82 FR 12383 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 1014 of the Options Rules Relating to Market Maker Quotations
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 40 (March 2, 2017)
Federal Register Volume 82, Issue 40 (March 2, 2017)
| Page Range | 12383-12385 | |
| FR Document | 2017-04036 |
[Federal Register Volume 82, Number 40 (Thursday, March 2, 2017)] [Notices] [Pages 12383-12385] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-04036] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80109; File No. SR-Phlx-2017-16] Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 1014 of the Options Rules Relating to Market Maker Quotations February 24, 2017. 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 February 14, 2017, 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 Substance of the Proposed Rule Change The Exchange proposes to amend Rule 1014 of the Options Rules relating to Market Maker Quotations. 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose Phlx is proposing to amend Rule 1014(c)(i)(A)(1) of the Options Rules relating to Market Maker Quotations to amend the quote spread parameters for in-the-money series where the market for the underlying security is wider than the differentials set forth in the Rule. Currently, Rule 1014(c)(i)(A)(1)(a) provides the following bid/ask differentials for options on equities and index options: No more than $.25 between the bid and the offer for each option contract for which the prevailing bid is less than $2; no more than $.40 where the prevailing bid is $2 or more but less than $5; no more than $.50 where the prevailing bid is $5 or more but less than $10; no more than $.80 where the prevailing bid is $10 or more but less than $20; and no more than $1 where the prevailing bid is $20 or more, provided that, in the case of equity options, the bid/ask differentials stated above shall not apply to in-the-money series where the market for the underlying security is wider than the differentials set forth above. For such series, the bid/ask differentials may be as wide as the quotation for the [[Page 12384]] underlying security on the primary market, or its decimal equivalent rounded up to the nearest minimum increment. The Exchange may establish differences other than the above for one or more series or classes of options. Phlx proposes to change this provision so that, in the case of in- the-money series of equity options where the market for the underlying security is wider than the differentials set forth above, the bid/ask differential may be as wide as the spread between the national best bid and offer (``NBBO'') in the underlying security. Phlx is proposing this change so that Rule 1014(c)(i)(A)(1)(a) will be consistent with Rule 803(b)(4)(i) of the International Securities Exchange, LLC (``ISE'') in this regard.\3\ Pursuant to the acquisition of the indirect parent company of ISE by Nasdaq, Inc.,\4\ Nasdaq is migrating ISE platforms to Nasdaq platforms, and proposing consistent rules where appropriate. In addition to making the Phlx and ISE rules consistent with one another in this regard, Phlx believes that measuring the permissible width of a market maker's quote against the NBBO more accurately reflects the current trading environment where multiple trading venues contribute to the prevailing market price of a security underlying an options series traded on Phlx.\5\ --------------------------------------------------------------------------- \3\ ISE Rule 803(b)(4)(i) rule provides that (i) the bid/offer differentials stated in subparagraph (b)(4) of this Rule shall not apply to in-the-money options series where the underlying securities market is wider than the differentials set forth above. For these series, the bid/ask differential may be as wide as the spread between the national best bid and offer in the underlying security. \4\ See Securities Exchange Act Release No. 78119 (June 21, 2016), 81 FR 41611 (June 27, 2016) (SR-ISE-2016-11). \5\ For example, if the primary market for ABC has a quote of $65 (bid)-$73 (offer), Phlx market makers currently may quote in- the-money option series on that security with a bid/offer differential of $8, even if other exchanges that trade ABC may collectively have a higher bid of $66 and a lower offer of $72. Under the proposed rule, Phlx market makers would be required to quote in-the-money option series on ABC with a bid/offer differential of no more than $6. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\6\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\7\ 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. The proposed change adopts a bid/ask differential for market makers for in-the-money series, where the market for the underlying security is wider than the differentials set forth in the Rule, that is consistent with ISE Rule 803(b)(4)(i). Phlx also believes that the proposal is consistent with the Act because measuring the permissible width of a market maker's quote against the NBBO more accurately reflects the current trading environment where multiple trading venues contribute to the prevailing market price of a security underlying an options series traded on Phlx. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 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 not necessary or appropriate in furtherance of the purposes of the Act. The proposed change will adopt the same requirement as ISE Rule 803(b)(4)(i), and will apply the same standard to all Market Makers for in-the-money series where the market for the underlying security is wider than the differentials set forth in the Rule. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \8\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\9\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A)(iii). \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. 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-2017-16 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-2017-16. 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-2017-16, and should be submitted on or before March 23, 2017. [[Page 12385]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2017-04036 Filed 3-1-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 40 / Thursday, March 2, 2017 / Notices 12383
responsible for over 99 percent of All- submission, all subsequent solicit comments on the proposed rule
Or-None Orders on an average trading amendments, all written statements change from interested persons.
date on the Exchange and confirmed with respect to the proposed rule
I. Self-Regulatory Organization’s
that the proposed rule change would change that are filed with the
Statement of the Terms of Substance of
have little impact on the Members’ Commission, and all written
the Proposed Rule Change
operations on the Exchange. The communications relating to the
Exchange also represents that the proposed rule change between the The Exchange proposes to amend
primary impact of the proposal will not Commission and any person, other than Rule 1014 of the Options Rules relating
occur until later in the INET transition those that may be withheld from the to Market Maker Quotations.
process. According to the Exchange, All- public in accordance with the The text of the proposed rule change
Or-None Orders are typically utilized provisions of 5 U.S.C. 552, will be is available on the Exchange’s Web
for more liquid symbols, which will not available for Web site viewing and site at http://
begin to migrate to INET until the third printing in the Commission’s Public nasdaqphlx.cchwallstreet.com/, at the
week of the transition schedule and Reference Room, 100 F Street NE., principal office of the Exchange, and at
thereafter. Accordingly, the Commission Washington, DC 20549, on official the Commission’s Public Reference
hereby waives the operative delay and business days between the hours of Room.
designates the proposal operative upon 10:00 a.m. and 3:00 p.m. Copies of the
filing.13 II. Self-Regulatory Organization’s
filing also will be available for Statement of the Purpose of, and
At any time within 60 days of the inspection and copying at the principal
filing of the proposed rule change, the Statutory Basis for, the Proposed Rule
office of the Exchange. All comments Change
Commission summarily may received will be posted without change;
temporarily suspend such rule change if the Commission does not edit personal In its filing with the Commission, the
it appears to the Commission that such identifying information from Exchange included statements
action is: (i) Necessary or appropriate in submissions. You should submit only concerning the purpose of and basis for
the public interest; (ii) for the protection information that you wish to make the proposed rule change and discussed
of investors; or (iii) otherwise in available publicly. All submissions any comments it received on the
furtherance of the purposes of the Act. should refer to File Number SR– proposed rule change. The text of these
If the Commission takes such action, the ISEGemini–2017–08 and should be statements may be examined at the
Commission shall institute proceedings submitted on or before March 23, 2017. places specified in Item IV below. The
to determine whether the proposed rule Exchange has prepared summaries, set
should be approved or disapproved. For the Commission, by the Division of
Trading and Markets, pursuant to delegated
forth in sections A, B, and C below, of
IV. Solicitation of Comments authority.14 the most significant aspects of such
Robert W. Errett,
statements.
Interested persons are invited to
submit written data, views, and Deputy Secretary. A. Self-Regulatory Organization’s
arguments concerning the foregoing, [FR Doc. 2017–04031 Filed 3–1–17; 8:45 am] Statement of the Purpose of, and the
including whether the proposed rule BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule
change is consistent with the Act. Change
Comments may be submitted by any of 1. Purpose
the following methods: SECURITIES AND EXCHANGE
COMMISSION Phlx is proposing to amend Rule
Electronic Comments 1014(c)(i)(A)(1) of the Options Rules
• Use the Commission’s Internet [Release No. 34–80109; File No. SR–Phlx– relating to Market Maker Quotations to
comment form (http://www.sec.gov/ 2017–16] amend the quote spread parameters for
rules/sro.shtml); or in-the-money series where the market
• Send an email to rule-comments@ Self-Regulatory Organizations; for the underlying security is wider than
sec.gov. Please include File Number SR– NASDAQ PHLX LLC; Notice of Filing the differentials set forth in the Rule.
ISEGemin–2017–08 on the subject line. and Immediate Effectiveness of Currently, Rule 1014(c)(i)(A)(1)(a)
Paper Comments Proposed Rule Change To Amend Rule provides the following bid/ask
1014 of the Options Rules Relating to differentials for options on equities and
• Send paper comments in triplicate Market Maker Quotations index options: No more than $.25
to Secretary, Securities and Exchange between the bid and the offer for each
Commission, 100 F Street NE., February 24, 2017. option contract for which the prevailing
Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the bid is less than $2; no more than $.40
All submissions should refer to File Securities Exchange Act of 1934 where the prevailing bid is $2 or more
Number SR–ISEGemini–2017–08. This (‘‘Act’’),1 and Rule 19b–4 thereunder,2 but less than $5; no more than $.50
file number should be included on the notice is hereby given that on February where the prevailing bid is $5 or more
subject line if email is used. To help the 14, 2017, NASDAQ PHLX LLC (‘‘Phlx’’ but less than $10; no more than $.80
Commission process and review your or ‘‘Exchange’’) filed with the Securities where the prevailing bid is $10 or more
comments more efficiently, please use and Exchange Commission (‘‘SEC’’ or but less than $20; and no more than $1
only one method. The Commission will ‘‘Commission’’) the proposed rule where the prevailing bid is $20 or more,
post all comments on the Commission’s provided that, in the case of equity
sradovich on DSK3GMQ082PROD with NOTICES
change as described in Items I, II, and
Internet Web site (http://www.sec.gov/ III, below, which Items have been options, the bid/ask differentials stated
rules/sro.shtml). Copies of the prepared by the Exchange. The above shall not apply to in-the-money
Commission is publishing this notice to series where the market for the
13 For purposes only of waiving the 30-day
underlying security is wider than the
operative delay, the Commission has also
considered the proposed rule’s impact on
14 17 CFR 200.30–3(a)(12). differentials set forth above. For such
efficiency, competition, and capital formation. See 1 15 U.S.C. 78s(b)(1). series, the bid/ask differentials may be
15 U.S.C. 78c(f). 2 17 CFR 240.19b–4. as wide as the quotation for the
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![Federal Register / Vol. 82, No. 40 / Thursday, March 2, 2017 / Notices 12385
For the Commission, by the Division of SCS Hedged Opportunities Fund, LLC Partners Group Private RE (Master),
Trading and Markets, pursuant to delegated [File No. 811–22404] LLC [File No. 811–22640]
authority.10
Summary: Applicant, a closed-end Summary: Applicant, a closed-end
Robert W. Errett, investment company, seeks an order investment company, seeks an order
Deputy Secretary. declaring that it has ceased to be an declaring that it has ceased to be an
[FR Doc. 2017–04036 Filed 3–1–17; 8:45 am] investment company. Applicant investment company. Applicant has
BILLING CODE 8011–01–P currently has fewer than 100 beneficial never made a public offering of its
owners, is not presently making an securities and does not propose to make
offering of securities and does not a public offering or engage in business
SECURITIES AND EXCHANGE propose to make any offering of of any kind.
COMMISSION securities. Applicant will continue to
operate as a private investment fund in Filing Date: The application was filed
reliance on section 3(c)(1) of the Act. on January 17, 2017.
[Release No. IC–32508]
Filing Date: The application was filed Applicant’s Address: 1114 Avenue of
Notice of Applications for on January 17, 2017. the Americas, 37th Floor, New York,
Deregistration Under Section 8(f) of the Applicant’s Address: One Winthrop New York 10036.
Square, Boston, Massachusetts 02110.
Investment Company Act of 1940 Partners Group Private Credit (Master
SCS Hedged Opportunities (TE) Fund, Fund) [File No. 811–22863]
February 24, 2017. LLC [File No. 811–22462]
The following is a notice of Summary: Applicant, a closed-end Summary: Applicant, a closed-end
applications for deregistration under investment company, seeks an order investment company, seeks an order
section 8(f) of the Investment Company declaring that it has ceased to be an declaring that it has ceased to be an
Act of 1940 for the month of February investment company. Applicant investment company. Applicant has
2017. A copy of each application may be currently has fewer than 100 beneficial never made a public offering of its
obtained via the Commission’s Web site owners, is not presently making an securities and does not propose to make
by searching for the file number, or for offering of securities and does not a public offering or engage in business
propose to make any offering of of any kind.
an applicant using the Company name
box, at http://www.sec.gov/search/ securities. Applicant will continue to Filing Date: The application was filed
search.htm or by calling (202) 551– operate as a private investment fund in on January 17, 2017.
8090. An order granting each reliance on section 3(c)(1) of the Act. Applicant’s Address: 1114 Avenue of
application will be issued unless the Filing Date: The application was filed the Americas, 37th Floor, New York,
SEC orders a hearing. Interested persons on January 17, 2017. New York 10036.
Applicant’s Address: One Winthrop
may request a hearing on any
Square, Boston, Massachusetts 02110. Partners Group Private RE, LLC [File
application by writing to the SEC’s
SCS Hedged Opportunities Master No. 811–22600]
Secretary at the address below and
serving the relevant applicant with a Fund, LLC [File No. 811–22403] Summary: Applicant, a closed-end
copy of the request, personally or by Summary: Applicant, a closed-end investment company, seeks an order
mail. Hearing requests should be investment company, seeks an order declaring that it has ceased to be an
received by the SEC by 5:30 p.m. on declaring that it has ceased to be an investment company. Applicant has
March 21, 2017, and should be investment company. Applicant never made a public offering of its
accompanied by proof of service on currently has fewer than 100 beneficial securities and does not propose to make
applicants, in the form of an affidavit or, owners, is not presently making an a public offering or engage in business
for lawyers, a certificate of service. offering of securities and does not of any kind.
Pursuant to Rule 0–5 under the Act, propose to make any offering of Filing Date: The application was filed
hearing requests should state the nature securities. Applicant will continue to on January 17, 2017.
of the writer’s interest, any facts bearing operate as a private investment fund in
reliance on section 3(c)(1) of the Act. Applicant’s Address: 1114 Avenue of
upon the desirability of a hearing on the
Filing Date: The application was filed the Americas, 37th Floor, New York,
matter, the reason for the request, and
on January 17, 2017. New York 10036.
the issues contested. Persons who wish
to be notified of a hearing may request Applicant’s Address: One Winthrop Partners Group Private RE
notification by writing to the Square, Boston, Massachusetts 02110. (Institutional), LLC [File No. 811–
Commission’s Secretary. Partners Group Private Credit [File No. 22601]
ADDRESSES: The Commission: Secretary, 811–22864]
Summary: Applicant, a closed-end
U.S. Securities and Exchange Summary: Applicant, a closed-end investment company, seeks an order
Commission, 100 F Street NE., investment company, seeks an order declaring that it has ceased to be an
Washington, DC 20549–1090. declaring that it has ceased to be an investment company. Applicant has
investment company. Applicant has never made a public offering of its
FOR FURTHER INFORMATION CONTACT: Hae- never made a public offering of its
Sung Lee, Attorney-Adviser, at (202) securities and does not propose to make
sradovich on DSK3GMQ082PROD with NOTICES
securities and does not propose to make a public offering or engage in business
551–7345 or Chief Counsel’s Office at a public offering or engage in business of any kind.
(202) 551–6821; SEC, Division of of any kind.
Investment Management, Chief Filing Date: The application was filed Filing Date: The application was filed
Counsel’s Office, 100 F Street NE., on January 17, 2017. on January 17, 2017.
Washington, DC 20549–8010. Applicant’s Address: 1114 Avenue of Applicant’s Address: 1114 Avenue of
the Americas, 37th Floor, New York, the Americas, 37th Floor, New York,
10 17 CFR 200.30–3(a)(12). New York 10036. New York 10036.
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Document Created: 2017-03-02 00:09:42
Document Modified: 2017-03-02 00:09:42
| 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 | 82 FR 12383 |
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