81_FR_2281 81 FR 2271 - Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Chapter VIII of the Pricing Schedule

81 FR 2271 - Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Chapter VIII of the Pricing Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 10 (January 15, 2016)

Page Range2271-2273
FR Document2016-00643

Federal Register, Volume 81 Issue 10 (Friday, January 15, 2016)
[Federal Register Volume 81, Number 10 (Friday, January 15, 2016)]
[Notices]
[Pages 2271-2273]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00643]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76867; File No. SR-Phlx-2015-115]


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

January 11, 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 December 29, 2015, NASDAQ OMX PHLX LLC

[[Page 2272]]

(``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 amend Chapter VIII of the Pricing Schedule 
to clarify the connectivity options and application of the fees 
assessed thereunder.
    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
    Chapter VIII of the Pricing Schedule provides the charges Phlx 
assesses for equity securities market connectivity to systems operated 
by Phlx. Phlx is amending Chapter VIII of the Pricing Schedule in four 
ways: (1) To clarify the term ``port pair''; (2) to clarify the 
connectivity options available under the rule; (3) to eliminate 
internet ports as a connectivity option; and (4) to eliminate rule text 
concerning a waiver of fees of limited duration that has since expired.
    First, Phlx is proposing to clarify the use of the term ``port 
pair.'' For certain ports under Chapter VIII of the Pricing Schedule 
that are used for either trading or data, Phlx additionally provides a 
disaster recovery port at no cost. Such a disaster recovery port 
provides connectivity to Phlx's disaster recovery location in the event 
of a failure of Phlx's primary trading infrastructure. Phlx has 
provided disaster recovery ports at no cost since 2010 to encourage 
member organization to maintain such connectivity in the event of a 
market disruption so that the market as a whole could continue to 
operate. In the interest of clarity, the Exchange is proposing to 
eliminate the term port pair and to separately list disaster recovery 
ports as a connectivity option available at no cost under the rule.
    Second, Phlx is reorganizing and adding language to Chapter VIII of 
the Pricing Schedule to list all connectivity provided by Phlx under 
the rule, which is currently subsumed in a connectivity option and 
related fee. Specifically, the Exchange currently offers connectivity 
for $400 per port, per month for each port pair other than Multicast 
ITCH data feed pairs. Under the $400 per port, per month connectivity 
option a member organization may subscribe to an OUCH protocol trading 
port, a FIX Trading Port (either a FIX or FIX Lite protocol),\3\ RASH 
protocol trading port, and DROP ports. Phlx is listing separately each 
of the options available under the rule.\4\
---------------------------------------------------------------------------

    \3\ A FIX port is a trading port using a FIX-based 
telecommunication protocol. FIX, an abbreviation for Financial 
Information eXchange, is a standard message protocol that defines an 
electronic message exchange for communicating securities 
transactions between two parties. Phlx offers two FIX-based trading 
ports, which vary based on messaging formats and capability. Phlx is 
proposing to list these two protocols as options under the rule that 
a member organization may select when subscribing to a FIX trading 
port.
    \4\ The Exchange is also deleting rule text concerning a port 
fee waiver of this connectivity option, which has since expired.
---------------------------------------------------------------------------

    Similarly, Phlx offers trading ports that may be used only in test 
mode. Member organizations may subscribe to these test mode trading 
ports at no cost, which are exclusively used for testing purposes and 
may not be used for trading in securities in the System. The Exchange 
is adding rule text noting that these test ports may be subscribed to 
under the rule. The Exchange also provides data retransmission ports at 
no cost. Data retransmission ports allow a subscriber to replay market 
data, in the event the data was missed in a live feed or for 
verification purposes. Data retransmission ports only allow replay of 
the current trading day and do not provide data concerning prior 
trading days' data. The Exchange is adding rule text noting that data 
retransmission ports may be subscribed to under the rule.
    Third, Phlx is proposing to eliminate Internet Ports. Internet 
ports are based on outdated technology and Phlx does not have any 
subscribers to this connectivity method.
    Fourth, the Exchange is proposing to eliminate rule text concerning 
a fee waiver of all Access Services fees for the first full six months 
during which Phlx's equities trading market, NASDAQ OMX PSX, operates. 
NASDAQ OMX PSX began operations in October, 2010.\5\ Thus, the Exchange 
is proposing to eliminate the unneeded text.
---------------------------------------------------------------------------

    \5\ Securities Exchange Act Release No. 62877 (September 9, 
2010), 75 FR 56633 (September 16, 2010) (SR-Phlx-2010-79).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Act,\6\ in general, and furthers the objectives of 
Sections 6(b)(4) and 6(b)(5) of the Act,\7\ in particular, in that it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among members and issuers and other persons using any 
facility or system which Phlx operates or controls, and 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 regulating, clearing, settling, 
processing information with respect to, and 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; and are not designed to 
permit unfair discrimination between customers, issuers, brokers, or 
dealers.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f (b).
    \7\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes that the clarifying changes to the rule 
protect investors and the public interest because they explicitly 
describe the fees assessed for all ports under the rule. Describing all 
services covered by the rule will serve to avoid investor confusion 
over the scope of what connectivity options are available, and the 
costs of such options. The Exchange notes that it is not adding new 
connectivity options or functionality, but is rather describing more 
specifically what is currently offered under the rule. In this regard, 
the Exchange is adding new rule text that describes all functionality 
available under each subparagraph of the rule, and is reorganizing some 
rule text under the rule in an effort to make the rule clearer. The 
Exchange notes that much of the new text concerns testing ports, and 
ports used in the event of a disaster or hardware failure. These ports 
help ensure that a fair and orderly market is

[[Page 2273]]

maintained by allowing member organizations to test their systems prior 
to connecting to the live trading environment, and to provide backup 
connectivity in the event of a failure or disaster. Thus, the Exchange 
believes the proposed clarifying changes are consistent with the 
protection of investors and the public interest.
    The Exchange believes that the proposed deletion of the Internet 
Port connectivity option is reasonable, equitably allocated, and not 
unfairly discriminatory because there are no subscribers to this 
connectivity option, which is based on outdated means of connecting to 
the Exchange. As a consequence, no member organizations will be 
impacted by deletion of the connectivity option. Likewise, the Exchange 
believes that the proposed deletion of the expired Access Services fee 
waiver rule text is reasonable, equitably allocated, and not unfairly 
discriminatory because the waiver is no longer in effect and therefore 
no member organizations will be impacted by the deletion. The Exchange 
notes that it is not altering the charges assessed for the remaining 
connectivity options under Chapter VIII of the Pricing Schedule.

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 that is not necessary or appropriate 
in furtherance of the purposes of the Act. Specifically, Phlx is making 
clarifying changes to Chapter VIII of the Pricing Schedule, which does 
not impose any burden on competition whatsoever. To the contrary, the 
proposed change facilitates competition by clarifying what connectivity 
options are provided by the Exchange, thereby informing other market 
venues a better understanding of what connectivity options are 
available for Phlx. With that better understanding, other market venues 
may improve existing connectivity options or offer new connectivity 
options to compete with Phlx. Accordingly, the proposed changes do not 
inhibit market participants' ability to compete among each other, nor 
do they impose any burden on competition among market venues, but 
rather may promote competition among market venues.

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 \8\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\9\ 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(a)(iii).
    \9\ 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.
---------------------------------------------------------------------------

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-2015-115 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-2015-115. 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-2015-115 and should be 
submitted on or before February 5, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-00643 Filed 1-14-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                 Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Notices                                                  2271

                                                  shipping insurance valuation purposes                   associated with shipments of Custody                   number should be included on the
                                                  shall not be deemed as an agreement to                  Service securities.                                    subject line if email is used. To help the
                                                  the price or valuation of the security,                                                                        Commission process and review your
                                                                                                          (B) Clearing Agency’s Statement on
                                                  and in no event shall DTC be bound or                                                                          comments more efficiently, please use
                                                                                                          Burden on Competition
                                                  required to use such price for this or any                                                                     only one method. The Commission will
                                                  other purpose.                                             DTC does not believe that the                       post all comments on the Commission’s
                                                                                                          proposed rule change would have any                    Internet Web site (http://www.sec.gov/
                                                    Default Pricing and Participant-                      impact, or impose any burden, on
                                                  provided pricing are subject to DTC’s                                                                          rules/sro.shtml). Copies of the
                                                                                                          competition because it merely codifies                 submission, all subsequent
                                                  internal procedures to control,                         DTC’s current practice with respect to
                                                  safeguard and limit the risk of potential                                                                      amendments, all written statements
                                                                                                          shipping insurance valuation of Custody                with respect to the proposed rule
                                                  loss of a high value certificate, as set                Service securities and DTC’s
                                                  forth above. Participants should                                                                               change that are filed with the
                                                                                                          identification and management of the                   Commission, and all written
                                                  consider use of their own insurance for                 risks therein and does not otherwise
                                                  high value certificates in excess of the                                                                       communications relating to the
                                                                                                          impact users of DTC’s services.                        proposed rule change between the
                                                  Limit or in appropriate circumstances
                                                                                                          (C) Clearing Agency’s Statement on                     Commission and any person, other than
                                                  they deem to be appropriate, in their
                                                                                                          Comments on the Proposed Rule                          those that may be withheld from the
                                                  discretion.
                                                                                                          Change Received From Members,                          public in accordance with the
                                                  Implementation Date                                     Participants, or Others                                provisions of 5 U.S.C. 552, will be
                                                                                                                                                                 available for Web site viewing and
                                                    The proposed rule change would                          Written comments relating to the                     printing in the Commission’s Public
                                                  become effective immediately.                           proposed rule change have not been                     Reference Room, 100 F Street NE.,
                                                                                                          solicited or received. DTC will notify                 Washington, DC 20549 on official
                                                  2. Statutory Basis                                      the Commission of any written                          business days between the hours of
                                                                                                          comments received by DTC.                              10:00 a.m. and 3:00 p.m. Copies of the
                                                     Section 17A(b)(3)(F) of the Act
                                                  requires that the rules of the clearing                 III. Date of Effectiveness of the                      filing also will be available for
                                                  agency be designed, inter alia, to assure               Proposed Rule Change and Timing for                    inspection and copying at the principal
                                                  the safeguarding of securities and funds                Commission Action                                      office of DTC and on DTCC’s Web site
                                                  which are in the custody or control of                                                                         (http://dtcc.com/legal/sec-rule-
                                                                                                             The foregoing rule change has become
                                                  the clearing agency or for which it is                                                                         filings.aspx). All comments received
                                                                                                          effective pursuant to Section 19(b)(3)(A)
                                                  responsible.8 By codifying DTC’s                                                                               will be posted without change; the
                                                                                                          of the Act 10 and subparagraph (f)(1) of
                                                  current Default Pricing practice and the                                                                       Commission does not edit personal
                                                                                                          Rule 19b–4 thereunder.11 At any time
                                                  option for Participants to provide their                                                                       identifying information from
                                                                                                          within 60 days of the filing of the
                                                  own pricing, the proposed rule change                                                                          submissions. You should submit only
                                                                                                          proposed rule change, the Commission
                                                  provides transparency to DTC’s                                                                                 information that you wish to make
                                                                                                          summarily may temporarily suspend
                                                  shipping insurance valuation procedure                                                                         available publicly. All submissions
                                                                                                          such rule change if it appears to the
                                                  for Custody Service securities,                                                                                should refer to File Number SR–DTC–
                                                                                                          Commission that such action is
                                                  facilitating Participants’ consideration                                                                       2016–001 and should be submitted on
                                                                                                          necessary or appropriate in the public
                                                  of their insurance options for such                                                                            or before February 5, 2016.
                                                                                                          interest, for the protection of investors,
                                                  securities. Therefore, DTC believes that                or otherwise in furtherance of the                       For the Commission, by the Division of
                                                  the proposed rule change would aid in                   purposes of the Act.                                   Trading and Markets, pursuant to delegated
                                                  assuring the safeguarding of Custody                                                                           authority.12
                                                  Service securities and is consistent with               IV. Solicitation of Comments                           Robert W. Errett,
                                                  the requirements of the Act, in                           Interested persons are invited to                    Deputy Secretary.
                                                  particular, Section 17A(b)(3)(F) of the                 submit written data, views and                         [FR Doc. 2016–00646 Filed 1–14–16; 8:45 am]
                                                  Act, cited above.                                       arguments concerning the foregoing,                    BILLING CODE 8011–01–P
                                                     Rule 17Ad–22(d)(15) promulgated                      including whether the proposed rule
                                                  under the Act requires, inter alia, that                change is consistent with the Act.
                                                  a clearing agency establish, implement,                 Comments may be submitted by any of                    SECURITIES AND EXCHANGE
                                                  maintain and enforce written policies                   the following methods:                                 COMMISSION
                                                  and procedures reasonably designed to                   Electronic Comments                                    [Release No. 34–76867; File No. SR–Phlx–
                                                  state to its participants the clearing                    • Use the Commission’s Internet
                                                                                                                                                                 2015–115]
                                                  agency’s obligations with respect to                    comment form (http://www.sec.gov/
                                                  physical deliveries and identify and                                                                           Self-Regulatory Organizations;
                                                                                                          rules/sro.shtml); or                                   NASDAQ OMX PHLX LLC; Notice of
                                                  manage the risks from these                               • Send an email to rule-comments@
                                                  obligations.9 DTC believes the proposed                                                                        Filing and Immediate Effectiveness of
                                                                                                          sec.gov. Please include File Number SR–                Proposed Rule Change To Amend
                                                  rule change is consistent with this                     DTC–2016–001 on the subject line.
                                                  provision because codifying DTC’s                                                                              Chapter VIII of the Pricing Schedule
                                                  current practice would provide                          Paper Comments
                                                                                                                                                                 January 11, 2016.
                                                  transparency with respect to DTC’s                        • Send paper comments in triplicate                     Pursuant to Section 19(b)(1) of the
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  procedures for assigning a value to                     to Secretary, Securities and Exchange                  Securities Exchange Act of 1934
                                                  physical securities held in the Custody                 Commission, 100 F Street NE.,                          (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                  Service for shipping insurance valuation                Washington, DC 20549–1090.                             notice is hereby given that on December
                                                  purposes, and therefore is reasonably                   All submissions should refer to File                   29, 2015, NASDAQ OMX PHLX LLC
                                                  designed to identify and manage risks                   Number SR–DTC–2016–001. This file
                                                                                                                                                                   12 17 CFR 200.30–3(a)(12).
                                                    8 15 U.S.C. 78q–1(b)(3)(F).                             10 15 U.S.C. 78s(b)(3)(A).                             1 15 U.S.C. 78s(b)(1).
                                                    9 17 CFR 240.17Ad–22(d)(15).                            11 17 CFR 240.19b–4(f)(1).                             2 17 CFR 240.19b–4.




                                             VerDate Sep<11>2014   20:01 Jan 14, 2016   Jkt 238001   PO 00000   Frm 00112   Fmt 4703   Sfmt 4703   E:\FR\FM\15JAN1.SGM     15JAN1


                                                  2272                           Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Notices

                                                  (‘‘Phlx’’ or ‘‘Exchange’’) filed with the               location in the event of a failure of                  not have any subscribers to this
                                                  Securities and Exchange Commission                      Phlx’s primary trading infrastructure.                 connectivity method.
                                                  (‘‘SEC’’ or ‘‘Commission’’) the proposed                Phlx has provided disaster recovery                       Fourth, the Exchange is proposing to
                                                  rule change as described in Items I, II,                ports at no cost since 2010 to encourage               eliminate rule text concerning a fee
                                                  and III, below, which Items have been                   member organization to maintain such                   waiver of all Access Services fees for the
                                                  prepared by the Exchange. The                           connectivity in the event of a market                  first full six months during which Phlx’s
                                                  Commission is publishing this notice to                 disruption so that the market as a whole               equities trading market, NASDAQ OMX
                                                  solicit comments on the proposed rule                   could continue to operate. In the                      PSX, operates. NASDAQ OMX PSX
                                                  change from interested persons.                         interest of clarity, the Exchange is                   began operations in October, 2010.5
                                                                                                          proposing to eliminate the term port                   Thus, the Exchange is proposing to
                                                  I. Self-Regulatory Organization’s
                                                                                                          pair and to separately list disaster                   eliminate the unneeded text.
                                                  Statement of the Terms of Substance of
                                                                                                          recovery ports as a connectivity option
                                                  the Proposed Rule Change                                                                                       2. Statutory Basis
                                                                                                          available at no cost under the rule.
                                                     The Exchange proposes to amend                          Second, Phlx is reorganizing and                       The Exchange believes the proposed
                                                  Chapter VIII of the Pricing Schedule to                 adding language to Chapter VIII of the                 rule change is consistent with Section
                                                  clarify the connectivity options and                    Pricing Schedule to list all connectivity              6(b) of the Act,6 in general, and furthers
                                                  application of the fees assessed                        provided by Phlx under the rule, which                 the objectives of Sections 6(b)(4) and
                                                  thereunder.                                             is currently subsumed in a connectivity                6(b)(5) of the Act,7 in particular, in that
                                                     The text of the proposed rule change                 option and related fee. Specifically, the              it provides for the equitable allocation
                                                  is available on the Exchange’s Web site                 Exchange currently offers connectivity                 of reasonable dues, fees and other
                                                  at http://                                              for $400 per port, per month for each                  charges among members and issuers and
                                                  nasdaqomxphlx.cchwallstreet.com/, at                    port pair other than Multicast ITCH data               other persons using any facility or
                                                  the principal office of the Exchange, and               feed pairs. Under the $400 per port, per               system which Phlx operates or controls,
                                                  at the Commission’s Public Reference                    month connectivity option a member                     and is designed to prevent fraudulent
                                                  Room.                                                   organization may subscribe to an OUCH                  and manipulative acts and practices, to
                                                                                                          protocol trading port, a FIX Trading Port              promote just and equitable principles of
                                                  II. Self-Regulatory Organization’s
                                                                                                          (either a FIX or FIX Lite protocol),3                  trade, to foster cooperation and
                                                  Statement of the Purpose of, and
                                                                                                          RASH protocol trading port, and DROP                   coordination with persons engaged in
                                                  Statutory Basis for, the Proposed Rule
                                                                                                          ports. Phlx is listing separately each of              regulating, clearing, settling, processing
                                                  Change
                                                                                                          the options available under the rule.4                 information with respect to, and
                                                    In its filing with the Commission, the                                                                       facilitating transactions in securities, to
                                                  Exchange included statements                               Similarly, Phlx offers trading ports
                                                                                                                                                                 remove impediments to and perfect the
                                                  concerning the purpose of and basis for                 that may be used only in test mode.
                                                                                                                                                                 mechanism of a free and open market
                                                  the proposed rule change and discussed                  Member organizations may subscribe to
                                                                                                                                                                 and a national market system, and, in
                                                  any comments it received on the                         these test mode trading ports at no cost,
                                                                                                                                                                 general, to protect investors and the
                                                  proposed rule change. The text of these                 which are exclusively used for testing
                                                                                                                                                                 public interest; and are not designed to
                                                  statements may be examined at the                       purposes and may not be used for
                                                                                                                                                                 permit unfair discrimination between
                                                  places specified in Item IV below. The                  trading in securities in the System. The
                                                                                                                                                                 customers, issuers, brokers, or dealers.
                                                  Exchange has prepared summaries, set                    Exchange is adding rule text noting that
                                                                                                                                                                    The Exchange believes that the
                                                  forth in sections A, B, and C below, of                 these test ports may be subscribed to
                                                                                                                                                                 clarifying changes to the rule protect
                                                  the most significant aspects of such                    under the rule. The Exchange also
                                                                                                                                                                 investors and the public interest
                                                  statements.                                             provides data retransmission ports at no
                                                                                                                                                                 because they explicitly describe the fees
                                                                                                          cost. Data retransmission ports allow a
                                                  A. Self-Regulatory Organization’s                                                                              assessed for all ports under the rule.
                                                                                                          subscriber to replay market data, in the
                                                  Statement of the Purpose of, and                                                                               Describing all services covered by the
                                                                                                          event the data was missed in a live feed
                                                  Statutory Basis for, the Proposed Rule                                                                         rule will serve to avoid investor
                                                                                                          or for verification purposes. Data
                                                  Change                                                                                                         confusion over the scope of what
                                                                                                          retransmission ports only allow replay
                                                                                                                                                                 connectivity options are available, and
                                                  1. Purpose                                              of the current trading day and do not
                                                                                                                                                                 the costs of such options. The Exchange
                                                                                                          provide data concerning prior trading
                                                    Chapter VIII of the Pricing Schedule                                                                         notes that it is not adding new
                                                                                                          days’ data. The Exchange is adding rule
                                                  provides the charges Phlx assesses for                                                                         connectivity options or functionality,
                                                                                                          text noting that data retransmission
                                                  equity securities market connectivity to                                                                       but is rather describing more
                                                                                                          ports may be subscribed to under the
                                                  systems operated by Phlx. Phlx is                                                                              specifically what is currently offered
                                                                                                          rule.
                                                  amending Chapter VIII of the Pricing                                                                           under the rule. In this regard, the
                                                                                                             Third, Phlx is proposing to eliminate               Exchange is adding new rule text that
                                                  Schedule in four ways: (1) To clarify the               Internet Ports. Internet ports are based
                                                  term ‘‘port pair’’; (2) to clarify the                                                                         describes all functionality available
                                                                                                          on outdated technology and Phlx does                   under each subparagraph of the rule,
                                                  connectivity options available under the
                                                  rule; (3) to eliminate internet ports as a                                                                     and is reorganizing some rule text under
                                                                                                             3 A FIX port is a trading port using a FIX-based
                                                  connectivity option; and (4) to eliminate                                                                      the rule in an effort to make the rule
                                                                                                          telecommunication protocol. FIX, an abbreviation
                                                  rule text concerning a waiver of fees of                for Financial Information eXchange, is a standard
                                                                                                                                                                 clearer. The Exchange notes that much
                                                  limited duration that has since expired.                message protocol that defines an electronic message    of the new text concerns testing ports,
                                                                                                          exchange for communicating securities transactions     and ports used in the event of a disaster
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                    First, Phlx is proposing to clarify the
                                                                                                          between two parties. Phlx offers two FIX-based         or hardware failure. These ports help
                                                  use of the term ‘‘port pair.’’ For certain              trading ports, which vary based on messaging
                                                  ports under Chapter VIII of the Pricing                 formats and capability. Phlx is proposing to list
                                                                                                                                                                 ensure that a fair and orderly market is
                                                  Schedule that are used for either trading               these two protocols as options under the rule that
                                                                                                                                                                   5 Securities Exchange Act Release No. 62877
                                                  or data, Phlx additionally provides a                   a member organization may select when subscribing
                                                                                                          to a FIX trading port.                                 (September 9, 2010), 75 FR 56633 (September 16,
                                                  disaster recovery port at no cost. Such                    4 The Exchange is also deleting rule text           2010) (SR–Phlx–2010–79).
                                                  a disaster recovery port provides                       concerning a port fee waiver of this connectivity        6 15 U.S.C. 78f (b).

                                                  connectivity to Phlx’s disaster recovery                option, which has since expired.                         7 15 U.S.C. 78f(b)(4) and (5).




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                                                                                 Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Notices                                                     2273

                                                  maintained by allowing member                           III. Date of Effectiveness of the                         submission, all subsequent
                                                  organizations to test their systems prior               Proposed Rule Change and Timing for                       amendments, all written statements
                                                  to connecting to the live trading                       Commission Action                                         with respect to the proposed rule
                                                  environment, and to provide backup                         Because the foregoing proposed rule                    change that are filed with the
                                                  connectivity in the event of a failure or               change does not: (i) Significantly affect                 Commission, and all written
                                                  disaster. Thus, the Exchange believes                   the protection of investors or the public                 communications relating to the
                                                  the proposed clarifying changes are                     interest; (ii) impose any significant                     proposed rule change between the
                                                  consistent with the protection of                       burden on competition; and (iii) become                   Commission and any person, other than
                                                  investors and the public interest.                      operative for 30 days from the date on                    those that may be withheld from the
                                                     The Exchange believes that the                       which it was filed, or such shorter time                  public in accordance with the
                                                  proposed deletion of the Internet Port                  as the Commission may designate, it has                   provisions of 5 U.S.C. 552, will be
                                                  connectivity option is reasonable,                      become effective pursuant to Section                      available for Web site viewing and
                                                  equitably allocated, and not unfairly                   19(b)(3)(A)(iii) of the Act 8 and                         printing in the Commission’s Public
                                                  discriminatory because there are no                     subparagraph (f)(6) of Rule 19b–4                         Reference Room, 100 F Street NE.,
                                                  subscribers to this connectivity option,                thereunder.9 At any time within 60 days                   Washington, DC 20549, on official
                                                  which is based on outdated means of                     of the filing of the proposed rule change,                business days between the hours of
                                                  connecting to the Exchange. As a                        the Commission summarily may                              10:00 a.m. and 3:00 p.m. Copies of the
                                                  consequence, no member organizations                    temporarily suspend such rule change if                   filing also will be available for
                                                  will be impacted by deletion of the                     it appears to the Commission that such                    inspection and copying at the principal
                                                  connectivity option. Likewise, the                      action is: (i) Necessary or appropriate in                office of the Exchange. All comments
                                                  Exchange believes that the proposed                     the public interest; (ii) for the protection              received will be posted without change;
                                                  deletion of the expired Access Services                 of investors; or (iii) otherwise in                       the Commission does not edit personal
                                                  fee waiver rule text is reasonable,                     furtherance of the purposes of the Act.                   identifying information from
                                                  equitably allocated, and not unfairly                   If the Commission takes such action, the                  submissions. You should submit only
                                                  discriminatory because the waiver is no                 Commission shall institute proceedings                    information that you wish to make
                                                  longer in effect and therefore no                       to determine whether the proposed rule                    available publicly. All submissions
                                                  member organizations will be impacted                   should be approved or disapproved.                        should refer to File Number SR–Phlx–
                                                  by the deletion. The Exchange notes that                                                                          2015–115 and should be submitted on
                                                  it is not altering the charges assessed for             IV. Solicitation of Comments                              or before February 5, 2016.
                                                  the remaining connectivity options                        Interested persons are invited to                         For the Commission, by the Division of
                                                  under Chapter VIII of the Pricing                       submit written data, views, and                           Trading and Markets, pursuant to delegated
                                                  Schedule.                                               arguments concerning the foregoing,                       authority.10
                                                                                                          including whether the proposed rule                       Robert W. Errett,
                                                  B. Self-Regulatory Organization’s
                                                                                                          change is consistent with the Act.                        Deputy Secretary.
                                                  Statement on Burden on Competition
                                                                                                          Comments may be submitted by any of                       [FR Doc. 2016–00643 Filed 1–14–16; 8:45 am]
                                                    The Exchange does not believe that                    the following methods:                                    BILLING CODE 8011–01–P
                                                  the proposed rule change will impose                    Electronic Comments
                                                  any burden on competition that is not
                                                  necessary or appropriate in furtherance                   • Use the Commission’s Internet                         SECURITIES AND EXCHANGE
                                                  of the purposes of the Act. Specifically,               comment form (http://www.sec.gov/                         COMMISSION
                                                  Phlx is making clarifying changes to                    rules/sro.shtml); or
                                                  Chapter VIII of the Pricing Schedule,                     • Send an email to rule-comments@                       [Investment Company Act Release No.
                                                                                                          sec.gov. Please include File Number SR–                   31954; 812–14478]
                                                  which does not impose any burden on
                                                  competition whatsoever. To the                          Phlx–2015–115 on the subject line.
                                                                                                                                                                    Investment Managers Series Trust, et
                                                  contrary, the proposed change facilitates               Paper Comments                                            al.; Notice of Application
                                                  competition by clarifying what
                                                                                                            • Send paper comments in triplicate                     January 11, 2016.
                                                  connectivity options are provided by the
                                                                                                          to Secretary, Securities and Exchange
                                                  Exchange, thereby informing other                                                                                 AGENCY:   Securities and Exchange
                                                                                                          Commission, 100 F Street NE.,
                                                  market venues a better understanding of                                                                           Commission (‘‘Commission’’).
                                                                                                          Washington, DC 20549–1090.
                                                  what connectivity options are available                                                                           ACTION: Notice of an application under
                                                  for Phlx. With that better understanding,               All submissions should refer to File
                                                                                                                                                                    section 6(c) of the Investment Company
                                                  other market venues may improve                         Number SR–Phlx–2015–115. This file
                                                                                                                                                                    Act of 1940 (‘‘Act’’) for an exemption
                                                  existing connectivity options or offer                  number should be included on the
                                                                                                                                                                    from section 15(a) of the Act and rule
                                                  new connectivity options to compete                     subject line if email is used. To help the
                                                                                                                                                                    18f–2 under the Act, as well as from
                                                  with Phlx. Accordingly, the proposed                    Commission process and review your
                                                                                                                                                                    certain disclosure requirements in rule
                                                  changes do not inhibit market                           comments more efficiently, please use
                                                                                                                                                                    20a–1 under the Act, Item 19(a)(3) of
                                                  participants’ ability to compete among                  only one method. The Commission will
                                                                                                                                                                    Form N–1A, Items 22(c)(1)(ii),
                                                  each other, nor do they impose any                      post all comments on the Commission’s
                                                                                                                                                                    22(c)(1)(iii), 22(c)(8) and 22(c)(9) of
                                                  burden on competition among market                      Internet Web site (http://www.sec.gov/
                                                                                                                                                                    Schedule 14A under the Securities
                                                  venues, but rather may promote                          rules/sro.shtml). Copies of the
                                                                                                                                                                    Exchange Act of 1934, and Sections 6–
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  competition among market venues.                          8 15
                                                                                                                                                                    07(2)(a), (b), and (c) of Regulation S–X
                                                                                                                  U.S.C. 78s(b)(3)(a)(iii).
                                                  C. Self-Regulatory Organization’s                         9 17  CFR 240.19b–4(f)(6). In addition, Rule 19b–       (‘‘Disclosure Requirements’’). The
                                                  Statement on Comments on the                            4(f)(6) requires a self-regulatory organization to give   requested exemption would permit an
                                                  Proposed Rule Change Received From
                                                                                                          the Commission written notice of its intent to file       investment adviser to hire and replace
                                                                                                          the proposed rule change at least five business days      certain sub-advisers without
                                                  Members, Participants, or Others                        prior to the date of filing of the proposed rule
                                                                                                          change, or such shorter time as designated by the         shareholder approval and grant relief
                                                    No written comments were either                       Commission. The Exchange has satisfied this
                                                  solicited or received.                                  requirement.                                                10 17   CFR 200.30–3(a)(12).



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Document Created: 2018-02-02 12:32:23
Document Modified: 2018-02-02 12:32:23
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 2271 

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