82 FR 43432 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Add an Exception to Phlx Rule 1000(f)(iii) for Certain Floor Broker Transactions and Adopt Rule 1063(e)(v) To Add the Snapshot Functionality to the Options Floor Broker Management System

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 178 (September 15, 2017)

Page Range		43432-43433
FR Document		2017-19581

Federal Register, Volume 82 Issue 178 (Friday, September 15, 2017)

[Federal Register Volume 82, Number 178 (Friday, September 15, 2017)]
[Notices]
[Pages 43432-43433]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-19581]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81567; File No. SR-Phlx-2017-34]


Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of 
Designation of a Longer Period for Commission Action on a Proposed Rule 
Change To Add an Exception to Phlx Rule 1000(f)(iii) for Certain Floor 
Broker Transactions and Adopt Rule 1063(e)(v) To Add the Snapshot 
Functionality to the Options Floor Broker Management System

September 11, 2017.
    On July 18, 2017, NASDAQ PHLX LLC (``Exchange'') filed with the 
Securities and Exchange Commission (``Commission''), pursuant to 
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ 
and Rule 19b-4 thereunder,\2\ a proposed rule change to add an 
exception to Phlx Rule 1000(f)(iii) \3\ to permit Floor Brokers to 
execute (1) multi-leg orders,\4\ and (2) simple orders in options on 
Exchange Trade Funds (``ETFs'') that are included in the Penny Pilot, 
in the trading crowd using ``Snapshot,'' a new functionality Phlx is 
proposing for its Floor Broker Management System (``FBMS'').\5\ The 
proposed rule change was published for comment in the Federal Register 
on August 1, 2017.\6\ The Commission has received no comment letters on 
the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Phlx Rule 1000(f) requires that all Exchange options 
transactions be executed in one of the following three ways: (i) 
[a]utomatically by the [Exchange's Trading System] pursuant to Phlx 
Rule 1080 and other applicable options rules, (ii) by and among 
members in the Exchange's options trading crowd none of whom is a 
floor broker; or (iii) through the Options Floor Broker Management 
System for trades involving a least one Floor Broker. Phlx rules 
currently permit four exceptions to Phlx Rule 1000(f)(iii). See Rule 
Rule 1000(f)(iii)(A)-(D).
    \4\ See Phlx Rule 1066(f) (defining multi-leg orders).
    \5\ The Snapshot functionality would be codified in a new 
proposed rule, Phlx Rule 1063(e)(v).
    \6\ See Securities Exchange Act Release No. 81230 (July 27, 
2017), 82 FR 35858.
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    Section 19(b)(2) of the Act \7\ provides that within 45 days of the 
publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute

[[Page 43433]]

proceedings to determine whether the proposed rule change should be 
disapproved. The 45th day for this filing is September 15, 2017.
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    \7\ 15 U.S.C. 78s(b)(2).
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    The Commission is extending the 45-day time period for Commission 
action on the proposed rule change. The Commission finds that it is 
appropriate to designate a longer period within which to take action on 
the proposed rule change so that it has sufficient time to consider and 
take action on the Exchange's proposed rule change.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\8\ designates October 30, 2017, as the date by which the 
Commission should either approve or disapprove, or institute 
proceedings to determine whether to disapprove, the proposed rule 
change (File Number SR-Phlx-2017-34).
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    \8\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(31).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-19581 Filed 9-14-17; 8:45 am]
 BILLING CODE 8011-01-P

43432 Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Notices

months, the Exchange believes the and Exchange Commission, 100 F Street SECURITIES AND EXCHANGE
proposed rule change would not impact NE., Washington, DC 20549–1090. COMMISSION
intramarket competition as given that
the Exchange would provide all ETP All submissions should refer to File [Release No. 34–81567; File No. SR–Phlx–
Number SR–NYSEARCA–2017–97. This 2017–34]
Holders the ability to connect to the
Exchange through ports that are file number should be included on the
Self-Regulatory Organizations;
activated before August 21, 2017 and subject line if email is used. To help the
NASDAQ PHLX LLC; Notice of
through ports that are activated after Commission process and review your Designation of a Longer Period for
August 18, 2017. comments more efficiently, please use Commission Action on a Proposed
only one method. The Commission will Rule Change To Add an Exception to
C. Self-Regulatory Organization’s post all comments on the Commission’s
Statement on Comments on the Phlx Rule 1000(f)(iii) for Certain Floor
Internet Web site (http://www.sec.gov/ Broker Transactions and Adopt Rule
Proposed Rule Change Received From rules/sro.shtml). Copies of the
Members, Participants, or Others 1063(e)(v) To Add the Snapshot
submission, all subsequent Functionality to the Options Floor
No written comments were solicited amendments, all written statements Broker Management System
or received with respect to the proposed with respect to the proposed rule
rule change. change that are filed with the September 11, 2017.
Commission, and all written On July 18, 2017, NASDAQ PHLX
III. Date of Effectiveness of the LLC (‘‘Exchange’’) filed with the
Proposed Rule Change and Timing for communications relating to the
Securities and Exchange Commission
Commission Action proposed rule change between the
(‘‘Commission’’), pursuant to Section
Commission and any person, other than
The foregoing rule change is effective 19(b)(1) of the Securities Exchange Act
those that may be withheld from the of 1934 (‘‘Act’’) 1 and Rule 19b–4
upon filing pursuant to Section
public in accordance with the thereunder,2 a proposed rule change to
19(b)(3)(A) 14 of the Act and
subparagraph (f)(2) of Rule 19b–4 15 provisions of 5 U.S.C. 552, will be add an exception to Phlx Rule
thereunder, because it establishes a due, available for Web site viewing and 1000(f)(iii) 3 to permit Floor Brokers to
fee, or other charge imposed by the printing in the Commission’s Public execute (1) multi-leg orders,4 and (2)
Exchange. Reference Room, 100 F Street NE., simple orders in options on Exchange
At any time within 60 days of the Washington, DC, 20549, on official Trade Funds (‘‘ETFs’’) that are included
filing of such proposed rule change, the business days between the hours of in the Penny Pilot, in the trading crowd
Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the using ‘‘Snapshot,’’ a new functionality
temporarily suspend such rule change if filing also will be available for Phlx is proposing for its Floor Broker
it appears to the Commission that such inspection and copying at the principal Management System (‘‘FBMS’’).5 The
action is necessary or appropriate in the office of the Exchange. All comments proposed rule change was published for
public interest, for the protection of received will be posted without change; comment in the Federal Register on
investors, or otherwise in furtherance of the Commission does not edit personal August 1, 2017.6 The Commission has
the purposes of the Act. If the identifying information from received no comment letters on the
Commission takes such action, the submissions. You should submit only proposed rule change.
Commission shall institute proceedings information that you wish to make Section 19(b)(2) of the Act 7 provides
under Section 19(b)(2)(B) 16 of the Act to available publicly. All submissions that within 45 days of the publication of
determine whether the proposed rule should refer to File Number SR– notice of the filing of a proposed rule
change should be approved or NYSEARCA–2017–97 and should be change, or within such longer period up
disapproved. submitted on or before October 6, 2017. to 90 days as the Commission may
designate if it finds such longer period
IV. Solicitation of Comments For the Commission, by the Division of to be appropriate and publishes its
Interested persons are invited to Trading and Markets, pursuant to delegated reasons for so finding or as to which the
submit written data, views, and authority.17 self-regulatory organization consents,
arguments concerning the foregoing, Eduardo A. Aleman, the Commission shall either approve the
including whether the proposed rule Assistant Secretary. proposed rule change, disapprove the
change is consistent with the Act. [FR Doc. 2017–19586 Filed 9–14–17; 8:45 am] proposed rule change, or institute
Comments may be submitted by any of BILLING CODE 8011–01–P
the following methods: 1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
Electronic Comments 3 Phlx Rule 1000(f) requires that all Exchange

options transactions be executed in one of the
• Use the Commission’s Internet following three ways: (i) [a]utomatically by the
comment form (http://www.sec.gov/ [Exchange’s Trading System] pursuant to Phlx Rule
rules/sro.shtml); or 1080 and other applicable options rules, (ii) by and
• Send an email to rule-comments@ among members in the Exchange’s options trading
crowd none of whom is a floor broker; or (iii)
sec.gov. Please include File Number SR– through the Options Floor Broker Management
NYSEARCA–2017–97 on the subject System for trades involving a least one Floor
line. Broker. Phlx rules currently permit four exceptions
mstockstill on DSK30JT082PROD with NOTICES

to Phlx Rule 1000(f)(iii). See Rule Rule
Paper Comments 1000(f)(iii)(A)–(D).
4 See Phlx Rule 1066(f) (defining multi-leg
• Send paper comments in triplicate orders).
to Brent J. Fields, Secretary, Securities 5 The Snapshot functionality would be codified in

a new proposed rule, Phlx Rule 1063(e)(v).
14 15 U.S.C. 78s(b)(3)(A). 6 See Securities Exchange Act Release No. 81230
15 17 CFR 240.19b–4(f)(2). (July 27, 2017), 82 FR 35858.
16 15 U.S.C. 78s(b)(2)(B). 17 17 CFR 200.30–3(a)(12). 7 15 U.S.C. 78s(b)(2).

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Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Notices 43433

proceedings to determine whether the I. Self-Regulatory Organization’s OFP, as agent, submits to the Exchange.5
proposed rule change should be Statement of the Terms of Substance of The Exchange proposes to modify the
disapproved. The 45th day for this filing the Proposed Rule Change qualifications for certain of the tiers.
is September 15, 2017. Currently, an OFP that achieves
The Exchange proposes to modify the 0.75% or less of Customer Electronic
The Commission is extending the 45- NYSE American Options Fee Schedule ADV (‘‘CADV’’) as a percent of TCADV
day time period for Commission action (‘‘Fee Schedule’’). The Exchange falls within the Base Tier and is not
on the proposed rule change. The proposes to implement the fee change eligible to receive ACE Credits. To
Commission finds that it is appropriate effective September 1, 2017. The qualify for Tier 1 or 2, an OFP may
to designate a longer period within proposed change is available on the achieve a level of CADV that is equal to
which to take action on the proposed Exchange’s Web site at www.nyse.com, or greater than certain percentages of the
rule change so that it has sufficient time at the principal office of the Exchange, OFP’s October 2015 volume
to consider and take action on the and at the Commission’s Public (collectively, the ‘‘Step Up’’
Exchange’s proposed rule change. Reference Room. qualifications):
Accordingly, the Commission, II. Self-Regulatory Organization’s • For Tier 1, an OFP qualifies by
pursuant to Section 19(b)(2) of the Act,8 Statement of the Purpose of, and achieving CADV that exceeds October
Statutory Basis for, the Proposed Rule 2015 volume by at least 0.20% to be
designates October 30, 2017, as the date
Change eligible for a $0.14 per contract credit;
by which the Commission should either • For Tier 2, the OFP may qualify by
approve or disapprove, or institute In its filing with the Commission, the achieving CADV that exceeds October
proceedings to determine whether to self-regulatory organization included 2015 volume by at least 0.35% to be
disapprove, the proposed rule change statements concerning the purpose of, eligible for a $0.18 per contract credit.6
(File Number SR–Phlx–2017–34). and basis for, the proposed rule change An OFP that achieves Tier 2 is also
For the Commission, by the Division of and discussed any comments it received eligible to receive a more favorable
Trading and Markets, pursuant to delegated on the proposed rule change. The text $0.19 per contract credit on Electronic
authority.9 of those statements may be examined at Customer Complex Orders.7
the places specified in Item IV below. The Exchange proposes to eliminate
Eduardo A. Aleman,
The Exchange has prepared summaries, Step Up qualifications and to instead
Assistant Secretary. set forth in sections A, B, and C below, provide that OFPs may qualify for ACE
[FR Doc. 2017–19581 Filed 9–14–17; 8:45 am] of the most significant parts of such credits based solely on percentages of
BILLING CODE 8011–01–P statements. monthly TCADV. The Exchange
A. Self-Regulatory Organization’s believes this proposed change would
Statement of the Purpose of, and the provide the opportunity to all Exchange
SECURITIES AND EXCHANGE participants to meet the same
COMMISSION Statutory Basis for, the Proposed Rule
Change reasonable, yet meaningful standard to
qualify for the ACE Program credits.
[Release No. 34–81569; File No. SR– 1. Purpose Thus, as proposed, an OFP that achieves
NYSEAMER–2017–13] The purpose of this filing is to modify monthly CADV of at least 0.40% would
the Fee Schedule, effective September 1, qualify for Tier 1; and an OFP that
Self-Regulatory Organizations; NYSE achieves monthly CADV of greater than
2017. Specifically, the Exchange
American LLC; Notice of Filing and proposes to amend the American 0.75% would qualify for Tier 2.8
Immediate Effectiveness of a Proposed Customer Engagement (‘‘ACE’’) Program Consistent with the change, the
Rule Change To Modify the NYSE to modify various credits offered and to Exchange proposes to modify the Fee
American Options Fee Schedule establish certain credits provided Schedule to reflect that an OFP that
depending on the type of Electronic achieves monthly CADV of less than
September 11, 2017. 0.40% falls within the Base Tier and, as
transactions (e.g., whether it is a simple
Pursuant to Section 19(b)(1) 1 of the or complex execution). The Exchange is the case today, would therefore be
Securities Exchange Act of 1934 (the also proposes to add ‘‘Simple Order’’ to ineligible for ACE credits.9
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 the glossary of defined terms in the Fee 5 The volume thresholds are based on an OFP’s
notice is hereby given that, on Schedule. Customer volume transacted Electronically as a
September 1, 2017, NYSE American Section I.E. of the Fee Schedule percentage of total industry Customer equity and
LLC (the ‘‘Exchange’’ or ‘‘NYSE describes the Exchange’s ACE Program. ETF options volumes as reported by the Options
American’’) filed with the Securities The ACE Program features a base tier Clearing Corporation (the ‘‘OCC’’). See OCC
Monthly Statistics Reports, available here, http://
and Exchange Commission (the and five higher tiers expressed as a www.theocc.com/webapps/monthly-volume-reports.
‘‘Commission’’) the proposed rule percentage of TCADV 4 and provides 6 As an alternative to the Step Up qualification

change as described in Items I, II, and two alternative methods by which Order basis, an OFP may qualify for Tier 2 (and receive
Flow Providers (each an ‘‘OFP’’) may the same $0.18 per contract credit) by achieving
III below, which Items have been greater than 0.75 CADV.
prepared by the self-regulatory receive per contract credits for 7 See Fee Schedule, Section I.E., n. 1 (providing

organization. The Commission is Electronic Customer volume that the that the credit for Customer Complex Orders is
publishing this notice to solicit provided regardless of whether the Complex Order
4 See Fee Schedule, Section I.E., available here, trades against interest in the Complex Order Book
comments on the proposed rule change
mstockstill on DSK30JT082PROD with NOTICES

https://www.nyse.com/publicdocs/nyse/markets/ or with individual orders and quotes in the
from interested persons. american-options/NYSE_American_Options_Fee_ Consolidated Book).
8 See proposed Fee Schedule, Section I.E.
Schedule.pdf. See also Fee Schedule, Key Terms
8 Id. and Definitions (defining TCADV as ‘‘Total Industry 9 The Enhanced Credits are only available to

9 17 CFR 200.30–3(a)(31). Customer equity and ETF option average daily those OFPs who have an Affiliated NYSE American
1 15
volume. TCADV includes OCC calculated Customer Options Market Making firm or an Appointed MM
U.S.C. 78s(b)(1). volume of all types, including Complex Order that has committed to the 1 Year Prepayment
2 15 U.S.C. 78a.
transactions and QCC transactions, in equity and Program, Balance of the Year Program, or the 3 Year
3 17 CFR 240.19b–4. ETF options’’). Continued

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Document Created: 2017-09-15 00:18:13
Document Modified: 2017-09-15 00:18:13

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 43432