81 FR 71153 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing of Proposed Rule Change To Delete Outdated or Unnecessary Rule Language
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 199 (October 14, 2016)
Federal Register Volume 81, Issue 199 (October 14, 2016)
| Page Range | 71153-71156 | |
| FR Document | 2016-24836 |
[Federal Register Volume 81, Number 199 (Friday, October 14, 2016)] [Notices] [Pages 71153-71156] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-24836] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79073; File No. SR-Phlx-2016-97] Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing of Proposed Rule Change To Delete Outdated or Unnecessary Rule Language October 7, 2016.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 September 27, 2016, NASDAQ PHLX LLC (``Phlx'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to delete outdated or unnecessary rule language contained in Rule 1020, Registration and Functions of Options Specialists, section (b) and Commentary .01 through .06. The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqphlx.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 Exchange Rule 1020 contains provisions relating to registration and functions of options specialists.\3\ Rule 1020's provisions were initially adopted in the 1970s, in the early days of exchange trading of options. As explained below, the rule reflects the trading context in which it was adopted. Various provisions of the rule are consequently very outdated. --------------------------------------------------------------------------- \3\ A ``specialist'' is an Exchange member who is registered as an options specialist pursuant to Exchange Rule 1020(a). Specialists are subject to quoting and registration obligations set forth in Rules 1014(b), 1020, and 1080.02. --------------------------------------------------------------------------- The Exchange is therefore proposing to delete obsolete and unnecessary language from section (b) and from Commentary .01 through Commentary [[Page 71154]] .06 of Rule 1020 pertaining to the obligations of specialists. The Exchange proposes to delete the language in question in order to prevent any confusion that may result from obsolete provisions, to eliminate unnecessary language, and to ensure that the rulebook accurately reflects specialists' obligations in the context of the manner in which trading is conducted today. Section (b) Rule 1020 provides that, as a condition of being registered as a specialist in one or more options, a member has an obligation to assist in the maintenance of a fair and orderly market. The rule currently provides that this obligation exists for a specialist ``in addition to the execution of orders entrusted him in such options.'' The Exchange is deleting the language regarding execution of entrusted orders. Specialists no longer manually handle or execute others' orders due to the Exchange's migration to a new electronic trading system (``Phlx XL II'') in 2009.\4\ The Phlx XL II enhancements were designed to improve the execution quality for its Phlx users by improving a number of processes, including the opening process, the order handling process and the execution of orders process. As a consequence of this migration a manual book no longer exists and specialists no longer enter manual orders entrusted to them onto the electronic limit order book.\5\ Specialists no longer handle any agency orders whatsoever in their role as specialists. The Exchange proposes to delete the language in question in order to prevent any confusion that may result from this obsolete provision and to ensure that the rulebook accurately reflects member obligations. --------------------------------------------------------------------------- \4\ In May 2009, the Exchange enhanced the options trading system and adopted corresponding rules referring to it as ``Phlx XL II.'' See Securities Exchange Act Release No. 59995 (May 28, 2009), 74 FR 26750 (June 3, 2009) (SR-Phlx-2009-32). Thereafter, the Exchange submitted a number of filings updating various rules and deleting obsolete provisions. See Securities Exchange Act Release Nos. 61397 (January 22, 2010), 75 FR 4893 (January 29, 2010) (SR- Phlx-2010-07); 63036 (October 4, 2010), 75 FR 62621 (October 12, 2010) (SR-Phlx-2010-131); and 67469 (July 19, 2012), 77 FR 43633 (July 25, 2012) (SR-Phlx-2012-92). \5\ Specifically, the Exchange has stated that no orders will be executed, and therefore handled, manually in Phlx XL II. See Securities Exchange Act Release No. 59721 (April 7, 2009), 74 FR 17245 (April 14, 2009) (SR-Phlx-2009-32) (Notice of Filing of Proposed Rule Change Relating to the Exchange's Enhanced Electronic Trading Platform for Options, Phlx XL II at 17258). Rules governing the obligations of Specialists, such as quoting and registration obligations, still exist. See, e.g., Rules 1014(b) and 1020. --------------------------------------------------------------------------- Commentary .01 Commentary .01 applies to transactions of a specialist for his own account that establish or increase a position. It provides that in ``effecting transactions'' for his own account for the purpose of establishing or increasing a position, a specialist is to effect such transactions in a reasonable and orderly manner in relation to the condition of the general market, the market in the particular option and the adequacy of his position to the immediate and reasonably anticipated needs of the options market. It provides that the following types of transactions to establish or increase a position are not to be effected except when they are reasonably necessary to render the specialist's position adequate to such needs: (a) A purchase at a price above the last sale in the same trading session; (b) the purchase of all or substantially all the options offered on the book at a price equal to the last sale, when the option so offered represents all or substantially all the options offered in the market; and when a substantial amount of an option is offered at a price equal to the last sale price, the purchase of more than 50% of all the options offered at the last sale price; (c) the supplying of all or substantially all the options bid for on the book at a price equal to the last sale, when the option so bid for represents all or substantially all the options bid for in the market; and when a substantial amount of the options bid for at a price equal to the last sale price, the supplying of more than 50% of all the options bid for at the last sale price; (d) failing to re- offer or re-bid where necessary after effecting transactions described in (a), (b), or (c). The rule permits transactions of these types to be effected, however, with the approval of an Options Exchange Official or in relatively inactive markets where they are an essential part of a proper course of dealings and where the amount of an option involved and the price change, if any, are normal in relation to the market. The Exchange proposes to delete the last sentence of Commentary .01, and sections (a) through (d) of Commentary .01, because a specialist is unable to comply with its requirements given the way trading is conducted today in the PHLX XL trading system. Specialists today only rarely ``effect transactions'' in the sense of matching bids and offers to cause an execution to occur. Rather, they submit bids and offers to be matched. Although a specialist may ``effect transactions'' with a market maker on the Exchange's trading floor, the vast majority of transactions are executed electronically by the trading system and the specialist may be unable to determine the price of the last sale which would be required to comply with the language being deleted. Thus, for example, given electronic quoting and the absence of specialist control over the book, there is no way a specialist can guarantee that a purchase is at a price above the last sale in the same trading session. Because he will not know the price at which trading will occur, he cannot comply with Commentary .01 (a)--(d). Although these tick-based rules may have been appropriate for and worked well in a market where substantially all trading was conducted manually, at a pace that enabled individuals to discern ``tick'' changes easily and which tolerated the time it took to call an Options Exchange Official into the crowd to approve a particular specialist's transaction, they are inappropriate now where trading is substantially electronic and the speed and frequency of executions and quote changes preclude individuals from being able to accurate track ``ticks'' or stop trading to allow for Options Exchange Official involvement.\6\ The rules of the NASDAQ Options Market (``NOM'') do not contain comparable provisions with respect to market makers. --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release No. 54860 (December 1, 2006), 71 FR 71221 (December 8, 2006) (SR-NYSE-2006-76) in which the New York Stock Exchange advanced this explanation in support of proposed changes to its specialist stabilization rules. --------------------------------------------------------------------------- Commentary .02 Commentary .02 applies to transactions of a specialist for his own account that liquidate or decrease his position in an option in which he is registered. It provides that such transactions are to be ``effected'' in a reasonable and orderly manner in relation to the condition of the general market, the market in the particular option and the adequacy of the specialist's positions to the immediate and reasonably anticipated needs of the options market. It also provides that, in this connection, unless he has the prior approval of an Options Exchange Official, he should avoid: (a) Liquidation of all or substantially all of a position by selling options at prices below the last different price or by purchasing options at prices above the last different price unless such transactions are reasonably necessary in relation to the specialist's overall position in the options in which he is registered; (b) failing to maintain a fair and orderly market during liquidations; [[Page 71155]] or (c) failing to re-enter the market where necessary, after effecting transactions described in (a) above. The Exchange proposes to delete part of the last sentence of Commentary .02 as well as sections (a) through (c) of Commentary .02. The Exchange believes that while these rules may have made sense when they were adopted, changes in market structure and technology in the succeeding decades, such as the shift to trading in penny increments, dispersion of order flow to multiple competing market centers, consolidation and availability of market data, and enhancements in trading, communications and surveillance technology have made these rules anticompetitive anachronisms. As discussed above, given the way trading is conducted today in the PHLX XL trading system, a specialist may be unable to determine the ``last different price'' as required to comply with section (a). Section (b) is being deleted as redundant of Rule 1020(b) which already contains the ``fair and orderly'' requirement. Section (c) is being deleted because it depends on Section (a) which is being deleted as discussed above. Finally, the NOM rules do not contain comparable provisions with respect to market makers.\7\ The language is therefore operationally obsolete, as explained above. Moreover, having clear and up-to-date rules should promote just and equitable principles of trade on the Exchange. --------------------------------------------------------------------------- \7\ The Exchange believes that the fact that NOM does not have a trading floor is irrelevant. --------------------------------------------------------------------------- Commentary .03 Commentary .03 provides that a specialist's quotation, made for his own account, should be such that a transaction effected at his quoted price or within the quoted spread, whether having the effect of reducing or increasing the specialist's position, would bear a proper relation to preceding transactions and anticipated succeeding transactions. The Exchange proposes to delete Commentary .03 because given the speed of trading that occurs today on the Phlx XL trading system, a specialist may not have knowledge of the preceding transactions to which his quotation would relate, much less any anticipated succeeding transactions. Without affecting his liquidity, the specialist cannot possibly look at every single transaction, nor can he know how the transactions relate to one another. Prior to the advent of electronic trading, a specialist would announce his quote verbally, which was a very slow process. Today, a specialist would not be able to adjust quotes as needed to comply with Commentary .03 before the quotes are accessed. The NOM rules do not contain comparable provisions with respect to market makers. The language is an unnecessary and anticompetitive burden on Phlx specialists, because market makers on NOM which fulfill a comparable role to Phlx specialists are not subject to a comparable requirement. Commentary .04 Commentary .04 applies to opening or reopening an option. It provides that a specialist should avoid participating as a dealer in opening or reopening an option in such a manner as to reverse the balance of public supply and demand as reflected by market and limited price orders at or near the price of the previous close or halt, unless the condition of the general market or the specialist's position in light of the reasonably anticipated needs of the market make it advisable to do so, or unless the specialist has obtained the prior approval of an Options Exchange Official to do so. The rule provides that he may, however, buy or sell an option as a dealer to minimize the disparity between supply and demand at an opening or reopening. The Exchange proposes to delete Commentary .04 in its entirety because the Specialist no longer manually opens options classes. Rather, the PHLX XL trading system handles the opening and re-opening of options in accordance with Phlx Rule 1017. While the Specialist is required to provide a quote, he or she is no more involved in resolving imbalances than any other market maker. All aspects of the opening are done automatically by the system. Commentary .05 Commentary .05 prohibits a member acting as a specialist from effecting transactions for the purpose of adjusting a LIFO inventory in an option in which he is so acting except as a part of a course of dealings reasonably necessary to assist in the maintenance of a fair and orderly market. This rule largely tracks former NYSE rule 104.13 which was designed to prevent year-end purchases or sales for the purpose of obtaining tax advantages under the LIFO system of valuing inventory.\8\ --------------------------------------------------------------------------- \8\ See Securities Exchange Act Release No. 7432, 29 FR 13777 (October 6, 1964). --------------------------------------------------------------------------- The Exchange proposes to delete Commentary .05 in its entirety because the Exchange believes it is unnecessary. The NOM rules do not contain a comparable provision for market makers. Additionally, the Exchange was unable to locate a comparable Chicago Board Options Exchange (``CBOE'') rule. The language is an unnecessary and anticompetitive burden on Phlx specialists, because market makers on NOM which fulfill a comparable role to Phlx specialists are not subject to a comparable requirement. Commentary .06 Commentary .06 provides that under certain circumstances a specialist may assign options in which he is registered to an investment account. Purchases creating or adding to a position in an investment account may not be made unless reasonably necessary to permit the specialist to assist in the maintenance of a fair and orderly market. The Exchange is deleting this sentence because it believes it is not necessary. Specialists have their ``specialist account.'' Any executions on their quotes are placed into their specialist accounts. While an ``investment account'' may have played a role in early days of trading, the Exchange is unaware today of what such an account might consist of or its purpose--consequently, the Exchange perceives no need to regulate it or fashion rules around it. Commentary .06 states that in the maintenance of price continuity with reasonable depth, it is commonly desirable for a specialist to supply options to the market, even though he may have to sell short to do so, to the extent reasonably necessary to meet the needs of the market. This sentence is being deleted because the Exchange believes its rules should not include statements of ``desirable'' behavior. Finally, Commentary .06 provides that a specialist may not effect a transfer of options in which he is registered from his dealer account to an investment account if the transfer would result in creating a short position in the dealer account. This Exchange is deleting this sentence because it is unnecessary, for the reasons specified above relating to investment accounts. The NOM rules do not contain provisions comparable to the provisions of Commentary .06 with respect to its market makers. The language is an unnecessary and anticompetitive burden on Phlx specialists, because market makers on NOM which fulfill a comparable role to Phlx specialists are not subject to comparable requirements. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) [[Page 71156]] of the Act,\9\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\10\ in particular, in that it is designed to promote just and equitable principles of trade, 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, by deleting unnecessary and obsolete provisions and generally providing clarity to the rules. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Specifically, the deletion of a portion of the Rule 1020 Section (b) and Commentary provisions discussed above is consistent with the Act because this rule language is operationally obsolete, as explained above; moreover, having clear and up to date rules should promote just and equitable principles of trade on the Exchange. The proposal should result in a more accurate and understandable rule book, particularly for Exchange specialists who no longer operate a book or handle orders manually. The Exchange's goal with respect to the deletion of language is to ensure that the rulebook accurate reflects member obligations in the context of how trading takes place on the Exchange today, which should protect investors and the public interest. The Exchange's proposal will also delete unnecessary provisions that, because they are not present in the NOM rulebook with respect to market makers, represent an anticompetitive burden on Phlx specialists as discussed above. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. Removing unnecessary regulatory burdens should enhance a Phlx specialist's ability to compete with market makers on Phlx and on other exchanges who are not burdened with similar requirements. 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 Within 45 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the Exchange consents, the Commission shall: (a) by order approve or disapprove such proposed rule change, or (b) institute proceedings to determine whether the proposed rule change should be 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 CommentsUse 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-2016-97 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-2016-97. 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 such 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-2016-97, and should be submitted on or before November 4, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-24836 Filed 10-13-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 199 / Friday, October 14, 2016 / Notices 71153
and 3, is consistent with the 2016–050 and should be submitted on LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed with
requirements of the Act 43 and Rule 608 or before November 4, 2016. the Securities and Exchange
of Regulation NMS.44 Commission (‘‘SEC’’ or ‘‘Commission’’)
VI. Accelerated Approval of Proposed
the proposed rule change as described
V. Solicitation of Comments on Partial Rule Change, as Modified by Partial
in Items I, II, and III, below, which Items
Amendment Nos. 1 and 3 to the Amendment Nos.1 and 3
Proposed Rule Change have been prepared by the Exchange.
The Commission finds good cause to The Commission is publishing this
Interested persons are invited to approve the proposed rule change, as notice to solicit comments on the
submit written data, views, and modified by Partial Amendment Nos. 1 proposed rule change from interested
arguments concerning the foregoing, and 3, prior to the thirtieth day after the persons.
including whether the proposal, as date of publication of notice of the
modified by Partial Amendment Nos. 1 proposed rule change, as modified by I. Self-Regulatory Organization’s
and 3, is consistent with the Act. Partial Amendment Nos. 1 and 3 in the Statement of the Terms of the Substance
Comments may be submitted by any of Federal Register. As described above, of the Proposed Rule Change
the following methods: the Exchange proposes to amend its The Exchange proposes to delete
Electronic Comments rules to comply with the Plan. The outdated or unnecessary rule language
Commission notes that the Pilot started contained in Rule 1020, Registration
• Use the Commission’s Internet implementation on October 3, 2016, and and Functions of Options Specialists,
comment form (http://www.sec.gov/ accelerated approval of the proposal section (b) and Commentary .01 through
rules/sro.shtml); or would ensure that the rules of the .06.
• Send an email to rule-comments@ Exchange would be in place during The text of the proposed rule change
sec.gov. Please include File Number SR– implementation. Accordingly, the is available on the Exchange’s Web site
BX–2016–050 on the subject line. Commission finds good cause, pursuant at http://nasdaqphlx.cchwallstreet.com/
Paper Comments to Section 19(b)(2) of the Exchange , at the principal office of the Exchange,
• Send paper comments in triplicate Act,45 to approve the proposed rule and at the Commission’s Public
to Secretary, Securities and Exchange change, as modified by Partial Reference Room.
Commission, 100 F Street NE., Amendment Nos. 1 and 3, on an
II. Self-Regulatory Organization’s
Washington, DC 20549–1090. accelerated basis.
Statement of the Purpose of, and
All submissions should refer to File VII. Conclusion Statutory Basis for, the Proposed Rule
Number SR–BX–2016–050. This file It is therefore ordered that, pursuant Change
number should be included on the to Section 19(b)(2) of the Exchange In its filing with the Commission, the
subject line if email is used. To help the Act,46 that the proposed rule change Exchange included statements
Commission process and review your (SR–BX–2016–050), as modified by concerning the purpose of and basis for
comments more efficiently, please use Partial Amendment Nos. 1 and 3, be and the proposed rule change and discussed
only one method. The Commission will hereby is approved on an accelerated any comments it received on the
post all comments on the Commission’s basis. proposed rule change. The text of these
Internet Web site (http://www.sec.gov/ statements may be examined at the
For the Commission, by the Division of
rules/sro.shtml). Copies of the places specified in Item IV below. The
Trading and Markets, pursuant to delegated
submission, all subsequent authority.47 Exchange has prepared summaries, set
amendments, all written statements Robert W. Errett, forth in sections A, B, and C below, of
with respect to the proposed rule the most significant aspects of such
Deputy Secretary.
change that are filed with the statements.
[FR Doc. 2016–24842 Filed 10–13–16; 8:45 am]
Commission, and all written
communications relating to the BILLING CODE 8011–01–P A. Self-Regulatory Organization’s
proposed rule change between the Statement of the Purpose of, and
Commission and any person, other than Statutory Basis for, the Proposed Rule
SECURITIES AND EXCHANGE Change
those that may be withheld from the
COMMISSION
public in accordance with the 1. Purpose
provisions of 5 U.S.C. 552, will be [Release No. 34–79073; File No. SR–Phlx–
available for Web site viewing and 2016–97] Exchange Rule 1020 contains
printing in the Commission’s Public provisions relating to registration and
Reference Room, 100 F Street, NE., Self-Regulatory Organizations; functions of options specialists.3 Rule
Washington, DC 20549–1090, on official NASDAQ PHLX LLC; Notice of Filing of 1020’s provisions were initially adopted
business days between the hours of Proposed Rule Change To Delete in the 1970s, in the early days of
10:00 a.m. and 3:00 p.m. Copies of such Outdated or Unnecessary Rule exchange trading of options. As
filing will also be available for Language explained below, the rule reflects the
inspection and copying at the principal trading context in which it was adopted.
October 7, 2016.
office of the Exchange. All comments Various provisions of the rule are
Pursuant to Section 19(b)(1) of the consequently very outdated.
received will be posted without change; Securities Exchange Act of 1934
the Commission does not edit personal The Exchange is therefore proposing
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 to delete obsolete and unnecessary
identifying information from notice is hereby given that on
rmajette on DSK2TPTVN1PROD with NOTICES
submissions. You should submit only language from section (b) and from
September 27, 2016, NASDAQ PHLX Commentary .01 through Commentary
information that you wish to make
available publicly. All submissions 45 15 U.S.C. 78s(b)(2). 3 A ‘‘specialist’’ is an Exchange member who is
should refer to File Number SR–BX– 46 Id.
registered as an options specialist pursuant to
47 17 CFR 200.30–3(a)(12). Exchange Rule 1020(a). Specialists are subject to
43 15 U.S.C. 78f(b)(5). 1 15 U.S.C. 78s(b)(1). quoting and registration obligations set forth in
44 17 CFR 242.608. 2 17 CFR 240.19b–4. Rules 1014(b), 1020, and 1080.02.
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![71156 Federal Register / Vol. 81, No. 199 / Friday, October 14, 2016 / Notices
of the Act,9 in general, and furthers the as the Commission may designate up to should refer to File Number SR–Phlx–
objectives of Section 6(b)(5) of the Act,10 90 days of such date if it finds such 2016–97, and should be submitted on or
in particular, in that it is designed to longer period to be appropriate and before November 4, 2016.
promote just and equitable principles of publishes its reasons for so finding or For the Commission, by the Division of
trade, to remove impediments to and (ii) as to which the Exchange consents, Trading and Markets, pursuant to delegated
perfect the mechanism of a free and the Commission shall: (a) by order authority.11
open market and a national market approve or disapprove such proposed Robert W. Errett,
system, and, in general to protect rule change, or (b) institute proceedings Deputy Secretary.
investors and the public interest, by to determine whether the proposed rule
[FR Doc. 2016–24836 Filed 10–13–16; 8:45 am]
deleting unnecessary and obsolete change should be disapproved.
BILLING CODE 8011–01–P
provisions and generally providing IV. Solicitation of Comments
clarity to the rules.
Specifically, the deletion of a portion Interested persons are invited to
of the Rule 1020 Section (b) and submit written data, views, and SMALL BUSINESS ADMINISTRATION
Commentary provisions discussed arguments concerning the foregoing,
including whether the proposed rule [Disaster Declaration # 14888 and # 14889]
above is consistent with the Act because
this rule language is operationally change is consistent with the Act.
Comments may be submitted by any of Florida Disaster Number FL–00119
obsolete, as explained above; moreover,
having clear and up to date rules should the following methods: AGENCY: U.S. Small Business
promote just and equitable principles of Electronic Comments Administration.
trade on the Exchange. The proposal ACTION: Amendment 1.
• Use the Commission’s Internet
should result in a more accurate and
comment form (http://www.sec.gov/ SUMMARY: This is an amendment of the
understandable rule book, particularly
rules/sro.shtml); or Presidential declaration of a major
for Exchange specialists who no longer • Send an email to rule-comments@
operate a book or handle orders disaster for Public Assistance Only for
sec.gov. Please include File Number SR–
manually. The Exchange’s goal with the State of FLORIDA (FEMA–4280–
Phlx–2016–97 on the subject line.
respect to the deletion of language is to DR), dated 09/28/2016.
ensure that the rulebook accurate Paper Comments Incident: Hurricane Hermine.
reflects member obligations in the • Send paper comments in triplicate Incident Period: 08/31/2016 through
context of how trading takes place on to Secretary, Securities and Exchange 09/11/2016.
the Exchange today, which should Commission, 100 F Street NE., Effective Date: 09/30/2016.
protect investors and the public interest. Washington, DC 20549–1090. Physical Loan Application Deadline
The Exchange’s proposal will also All submissions should refer to File Date: 11/28/2016.
delete unnecessary provisions that, Number SR–Phlx–2016–97. This file Economic Injury (EIDL) Loan
because they are not present in the number should be included on the Application Deadline Date: 06/28/2017.
NOM rulebook with respect to market subject line if email is used. To help the ADDRESSES: Submit completed loan
makers, represent an anticompetitive Commission process and review your applications to: U.S. Small Business
burden on Phlx specialists as discussed comments more efficiently, please use Administration, Processing and
above. only one method. The Commission will Disbursement Center, 14925 Kingsport
B. Self-Regulatory Organization’s post all comments on the Commission’s Road, Fort Worth, TX 76155.
Statement on Burden on Competition Internet Web site (http://www.sec.gov/ FOR FURTHER INFORMATION CONTACT: A.
rules/sro.shtml). Copies of the Escobar, Office of Disaster Assistance,
The Exchange does not believe that
submission, all subsequent U.S. Small Business Administration,
the proposed rule change will impose
amendments, all written statements 409 3rd Street SW., Suite 6050,
any burden on competition not
with respect to the proposed rule Washington, DC 20416.
necessary or appropriate in furtherance
change that are filed with the SUPPLEMENTARY INFORMATION: The notice
of the purposes of the Act. Removing
Commission, and all written of the President’s major disaster
unnecessary regulatory burdens should
communications relating to the declaration for Private Non-Profit
enhance a Phlx specialist’s ability to
proposed rule change between the organizations in the State of Florida,
compete with market makers on Phlx
Commission and any person, other than dated 09/28/2016, is hereby amended to
and on other exchanges who are not
those that may be withheld from the include the following areas as adversely
burdened with similar requirements.
public in accordance with the affected by the disaster.
C. Self-Regulatory Organization’s provisions of 5 U.S.C. 552, will be Primary Counties: Alachua, Baker,
Statement on Comments on the available for Web site viewing and Gilchrist, Manatee, Marion, Sarasota,
Proposed Rule Change Received From printing in the Commission’s Public Sumter, Union.
Members, Participants, or Others Reference Room, 100 F Street NE.,
Washington, DC 20549 on official All other information in the original
No written comments were either declaration remains unchanged.
solicited or received. business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such (Catalog of Federal Domestic Assistance
III. Date of Effectiveness of the filing also will be available for Number 59008)
Proposed Rule Change and Timing for inspection and copying at the principal
rmajette on DSK2TPTVN1PROD with NOTICES
Commission Action office of the Exchange. All comments James E. Rivera,
Within 45 days of the date of received will be posted without change; Associate Administrator for Disaster
the Commission does not edit personal Assistance.
publication of this notice in the Federal
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submissions. You should submit only BILLING CODE 8025–01–P
9 15 U.S.C. 78f(b). information that you wish to make
10 15 U.S.C. 78f(b)(5). available publicly. All submissions 11 17 CFR 200.30–3(a)(12).
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Document Created: 2016-10-14 00:00:59
Document Modified: 2016-10-14 00:00:59
| 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 71153 |
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