81 FR 78673 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Period for the Supplemental Competitive Liquidity Provider Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 216 (November 8, 2016)
Federal Register Volume 81, Issue 216 (November 8, 2016)
| Page Range | 78673-78675 | |
| FR Document | 2016-26908 |
[Federal Register Volume 81, Number 216 (Tuesday, November 8, 2016)] [Notices] [Pages 78673-78675] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-26908] [[Page 78673]] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79222; File No. SR-BatsBZX-2016-71] Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Period for the Supplemental Competitive Liquidity Provider Program November 2, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on October 28, 2016, Bats BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') 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. --------------------------------------------------------------------------- \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 filed a proposal to extend the pilot period for the Exchange's Supplemental Competitive Liquidity Provider Program (the ``Program''), which is currently set to expire on October 28, 2016, to expire on November 4, 2016. The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.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 parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Background On August 30, 2011, the Exchange received approval of rules applicable to the qualification, listing and delisting of securities of issuers on the Exchange.\3\ More recently, the Exchange received approval to operate a pilot program that is designed to incentivize certain Market Makers \4\ registered with the Exchange as ETP CLPs, as defined in Interpretation and Policy .03 to Rule 11.8, to enhance liquidity on the Exchange in certain ETPs \5\ listed on the Exchange and thereby qualify to receive part of a daily rebate as part of the Program under Interpretation and Policy .03 to Rule 11.8.\6\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 65225 (August 30, 2011), 76 FR 55148 (September 6, 2011) (SR-BATS-2011-018). \4\ As defined in BZX Rules, the term ``Market Maker'' means a Member that acts as a market maker pursuant to Chapter XI of BZX Rules. \5\ ETP is defined in Interpretation and Policy .03(b)(4) to Rule 11.8. \6\ See Securities Exchange Act Release No. 72692 (July 28, 2014), 79 FR 44908 (August 1, 2014) (SR-BATS-2014-022) (``CLP Approval Order''). --------------------------------------------------------------------------- The Program was approved by the Commission on a pilot basis running one-year from the date of implementation.\7\ The Commission approved the Program on July 28, 2014.\8\ The Exchange implemented the Program on July 28, 2014 and the pilot period for the Program was originally scheduled to end on July 28, 2015 until it was extended to end on October 28, 2015,\9\ later extended to January 28, 2016,\10\ again extended to April 28, 2016,\11\ again extended to July 28, 2016,\12\ and most recently extended to October 28, 2016.\13\ --------------------------------------------------------------------------- \7\ See id at 44909. \8\ Id. \9\ See Securities Exchange Act Release No. 75518 (July 24, 2015), 80 FR 45566 (July 30, 2015 (SR-BATS-2015-55). \10\ See Securities Exchange Act Release No. 76293 (October 28, 2015), 80 FR 67808 (November 3, 2015) (SR-BATS-2015-96). \11\ See Securities Exchange Act Release No. 77033 (February 2, 2016), 81 FR 6558 (February 8, 2016) (SR-BATS-2016-12). \12\ See Securities Exchange Act Release No. 77721 (April 27, 2016), 81 FR 26591 (May 3, 2016) (SR-BatsBZX-2016-11). \13\ See Securities Exchange Act Release No. 78454 (August 2, 2016), 81 FR 52494 (August 8, 2016) (SR-BatsBZX-2016-46). --------------------------------------------------------------------------- Proposal To Extend the Operation of the Program The Exchange established the Program in order to enhance liquidity on the Exchange in certain ETPs listed on the Exchange (and thereby enhance the Exchange's ability to compete as a listing venue) by providing a mechanism by which ETP CLPs compete for part of a daily quoting incentive on the basis of providing the most aggressive quotes with the greatest amount of size. Such competition has the ability to reduce spreads, facilitate the price discovery process, and reduce costs for investors trading in such securities, thereby promoting capital formation and helping the Exchange to compete as a listing venue. As such, the Exchange believes that it is appropriate to extend the current operation of the Program. Through this filing, the Exchange seeks to extend the current pilot period of the Program until November 4, 2016.\14\ --------------------------------------------------------------------------- \14\ The Exchange notes that it is proposing to extend the Program for only one week in order to provide the Exchange with time to update its Web site and submit to the Commission monthly data reports related to the Program as described in the CLP Approval Order going back to July 2015, upon the completion of which the Exchange plans to file a longer-term extension to the Program. Such reports are available at the following link: http://www.bats.com/us/equities/etfmarketplace/trade_on_bats/clp/reports/. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.\15\ In particular, the Exchange believes the proposed change furthers the objectives of Section 6(b)(5) of the Act,\16\ in that it 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 facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. The Exchange believes that extending the pilot period for the Program is consistent with these principles because the Program is reasonably designed to enhance quote competition, improve liquidity in securities listed on the Exchange, support the quality of price discovery, promote market transparency, and increase competition for listings and trade executions, while reducing spreads and transaction costs in such securities. Maintaining and increasing liquidity in Exchange-listed securities will help raise investors' confidence in [[Page 78674]] the fairness of the market and their transactions. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78f(b). \16\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- 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. The proposed rule change extends an established pilot program, thus allowing the Program to enhance competition in both the listings market and in competition for market makers. The Program will continue to promote competition in the listings market by providing issuers with a vehicle for paying the Exchange additional fees in exchange for incentivizing tighter spreads and deeper liquidity in listed securities and allow the Exchange to continue to compete with similar programs at Nasdaq Stock Market LLC \17\ and NYSE Arca Equities, Inc.\18\ --------------------------------------------------------------------------- \17\ See Securities Exchange Act Release No. 69195 (March 20, 2013), 78 FR 18393 (March 26, 2013) (SR-NASDAQ-2012-137). \18\ See Securities Exchange Act Release No. 69335 (April 5, 2013), 78 FR 35340 (June 12, 2013) (SR-NYSEARCA-2013-34). --------------------------------------------------------------------------- The Exchange also believes that extending the pilot program will allow the Program to continue to enhance competition among market participants by creating incentives for market makers to compete to make better quality markets. By continuing to require that market makers both meet the quoting requirements and also compete for the daily financial incentives, the quality of quotes on the Exchange will continue to improve. This, in turn, will attract more liquidity to the Exchange and further improve the quality of trading in exchange-listed securities participating in the Program, which will also act to bolster the Exchange's listing business. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (A) Significantly affect the protection of investors or the public interest; (B) impose any significant burden on competition; and (C) by its terms, 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 \19\ and paragraph (f)(6) of Rule 19b-4 thereunder.\20\ --------------------------------------------------------------------------- \19\ 15 U.S.C. 78s(b)(3)(A). \20\ 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 Commission has waived the pre-filing requirement. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) normally does not become operative before 30 days from the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\21\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \21\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- The Exchange has asked the Commission to waive the 30-day operative delay. The Exchange asserts that waiver of the operative delay will allow the Exchange to extend the Program prior to its expiration on October 28, 2016, which will ensure that the Program continues to operate uninterrupted while the Exchange and the Commission continue to analyze data regarding the Program. The Commission notes that this filing's proposal to extend the Program for only one week is based on the Exchange's representation that the one-week period will allow the Exchange time to update its Web site and submit to the Commission monthly data reports related to the Program as described in the CLP Approval Order going back to July 2015, and that, upon the completion of the update and submission, the Exchange will file a longer-term extension to the Program.\22\ The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the 30-day operative delay and designates the proposed rule change to be operative upon filing with the Commission.\23\ --------------------------------------------------------------------------- \22\ See supra note 14. \23\ For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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: (1) Necessary or appropriate in the public interest; (2) for the protection of investors; or (3) otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposal 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 No. SR-BatsBZX-2016-71 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 No. SR-BatsBZX-2016-71. 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 will also 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 No. SR-BatsBZX-2016-71 and should be submitted on or before November 29, 2016. [[Page 78675]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\24\ --------------------------------------------------------------------------- \24\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-26908 Filed 11-7-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 216 / Tuesday, November 8, 2016 / Notices 78673
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s on the Exchange (and thereby enhance
COMMISSION Statement of the Purpose of, and the Exchange’s ability to compete as a
Statutory Basis for, the Proposed Rule listing venue) by providing a
[Release No. 34–79222; File No. SR–
Change mechanism by which ETP CLPs
BatsBZX–2016–71] 1. Purpose compete for part of a daily quoting
incentive on the basis of providing the
Self-Regulatory Organizations; Bats Background most aggressive quotes with the greatest
BZX Exchange, Inc.; Notice of Filing On August 30, 2011, the Exchange amount of size. Such competition has
and Immediate Effectiveness of a received approval of rules applicable to the ability to reduce spreads, facilitate
Proposed Rule Change To Extend the the qualification, listing and delisting of the price discovery process, and reduce
Pilot Period for the Supplemental securities of issuers on the Exchange.3 costs for investors trading in such
Competitive Liquidity Provider More recently, the Exchange received securities, thereby promoting capital
Program approval to operate a pilot program that formation and helping the Exchange to
is designed to incentivize certain Market compete as a listing venue. As such, the
November 2, 2016. Makers 4 registered with the Exchange Exchange believes that it is appropriate
as ETP CLPs, as defined in to extend the current operation of the
Pursuant to Section 19(b)(1) of the
Interpretation and Policy .03 to Rule Program. Through this filing, the
Securities Exchange Act of 1934 (the
11.8, to enhance liquidity on the Exchange seeks to extend the current
‘‘Act’’),1 and Rule 19b–4 thereunder,2
Exchange in certain ETPs 5 listed on the pilot period of the Program until
notice is hereby given that on October
Exchange and thereby qualify to receive November 4, 2016.14
28, 2016, Bats BZX Exchange, Inc. (the
part of a daily rebate as part of the
‘‘Exchange’’ or ‘‘BZX’’) filed with the Program under Interpretation and Policy 2. Statutory Basis
Securities and Exchange Commission .03 to Rule 11.8.6
(‘‘Commission’’) the proposed rule The Exchange believes that its
The Program was approved by the proposal is consistent with the
change as described in Items I and II Commission on a pilot basis running
below, which Items have been prepared requirements of the Act and the rules
one-year from the date of and regulations thereunder that are
by the Exchange. The Commission is implementation.7 The Commission
publishing this notice to solicit applicable to a national securities
approved the Program on July 28, 2014.8 exchange, and, in particular, with the
comments on the proposed rule change The Exchange implemented the Program
from interested persons. requirements of Section 6(b) of the
on July 28, 2014 and the pilot period for Act.15 In particular, the Exchange
the Program was originally scheduled to believes the proposed change furthers
I. Self-Regulatory Organization’s
end on July 28, 2015 until it was the objectives of Section 6(b)(5) of the
Statement of the Terms of Substance of
extended to end on October 28, 2015,9 Act,16 in that it is designed to prevent
the Proposed Rule Change
later extended to January 28, 2016,10 fraudulent and manipulative acts and
The Exchange filed a proposal to again extended to April 28, 2016,11 practices, to promote just and equitable
extend the pilot period for the again extended to July 28, 2016,12 and principles of trade, to foster cooperation
Exchange’s Supplemental Competitive most recently extended to October 28, and coordination with persons engaged
Liquidity Provider Program (the 2016.13 in facilitating transactions in securities,
‘‘Program’’), which is currently set to Proposal To Extend the Operation of the and to remove impediments to and
expire on October 28, 2016, to expire on Program perfect the mechanism of a free and
November 4, 2016. open market and a national market
The Exchange established the
The text of the proposed rule change Program in order to enhance liquidity system. The Exchange believes that
is available at the Exchange’s Web site on the Exchange in certain ETPs listed extending the pilot period for the
at www.batstrading.com, at the Program is consistent with these
principal office of the Exchange, and at 3 See Securities Exchange Act Release No. 65225 principles because the Program is
the Commission’s Public Reference (August 30, 2011), 76 FR 55148 (September 6, 2011) reasonably designed to enhance quote
Room. (SR–BATS–2011–018). competition, improve liquidity in
4 As defined in BZX Rules, the term ‘‘Market
securities listed on the Exchange,
II. Self-Regulatory Organization’s Maker’’ means a Member that acts as a market
maker pursuant to Chapter XI of BZX Rules.
support the quality of price discovery,
Statement of the Purpose of, and 5 ETP is defined in Interpretation and Policy promote market transparency, and
Statutory Basis for, the Proposed Rule .03(b)(4) to Rule 11.8. increase competition for listings and
Change 6 See Securities Exchange Act Release No. 72692 trade executions, while reducing
(July 28, 2014), 79 FR 44908 (August 1, 2014) (SR– spreads and transaction costs in such
In its filing with the Commission, the BATS–2014–022) (‘‘CLP Approval Order’’).
securities. Maintaining and increasing
7 See id at 44909.
Exchange included statements liquidity in Exchange-listed securities
8 Id.
concerning the purpose of and basis for 9 See Securities Exchange Act Release No. 75518 will help raise investors’ confidence in
the proposed rule change and discussed (July 24, 2015), 80 FR 45566 (July 30, 2015 (SR–
any comments it received on the BATS–2015–55). 14 The Exchange notes that it is proposing to
proposed rule change. The text of these 10 See Securities Exchange Act Release No. 76293
extend the Program for only one week in order to
statements may be examined at the (October 28, 2015), 80 FR 67808 (November 3, 2015) provide the Exchange with time to update its Web
(SR–BATS–2015–96). site and submit to the Commission monthly data
places specified in Item IV below. The
mstockstill on DSK3G9T082PROD with NOTICES
11 See Securities Exchange Act Release No. 77033 reports related to the Program as described in the
Exchange has prepared summaries, set (February 2, 2016), 81 FR 6558 (February 8, 2016) CLP Approval Order going back to July 2015, upon
forth in Sections A, B, and C below, of (SR–BATS–2016–12). the completion of which the Exchange plans to file
the most significant parts of such 12 See Securities Exchange Act Release No. 77721 a longer-term extension to the Program. Such
(April 27, 2016), 81 FR 26591 (May 3, 2016) (SR– reports are available at the following link: http://
statements. www.bats.com/us/equities/etfmarketplace/trade_
BatsBZX–2016–11).
13 See Securities Exchange Act Release No. 78454 on_bats/clp/reports/.
1 15 U.S.C. 78s(b)(1). 15 15 U.S.C. 78f(b).
(August 2, 2016), 81 FR 52494 (August 8, 2016)
2 17 CFR 240.19b–4. (SR–BatsBZX–2016–46). 16 15 U.S.C. 78f(b)(5).
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![Federal Register / Vol. 81, No. 216 / Tuesday, November 8, 2016 / Notices 78675
For the Commission, by the Division of places specified in Item IV below. The terms and specifications of the RFQ to
Trading and Markets, pursuant to delegated Exchange has prepared summaries, set be immediately announced at the post.
authority.24 forth in sections A, B, and C below, of Thus, the 2013 Amendments added new
Brent J. Fields, the most significant aspects of such requirements mandating the
Secretary. statements. participation of an assigned FLEX
[FR Doc. 2016–26908 Filed 11–7–16; 8:45 am] Specialist at the inception of every
A. Self-Regulatory Organization’s
BILLING CODE 8011–01–P FLEX transaction.
Statement of the Purpose of, and Prior to the 2013 Amendments, Rule
Statutory Basis for, the Proposed Rule 1079(b)(1) permitted a Requesting
Change Member to initiate an RFQ without the
SECURITIES AND EXCHANGE
COMMISSION 1. Purpose participation of a FLEX Specialist, by
The Exchange proposes to amend first announcing all of the following
[Release No. 34–79221; File No. SR–Phlx–
section (b), Procedure for Quoting and contract terms to the trading crowd of
2016–107]
Trading FLEX Options, of Rule 1079. the non-FLEX option and then
Self-Regulatory Organizations; Specifically, the Exchange proposes to submitting an RFQ ticket to that
NASDAQ PHLX LLC; Notice of Filing amend subsection (1), Requesting specialist post: (1) Underlying index,
and Immediate Effectiveness of Quotations, by largely reversing the security or foreign currency; (2) type,
Proposed Rule Change To Amend changes it made to that subsection in a size, and crossing intention; (3) in the
Exchange Rule 1079 Concerning the 2013 proposed rule change (the ‘‘2013 case of FLEX index options and FLEX
Process of Initiating a FLEX Amendments’’).3 The changes proposed equity options, exercise style; (4)
Transaction and Determining the Best herein deal only with the process of expiration date; (5) exercise price; and
Bid or Offer initiating a FLEX transaction and (6) respecting index options, the
determining the best bid or offer settlement value. Thereafter, on receipt
November 2, 2016.
(‘‘BBO’’). No other aspects of Rule 1079, of an RFQ in proper form, the assigned
Pursuant to Section 19(b)(1) of the as changed by the 2013 Amendments, Specialist or Requesting Member was
Securities Exchange Act of 1934 are proposed to be amended. required to cause the terms of the RFQ
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 FLEX option transactions on the to be disseminated as an administrative
notice is hereby given that on October Exchange are governed by Rule 1079. text message through the Options Price
19, 2016, NASDAQ PHLX LLC (‘‘Phlx’’ Under Rule 1079(b) a Requesting Reporting Authority (‘‘OPRA’’).
or ‘‘Exchange’’) filed with the Securities Member may obtain quotes and execute Operationally, the Requesting Member
and Exchange Commission (‘‘SEC’’ or trades in certain non-listed FLEX provided this information to Exchange
‘‘Commission’’) the proposed rule options at the specialist post of the non- staff who entered it into Exchange
change as described in Items I, II, and FLEX option on the Exchange. The systems.5
III below, which Items have been Requesting Member is a Phlx member, Because most Exchange specialists no
prepared by the Exchange. The qualified to trade FLEX options longer have a presence on the
Commission is publishing this notice to pursuant to paragraph (c) of Rule 1079, Exchange’s trading floor, and are
solicit comments on the proposed rule who initiates a FLEX Request For therefore unable to trade FLEX options,
change from interested persons. Quotes (‘‘RFQ’’) pursuant to Rule and because Exchange specialists
1079(b).4 FLEX options are not (remote or otherwise) may have no
I. Self-Regulatory Organization’s interest in being an assigned FLEX
Statement of the Terms of Substance of continuously quoted and series are not
pre-established. Moreover, the Specialist in any event, the Exchange
the Proposed Rule Change proposes to revert to Rule 1079(b)(1)
Exchange’s electronic quoting and
The Exchange proposes to amend trading system is not available for FLEX largely as it read prior to the 2013
Exchange Rule 1079, FLEX Index, options. The variable terms of FLEX Amendments. That language did not
Equity, and Currency Options, at options are established through the require the participation of a FLEX
Section (b), Procedure for Quoting and process described in Rule 1079. Specialist to initiate a FLEX trade. As
Trading FLEX Options. Pursuant to the 2013 Amendments, revised, the rule will once again permit
The text of the proposed rule change the Exchange revised a number of its FLEX transactions to be initiated
is available on the Exchange’s Web site FLEX rules, which it stated were without the participation of a specialist
at http://nasdaqphlx.cchwallstreet. intended to be similar to those of NYSE so long as all other requirements of Rule
com/, at the principal office of the MKT LLC (‘‘Amex’’). Rule 1079(b)(1)
5 See Securities Exchange Act Release No. 39549
Exchange, and at the Commission’s was revised to require the Requesting (January 14, 1998), 63 FR 3601 (January 23, 1998)
Public Reference Room. Member to submit to the FLEX (Order Approving Proposed Rule Change and
II. Self-Regulatory Organization’s Specialist an RFQ utilizing for that Notice of Filing and Order Granting Accelerated
purpose the forms, formats and Approval of Amendment Nos. 2, 4, and 5 to the
Statement of the Purpose of, and Proposed Rule Change by the Philadelphia Stock
Statutory Basis for, the Proposed Rule procedures established by the Exchange. Exchange, Inc., Relating to the Listing of Flexible
Change The 2013 Amendments also amended Exchange Traded Equity and Index Options) (SR–
Rule 1079(b)(1) to provide that, on Phlx–96–38) (the ‘‘1998 Approval Order’’) at
In its filing with the Commission, the receipt of an RFQ in proper form, the footnote 36. The 2013 Amendments also revised
Exchange included statements assigned FLEX Specialist shall cause the Rule 1079(b)(1) by eliminating the original
concerning the purpose of and basis for requirement that the assigned Specialist or the
Requesting Member cause the terms of the RFQ to
mstockstill on DSK3G9T082PROD with NOTICES
the proposed rule change and discussed 3 See Securities Exchange Act Release No. 69586
be disseminated as an OPRA text message, and by
any comments it received on the (May 15, 2013), 78 FR 29797 (May 21, 2013) (SR– substituting for that original requirement a
proposed rule change. The text of these Phlx–2013–50) (Notice of Filing and Immediate statement, in passive voice that does not specify on
Effectiveness of Proposed Rule Change Relating to whom the obligation is imposed, that the terms and
statements may be examined at the FLEX Options). specifications of the RFQ ‘‘shall be disseminated as
4 All transactions must be in compliance with an administrative text message through OPRA.’’ As
24 17 CFR 200.30–3(a)(12). Section 11(a) of the Securities Exchange Act of 1934 a matter of practice today, the Requesting Member
1 15 U.S.C. 78s(b)(1). and the rules promulgated thereunder, which may still provides this information to Exchange staff
2 17 CFR 240.19b–4. include yielding priority to customer orders. who enter it into Exchange systems.
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Document Created: 2018-02-14 08:23:48
Document Modified: 2018-02-14 08:23:48
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 78673 |
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