81_FR_45327 81 FR 45194 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 3100

81 FR 45194 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 3100

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 133 (July 12, 2016)

Page Range45194-45195
FR Document2016-16376

Federal Register, Volume 81 Issue 133 (Tuesday, July 12, 2016) 
[Federal Register Volume 81, Number 133 (Tuesday, July 12, 2016)]
[Notices]
[Pages 45194-45195]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16376]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78232; File No. SR-PHLX-2016-70]


Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 3100

July 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 June 22, 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 the 
Substance of the Proposed Rule Change

    The Exchange is proposing to amend Rule 3100 and the Exchange 
process for commencing trading of a security that is the subject of a 
trading halt.
    The text of the proposed rule change is available at http://nasdaq.cchwallstreet.com/, at the Exchange's principal office, 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 Exchange is proposing to make a minor modification to the 
Exchange process for commencing trading of a security that is the 
subject of a trading halt. Specifically, the Exchange is proposing to 
modify the way in which orders are accepted prior to the commencement 
of trading for securities subject to a trading halt. This change will 
simplify the order submission operations for market participants during 
trading halts.\3\
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    \3\ The proposed rule change is consistent with the recently 
approved filing of The NASDAQ Stock Market LLC (``Nasdaq'') as to 
the process for commencing trading of a security that is the subject 
of a trading halt. See Securities Exchange Act Release No. 77445 
(March 25, 2016), 81 FR 18658 (March 31, 2016) (SR-NASDAQ-2016-008).
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    Currently, Exchange Rule 3100(c)(3)(B) provides that during any 
trading halt or pause, market participants may enter orders during the 
trading halt or pause and designate such orders to be held until the 
termination of the trading halt or pause. Under this rule, such orders 
will be held in a suspended state until the termination of the halt or 
pause, at which time they will be entered into the system. The Exchange 
proposes that Rule 3100(c)(3)(B) be revised to simply state that orders 
entered during any trading halt or pause will not be accepted.
    The implementation of the existing functionality for accepting 
orders prior to the Exchange releasing the security for trading has not 
been widely used and the Exchange believes the proposed rule change 
will both improve and simplify the Exchange process for market 
participants. The Exchange will issue an Equity Trader Alert notifying 
Exchange member firms of the change prior to implementation on July 11, 
2016.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of section 6 of the Act,\4\ in general, and with 
section 6(b)(5) of the Act,\5\ in particular, in that the proposal 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.
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    \4\ 15 U.S.C. 78f.
    \5\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change will remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system through an improved and simplified Exchange 
process for commencing trading of a security that is the subject of a 
trading halt. Specifically, this will be accomplished by revising 
Exchange Rule 3100(c)(3)(B) to simply state that orders entered during 
any trading halt or pause will not be accepted.
    The current functionality for accepting orders prior to the 
Exchange releasing the security for trading is used infrequently and 
consequently the proposed rule change will have little impact on 
customers. To the extent that there is any impact, it will be that 
rejecting orders rather than holding them in a suspended state will 
clarify the state of participant orders, thereby reducing potential 
confusion. The implementation of the existing functionality for 
accepting orders prior to the Exchange releasing the security for 
trading has not been widely used and the Exchange believes the proposed 
rule change will both improve and simplify the Exchange process for 
market participants.
    The proposed rule change also will remove impediments to and 
perfect the mechanism of a free and open market through competition. 
Specifically, the proposed rule change will enhance competition by 
increasing the Exchange's attractiveness as a venue for trading 
securities because, as stated above, it will both improve and simplify 
the Exchange process for market participants.

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

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended. The 
Exchange believes that the proposed rule change will result in an 
improved and simplified process for market participants, which in turn 
will reduce potential confusion during important market events. The 
Exchange believes that this change will enhance competition by 
increasing its

[[Page 45195]]

attractiveness as a venue for trading securities.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change: (i) Does not 
significantly affect the protection of investors or the public 
interest; (ii) does not impose any significant burden on competition; 
and (iii) by its terms, does not 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 and Rule 19b-4(f)(6) thereunder.\6\
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    \6\ 17 CFR 240.19b-4(f)(6). Furthermore, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file a 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, or such 
shorter time as designated by the Commission. The Exchange has 
provided such notice.
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30-days from the date of filing. However, Rule 
19b-4(f)(6)(iii) \7\ permits the Commission to designate a shorter 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 it may implement the proposed rule change 
on July 11, 2016, contemporaneously with a similar Nasdaq rule that was 
previously approved by the Commission \8\ and a virtually identical 
proposed rule change submitted by NASDAQ BX, Inc.\9\
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    \7\ 17 CFR 240.19b-4(f)(6)(iii).
    \8\ See supra note 3.
    \9\ See SR-BX-2016-033 submitted on June 22, 2016.
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    The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest. 
The Exchange proposes to modify the way in which orders are accepted 
prior to the commencement of trading for securities that are subject to 
a trading halt. The Exchange notes that the current functionality for 
accepting orders prior to the Exchange releasing the security for 
trading is used infrequently and therefore the proposed rule change 
will have little impact on its customers. Further, the Commission does 
not believe that the proposed rule change raises any new or novel 
issues. Accordingly, the Commission hereby waives the 30-day operative 
delay and designates the proposed rule change as operative upon 
filing.\10\
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    \10\ For purposes only of waiving the 30-day operative delay, 
the Commission has also 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-2016-70 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-2016-70. 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-2016-70, and should be 
submitted on or before August 2, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-16376 Filed 7-11-16; 8:45 am]
 BILLING CODE 8011-01-P

45194 Federal Register / Vol. 81, No. 133 / Tuesday, July 12, 2016 / Notices At times, changes in Commission places specified in Item IV below. The principles of trade, to foster cooperation priorities require alterations in the Exchange has prepared summaries, set and coordination with persons engaged schedules of meeting items. For further forth in sections A, B, and C below, of in regulating, clearing, settling, information and to ascertain what, if the most significant aspects of such processing information with respect to, any, matters have been added, deleted, statements. and facilitating transactions in or postponed, please contact: Brent J. securities, to remove impediments to A. Self-Regulatory Organization’s Fields in the Office of the Secretary at and perfect the mechanism of a free and Statement of the Purpose of, and (202) 551–5400. open market and a national market Statutory Basis for, the Proposed Rule Dated: July 7, 2016. system, and, in general, to protect Change Brent J. Fields, investors and the public interest. 1. Purpose The Exchange believes that the Secretary. The Exchange is proposing to make a proposed rule change will remove [FR Doc. 2016–16542 Filed 7–8–16; 11:15 am] impediments to and perfect the BILLING CODE 8011–01–P minor modification to the Exchange process for commencing trading of a mechanism of a free and open market security that is the subject of a trading and a national market system through halt. Specifically, the Exchange is an improved and simplified Exchange SECURITIES AND EXCHANGE process for commencing trading of a COMMISSION proposing to modify the way in which orders are accepted prior to the security that is the subject of a trading [Release No. 34–78232; File No. SR–PHLX– commencement of trading for securities halt. Specifically, this will be 2016–70] subject to a trading halt. This change accomplished by revising Exchange will simplify the order submission Rule 3100(c)(3)(B) to simply state that Self-Regulatory Organizations; orders entered during any trading halt NASDAQ PHLX LLC; Notice of Filing operations for market participants during trading halts.3 or pause will not be accepted. and Immediate Effectiveness of The current functionality for Proposed Rule Change To Amend Rule Currently, Exchange Rule 3100(c)(3)(B) provides that during any accepting orders prior to the Exchange 3100 releasing the security for trading is used trading halt or pause, market July 6, 2016. participants may enter orders during the infrequently and consequently the Pursuant to section 19(b)(1) of the trading halt or pause and designate such proposed rule change will have little Securities Exchange Act of 1934 orders to be held until the termination impact on customers. To the extent that (‘‘Act’’),1 and Rule 19b–4 thereunder,2 of the trading halt or pause. Under this there is any impact, it will be that notice is hereby given that on June 22, rule, such orders will be held in a rejecting orders rather than holding 2016, NASDAQ PHLX LLC (‘‘Phlx’’ or suspended state until the termination of them in a suspended state will clarify ‘‘Exchange’’) filed with the Securities the halt or pause, at which time they the state of participant orders, thereby and Exchange Commission will be entered into the system. The reducing potential confusion. The (‘‘Commission’’) the proposed rule Exchange proposes that Rule implementation of the existing change as described in Items I and II 3100(c)(3)(B) be revised to simply state functionality for accepting orders prior below, which Items have been prepared that orders entered during any trading to the Exchange releasing the security by the Exchange. The Commission is halt or pause will not be accepted. for trading has not been widely used publishing this notice to solicit The implementation of the existing and the Exchange believes the proposed comments on the proposed rule change functionality for accepting orders prior rule change will both improve and from interested persons. to the Exchange releasing the security simplify the Exchange process for for trading has not been widely used market participants. I. Self-Regulatory Organization’s The proposed rule change also will and the Exchange believes the proposed Statement of the Terms of the Substance remove impediments to and perfect the rule change will both improve and of the Proposed Rule Change mechanism of a free and open market simplify the Exchange process for The Exchange is proposing to amend through competition. Specifically, the market participants. The Exchange will Rule 3100 and the Exchange process for proposed rule change will enhance issue an Equity Trader Alert notifying commencing trading of a security that is competition by increasing the Exchange member firms of the change the subject of a trading halt. Exchange’s attractiveness as a venue for prior to implementation on July 11, The text of the proposed rule change trading securities because, as stated 2016. is available at http:// above, it will both improve and simplify nasdaq.cchwallstreet.com/, at the 2. Statutory Basis the Exchange process for market Exchange’s principal office, and at the The Exchange believes that the participants. Commission’s Public Reference Room. proposed rule change is consistent with B. Self-Regulatory Organization’s II. Self-Regulatory Organization’s the provisions of section 6 of the Act,4 Statement on Burden on Competition Statement of the Purpose of, and in general, and with section 6(b)(5) of The Exchange does not believe that Statutory Basis for, the Proposed Rule the Act,5 in particular, in that the the proposed rule change will result in Change proposal is designed to prevent any burden on competition that is not fraudulent and manipulative acts and In its filing with the Commission, the necessary or appropriate in furtherance practices, to promote just and equitable Exchange included statements of the purposes of the Act, as amended. The Exchange believes that the mstockstill on DSK3G9T082PROD with NOTICES concerning the purpose of and basis for 3 The proposed rule change is consistent with the the proposed rule change and discussed recently approved filing of The NASDAQ Stock proposed rule change will result in an any comments it received on the Market LLC (‘‘Nasdaq’’) as to the process for improved and simplified process for commencing trading of a security that is the subject market participants, which in turn will proposed rule change. The text of these of a trading halt. See Securities Exchange Act statements may be examined at the Release No. 77445 (March 25, 2016), 81 FR 18658 reduce potential confusion during (March 31, 2016) (SR–NASDAQ–2016–008). important market events. The Exchange 1 15 U.S.C. 78s(b)(1). 4 15 U.S.C. 78f. believes that this change will enhance 2 17 CFR 240.19b–4. 5 15 U.S.C. 78f(b)(5). competition by increasing its VerDate Sep<11>2014 18:30 Jul 11, 2016 Jkt 238001 PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 E:\FR\FM\12JYN1.SGM 12JYN1

Federal Register / Vol. 81, No. 133 / Tuesday, July 12, 2016 / Notices 45195 attractiveness as a venue for trading believe that the proposed rule change available for Web site viewing and securities. raises any new or novel issues. printing in the Commission’s Public Accordingly, the Commission hereby Reference Room, 100 F Street NE., C. Self-Regulatory Organization’s waives the 30-day operative delay and Washington, DC 20549, on official Statement on Comments on the designates the proposed rule change as business days between the hours of Proposed Rule Change Received From operative upon filing.10 10:00 a.m. and 3:00 p.m. Copies of the Members, Participants, or Others At any time within 60 days of the filing also will be available for Written comments were neither filing of the proposed rule change, the inspection and copying at the principal solicited nor received. Commission summarily may office of the Exchange. All comments III. Date of Effectiveness of the temporarily suspend such rule change if received will be posted without change; Proposed Rule Change and Timing for it appears to the Commission that such the Commission does not edit personal Commission Action action is necessary or appropriate in the identifying information from public interest, for the protection of submissions. You should submit only Because the foregoing proposed rule investors, or otherwise in furtherance of information that you wish to make change: (i) Does not significantly affect the purposes of the Act. If the available publicly. All submissions the protection of investors or the public Commission takes such action, the should refer to File Number SR–PHLX– interest; (ii) does not impose any Commission shall institute proceedings 2016–70, and should be submitted on or significant burden on competition; and to determine whether the proposed rule before August 2, 2016. (iii) by its terms, does not become should be approved or disapproved. operative for 30 days from the date on For the Commission, by the Division of which it was filed, or such shorter time IV. Solicitation of Comments Trading and Markets, pursuant to delegated authority.11 as the Commission may designate, it has Interested persons are invited to become effective pursuant to section submit written data, views, and Brent J. Fields, 19(b)(3)(A) of the Act and Rule 19b– arguments concerning the foregoing, Secretary. 4(f)(6) thereunder.6 including whether the proposed rule [FR Doc. 2016–16376 Filed 7–11–16; 8:45 am] A proposed rule change filed under change is consistent with the Act. BILLING CODE 8011–01–P Rule 19b–4(f)(6) normally does not Comments may be submitted by any of become operative for 30-days from the the following methods: date of filing. However, Rule 19b– SECURITIES AND EXCHANGE Electronic Comments COMMISSION 4(f)(6)(iii) 7 permits the Commission to designate a shorter time if such action • Use the Commission’s Internet is consistent with the protection of comment form (http://www.sec.gov/ Sunshine Act Meeting investors and the public interest. The rules/sro.shtml); or Notice is hereby given, pursuant to Exchange has asked the Commission to • Send an email to rule- the provisions of the Government in the waive the 30-day operative delay so that comments@sec.gov. Please include File Sunshine Act, Public Law 94–409, that it may implement the proposed rule Number SR–PHLX–2016–70 on the the Securities and Exchange change on July 11, 2016, subject line. Commission will hold a Closed Meeting contemporaneously with a similar Paper Comments on Thursday, July 14, 2016 at 2 p.m. Nasdaq rule that was previously Commissioners, Counsel to the • Send paper comments in triplicate approved by the Commission 8 and a Commissioners, the Secretary to the to Secretary, Securities and Exchange virtually identical proposed rule change Commission, and recording secretaries Commission, 100 F Street NE., submitted by NASDAQ BX, Inc.9 will attend the Closed Meeting. Certain The Commission believes that Washington, DC 20549–1090. All submissions should refer to File staff members who have an interest in waiving the 30-day operative delay is the matters also may be present. consistent with the protection of Number SR–PHLX–2016–70. This file The General Counsel of the investors and the public interest. The number should be included on the Commission, or her designee, has Exchange proposes to modify the way in subject line if email is used. To help the certified that, in her opinion, one or which orders are accepted prior to the Commission process and review your more of the exemptions set forth in 5 commencement of trading for securities comments more efficiently, please use U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) that are subject to a trading halt. The only one method. The Commission will and 17 CFR 200.402(a)(3), (a)(5), (a)(7), Exchange notes that the current post all comments on the Commission’s (a)(9)(ii) and (a)(10), permit functionality for accepting orders prior Internet Web site (http://www.sec.gov/ consideration of the scheduled matter at to the Exchange releasing the security rules/sro.shtml). Copies of the the Closed Meeting. for trading is used infrequently and submission, all subsequent Commissioner Piwowar, as duty therefore the proposed rule change will amendments, all written statements officer, voted to consider the items have little impact on its customers. with respect to the proposed rule listed for the Closed Meeting in closed Further, the Commission does not change that are filed with the session. Commission, and all written The subject matter of the Closed 6 17 CFR 240.19b–4(f)(6). Furthermore, Rule 19b– communications relating to the Meeting will be: 4(f)(6)(iii) requires a self-regulatory organization to proposed rule change between the Institution and settlement of give the Commission written notice of its intent to Commission and any person, other than file a proposed rule change, along with a brief injunctive actions; those that may be withheld from the mstockstill on DSK3G9T082PROD with NOTICES description and text of the proposed rule change at Institution and settlement of least five business days prior to the date of filing, public in accordance with the administrative proceedings; or such shorter time as designated by the provisions of 5 U.S.C. 552, will be Adjudicatory matters; Commission. The Exchange has provided such notice. Opinion; and 10 For purposes only of waiving the 30-day 7 17 CFR 240.19b–4(f)(6)(iii). Other matters relating to enforcement operative delay, the Commission has also 8 See supra note 3. considered the proposed rule’s impact on proceedings. 9 See SR–BX–2016–033 submitted on June 22, efficiency, competition, and capital formation. See 2016. 15 U.S.C. 78c(f). 11 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 18:30 Jul 11, 2016 Jkt 238001 PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 E:\FR\FM\12JYN1.SGM 12JYN1


Document Created: 2016-07-12 01:59:38
Document Modified: 2016-07-12 01:59:38
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 45194 
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