81 FR 69877 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Designation of Longer Period for Commission Action on a Proposed Rule Change To Adopt a New Exception in Exchange Rule 1000(f) for Sub-MPV Split-Priced Orders

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 195 (October 7, 2016)

Page Range		69877-69878
FR Document		2016-24277

Federal Register, Volume 81 Issue 195 (Friday, October 7, 2016)

[Federal Register Volume 81, Number 195 (Friday, October 7, 2016)]
[Notices]
[Pages 69877-69878]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-24277]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79023; File No. SR-Phlx-2016-82]


Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of 
Designation of Longer Period for Commission Action on a Proposed Rule 
Change To Adopt a New Exception in Exchange Rule 1000(f) for Sub-MPV 
Split-Priced Orders

October 3, 2016.
    On August 3, 2016, NASDAQ PHLX LLC (the ``Exchange'') filed with 
the Securities and Exchange Commission (``Commission''), pursuant to 
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ 
and Rule 19b-4

[[Page 69878]]

thereunder,\2\ a proposed rule change to provide an exception to the 
mandatory use of the Floor Broker Management System pursuant to Rule 
1000(f)(iii) to permit Floor Brokers to execute certain sub-minimum 
price variation (``sub-MPV'') split-priced orders in the options 
trading crowd rather than electronically. The proposed rule change was 
published for comment in the Federal Register on August 22, 2016.\3\ 
The Commission has received no comment letters on the proposed rule 
change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 78593 (August 16, 
2016), 81 FR 56724.
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    Section 19(b)(2) of the Act \4\ provides that, within 45 days of 
the publication of the notice of the filing of a proposed rule change, 
or within such longer period up to 90 days as the Commission may 
designate if it finds such longer period to be appropriate and 
publishes its reasons for so finding or as to which the self-regulatory 
organization consents, the Commission shall either approve the proposed 
rule change, disapprove the proposed rule change, or institute 
proceedings to determine whether the proposed rule change should be 
disapproved. The 45th day for this filing is October 6, 2016.
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    \4\ 15 U.S.C. 78s(b)(2).
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    The Commission is extending the 45-day time period for Commission 
action on the proposed rule change. The Commission finds that it is 
appropriate to designate a longer period within which to take action on 
the proposed rule change so that it has sufficient time to consider and 
take action on the Exchange's proposed rule change.
    Accordingly, pursuant to Section 19(b)(2)(A)(ii)(I) of the Act \5\ 
and for the reasons stated above, the Commission designates November 
20, 2016, as the date by which the Commission should either approve or 
disapprove, or institute proceedings to determine whether to 
disapprove, the proposed rule change (File No. SR-Phlx-2016-82).
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    \5\ 15 U.S.C. 78s(b)(2)(A)(ii)(I).
    \6\ 17 CFR 200.30-3(a)(31).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-24277 Filed 10-6-16; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 81, No. 195 / Friday, October 7, 2016 / Notices 69877

Three, how resting non-displayed orders V. Solicitation of Comments on modified by Amendment No. 2, prior to
would trade, how order with a STPN Amendment No. 2 the thirtieth day after the date of
Modifier would be handled, and that g- Interested persons are invited to publication of notice of Amendment No.
Quotes and Buy Minus/Zero Plus orders submit written data, views, and 2 in the Federal Register. As described
will be rejected. The Exchange also arguments concerning the foregoing, above, the Exchange proposes to amend
proposes to only permit buy and sell including whether Amendment No. 2 is its rules to comply with the Plan and
orders that are entered into the Cross consistent with the Exchange Act. clarify other rules related to LULD and
Function pursuant to Supplementary Comments may be submitted by any of Trading Collars.
Material .10 to Rule 76 to be eligible for the following methods: The Commission believes that the
the Block Size order exception to the proposals related to LULD Price Bands
Trade-at Prohibition.38 Electronic Comments and Trading Collars should provide
In addition, the Exchange proposes to • Use the Commission’s Internet clarity on instances where they are not
amend provisions related to two comment form (http://www.sec.gov/ in the MPV. The Commission believes
exceptions to the Trade-at Prohibition. rules/sro.shtml); or that the proposals related to the Pilot are
• Send an email to rule-comments@ designed to ensure compliance with the
First, the Exchange proposes amend the
sec.gov. Please include File Number SR– Plan. The Commission notes that the
TAISO definition to reflect that ISOs
NYSEMKT–2016–83 on the subject line. Pilot is scheduled to start on October 3,
may be routed to the full displayed size
of a Protected Quotation that is traded- Paper Comments 2016, and accelerated approval would
at and to make the corresponding ensure that the rules of the Exchange
• Send paper comments in triplicate would be in place for the start of the
change to the specific trade-at to Secretary, Securities and Exchange
exception. Second, the Exchange Pilot. Accordingly, the Commission
Commission, 100 F Street NE., finds good cause, pursuant to Section
proposes to amend the exception for Washington, DC 20549–1090.
Block Size orders to allow an order of 19(b)(2) of the Act,41 to approve the
All submissions should refer to File proposed rule change, as modified by
Block Size to be executed on multiple Number SR–NYSEMKT–2016–83. This
Trading Centers. Amendment No. 2, on an accelerated
file number should be included on the basis.
The Commission believes that these subject line if email is used. To help the
changes are reasonably designed to Commission process and review your VII. Conclusion
comply with the Plan. Further, the comments more efficiently, please use It is therefore ordered that, pursuant
Commission believes that the proposed only one method. The Commission will to Section 19(b)(2) of the Act,42 the
changes that are targeted at particular post all comments on the Commission’s proposed rule change (SR–NYSEMKT–
Test Groups are necessary for Internet Web site (http://www.sec.gov/ 2016–83), as modified by Amendment
compliance with the Plan. Accordingly, rules/sro.shtml). No. 2, be and hereby is approved on an
the Commission finds that these Copies of the submission, all accelerated basis.
changes are consistent with Section subsequent amendments, all written
For the Commission, by the Division of
6(b)(5) of the Act 39 and Rule 608 of statements with respect to the proposed
Trading and Markets, pursuant to delegated
Regulation NMS 40 because they rule change that are filed with the authority.43
implement the Plan and clarify Commission, and all written
Robert W. Errett,
Exchange Rules. communications relating to the
proposed rule change between the Deputy Secretary.
In addition, the Exchange proposes to [FR Doc. 2016–24283 Filed 10–6–16; 8:45 am]
Commission and any person, other than
adopt a rule to specify how the
those that may be withheld from the BILLING CODE 8011–01–P
Exchange will calculate LULD Price
public in accordance with the
Bands after the Exchange opens or
provisions of 5 U.S.C. 552, will be
reopens. The Commission believes that SECURITIES AND EXCHANGE
available for Web site viewing and
this change should help to ensure that COMMISSION
printing in the Commission’s Public
trading does not occur outside of Price
Reference Room, 100 F Street NE.,
Bands when LULD is in effect. Washington, DC 20549–1090, on official
[Release No. 34–79023; File No. SR–Phlx–
2016–82]
Finally, the Exchange proposes to business days between the hours of
specify that Trading Collars that are not 10:00 a.m. and 3:00 p.m. Copies of such Self-Regulatory Organizations;
in the MPV would be rounded down to filing will also be available for NASDAQ PHLX LLC; Notice of
the nearest price. The Commission inspection and copying at the principal Designation of Longer Period for
believes that this change should provide office of the Exchange. All comments Commission Action on a Proposed
clarity in the Exchange’s rules. received will be posted without change; Rule Change To Adopt a New
For these reasons, the Commission the Commission does not edit personal Exception in Exchange Rule 1000(f) for
finds that the proposed rule change, as identifying information from Sub-MPV Split-Priced Orders
modified by Amendment No. 2, is submissions. You should submit only
consistent with the requirements of the information that you wish to make October 3, 2016.
Act and Rule 608 of Regulation NMS. available publicly. All submissions On August 3, 2016, NASDAQ PHLX
should refer to File Number SR– LLC (the ‘‘Exchange’’) filed with the
38 The Commission notes that the orders entered NYSEMKT–2016–83 and should be Securities and Exchange Commission
mstockstill on DSK3G9T082PROD with NOTICES

into the Cross Function for purposes of relying on submitted on or before October 28, (‘‘Commission’’), pursuant to Section
the Block Size exception must satisfy the provisions 2016. 19(b)(1) of the Securities Exchange Act
of the exception, including that it may not be an of 1934 (‘‘Act’’) 1 and Rule 19b–4
aggregation of non-block orders, or broken into VI. Accelerated Approval of Proposed
orders smaller than Block Size prior to submitting Rule Change, as Modified by 41 15
the order the Trading Center for execution. See U.S.C. 78s(b)(2).
Amendment No. 2
Exchange Rule 67(e)(4)(C)(iii). 42 Id.
39 15 U.S.C. 78f(b)(5). The Commission finds good cause to 43 17 CFR 200.30–3(a)(12).
40 17 CFR 242.608. approve the proposed rule change, as 1 15 U.S.C. 78s(b)(1).

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69878 Federal Register / Vol. 81, No. 195 / Friday, October 7, 2016 / Notices

thereunder,2 a proposed rule change to SECURITIES AND EXCHANGE September 27, 2016, the Exchange filed
provide an exception to the mandatory COMMISSION Partial Amendment No. 1 to the
use of the Floor Broker Management proposed rule change (‘‘Amendment No.
[Release No. 34–79030; File No. SR–NYSE– 1’’). On September 30, 2016, the
System pursuant to Rule 1000(f)(iii) to 2016–62]
permit Floor Brokers to execute certain Exchange withdrew Amendment No. 1
sub-minimum price variation (‘‘sub- Self-Regulatory Organizations; New and filed Partial Amendment No. 2 to
MPV’’) split-priced orders in the options York Stock Exchange LLC; Notice of the proposed rule change (‘‘Amendment
trading crowd rather than electronically. Filing of Partial Amendment No. 2 and No. 2’’).9
This order provides notice of
The proposed rule change was Order Granting Accelerated Approval
Amendment No. 2, and approves the
published for comment in the Federal of a Proposed Rule Change, as
proposal, as modified by Amendment
Register on August 22, 2016.3 The Modified by Partial Amendment No. 2,
No. 2, on an accelerated basis.
Commission has received no comment To Amend Rule 67 Relating to the Tick
letters on the proposed rule change. Size Pilot Program II. Description of the Amended
Proposal
Section 19(b)(2) of the Act 4 provides October 3, 2016.
that, within 45 days of the publication The Exchange proposes to amend
I. Introduction Exchange Rule 67 to: (1) Change system
of the notice of the filing of a proposed
rule change, or within such longer On August 25, 2016, New York Stock functionality to implement the Plan; (2)
period up to 90 days as the Commission Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) clarify the operation of certain
may designate if it finds such longer filed with the Securities and Exchange exceptions to the Trade-at Prohibition
Commission (‘‘Commission’’) pursuant on Pilot Securities in Test Group Three;
period to be appropriate and publishes
to Section 19(b)(1) of the Securities (3) amend the LULD price controls set
its reasons for so finding or as to which
Exchange Act of 1934 (‘‘Act’’) 1 and Rule forth in Exchange Rule 80C; and (4)
the self-regulatory organization amend the Exchange’s trading collar
consents, the Commission shall either 19b–4 thereunder,2 a proposed rule
change to: (1) Change system calculation set forth in Exchange Rule
approve the proposed rule change, 1000.
disapprove the proposed rule change, or functionality to implement the Plan to
Implement a Tick Size Pilot Program A. Amendments to Exchange Systems
institute proceedings to determine
(‘‘Plan’’ or ‘‘Pilot’’) 3 submitted to the Functionality To Implement the Plan
whether the proposed rule change
Commission pursuant to Rule 608 of
should be disapproved. The 45th day for Regulation NMS 4 under the Act; (2) 1. Trade-at Intermarket Sweep Order 10
this filing is October 6, 2016. clarify the operation of certain The Exchange proposes to accept
The Commission is extending the 45- exceptions to the Trade-at Prohibition 5 Trade-at Intermarket Sweep Orders
day time period for Commission action on Pilot Securities in Test Group Three; (‘‘TAISO’’) in all securities, and that
on the proposed rule change. The (3) amend the Limit Up/Limit Down TAISOs must be designated as
Commission finds that it is appropriate (‘‘LULD’’) price controls set forth in immediate or cancel (‘‘IOC’’), may
to designate a longer period within Exchange Rule 80C regarding the include a minimum trade size, and do
which to take action on the proposed Regulation NMS Plan to Address not route. The Exchange would
rule change so that it has sufficient time Extraordinary Market Volatility (‘‘LULD immediately and automatically execute
to consider and take action on the Plan’’); 6 and (4) amend the Exchange’s a TAISO against the displayed and non-
Exchange’s proposed rule change. trading collar calculation in Exchange displayed bid (offer) up to its full size
Rule 1000. The proposed rule change in accordance with and to the extent
Accordingly, pursuant to Section was published for comment in the provided by Exchange Rules 1000—
19(b)(2)(A)(ii)(I) of the Act 5 and for the Federal Register on September 15, 1004 and will then sweep the
reasons stated above, the Commission 2016.7 The Commission received two Exchange’s book as provided in Rule
designates November 20, 2016, as the comments letter on the proposal.8 On 1000(e)(iii), and the portion not so
date by which the Commission should executed will be immediately and
either approve or disapprove, or 1 15 U.S.C. 78s(b)(1). automatically cancelled. The Exchange
institute proceedings to determine 2 17 CFR 240.19b–4. would accept TAISOs before the
whether to disapprove, the proposed 3 See Securities Exchange Act Release No. 74892
Exchange opens and would allow
(May 6, 2015), 80 FR 27513 (May 13, 2015) TAISOs to be eligible to participate in
rule change (File No. SR–Phlx–2016– (‘‘Approval Order’’). Unless otherwise specified,
82). capitalized terms used in this order are defined as the opening transaction at its limit
set forth in the Plan. price, but would not be accept TAISOs
For the Commission, by the Division of 4 17 CFR 242.608. during a trading halt or pause for
Trading and Markets, pursuant to delegated 5 Exchange Rule 67(e)(4)(A) defines the ‘‘Trade-at
participation in a reopening transaction.
authority.6 Prohibition’’ as the prohibition against executions Finally, the Exchange would not allow
Robert W. Errett, by a Trading Center of a sell order for a Pilot
Security at the price of a Protected Bid or the
TAISOs to be entered as e-Quotes, d-
Deputy Secretary. execution of a buy order for a Pilot Security at the Quotes, or g-Quotes.
[FR Doc. 2016–24277 Filed 10–6–16; 8:45 am] price of a Protected Offer during regular trading
hours. See also Plan Section I(LL) and Plan Section No. 1’’); and Eric Swanson, EVP, General Counsel,
BILLING CODE 8011–01–P
VI(D). Bats Global Markets, Inc., dated September 12, 2016
6 See Securities Exchange Act Release No. 67091
(‘‘Comment Letter No. 2’’).
(May 31, 2012), 77 FR 33498 (June 6, 2012) (File 9 In Amendment No. 2, the Exchange proposes to:
mstockstill on DSK3G9T082PROD with NOTICES

No. 4–631). (1) Specify that in all Pilot Securities, d-Quotes to
7 See Securities Exchange Act Release No. 78802 buy (sell) would not exercise discretion if (A)
2 17 CFR 240.19b–4. (September 9, 2016), 81 FR 63515. exercising discretion would result in an execution
3 See Securities Exchange Act Release No. 78593
8 See Letters from Eric Swanson, EVP, General equal to or higher (lower) than the price of a
Counsel, Bats Global Markets, Inc., Elizabeth K. protected offer (bid) or (B) the price of a protected
(August 16, 2016), 81 FR 56724.
King, General Counsel and Corporate Secretary, bid (offer) is equal to or higher (lower) than the filed
4 15 U.S.C. 78s(b)(2).
New York Stock Exchange; and Thomas A. price of the d-Quote; and (2) correct cross
5 15 U.S.C. 78s(b)(2)(A)(ii)(I).
Wittman, EVP, Global Head of Equities, Nasdaq, references.
6 17 CFR 200.30–3(a)(31). Inc., dated September 9, 2016 (‘‘Comment Letter 10 See proposed Exchange Rule 67(f)(1).

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Document Created: 2018-02-13 16:32:01
Document Modified: 2018-02-13 16:32:01

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		81 FR 69877