82 FR 40197 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Quoting at the Opening
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 163 (August 24, 2017)
Federal Register Volume 82, Issue 163 (August 24, 2017)
| Page Range | 40197-40199 | |
| FR Document | 2017-17906 |
[Federal Register Volume 82, Number 163 (Thursday, August 24, 2017)] [Notices] [Pages 40197-40199] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-17906] [[Page 40197]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81433; File No. SR-Phlx-2017-69] Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Quoting at the Opening August 18, 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 August 16, 2017, NASDAQ PHLX LLC (``Phlx'' or ``Exchange'') 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 proposes to amend Phlx Rule 1017, entitled ``Openings in Options.'' The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqphlx.cchwallstreet.com/ com/, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this rule change is to amend Phlx Rule 1017, entitled ``Openings in Options'' to specifically amend opening obligations for Specialists.\3\ The Exchange notes that the proposed rule change is similar to a Nasdaq MRX, LLC (``MRX'') rule.\4\ --------------------------------------------------------------------------- \3\ The term ``Specialist'' applies to transactions for the account of a Specialist (as defined in Exchange Rule 1020(a)). \4\ See MRX Rule 701. --------------------------------------------------------------------------- Today, Phlx Rule 1017(d)(iii) states that the Specialist assigned in a particular equity option must enter a Valid Width Quote not later than one minute following the dissemination of a quote or trade by the market for the underlying security or, in the case of index options, following the receipt of the opening price in the underlying index. The Specialist assigned in a particular U.S. dollar-settled FCO must enter a Valid Width Quote not later than 30 seconds after the announced market opening. First, the Exchange proposes to add the words ``or index'' to further clarify that the requirement applies to equities and index options. The Exchange proposes this addition to further clarify the requirement in Rule 1017(d)(iii) clearly applies to equity and index options. Second, the Exchange proposes to modify the Specialist's current obligation to enter Valid Width Quotes not later than one minute following the dissemination of a quote or trade by the market for the underlying security or, in the case of index options, following the receipt of the opening price in the underlying index for all assigned options, or in the case of a U.S. dollar-settled FCO after the announced market opening. The Exchange believes that the current requirement is very burdensome and instead proposes to add ``in 90% of their assigned series'' to require a Specialist to enter a Valid Width Quote not later than one minute following the dissemination of a quote or trade by the market for the underlying security or, in the case of index options, following the receipt of the opening price in 90% of their assigned series, or in the case of U.S. dollar-settled FCOs in 90% of their assigned series not later than 30 seconds after the announced market opening. Further, the Exchange proposes to require Specialists to promptly enter a Valid Width Quote in the remainder of their assigned series, which did not open within one minute following the dissemination of a quote or trade by the market for the underlying security or, in the case of index options, following the receipt of the opening price in the underlying index or, with respect to a U.S. dollar-settled FCO, following the announced market opening. The Exchange's proposal is intended to account for market conditions which may prevent a Specialist from opening all assigned series, for example an extremely volatile market which may impact the Specialist's ability to enter aggressive quotes. Another example would be that news pertaining to a specific security is causing the underlying price to fluctuate rapidly and significantly, thereby causing the Specialist to await the underlying equity price to settle before entering a Valid Width Quote. The Exchange's surveillance staff would monitor to ensure that Specialists are complying with these requirements during the Opening Process. Today, the Opening Process for an options series will be conducted on or after 9:30 a.m. if the system has received, within two minutes (or such shorter time as determined by the Exchange and disseminated to membership on the Exchange's Web site) of the opening trade or quote on the market for the underlying security in the case of equity options or, in the case of index options, within two minutes of the receipt of the opening price in the underlying index (or such shorter time as determined by the Exchange and disseminated to membership on the Exchange's Web site), or within two minutes of market opening for the underlying currency in the case of a U.S. dollar-settled FCO (or such shorter time as determined by the Exchange and disseminated to membership on the Exchange's Web site) the Specialist's Valid Width Quote, the Valid Width Quotes of two Phlx Electronic Market Makers other than the Specialist or if neither the Specialist or two Phlx Electronic Market Makers have submitted Valid Width Quotes, within the specified timeframe then one Phlx Electronic Market Maker's Valid Width Quote.\5\ --------------------------------------------------------------------------- \5\ See Rule 1017(d)(i)(A)-(C). --------------------------------------------------------------------------- The Exchange is also proposing to amend existing rule text in Phlx Rule 1017(d)(iii) to lowercase a reference to the ``Opening Price'' as that reference refers to the underlying security's opening price, not the defined Opening Price in Rule 1017(a)(iii). Implementation The Exchange proposes to implement this rule change on September 29, 2017. 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\ [[Page 40198]] 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 for the reasons stated below. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange's first proposal at Rule 701(c)(3) to clarify that the requirement applies to equities and index options will make clear the applicability of the Specialist's requirement to enter Valid Width Quotes. This proposed amendment is non-substantive and is intended to add clarity to the rules. The second proposal to amend a Specialist's requirement to enter Valid Width Quotes during the Opening Process is consistent with the Act because the 90% requirement to provide a Valid Width Quote in a series to which the Specialist is assigned will continue to ensure that options series are opened in a timely manner, while not imposing a burdensome requirement on market participants. Specialists would be required to promptly enter a Valid Width Quote in the remainder of their assigned series, which did not open within one minute of the dissemination of a quote or trade by the market for the underlying security or in the case of index options, following the receipt of the opening price or, with respect to U.S. dollar-settled FCOs, following the announced market opening. The Exchange would monitor Specialists to ensure that they promptly provided a Valid Width Quote for the remainder of the series within a reasonable amount of time. The Exchange notes that market conditions could cause a Specialist to experience circumstances where opening 100% of all of their assigned series within one minute of the dissemination of a quote or trade by the market for the underlying security or, in the case of index options, following the receipt of the opening price in the underlying index or, with respect to U.S. dollar-settled FCOs, following the announced market opening, is not feasible. The Exchange believes that the proposed 90% Valid Width Quoting obligation, not later than one minute following the dissemination of a quote or trade by the market for the underlying security or, in the case of index options, following the receipt of the opening price in the underlying index or, with respect to U.S. dollar-settled FCOs, following the announced market opening, along with the ``prompt'' standard for the remaining 10% of their assigned series will ensure all series are opened in a timely manner. The Exchange's proposal accounts for market conditions which may prevent a Specialist from opening all assigned series, for example an extremely volatile market which may impact the Specialist's ability to enter aggressive quotes. Another example would be that news pertaining to a specific security is causing the underlying price to fluctuate rapidly and significantly, thereby causing the Specialist to await the underlying equity price to settle before entering a Valid Width Quote. The Exchange believes that the time frame for Specialists to provide a Valid Width Quote in 90% of their assigned series not later than one minute following the dissemination of a quote or trade by the market for the underlying security or, in the case of index options, following the receipt of the opening price in the underlying index or, with respect to U.S. dollar- settled FCOs, following the announced market opening, will ensure liquidity on Phlx during the Opening Process. The Exchange desires to encourage Specialists to continue to make markets on Phlx at the Opening. The Exchange believes that requiring Specialists to provide a Valid Width Quote in 90% of their assigned options not later than one minute following the dissemination of a quote or trade by the market for the underlying security or, in the case of index options, following the receipt of the opening price in the underlying index or, with respect to U.S. dollar-settled FCOs, following the announced market opening along with the ``prompt'' standard for the remaining 10% will enhance the market making functions for Specialists and serve to maintain a fair and orderly market thereby promoting the protection of investors and the public interest. 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 proposal does not change the intense competition that exists among the options markets for options business including on the opening. Nor does the Exchange believe that the proposal will impose any burden on intra-market competition; the Opening Process involves many types of participants and interest. The Exchange's proposal to require a Specialist to enter a Valid Width Quote in 90% of their assigned series not later than one minute time following the dissemination of a quote or trade by the market for the underlying security or, in the case of index options, following the receipt of the opening price in the underlying index or, with respect to U.S. dollar-settled FCOs, following the announced market opening and promptly enter a Valid Width quote for the remaining 10% their assigned series does not create an undue burden on competition. The proposal will continue to ensure that options series are opened in a timely manner, while not imposing a burdensome requirement on market participants. Specialists would be required to promptly enter a Valid Width Quote in the remainder of their assigned series which were not open within one minute following the dissemination of a quote or trade by the market for the underlying security or, in the case of index options, following the receipt of the opening price in the underlying index or, with respect to U.S. dollar-settled FCOs, following the announced market opening. The Exchange would monitor Specialists to ensure that they promptly entered a Valid Width Quote for the remainder of their assigned series within a reasonable amount of time. The Exchange notes that market conditions could cause a Specialist to experience circumstances where entering a Valid Width Quote for 100% of all of their assigned series within one minute following the dissemination of a quote or trade by the market for the underlying security or, in the case of index options, following the receipt of the opening price in the underlying index or with respect to U.S. dollar- settled FCOs within one minute after the announced market opening, is not feasible. The Exchange believes that the proposed 90% obligation to enter a Valid Width Quote not later than one minute following the dissemination of a quote or trade by the market for the underlying security or, in the case of index options, following the receipt of the opening price in the underlying index or, with respect to U.S. dollar- settled FCOs, following the announced market opening for the underlying security along with the ``prompt'' standard for the remaining series will ensure all series are opened in a timely manner. 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 [[Page 40199]] 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, along with a brief description and text of 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-2017-69 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-2017-69. 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-2017-69 and should be submitted on or before September 14, 2017. 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. 2017-17906 Filed 8-23-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Notices 40197
SECURITIES AND EXCHANGE Specialists.3 The Exchange notes that may prevent a Specialist from opening
COMMISSION the proposed rule change is similar to a all assigned series, for example an
Nasdaq MRX, LLC (‘‘MRX’’) rule.4 extremely volatile market which may
[Release No. 34–81433; File No. SR–Phlx– Today, Phlx Rule 1017(d)(iii) states
2017–69]
impact the Specialist’s ability to enter
that the Specialist assigned in a aggressive quotes. Another example
Self-Regulatory Organizations; particular equity option must enter a would be that news pertaining to a
NASDAQ PHLX LLC; Notice of Filing Valid Width Quote not later than one specific security is causing the
and Immediate Effectiveness of minute following the dissemination of a underlying price to fluctuate rapidly
Proposed Rule Change Related to quote or trade by the market for the and significantly, thereby causing the
Quoting at the Opening underlying security or, in the case of Specialist to await the underlying equity
index options, following the receipt of price to settle before entering a Valid
August 18, 2017. the opening price in the underlying Width Quote. The Exchange’s
Pursuant to Section 19(b)(1) of the index. The Specialist assigned in a surveillance staff would monitor to
Securities Exchange Act of 1934 particular U.S. dollar-settled FCO must ensure that Specialists are complying
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 enter a Valid Width Quote not later than with these requirements during the
notice is hereby given that on August 30 seconds after the announced market Opening Process.
16, 2017, NASDAQ PHLX LLC (‘‘Phlx’’ opening. Today, the Opening Process for an
or ‘‘Exchange’’) filed with the Securities First, the Exchange proposes to add options series will be conducted on or
and Exchange Commission the words ‘‘or index’’ to further clarify after 9:30 a.m. if the system has
(‘‘Commission’’) the proposed rule that the requirement applies to equities received, within two minutes (or such
change as described in Items I and II and index options. The Exchange shorter time as determined by the
below, which Items have been prepared proposes this addition to further clarify Exchange and disseminated to
by the Exchange. The Commission is the requirement in Rule 1017(d)(iii) membership on the Exchange’s Web
publishing this notice to solicit clearly applies to equity and index site) of the opening trade or quote on the
comments on the proposed rule change options. market for the underlying security in the
from interested persons. Second, the Exchange proposes to case of equity options or, in the case of
I. Self-Regulatory Organization’s modify the Specialist’s current index options, within two minutes of
Statement of the Terms of Substance of obligation to enter Valid Width Quotes the receipt of the opening price in the
the Proposed Rule Change not later than one minute following the underlying index (or such shorter time
dissemination of a quote or trade by the as determined by the Exchange and
The Exchange proposes to amend market for the underlying security or, in
Phlx Rule 1017, entitled ‘‘Openings in disseminated to membership on the
the case of index options, following the Exchange’s Web site), or within two
Options.’’ receipt of the opening price in the
The text of the proposed rule change minutes of market opening for the
underlying index for all assigned underlying currency in the case of a
is available on the Exchange’s Web site
options, or in the case of a U.S. dollar- U.S. dollar-settled FCO (or such shorter
at http://nasdaqphlx.cchwallstreet.
settled FCO after the announced market time as determined by the Exchange and
com/, at the principal office of the
opening. The Exchange believes that the disseminated to membership on the
Exchange, and at the Commission’s
current requirement is very burdensome Exchange’s Web site) the Specialist’s
Public Reference Room.
and instead proposes to add ‘‘in 90% of Valid Width Quote, the Valid Width
II. Self-Regulatory Organization’s their assigned series’’ to require a Quotes of two Phlx Electronic Market
Statement of the Purpose of, and Specialist to enter a Valid Width Quote Makers other than the Specialist or if
Statutory Basis for, the Proposed Rule not later than one minute following the neither the Specialist or two Phlx
Change dissemination of a quote or trade by the Electronic Market Makers have
In its filing with the Commission, the market for the underlying security or, in submitted Valid Width Quotes, within
Exchange included statements the case of index options, following the the specified timeframe then one Phlx
concerning the purpose of and basis for receipt of the opening price in 90% of Electronic Market Maker’s Valid Width
the proposed rule change and discussed their assigned series, or in the case of Quote.5
any comments it received on the U.S. dollar-settled FCOs in 90% of their
The Exchange is also proposing to
proposed rule change. The text of these assigned series not later than 30 seconds
amend existing rule text in Phlx Rule
statements may be examined at the after the announced market opening.
1017(d)(iii) to lowercase a reference to
places specified in Item IV below. The Further, the Exchange proposes to
the ‘‘Opening Price’’ as that reference
Exchange has prepared summaries, set require Specialists to promptly enter a
refers to the underlying security’s
forth in sections A, B, and C below, of Valid Width Quote in the remainder of
opening price, not the defined Opening
the most significant aspects of such their assigned series, which did not
Price in Rule 1017(a)(iii).
statements. open within one minute following the
dissemination of a quote or trade by the Implementation
A. Self-Regulatory Organization’s market for the underlying security or, in
Statement of the Purpose of, and The Exchange proposes to implement
the case of index options, following the
Statutory Basis for, the Proposed Rule this rule change on September 29, 2017.
receipt of the opening price in the
Change underlying index or, with respect to a 2. Statutory Basis
1. Purpose U.S. dollar-settled FCO, following the
The Exchange believes that its
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announced market opening. The
The purpose of this rule change is to Exchange’s proposal is intended to proposal is consistent with Section 6(b)
amend Phlx Rule 1017, entitled account for market conditions which of the Act,6 in general, and furthers the
‘‘Openings in Options’’ to specifically objectives of Section 6(b)(5) of the Act,7
amend opening obligations for 3 The term ‘‘Specialist’’ applies to transactions for
5 See Rule 1017(d)(i)(A)–(C).
the account of a Specialist (as defined in Exchange
1 15 U.S.C. 78s(b)(1). Rule 1020(a)). 6 15 U.S.C. 78f(b).
2 17 CFR 240.19b–4. 4 See MRX Rule 701. 7 15 U.S.C. 78f(b)(5).
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![Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Notices 40199
burden on competition; and (iii) become proposed rule change between the ‘‘proposed rule change’’). The proposed
operative for 30 days from the date on Commission and any person, other than rule change was published for comment
which it was filed, or such shorter time those that may be withheld from the in the Federal Register on July 7, 2017.3
as the Commission may designate, it has public in accordance with the The Commission received two
become effective pursuant to Section provisions of 5 U.S.C. 552, will be comment letters on the proposed rule
19(b)(3)(A)(iii) of the Act 8 and available for Web site viewing and change.4 On August 9, 2017, the MSRB
subparagraph (f)(6) of Rule 19b–4 printing in the Commission’s Public responded to those comments 5 and
thereunder.9 Reference Room, 100 F Street NE., filed Amendment No. 1 to the proposed
At any time within 60 days of the Washington, DC 20549, on official rule change (‘‘Amendment No. 1’’).6 The
filing of the proposed rule change, the business days between the hours of Commission is publishing this notice to
Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the solicit comments on Amendment No. 1
temporarily suspend such rule change if filing also will be available for to the proposed rule change from
it appears to the Commission that such inspection and copying at the principal interested parties and is approving the
action is: (i) Necessary or appropriate in office of the Exchange. All comments proposed rule change, as modified by
the public interest; (ii) for the protection received will be posted without change; Amendment No. 1, on an accelerated
of investors; or (iii) otherwise in the Commission does not edit personal basis.
furtherance of the purposes of the Act. identifying information from
If the Commission takes such action, the submissions. You should submit only II. Description of Proposed Rule Change
Commission shall institute proceedings information that you wish to make In the Notice of Filing and
to determine whether the proposed rule available publicly. All submissions Amendment No. 1, the MSRB stated that
should be approved or disapproved. should refer to File Number SR–Phlx– the purpose of the proposed rule change
IV. Solicitation of Comments 2017–69 and should be submitted on or is to reflect relevant regulatory
before September 14, 2017. developments; enhance the ‘‘out-of-state
Interested persons are invited to disclosure obligation’’ about the
For the Commission, by the Division of
submit written data, views, and Trading and Markets, pursuant to delegated potential other benefits an investor may
arguments concerning the foregoing, authority.10 be provided by investing in a 529
including whether the proposed rule Robert W. Errett, college savings plan offered by the home
change is consistent with the Act. state of the investor or of the designated
Deputy Secretary.
Comments may be submitted by any of beneficiary; clarify that certain
[FR Doc. 2017–17906 Filed 8–23–17; 8:45 am]
the following methods: advertisements that contain
BILLING CODE 8011–01–P
Electronic Comments performance data may include a
hyperlink to a Web site that contains
• Use the Commission’s Internet
SECURITIES AND EXCHANGE more recent performance data; and
comment form (http://www.sec.gov/
COMMISSION include several revisions that are
rules/sro.shtml); or
• Send an email to rule-comments@ designed to promote understanding of
[Release No. 34–81432; File No. SR–MSRB– and compliance with the rule.7 The
sec.gov. Please include File Number SR– 2017–04]
Phlx–2017–69 on the subject line. MSRB stated that the proposed rule
Self-Regulatory Organizations; change would amend Rule G–21(e) to
Paper Comments Municipal Securities Rulemaking reflect two regulatory developments—
• Send paper comments in triplicate Board; Notice of Filing of Amendment the SEC’s money market reforms and the
to Secretary, Securities and Exchange No. 1 and Order Granting Accelerated formation of the Financial Industry
Commission, 100 F Street NE., Approval of a Proposed Rule Change, Regulatory Authority, Inc. (‘‘FINRA’’).8
Washington, DC 20549–1090. as Modified by Amendment No. 1, As further described by the MSRB in
All submissions should refer to File Consisting of Proposed Amendments the Notice of Filing, Rule G–
Number SR–Phlx–2017–69. This file to MSRB Rule G–21(e), on Municipal 21(e)(i)(A)(2)(c) currently requires that a
number should be included on the Fund Security Product Advertisements municipal fund security advertisement
subject line if email is used. To help the
Commission process and review your August 18, 2017. 3 Securities Exchange Act Release No. 81060
(June 30, 2017) (the ‘‘Notice of Filing’’), 82 FR
comments more efficiently, please use I. Introduction 31644 (July 7, 2017).
only one method. The Commission will 4 See Letter to Secretary, Commission, from
On June 22, 2017, the Municipal
post all comments on the Commission’s Michael Koffler, Eversheds Sutherland (US) LLP
Securities Rulemaking Board (the (‘‘Eversheds Sutherland’’), dated July 28, 2017 (the
Internet Web site (http://www.sec.gov/
‘‘MSRB’’ or ‘‘Board’’) filed with the ‘‘Eversheds Sutherland Letter’’); and, Letter to
rules/sro.shtml). Copies of the
Securities and Exchange Commission Secretary, Commission, from Robin Traxler, Esq.,
submission, all subsequent Vice President, Regulatory Affairs & Associate
(the ‘‘SEC’’ or ‘‘Commission’’), pursuant
amendments, all written statements General Counsel, Financial Services Institute
to Section 19(b)(1) of the Securities (‘‘FSI’’), dated July 28, 2017 (the ‘‘FSI Letter’’).
with respect to the proposed rule
Exchange Act of 1934 (‘‘Act’’) 1 and Rule 5 See Letter to Secretary, Commission, from
change that are filed with the
19b–4 thereunder,2 a proposed rule Pamela K. Ellis, Associate General Counsel, MSRB,
Commission, and all written dated August 9, 2017 (the ‘‘MSRB Response
change consisting of proposed
communications relating to the Letter’’), available at https://www.sec.gov/
amendments to MSRB Rule G–21(e), on comments/sr-msrb-2017-04/msrb201704-2205630-
8 15 U.S.C. 78s(b)(3)(A)(iii).
municipal fund security product 160509.pdf.
advertisements, to address important
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9 17 6 Id. In Amendment No. 1, the MSRB proposed to
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give regulatory developments and to enhance amend the proposed rule change to Rule G–
the Commission written notice of its intent to file investor protection in connection with 21(e)(i)(A)(2)(c) to make a minor technical change
the proposed rule change, along with a brief to clarify that the proposed rule change to that
municipal fund securities (the provision would apply to an advertisement of a
description and text of the proposed rule change,
at least five business days prior to the date of filing municipal fund security ‘‘that has an investment
10 17 CFR 200.30–3(a)(12). option that invests solely in a money market fund.’’
of the proposed rule change, or such shorter time
1 15 U.S.C. 78s(b)(1). 7 See Notice of Filing and Amendment No. 1.
as designated by the Commission. The Exchange
has satisfied this requirement. 2 17 CFR 240.19b–4. 8 See Notice of Filing.
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Document Created: 2018-10-24 12:38:13
Document Modified: 2018-10-24 12:38:13
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