82 FR 12671 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Qualified Contingent Cross Orders
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 42 (March 6, 2017)
Federal Register Volume 82, Issue 42 (March 6, 2017)
| Page Range | 12671-12673 | |
| FR Document | 2017-04203 |
[Federal Register Volume 82, Number 42 (Monday, March 6, 2017)] [Notices] [Pages 12671-12673] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-04203] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80119; File No. SR-Phlx-2017-19] Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Qualified Contingent Cross Orders February 28, 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 21, 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 the Exchange's Pricing Schedule at Section II, entitled ``Multiply Listed Options Fees,'' \3\ to increase the maximum Qualified Contingent Cross (``QCC'') orders rebate which will be paid in a given month. --------------------------------------------------------------------------- \3\ These fees include options overlying equities, ETFs, ETNs and indexes which are Multiply Listed. --------------------------------------------------------------------------- While the changes proposed herein are effective upon filing, the Exchange has designated that the amendments be operative on March 1, 2017. 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. [[Page 12672]] A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to increase the maximum QCC rebate that will be paid by the Exchange in a given month. The Exchange believes that this increase will incentivize participants to transact additional QCC Orders on Phlx. Today, the Exchange assesses a $.20 per contract QCC Transaction Fee for a Specialist,\4\ Market Maker,\5\ Firm \6\ and Broker- Dealer.\7\ Customers \8\ and Professionals \9\ are not assessed a QCC Transaction Fee. QCC Transaction Fees apply to QCC Orders \10\ and Floor QCC Orders.\11\ Rebates are paid on all qualifying executed QCC Orders based on the following six tier rebate schedule: --------------------------------------------------------------------------- \4\ The term ``Specialist'' applies to transactions for the account of a Specialist (as defined in Exchange Rule 1020(a)). \5\ The term ``Market Maker'' includes Registered Options Traders (``ROT''). See Exchange Rule 1014(b)(i) and (ii). A ROT includes a Streaming Quote Trader or ``SQT,'' a Remote Streaming Quote Trader or ``RSQT'' and a Non-SQT, which by definition is neither a SQT nor a RSQT. A ROT is defined in Exchange Rule 1014(b) as a regular member of the Exchange located on the trading floor who has received permission from the Exchange to trade in options for his own account. An SQT is defined in Exchange Rule 1014(b)(ii)(A) as an ROT who has received permission from the Exchange to generate and submit option quotations electronically in options to which such SQT is assigned. An RSQT is defined in Exchange Rule in 1014(b)(ii)(B) as an ROT that is a member affiliated with an RSQTO with no physical trading floor presence who has received permission from the Exchange to generate and submit option quotations electronically in options to which such RSQT has been assigned. A Remote Streaming Quote Trader Organization or ``RSQTO,'' which may also be referred to as a Remote Market Making Organization (``RMO''), is a member organization in good standing that satisfies the RSQTO readiness requirements in Rule 507(a). RSQTs may also be referred to as Remote Market Markers (``RMMs''). \6\ The term ``Firm'' applies to any transaction that is identified by a member or member organization for clearing in the Firm range at The Options Clearing Corporation. \7\ The term ``Broker-Dealer'' applies to any transaction which is not subject to any of the other transaction fees applicable within a particular category. \8\ The term ``Customer'' applies to any transaction that is identified by a member or member organization for clearing in the Customer range at The Options Clearing Corporation which is not for the account of a broker or dealer or for the account of a ``Professional'' (as that term is defined in Rule 1000(b)(14)). \9\ The term ``Professional'' applies to transactions for the accounts of Professionals, as defined in Exchange Rule 1000(b)(14). \10\ Electronic QCC Orders are described in Rule 1080(o). \11\ Floor QCC Orders are described in Rule 1064(e). QCC Rebate Schedule ---------------------------------------------------------------------------------------------------------------- Rebate per Tier Threshold contract ---------------------------------------------------------------------------------------------------------------- Tier 1........................................ 0 to 99,999 contracts in a month................ $0.00 Tier 2........................................ 100,000 to 299,999 contracts in a month......... 0.05 Tier 3........................................ 300,000 to 499,999 contracts in a month......... 0.07 Tier 4........................................ 500,000 to 699,999 contracts in a month......... 0.08 Tier 5........................................ 700,000 to 999,999 contracts in a month......... 0.09 Tier 6........................................ Over 1,000,000 contracts in a month............. 0.11 ---------------------------------------------------------------------------------------------------------------- The Exchange will not pay a QCC Rebate where the transaction is either: (i) Customer-to-Customer; (ii) Customer-to-Professional, (iii) Professional-to-Professional or (iv) a dividend, merger, short stock interest or reversal or conversion strategy execution.\12\ --------------------------------------------------------------------------- \12\ Dividend, merger, short stock interest or reversal or conversion strategy execution are described in Section II of the Pricing Schedule. --------------------------------------------------------------------------- The Exchange will continue to pay rebates on QCC Orders as described above. The Exchange proposes to amend the QCC Rebate Schedule to increase the maximum QCC Rebate of $450,000 per month to $550,000 per month. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\13\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\14\ in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b). \14\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Commission and the courts have repeatedly expressed their preference for competition over regulatory intervention in determining prices, products, and services in the securities markets. In Regulation NMS, while adopting a series of steps to improve the current market model, the Commission highlighted the importance of market forces in determining prices and SRO revenues and, also, recognized that current regulation of the market system ``has been remarkably successful in promoting market competition in its broader forms that are most important to investors and listed companies.'' \15\ --------------------------------------------------------------------------- \15\ Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting Release''). --------------------------------------------------------------------------- Likewise, in NetCoalition v. Securities and Exchange Commission \16\ (``NetCoalition'') the D.C. Circuit upheld the Commission's use of a market-based approach in evaluating the fairness of market data fees against a challenge claiming that Congress mandated a cost-based approach.\17\ As the court emphasized, the Commission ``intended in Regulation NMS that `market forces, rather than regulatory requirements' play a role in determining the market data . . . to be made available to investors and at what cost.'' \18\ --------------------------------------------------------------------------- \16\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010). \17\ See NetCoalition, at 534-535. \18\ Id. at 537. --------------------------------------------------------------------------- Further, ``[n]o one disputes that competition for order flow is `fierce.' . . . As the SEC explained, `[i]n the U.S. national market system, buyers and sellers of securities, and the broker-dealers that act as their order-routing agents, have a wide range of choices of where to route orders for execution'; [and] `no exchange can afford to take its market share percentages for granted' because `no exchange possesses a monopoly, regulatory or otherwise, in the execution of order flow from broker dealers' . . . .'' \19\ Although the court and the SEC were discussing the cash equities markets, the Exchange believes that these views apply with equal force to the options markets. --------------------------------------------------------------------------- \19\ Id. at 539 (quoting Securities Exchange Act Release No. 59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-21)). --------------------------------------------------------------------------- QCC Rebates The Exchange believes that it is reasonable to increase the maximum amount of the QCC Rebate the Exchange would pay a market participant in a [[Page 12673]] given month from $450,000 to $550,000 because the Exchange believes it will attract additional QCC Orders to the Exchange because the amount of rebates they may be eligible for has increased. The Exchange believes that it is equitable and not unfairly discriminatory to increase the maximum amount of the QCC Rebate the Exchange would pay a market participant in a given month from $450,000 to $550,000 because all qualifying market participants are eligible to obtain this maximum amount of QCC rebates provided they transact a qualifying number of QCC Orders. All market participants are eligible to transact QCC Orders. 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. In terms of inter-market competition, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive, or rebate opportunities available at other venues to be more favorable. In such an environment, the Exchange must continually adjust its fees to remain competitive with other exchanges and with alternative trading systems that have been exempted from compliance with the statutory standards applicable to exchanges. Because competitors are free to modify their own fees in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited. In sum, if the changes proposed herein are unattractive to market participants, it is likely that the Exchange will lose market share as a result. Accordingly, the Exchange does not believe that the proposed change will impair the ability of members or competing order execution venues to maintain their competitive standing in the financial markets or will impose any inter-market burden on competition for the reasons stated above. The Exchange does not believe that the proposed rule change will impose any intra-market burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes that its proposal to increase the maximum QCC Rebate does not impose a burden on competition, rather the increased cap should encourage market participants to transact a greater number of QCC Orders in order to obtain the maximum QCC Rebate. All market participants are eligible to transact QCC Orders. 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 The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.\20\ --------------------------------------------------------------------------- \20\ 15 U.S.C. 78s(b)(3)(A)(ii). --------------------------------------------------------------------------- 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-2017-19 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-2017-19. 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-2017-19, and should be submitted on or before March 27, 2017. --------------------------------------------------------------------------- \21\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\21\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-04203 Filed 3-3-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 42 / Monday, March 6, 2017 / Notices 12671
B. Self-Regulatory Organization’s Electronic Comments SECURITIES AND EXCHANGE
Statement on Burden on Competition COMMISSION
• Use the Commission’s Internet
CBOE does not believe that the comment form (http://www.sec.gov/ [Release No. 34–80119; File No. SR–Phlx–
proposed rule change will impose any rules/sro.shtml); or 2017–19]
burden on competition that is not
necessary or appropriate in furtherance • Send an email to rule-comments@ Self-Regulatory Organizations;
of the purposes of the Act. More sec.gov. Please include File Number SR– NASDAQ PHLX LLC; Notice of Filing
specifically, the Exchange does not CBOE–2017–010 on the subject line. and Immediate Effectiveness of
believe the proposed amendment will Proposed Rule Change Related to
Paper Comments
impose any burden on intramarket Qualified Contingent Cross Orders
competition because it provides the • Send paper comments in triplicate February 28, 2017.
same relief to all floor brokers in the to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the
same manner under the same limited Commission, 100 F Street NE., Securities Exchange Act of 1934
and extraordinary circumstances. In Washington, DC 20549–1090. (‘‘Act’’),1 and Rule 19b–4 thereunder,2
addition, the Exchange does not believe
All submissions should refer to File notice is hereby given that on February
the proposed changes will impose any
Number SR–CBOE–2017–010. This file 21, 2017, NASDAQ PHLX LLC (‘‘Phlx’’
burden on intermarket competition. The
number should be included on the or ‘‘Exchange’’) filed with the Securities
proposed rule change relates solely to
subject line if email is used. To help the and Exchange Commission (‘‘SEC’’ or
information that floor brokers must
Commission process and review your ‘‘Commission’’) the proposed rule
submit to the Exchange with respect to
comments more efficiently, please use change as described in Items I, II, and
orders they represent and execute on the
III, below, which Items have been
Exchange’s trading floor. The proposed only one method. The Commission will
prepared by the Exchange. The
rule change has little to no effect on post all comments on the Commission’s
Commission is publishing this notice to
market participants because OPRA will Internet Web site (http://www.sec.gov/
solicit comments on the proposed rule
be receiving timely quotations during rules/sro.shtml). Copies of the change from interested persons.
fast markets, which will give all market submission, all subsequent
participants an up-to-date view of the amendments, all written statements I. Self-Regulatory Organization’s
market during a fast market. Any with respect to the proposed rule Statement of the Terms of Substance of
perceived burden on market change that are filed with the the Proposed Rule Change
participants is outweighed by the fact Commission, and all written The Exchange proposes to amend the
that market participants will be able to communications relating to the Exchange’s Pricing Schedule at Section
receive executions in a timelier manner proposed rule change between the II, entitled ‘‘Multiply Listed Options
during times of high market volatility. Commission and any person, other than Fees,’’ 3 to increase the maximum
C. Self-Regulatory Organization’s those that may be withheld from the Qualified Contingent Cross (‘‘QCC’’)
Statement on Comments on the public in accordance with the orders rebate which will be paid in a
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be given month.
Members, Participants, or Others available for Web site viewing and While the changes proposed herein
printing in the Commission’s Public are effective upon filing, the Exchange
The Exchange neither solicited nor has designated that the amendments be
received comments on the proposed Reference Room, 100 F Street NE.,
Washington, DC 20549, on official operative on March 1, 2017.
rule change. The text of the proposed rule change
business days between the hours of
III. Date of Effectiveness of the 10:00 a.m. and 3:00 p.m. Copies of the is available on the Exchange’s Web site
Proposed Rule Change and Timing for at http://nasdaqphlx.cchwallstreet
filing also will be available for
Commission Action .com/, at the principal office of the
inspection and copying at the principal
Exchange, and at the Commission’s
Within 45 days of the date of office of the Exchange. All comments
Public Reference Room.
publication of this notice in the Federal received will be posted without change;
Register or within such longer period the Commission does not edit personal II. Self-Regulatory Organization’s
up to 90 days (i) as the Commission may identifying information from Statement of the Purpose of, and
designate if it finds such longer period submissions. You should submit only Statutory Basis for, the Proposed Rule
to be appropriate and publishes its information that you wish to make Change
reasons for so finding or (ii) as to which available publicly. All submissions In its filing with the Commission, the
the Exchange consents, the Commission should refer to File Number SR–CBOE– Exchange included statements
will: 2017–010, and should be submitted on concerning the purpose of and basis for
A. by order approve or disapprove or before March 27, 2017. the proposed rule change and discussed
such proposed rule change, or any comments it received on the
B. institute proceedings to determine For the Commission, by the Division of
Trading and Markets, pursuant to delegated proposed rule change. The text of these
whether the proposed rule change statements may be examined at the
should be disapproved. authority.18
places specified in Item IV below. The
Eduardo A. Aleman,
asabaliauskas on DSK3SPTVN1PROD with NOTICES
IV. Solicitation of Comments Exchange has prepared summaries, set
Assistant Secretary. forth in sections A, B, and C below, of
Interested persons are invited to [FR Doc. 2017–04207 Filed 3–3–17; 8:45 am] the most significant aspects of such
submit written data, views, and BILLING CODE 8011–01–P statements.
arguments concerning the foregoing,
including whether the proposed rule 1 15U.S.C. 78s(b)(1).
change is consistent with the Act. 2 17CFR 240.19b–4.
Comments may be submitted by any of 3 These fees include options overlying equities,
the following methods: 18 17 CFR 200.30–3(a)(12). ETFs, ETNs and indexes which are Multiply Listed.
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![12672 Federal Register / Vol. 82, No. 42 / Monday, March 6, 2017 / Notices
A. Self-Regulatory Organization’s paid by the Exchange in a given month. Professionals 9 are not assessed a QCC
Statement of the Purpose of, and the The Exchange believes that this increase Transaction Fee. QCC Transaction Fees
Statutory Basis for, the Proposed Rule will incentivize participants to transact apply to QCC Orders 10 and Floor QCC
Change additional QCC Orders on Phlx. Orders.11 Rebates are paid on all
Today, the Exchange assesses a $.20 qualifying executed QCC Orders based
1. Purpose per contract QCC Transaction Fee for a on the following six tier rebate
The Exchange proposes to increase Specialist,4 Market Maker,5 Firm 6 and schedule:
the maximum QCC rebate that will be Broker-Dealer.7 Customers 8 and
QCC REBATE SCHEDULE
Rebate per
Tier Threshold contract
Tier 1 ........................................ 0 to 99,999 contracts in a month ................................................................................................. $0.00
Tier 2 ........................................ 100,000 to 299,999 contracts in a month .................................................................................... 0.05
Tier 3 ........................................ 300,000 to 499,999 contracts in a month .................................................................................... 0.07
Tier 4 ........................................ 500,000 to 699,999 contracts in a month .................................................................................... 0.08
Tier 5 ........................................ 700,000 to 999,999 contracts in a month .................................................................................... 0.09
Tier 6 ........................................ Over 1,000,000 contracts in a month .......................................................................................... 0.11
The Exchange will not pay a QCC The Commission and the courts have play a role in determining the market
Rebate where the transaction is either: repeatedly expressed their preference data . . . to be made available to
(i) Customer-to-Customer; (ii) Customer- for competition over regulatory investors and at what cost.’’ 18
to-Professional, (iii) Professional-to- intervention in determining prices, Further, ‘‘[n]o one disputes that
Professional or (iv) a dividend, merger, products, and services in the securities competition for order flow is ‘fierce.’
short stock interest or reversal or markets. In Regulation NMS, while . . . As the SEC explained, ‘[i]n the U.S.
conversion strategy execution.12 adopting a series of steps to improve the national market system, buyers and
The Exchange will continue to pay current market model, the Commission sellers of securities, and the broker-
rebates on QCC Orders as described highlighted the importance of market dealers that act as their order-routing
above. The Exchange proposes to amend forces in determining prices and SRO agents, have a wide range of choices of
the QCC Rebate Schedule to increase the revenues and, also, recognized that where to route orders for execution’;
maximum QCC Rebate of $450,000 per current regulation of the market system [and] ‘no exchange can afford to take its
month to $550,000 per month. ‘‘has been remarkably successful in market share percentages for granted’
promoting market competition in its because ‘no exchange possesses a
2. Statutory Basis broader forms that are most important to monopoly, regulatory or otherwise, in
The Exchange believes that its investors and listed companies.’’ 15 the execution of order flow from broker
proposal is consistent with Section 6(b) Likewise, in NetCoalition v. Securities dealers’ . . . .’’ 19 Although the court
of the Act,13 in general, and furthers the and Exchange Commission 16 and the SEC were discussing the cash
objectives of Sections 6(b)(4) and 6(b)(5) (‘‘NetCoalition’’) the D.C. Circuit upheld equities markets, the Exchange believes
of the Act,14 in particular, in that it the Commission’s use of a market-based that these views apply with equal force
provides for the equitable allocation of approach in evaluating the fairness of to the options markets.
reasonable dues, fees and other charges market data fees against a challenge
QCC Rebates
among members and issuers and other claiming that Congress mandated a cost-
persons using any facility, and is not based approach.17 As the court The Exchange believes that it is
designed to permit unfair emphasized, the Commission ‘‘intended reasonable to increase the maximum
discrimination between customers, in Regulation NMS that ‘market forces, amount of the QCC Rebate the Exchange
issuers, brokers, or dealers. rather than regulatory requirements’ would pay a market participant in a
4 The term ‘‘Specialist’’ applies to transactions for
Organization or ‘‘RSQTO,’’ which may also be 10 Electronic QCC Orders are described in Rule
the account of a Specialist (as defined in Exchange referred to as a Remote Market Making Organization 1080(o).
Rule 1020(a)). (‘‘RMO’’), is a member organization in good 11 Floor QCC Orders are described in Rule
5 The term ‘‘Market Maker’’ includes Registered standing that satisfies the RSQTO readiness
1064(e).
Options Traders (‘‘ROT’’). See Exchange Rule requirements in Rule 507(a). RSQTs may also be
12 Dividend, merger, short stock interest or
1014(b)(i) and (ii). A ROT includes a Streaming referred to as Remote Market Markers (‘‘RMMs’’).
Quote Trader or ‘‘SQT,’’ a Remote Streaming Quote 6 The term ‘‘Firm’’ applies to any transaction that reversal or conversion strategy execution are
Trader or ‘‘RSQT’’ and a Non-SQT, which by is identified by a member or member organization described in Section II of the Pricing Schedule.
definition is neither a SQT nor a RSQT. A ROT is for clearing in the Firm range at The Options 13 15 U.S.C. 78f(b).
defined in Exchange Rule 1014(b) as a regular Clearing Corporation. 14 15 U.S.C. 78f(b)(4) and (5).
member of the Exchange located on the trading 7 The term ‘‘Broker-Dealer’’ applies to any
15 Securities Exchange Act Release No. 51808
floor who has received permission from the transaction which is not subject to any of the other
Exchange to trade in options for his own account. transaction fees applicable within a particular (June 9, 2005), 70 FR 37496, 37499 (June 29, 2005)
category. (‘‘Regulation NMS Adopting Release’’).
asabaliauskas on DSK3SPTVN1PROD with NOTICES
An SQT is defined in Exchange Rule 1014(b)(ii)(A)
as an ROT who has received permission from the 8 The term ‘‘Customer’’ applies to any transaction 16 NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir.
Exchange to generate and submit option quotations that is identified by a member or member 2010).
electronically in options to which such SQT is organization for clearing in the Customer range at 17 See NetCoalition, at 534–535.
assigned. An RSQT is defined in Exchange Rule in The Options Clearing Corporation which is not for 18 Id. at 537.
1014(b)(ii)(B) as an ROT that is a member affiliated the account of a broker or dealer or for the account
19 Id. at 539 (quoting Securities Exchange Act
with an RSQTO with no physical trading floor of a ‘‘Professional’’ (as that term is defined in Rule
presence who has received permission from the 1000(b)(14)). Release No. 59039 (December 2, 2008), 73 FR
Exchange to generate and submit option quotations 9 The term ‘‘Professional’’ applies to transactions 74770, 74782–83 (December 9, 2008) (SR–
electronically in options to which such RSQT has for the accounts of Professionals, as defined in NYSEArca–2006–21)).
been assigned. A Remote Streaming Quote Trader Exchange Rule 1000(b)(14).
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given month from $450,000 to $550,000 should encourage market participants to with respect to the proposed rule
because the Exchange believes it will transact a greater number of QCC Orders change that are filed with the
attract additional QCC Orders to the in order to obtain the maximum QCC Commission, and all written
Exchange because the amount of rebates Rebate. All market participants are communications relating to the
they may be eligible for has increased. eligible to transact QCC Orders. proposed rule change between the
The Exchange believes that it is Commission and any person, other than
equitable and not unfairly C. Self-Regulatory Organization’s
those that may be withheld from the
discriminatory to increase the maximum Statement on Comments on the
public in accordance with the
amount of the QCC Rebate the Exchange Proposed Rule Change Received From
provisions of 5 U.S.C. 552, will be
would pay a market participant in a Members, Participants, or Others
available for Web site viewing and
given month from $450,000 to $550,000 No written comments were either printing in the Commission’s Public
because all qualifying market solicited or received. Reference Room, 100 F Street NE.,
participants are eligible to obtain this Washington, DC 20549, on official
III. Date of Effectiveness of the
maximum amount of QCC rebates business days between the hours of
Proposed Rule Change and Timing for
provided they transact a qualifying 10:00 a.m. and 3:00 p.m. Copies of the
number of QCC Orders. All market Commission Action
filing also will be available for
participants are eligible to transact QCC The foregoing rule change has become inspection and copying at the principal
Orders. effective pursuant to Section office of the Exchange. All comments
19(b)(3)(A)(ii) of the Act.20 received will be posted without change;
B. Self-Regulatory Organization’s At any time within 60 days of the
Statement on Burden on Competition the Commission does not edit personal
filing of the proposed rule change, the identifying information from
The Exchange does not believe that Commission summarily may submissions. You should submit only
the proposed rule change will impose temporarily suspend such rule change if information that you wish to make
any burden on competition not it appears to the Commission that such available publicly. All submissions
necessary or appropriate in furtherance action is: (i) Necessary or appropriate in should refer to File Number SR–Phlx–
of the purposes of the Act. In terms of the public interest; (ii) for the protection 2017–19, and should be submitted on or
inter-market competition, the Exchange of investors; or (iii) otherwise in before March 27, 2017.
notes that it operates in a highly furtherance of the purposes of the Act.
competitive market in which market If the Commission takes such action, the For the Commission, by the Division of
participants can readily favor competing Trading and Markets, pursuant to delegated
Commission shall institute proceedings
venues if they deem fee levels at a authority.21
to determine whether the proposed rule
particular venue to be excessive, or Eduardo A. Aleman,
should be approved or disapproved.
rebate opportunities available at other Assistant Secretary.
venues to be more favorable. In such an IV. Solicitation of Comments [FR Doc. 2017–04203 Filed 3–3–17; 8:45 am]
environment, the Exchange must Interested persons are invited to BILLING CODE 8011–01–P
continually adjust its fees to remain submit written data, views, and
competitive with other exchanges and arguments concerning the foregoing,
with alternative trading systems that including whether the proposed rule SMALL BUSINESS ADMINISTRATION
have been exempted from compliance change is consistent with the Act.
with the statutory standards applicable [Disaster Declaration #15055 and #15056]
Comments may be submitted by any of
to exchanges. Because competitors are the following methods: Nevada Disaster #NV–00044
free to modify their own fees in
response, and because market Electronic Comments AGENCY: U.S. Small Business
participants may readily adjust their • Use the Commission’s Internet Administration.
order routing practices, the Exchange comment form (http://www.sec.gov/ ACTION: Notice.
believes that the degree to which fee rules/sro.shtml); or
changes in this market may impose any • Send an email to rule-comments@ SUMMARY: This is a notice of an
burden on competition is extremely sec.gov. Please include File Number SR– Administrative declaration of a disaster
limited. In sum, if the changes proposed Phlx–2017–19 on the subject line. for the State of Nevada dated 02/23/
herein are unattractive to market 2017.
Paper Comments Incident: Severe Winter Storms,
participants, it is likely that the
Exchange will lose market share as a • Send paper comments in triplicate Flooding and Mudslides.
result. Accordingly, the Exchange does to Secretary, Securities and Exchange Incident Period: 01/05/2017 through
not believe that the proposed change Commission, 100 F Street NE., 01/14/2017.
will impair the ability of members or Washington, DC 20549–1090. Effective Date: 02/23/2017.
competing order execution venues to All submissions should refer to File Physical Loan Application Deadline
maintain their competitive standing in Number SR–Phlx–2017–19. This file Date: 04/24/2017.
the financial markets or will impose any number should be included on the Economic Injury (EIDL) Loan
inter-market burden on competition for subject line if email is used. To help the Application Deadline Date: 11/24/2017.
the reasons stated above. Commission process and review your ADDRESSES: Submit completed loan
The Exchange does not believe that comments more efficiently, please use applications to: U.S. Small Business
asabaliauskas on DSK3SPTVN1PROD with NOTICES
the proposed rule change will impose only one method. The Commission will Administration, Processing and
any intra-market burden on competition post all comments on the Commission’s Disbursement Center, 14925 Kingsport
not necessary or appropriate in Internet Web site (http://www.sec.gov/ Road, Fort Worth, TX 76155.
furtherance of the purposes of the Act. rules/sro.shtml). Copies of the FOR FURTHER INFORMATION CONTACT: A.
The Exchange believes that its proposal submission, all subsequent Escobar, Office of Disaster Assistance,
to increase the maximum QCC Rebate amendments, all written statements U.S. Small Business Administration,
does not impose a burden on
competition, rather the increased cap 20 15 U.S.C. 78s(b)(3)(A)(ii). 21 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 19:24 Mar 03, 2017 Jkt 241001 PO 00000 Frm 00141 Fmt 4703 Sfmt 4703 E:\FR\FM\06MRN1.SGM 06MRN1](https://thefederalregister.org/doc/82_FR_12713/page/3.svg)
Document Created: 2017-03-04 00:06:18
Document Modified: 2017-03-04 00:06:18
| 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 | 82 FR 12671 |
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