Rule
Exchange on an initial and continuing 2016, NASDAQ PHLX LLC (‘‘Phlx’’ or Change
basis. ‘‘Exchange’’) filed with the Securities
For the foregoing reasons, the and Exchange Commission (‘‘SEC’’ or In its filing with the Commission, the
Commission finds that the proposed ‘‘Commission’’) the proposed rule Exchange included statements
rule change, as modified by Amendment change as described in Items I, II, and concerning the purpose of and basis for
Nos. 1, 2, and 3 thereto, is consistent III, below, which Items have been the proposed rule change and discussed
with Section 6(b)(5) of the Act 43 and the prepared by the Exchange. The any comments it received on the
rules and regulations thereunder Commission is publishing this notice to proposed rule change. The text of these
solicit comments on the proposed rule statements may be examined at the
applicable to a national securities
change from interested persons. places specified in Item IV below. The
exchange.
Exchange has prepared summaries, set
I. Self-Regulatory Organization’s forth in sections A, B, and C below, of
IV. Conclusion
Statement of the Terms of Substance of the most significant aspects of such
It is therefore ordered, pursuant to the Proposed Rule Change statements.
Section 19(b)(2) of the Exchange Act,44 The Exchange proposes to delete two
that the proposed rule change (SR– incorrect cross-references in Rule 1064, A. Self-Regulatory Organization’s
NASDAQ–2015–161), as modified by Crossing, Facilitation and Solicited Statement of the Purpose of, and
Orders. Statutory Basis for, the Proposed Rule
Amendment Nos. 1, 2, and 3 thereto, be,
The text of the proposed rule change Change
and it hereby is, approved.
is detailed below: Proposed new 1. Purpose
For the Commission, by the Division of
language is in italics and proposed
Trading and Markets, pursuant to delegated The purpose of the filing is to correct
deletions are in brackets.
authority.45 Rule 1064 by deleting two references to
* * * * *
Robert W. Errett, the ‘‘commentary’’ to the rule, which no
Deputy Secretary. NASDAQ PHLX Rules longer exists. The Exchange recently
[FR Doc. 2016–08307 Filed 4–11–16; 8:45 am] * * * * * deleted Commentary .04 3 by
BILLING CODE 8011–01–P incorporating its provisions into
Options Rules paragraph (d)(iii), because it was related
Rules Applicable To Trading of Options to the anticipatory hedging provisions
on Stocks, Exchange-Traded Fund in paragraph (d). The Exchange
Shares and Foreign Currencies (Rules inadvertently omitted the deletion of
1000–1095) these two references to Commentary .04
in new Rule 1064(d)(iii)(G).
* * * * *
Accordingly, this provision refers to a
Rule 1064. Crossing, Facilitation and commentary that does not exist.
Solicited Orders
2. Statutory Basis
(a)–(c) No change.
(d) No change. The Exchange believes that its
Fund Shares include a representation that the (i)–(ii) No change. proposal is consistent with Section 6(b)
exchange will ‘‘surveil’’ for compliance with the (iii) No change. of the Act 4 in general, and furthers the
continued listing requirements. See, e.g., (A)–(F) No change. objectives of Section 6(b)(5) of the Act 5
Amendment No. 2 to SR–BATS–2016–04, available (G) prior to entering tied hedge orders in particular, in that it is designed to
at: http://www.sec.gov/comments/sr-bats-2016-04/ on behalf of customers, the member or promote just and equitable principles of
bats201604-2.pdf. In the context of this member organization must deliver to the
representation, it is the Commission’s view that trade and to protect investors and the
asabaliauskas on DSK3SPTVN1PROD with NOTICES

customer a written notification public interest by correcting a provision,
‘‘monitor’’ and ‘‘surveil’’ both mean ongoing
oversight of the Fund’s compliance with the
informing the customer that his order which should help prevent confusion
continued listing requirements. Therefore, the may be executed using the Exchange’s and ensure the accuracy of the rulebook.
Commission does not view ‘‘monitor’’ as a more or tied hedge procedures. The written
less stringent obligation than ‘‘surveil’’ with respect notification must disclose the terms and 3 Securities Exchange Act Release No. 76984
to the continued listing requirements. conditions contained [in this (January 28, 2016), 81 FR 5796 (February 3, 2016)
43 15 U.S.C. 78f(b)(5).
(SR–Phlx–2016–07).
44 15 U.S.C. 78s(b)(2). 1 15 U.S.C. 78s(b)(1). 4 15 U.S.C. 78f(b).
45 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. 5 15 U.S.C. 78f(b)(5).

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21632 Federal Register / Vol. 81, No. 70 / Tuesday, April 12, 2016 / Notices

B. Self-Regulatory Organization’s Paper Comments SECURITIES AND EXCHANGE
Statement on Burden on Competition COMMISSION
• Send paper comments in triplicate
The Exchange does not believe that to Secretary, Securities and Exchange [Release No. 34–77538; File No. SR–EDGX–
the proposed rule change will impose 2016–06]
Commission, 100 F Street NE.,
any burden on competition not
necessary or appropriate in furtherance Washington, DC 20549–1090. Self-Regulatory Organizations; EDGX
of the purposes of the Act. This minor All submissions should refer to File Exchange, Inc.; Order Approving
correction does not impact competition. Number SR–Phlx–2016–44. This file Proposed Rule Change, as Modified by
number should be included on the Amendment No. 1 Thereto, To Adopt
C. Self-Regulatory Organization’s an Early Trading Session and Three
Statement on Comments on the subject line if email is used. To help the
Commission process and review your New Time-In-Force Instructions
Proposed Rule Change Received From
Members, Participants, or Others comments more efficiently, please use April 6, 2016.
No written comments were either only one method. The Commission will
post all comments on the Commission’s I. Introduction
solicited or received.
Internet Web site (http://www.sec.gov/ On February 2, 2016, EDGX Exchange,
III. Date of Effectiveness of the rules/sro.shtml). Copies of the Inc. (the ‘‘Exchange’’ or ‘‘EDGX’’) filed
Proposed Rule Change and Timing for submission, all subsequent with the Securities and Exchange
Commission Action amendments, all written statements Commission (the ‘‘Commission’’),
Because the foregoing proposed rule with respect to the proposed rule pursuant to Section 19(b)(1) 1 of the
change does not: (i) Significantly affect change that are filed with the Securities Exchange Act of 1934
the protection of investors or the public Commission, and all written (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 a
interest; (ii) impose any significant communications relating to the proposed rule change to amend its rules
burden on competition; and (iii) become to: (i) Create a new trading session to be
proposed rule change between the
operative for 30 days from the date on known as the Early Trading Session,
Commission and any person, other than
which it was filed, or such shorter time which will run from 7:00 a.m. to 8:00
those that may be withheld from the
as the Commission may designate, it has a.m. Eastern Time; and (ii) adopt three
public in accordance with the new Time-in-Force (‘‘TIF’’) instructions.
become effective pursuant to Section provisions of 5 U.S.C. 552, will be
19(b)(3)(A)(iii) of the Act 6 and On February 12, 2016, the Exchange
available for Web site viewing and filed Amendment No. 1 to the proposed
subparagraph (f)(6) of Rule 19b-4
thereunder.7 printing in the Commission’s Public rule change.4 The proposed rule change,
At any time within 60 days of the Reference Room, 100 F Street NE., as modified by Amendment No. 1
filing of the proposed rule change, the Washington, DC 20549, on official thereto, was published for comment in
Commission summarily may business days between the hours of the Federal Register on February 22,
temporarily suspend such rule change if 10:00 a.m. and 3:00 p.m. Copies of the 2016.5 The Commission received no
it appears to the Commission that such filing also will be available for comments on the proposed rule change.
action is: (i) Necessary or appropriate in inspection and copying at the principal This order approves the proposed rule
the public interest; (ii) for the protection office of the Exchange. All comments change, as modified by Amendment No.
of investors; or (iii) otherwise in received will be posted without change; 1.
furtherance of the purposes of the Act. the Commission does not edit personal II. Description of the Proposal
If the Commission takes such action, the identifying information from
Commission shall institute proceedings submissions. You should submit only The Exchange proposes to amend its
to determine whether the proposed rule information that you wish to make rules to: (i) Create a new trading session,
should be approved or disapproved. available publicly. All submissions the Early Trading Session, which will
run from 7:00 a.m. to 8:00 a.m. Eastern
IV. Solicitation of Comments should refer to File Number SR–Phlx–
Time; and (ii) adopt three new TIF
Interested persons are invited to 2016–44 and should be submitted on or
instructions.6
submit written data, views, and before May 3, 2016.
arguments concerning the foregoing, For the Commission, by the Division of
A. Early Trading Session
including whether the proposed rule Trading and Markets, pursuant to delegated The Exchange trading day is currently
change is consistent with the Act. authority.8 divided into three sessions: (i) The Pre-
Comments may be submitted by any of Robert W. Errett, Opening Session which starts at 8:00
the following methods: Deputy Secretary.
a.m. and ends at 9:30 a.m. Eastern Time;
(ii) Regular Trading Hours which runs
Electronic Comments [FR Doc. 2016–08305 Filed 4–11–16; 8:45 am]
from 9:30 a.m. to 4:00 p.m. Eastern
• Use the Commission’s Internet BILLING CODE 8011–01–P Time; and (iii) the Post-Closing Session,
comment form (http://www.sec.gov/ which runs from 4:00 p.m. to 8:00 p.m.
rules/sro.shtml); or
• Send an email to rule-comments@ 1 15 U.S.C. 78s(b)(1).
sec.gov. Please include File Number SR– 2 15 U.S.C. 78a.
Phlx–2016–44 on the subject line. 3 17 CFR 240.19b–4.
asabaliauskas on DSK3SPTVN1PROD with NOTICES

4 In Amendment No. 1, the Exchange noted that

6 15 U.S.C. 78s(b)(3)(a)(iii). it would subject orders that are eligible for
7 17 CFR 240.19b–4(f)(6). In addition, Rule 19b- execution at the start of the Pre-Opening Session to
4(f)(6) requires a self-regulatory organization to give all of the Exchange’s standard regulatory checks,
the Commission written notice of its intent to file including compliance with Regulation NMS,
the proposed rule change at least five business days Regulation SHO as well as other relevant Exchange
prior to the date of filing of the proposed rule rules.
5 See Securities Exchange Act Release No. 77142
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this (February 16, 2016), 81 FR 8806 (‘‘Notice’’).
requirement. 8 17 CFR 200.30–3(a)(12). 6 See Notice, supra note 5.

VerDate Sep<11>2014 17:18 Apr 11, 2016 Jkt 238001 PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 E:\FR\FM\12APN1.SGM 12APN1
Document Created: 2016-04-12 00:46:46
Document Modified: 2016-04-12 00:46:46
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 21631