82 FR 51313 - Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing of Amendment No. 1, and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To add an Exception to Phlx Rule 1000(f)(iii) for Certain Floor Broker Transactions and add the Snapshot Functionality to the Options Floor Broker Management System
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 212 (November 3, 2017)
Federal Register Volume 82, Issue 212 (November 3, 2017)
| Page Range | 51313-51317 | |
| FR Document | 2017-23926 |
[Federal Register Volume 82, Number 212 (Friday, November 3, 2017)] [Notices] [Pages 51313-51317] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-23926] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81980; File No. SR-Phlx-2017-34] Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing of Amendment No. 1, and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To add an Exception to Phlx Rule 1000(f)(iii) for Certain Floor Broker Transactions and add the Snapshot Functionality to the Options Floor Broker Management System October 30, 2017. I. Introduction On July 18, 2017, Nasdaq PHLX LLC (``Phlx'' or ``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) to permit Floor Brokers to execute (1) multi-leg orders and (2) simple orders in options on Exchange Trade Funds (``ETFs'') that are included in the Options Penny Pilot,\3\ in the [[Page 51314]] trading crowd using ``Snapshot,'' a new functionality Phlx is proposing for its Floor Broker Management System (``FBMS''). The proposed rule change was published for comment in the Federal Register on August 1, 2017.\4\ On September 11, 2017, the Commission extended the time period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to approve or disapprove the proposed rule change to October 30, 2017.\5\ On October 17, 2017, the Exchange filed Amendment No. 1 to the proposed rule change.\6\ The Commission received no comment letters on the proposed rule change. This order provides notice of filing of Amendment No. 1 and approves the proposal, as modified by Amendment No. 1, on an accelerated basis. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Phlx Rule 1034 (defining terms of the Options Penny Pilot). \4\ See Securities Exchange Act Release No. 81230 (July 27, 2016), 82 FR 35858 (``Notice''). \5\ See Securities Exchange Act Release No. 81567, 82 FR 43432 (September 15, 2017). \6\ See Amendment No. 1, dated October 17, 2017 (``Amendment No. 1''). Amendment No. 1 updated the original filing to: (1) Reflect the implementation of the new Snapshot functionality prior to the end of the fourth quarter of 2017; (2) modify the proposal to allow Floor Brokers 30 seconds within which to submit a provisionally executed trade and Snapshot to the Trading System, rather than the 15 seconds that was originally proposed; (3) clarify that if a Snapshot expires, or if the Floor Broker cancels the Snapshot or expects that the Trading System will reject the Snapshot, the Floor Broker must re-announce the order to the trading crowd, provisionally re-execute the order, and take a new Snapshot; (4) further explain how limit orders on the limit order book will interact with the Snapshot functionality; and (5) make conforming changes to Phlx Rule 1064 and Options Floor Procedure Advices and Order and Decorum Regulations C-2 (``Options Floor Procedure Advice C-2'' or ``Advice''). To promote transparency of its proposed amendment, when Phlx filed Amendment No. 1 with the Commission, it also submitted Amendment No. 1 as a comment letter to the file, which the Commission posted on its Web site and placed in the public comment file for SR-Phlx-2017-34 (available at https://www.sec.gov/comments/sr-phlx-2017-34/phlx201734-2642790-161304.pdf). The Exchange also posted a copy of its Amendment No. 1 on its Web site at http://nasdaqphlx.cchwallstreet.com/NASDAQPHLXTools/PlatformViewer.asp?selectednode=chp%5F1%5F1%5F1&manual=%2FNASDAQOMXPHLX%2Ffilings%2Fphlx%2Dfilings%2F) when it filed Amendment No.1 with the Commission. --------------------------------------------------------------------------- II. Description of the Proposal \7\ --------------------------------------------------------------------------- \7\ A more detailed description of the proposal appears in the Notice and in Amendment No. 1. --------------------------------------------------------------------------- A. Proposed Exception to Phlx Rule 1000(f) Currently, Phlx Rule 1000(f) requires that all Exchange options transactions be executed in one of the following three ways: ``(i) [a]utomatically by the [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 [FBMS] for trades involving at least one Floor Broker.'' \8\ Although a Floor Broker may represent orders in the trading crowd, a Floor Broker is not permitted to execute an order in the trading crowd unless one of four exceptions applies.\9\ These exceptions are listed in Phlx Rule 1000(f)(iii)(A)-(D) and permit a Floor Broker to execute orders in the trading crowd (rather than through FBMS) if: (A) There is a problem with the Exchange's systems; (B) the Floor Broker is executing the trade pursuant to Phlx Rule 1059 (``Accommodation Transactions'') or Phlx Rule 1079 (``FLEX Index, Equity and Currency Options''); (C) the transaction involves a multi- leg order with more than 15 legs; or (D) the transaction involves certain types of split-price orders that, due to FBMS system limitations, require manual calculation.\10\ --------------------------------------------------------------------------- \8\ See Phlx Rule 1000(f). \9\ See Phlx Rule 1000(f)(iii). \10\ See Phlx Rule 1000(f)(iii)(A)-(D). --------------------------------------------------------------------------- The Exchange is proposing to add a new exception to Rule 1000(f)(iii).\11\ Proposed Phlx Rule 1000(f)(iii)(E) would permit Floor Brokers to execute multi-leg orders \12\ and simple orders in options on ETFs that are included in the Options Penny Pilot in the trading crowd using ``Snapshot,'' a new functionality that Phlx is proposing to add to FBMS.\13\ --------------------------------------------------------------------------- \11\ See Notice, supra note 4, at 35860 n.7. \12\ As defined in Phlx Rule 1066(f). \13\ See proposed Phlx Rule 1000(f)(iii)(E). --------------------------------------------------------------------------- B. Proposed Snapshot Functionality for FBMS Under the proposal, Phlx would permit a Floor Broker to use the Snapshot functionality at the time the Floor Broker ``provisionally executes'' a trade in the trading crowd that involves a multi-leg order or a simple order in an option on an ETF that is included in the Options Penny Pilot.\14\ For purposes of the proposed Phlx Rule 1000(f)(iii)(E) exception, a ``provisional execution'' would occur in the trading crowd when either (i) the participants to a trade reach a verbal agreement in the trading crowd as to the terms of the trade, or (ii) a Floor Broker announces a cross in accordance with Phlx Rule 1064(a).\15\ --------------------------------------------------------------------------- \14\ See proposed Phlx Rule 1063(e)(v)(A)(1). According to the Exchange, due to system limitations in FBMS, Floor Brokers are not able to use Snapshot to execute Multi-leg Orders with more than 15 legs. See Amendment No. 1, supra note 6, at 6 and 8. \15\ Phlx Rule 1064(a) allows a Floor Broker who holds orders to buy and to sell the same options series the opportunity to cross such orders, provided that he or she satisfies certain requirements. --------------------------------------------------------------------------- According to the Exchange, Snapshot will record the time when a Floor Broker triggers the functionality and the prevailing market conditions for an options class or series,\16\ which includes all information required to determine compliance with priority and trade- through requirements, including the Away Best Bid and Offer, the Exchange Best Bid and Offer, customer orders at the top of the Exchange book, and the best bid and offer of all-or-none orders.\17\ According to the Exchange, the market conditions captured by Snapshot will be derived from the same real-time market information that exists in the Trading System.\18\ At any given time, Phlx would only permit a Floor Broker to have one Snapshot outstanding across all options classes and series.\19\ --------------------------------------------------------------------------- \16\ A Floor Broker ``triggers'' the snapshot by pressing a button in the FBMS and in doing so captures the market conditions that exist at the time when the Floor Broker provisionally executes an order in the trading crowd. See Notice, supra note 4, at 35860- 61. \17\ See proposed Phlx Rule 1063(e)(v). See also Notice, supra note 4, at 35860 n.8. \18\ See Amendment No. 1, supra note 6, at 6-7. \19\ See proposed Phlx Rule 1063(e)(v)(A)(3). --------------------------------------------------------------------------- After a Floor Broker triggers Snapshot and captures the prevailing market conditions, the Floor Broker will have no more than 30 seconds to enter the final terms of the trade into FBMS and then submit the provisional execution (along with the prevailing price and market conditions captured by Snapshot for the options class or series) to the Trading System.\20\ If the Floor Broker fails to submit this information to the Trading System by way of FBMS within 30 seconds, the Snapshot will automatically expire and become unavailable.\21\ --------------------------------------------------------------------------- \20\ See Amendment No. 1, supra note 6, at 8. The Exchange represents that in most instances, 30 seconds will provide ample time for Floor Brokers to enter their trades into FBMS. See id. at 5. \21\ See proposed Phlx Rule 1063(e)(v)(B). See also Amendment No. 1, supra note 6, at 13. The Exchange represents that every time a Floor Broker triggers Snapshot, a record of the Snapshot will be created and retained for audit trail purposes regardless of whether the Floor Broker submits the provisional execution and Snapshot to the Trading System. This record is in addition to the record the Exchange presently creates upon initiation of an order in FBMS. Moreover, according to the Exchange, when a Floor Broker submits a trade subject to a Snapshot to the Trading System and the trade is thereafter reported to the consolidated tape, an additional execution record will be created and retained for audit trail purposes that will contain all of the same details as the other trade records. See Notice, supra note 4, at 35860 n.9. --------------------------------------------------------------------------- After the Trading System receives the provisional execution, Phlx proposes that the Trading System will compare the price and terms of the provisional execution, as entered into FBMS by the Floor Broker, against the prevailing [[Page 51315]] market conditions captured by Snapshot for the options class or series to determine whether the provisional execution is consistent with applicable priority and trade-through rules.\22\ If the price and terms of the provisional execution entered into FBMS by the Floor Broker is consistent with the applicable priority and trade-through rules based on the market conditions reflected in the Snapshot, the Trading System would report the trade to the Consolidated Tape; \23\ if not, the Trading System will reject the provisional execution.\24\ The Exchange represents that its Trading System's automated process for verifying trades for priority and trade-through compliance remains unchanged.\25\ --------------------------------------------------------------------------- \22\ See proposed Phlx Rule 1063(e)(v)(C). \23\ See proposed Phlx Rule 1063(e)(v)(C)(1). \24\ See proposed Phlx Rule 1063(e)(v)(C)(2). See Notice, supra note 4, at 35863. \25\ See Notice, supra note 4, at 35863. --------------------------------------------------------------------------- Phlx proposes that, if an order is present on the Exchange's limit order book that has priority at the time a Floor Broker triggers a Snapshot, the Trading System would not prevent the Floor Broker from capturing the Snapshot; however, the Trading System would reject the provisional execution because the order on the limit order book would have priority.\26\ In these circumstances, Phlx proposes that the Floor Broker must clear the order with priority on the limit order book, re- announce and again provisionally execute the Floor Broker's order, and take a new Snapshot before submitting the new provisional execution and Snapshot to the Trading System for validation.\27\ --------------------------------------------------------------------------- \26\ See proposed Phlx Rule 1063(e)(v)(C)(3). See also Amendment No. 1, supra note 6, at 8. \27\ See id. --------------------------------------------------------------------------- Phlx proposes to allow a Floor Broker to take a new Snapshot when the original Snapshot becomes invalid in the occasional event a provisional execution pursuant to Phlx Rule 1000(f)(iii)(E) does not result in a validated execution in the Trading System; however, the Floor Broker must re-expose the order to the trading crowd before triggering a new Snapshot. Specifically, proposed Phlx Rule 1063(e)(v)(D) would allow a Floor Broker to obtain a new Snapshot if: (1) The original Snapshot expires before the Floor Broker submits the provisional execution to the Trading System; (2) the Trading System rejects a provisional execution that was subject to a Snapshot; or (3) the Floor Broker cancels the Snapshot by taking a new Snapshot or allows the original Snapshot to expire because the Floor Broker anticipates that the Trading System will reject a provisional execution.\28\ In each of these three instances, the Floor Broker must re-announce and provisionally re-execute the order in the trading crowd, and take a new Snapshot before submitting the new provisional execution to the Trading System.\29\ --------------------------------------------------------------------------- \28\ See Amendment No. 1, supra note 6, at 10-12 and 13. The Trading System would reject a provisionally executed order if, for example, there was an order on the limit order book with priority at the time the order was provisionally executed in the trading crowed or the provisionally executed order did not comply with applicable trade-through rules. See Notice, supra note 4, at 35860-61 (providing examples of orders executed using the Snapshot functionality) and Amendment No. 1, supra note 6, at 10-12 (providing examples of when a Floor Broker would be permitted to take a new Snapshot). \29\ In this instance, triggering a new Snapshot would cause a new 30-second Snapshot timer to begin, and the Floor Broker must submit the new provisionally executed trade and Snapshot to the Trading System before the end of that 30-second timer. See Amendment No. 1, supra note 6, at 10-12. --------------------------------------------------------------------------- Phlx is proposing Phlx Rule 1063(e)(v)(A)(2), and amending Options Floor Procedure Advice C-2 to specify, that ``[a] Floor Broker is prohibited from triggering the Snapshot feature for the purpose of obtaining favorable priority or trade-through conditions or avoiding unfavorable priority or trade-through conditions.'' \30\ According to the Exchange, conduct that would violate this Advice includes repeated instances in which Floor Brokers cancel, or permit valid Snapshots to expire, without submitting trades subject to Snapshots to the Trading System for verification and reporting to the consolidated tape. According to the Exchange, violations would also include repeated instances in which a Floor Broker takes more time than is reasonably necessary under the circumstances to submit provisional executions to the Trading System that are subject to valid Snapshots.\31\ The Exchange notes that it expects Floor Brokers to submit a provisional execution that is subject to a Snapshot as quickly as possible, notwithstanding the existence of the 30-second time frame within which to do so, and notes that, in most instances, it should not require a full 30 seconds for a Floor Broker to submit a simple trade or a cross to the Trading System.\32\ The Exchange represents that its Surveillance Staff will monitor Floor Brokers' use of the Snapshot functionality and the Exchange will take appropriate action if it determines Floor Brokers are abusing the functionality.\33\ --------------------------------------------------------------------------- \30\ See proposed Phlx Rule 1063(e)(v)(A)(2) and Options Floor Procedure Advice C-2. \31\ See Amendment No. 1, supra note 6, at 9 and 12. \32\ See id. at 9. \33\ See Notice, supra note 4, at 35860. See Amendment No. 1, supra note 6, at 9 and 12. --------------------------------------------------------------------------- The Exchange proposes to make the Snapshot functionality available to its Floor Brokers during the fourth quarter of 2017. The Exchange represents that it will notify members via an Options Trader Alert, which will be posted on the Exchange's Web site, at least seven calendar days prior to the date on which the Snapshot functionality will be available for use.\34\ --------------------------------------------------------------------------- \34\ See Amendment No. 1, supra note 6, at 12. --------------------------------------------------------------------------- III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change, as modified by Amendment No. 1, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.\35\ In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,\36\ which requires, among other things, that the rules of a national securities exchange be designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities and, in general, to protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \35\ In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \36\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Commission notes that the Exchange's rules require Floor Brokers to execute transactions through FBMS and prohibit Floor Brokers from executing orders in the trading crowd unless an exception applies.\37\ According to the Exchange, however, transactions involving multi-leg orders and simple orders in options on ETFs in the Options Penny Pilot that a Floor Broker submits through FBMS are at a heightened risk of failing to execute when market conditions change between the time when Floor Brokers and participants in the crowd agree upon the terms of the trade and the time when the Trading System receives the trade for verification and execution. In these circumstances, the Trading System would reject the Floor Broker's trade because it is inconsistent with the Exchange's priority or trade- through rules.\38\ To mitigate this risk, the new exception under Phlx Rule 1000(f)(iii)(E) is designed to permit Floor Brokers to use the Snapshot [[Page 51316]] functionality to execute two types of orders in the trading crowd that they may not otherwise be able to execute successfully under certain market conditions given the requirements of Phlx Rule 1000(f). --------------------------------------------------------------------------- \37\ See Phlx Rule 1000(f). \38\ See Notice, supra note 4, at 35859. --------------------------------------------------------------------------- The Commission notes that the Exchange is proposing several measures to help ensure that Snapshot operates, and is used by Floor Brokers, in a manner that is consistent with the Exchange Act and Phlx rules. First, Snapshot is designed to capture the market conditions for the options class or series at the time of the provisional execution, which will be the time of execution that the Trading System will use when verifying the price and terms of the provisional execution, as entered into FBMS by the Floor Broker, for compliance with applicable priority rules of the Exchange and the trade-through rules of the Options Order Protection and Locked/Crossed Market Plan.\39\ --------------------------------------------------------------------------- \39\ See Notice, supra note 4, at 35862-63. The Options Order Protection and Locked/Crossed Market Plan is available at http://www.optionsclearing.com/components/docs/clearing/services/options_order_protection_plan.pdf. The Commission notes that the Exchange represents that the market conditions provided by Snapshot are derived from the same real-time market conditions that exist in the Trading System and that Snapshot will contain all information necessary for the Trading System to determine that a provisional execution is consistent with applicable priority and trade-through rules. See Amendment No. 1, supra note 6, at 6-7. --------------------------------------------------------------------------- Second, the Exchange has designed Snapshot so that the price and market conditions captured for the options class or series will expire within 30 seconds after the Floor Broker triggers it, and so that a Floor Broker will only be allowed to have one Snapshot outstanding across all options classes and series at any given time.\40\ As stated above, the Exchange anticipates that Floor Brokers will enter their provisional executions as quickly as possible, notwithstanding the availability of Snapshot and the 30-second Snapshot timer, and in most instances, 30 seconds will provide ample time for Floor Brokers to enter provisional executions into FBMS.\41\ --------------------------------------------------------------------------- \40\ See Notice, supra note 4, at 35861. The Exchange notes that the limitation to only allow Floor Brokers to have one Snapshot outstanding at any given time across options classes and series should contribute to preventing Floor Brokers from engaging in excessive use of and abuse of Snapshot. See Notice, supra note 4, at 35861. \41\ See Amendment No. 1, supra note 6, at 5 and 7. --------------------------------------------------------------------------- Third, to the extent that a Snapshot expires, the Trading System rejects a provisional execution, or the Floor Broker cancels or permits a Snapshot to expire, the Floor Broker must re-announce and provisionally execute the order again in the trading crowd before taking a new Snapshot. Fourth, the Exchange represents that all relevant trade data resulting from executions pursuant to proposed Phlx Rule 1000(f)(iii)(E) will be recorded in both Snapshot and on a separate execution record, which will be created once the trade is reported to the consolidated tape.\42\ --------------------------------------------------------------------------- \42\ See Notice, supra note 4, at 35860 n.9. See also supra note 21. --------------------------------------------------------------------------- Finally, the Commission notes that the Exchange's rule will prohibit Floor Brokers from triggering Snapshot for the purpose of obtaining favorable, or avoiding unfavorable, priority or trade-through conditions. In addition, the Exchange represents that its surveillance staff will monitor Floor Brokers for excessive use or abuse for the Snapshot functionality (e.g., repeated expirations or cancellations of the Snapshot) and it will take appropriate action if it determines such instances are occurring.\43\ --------------------------------------------------------------------------- \43\ See Amendment No. 1, supra note 6, at 9 and 12. --------------------------------------------------------------------------- For the foregoing reasons, the Commission finds that the proposed rule change, as modified by Amendment No. 1, is consistent with Section 6(b)(5) of the Act and the rules and regulations thereunder applicable to national securities exchanges. IV. Solicitation of Comments on Amendment No. 1 to the Proposed Rule Change Interested persons are invited to submit written data, views, and arguments concerning whether Amendment No. 1 to 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 rule-comments@sec.gov. Please include File No. SR-Phlx-2017-34 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File No. SR-Phlx-2017-34. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing will also be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR-Phlx-2017-34 and should be submitted on or before November 24, 2017. V. Accelerated Approval of Proposed Rule Change, as Modified by Amendment No. 1 The Commission finds good cause to approve the proposed rule change, as modified by Amendment No. 1, prior to the thirtieth day after the date of publication of notice of the amended proposal in the Federal Register. As described above, in Amendment No. 1, Phlx (1) updated its proposal to state that the new Snapshot functionality will be made available prior to the end of the fourth quarter of 2017; (2) modified the proposal to allow Floor Brokers 30 seconds within which to submit a provisionally executed trade and Snapshot to the Trading System, rather than the 15 seconds that was originally proposed; (3) further explained how limit orders on the limit order book will interact with the Snapshot functionality; (4) clarified the circumstances when a new Snapshot may be taken and the conditions for doing so; and (5) made conforming changes to Phlx Rule 1064 and Options Floor Procedure Advice C-2.\44\ The Commission believes that Amendment No. 1 provided additional specificity regarding the new proposed exception in Phlx Rule 1000(f)(iii) and the operation of the Snapshot functionality. Specifically, Amendment [[Page 51317]] No. 1 eliminated the concept of ``refreshing'' a Snapshot and instead clarified the specific circumstances in which a Floor Broker will be permitted to take a new Snapshot and the conditions that must be satisfied to do so (e.g., re-announcing the order to the trading crowd and provisionally re-executing the order). The Exchange states that the changes in Amendment No. 1 simplify the proposal and will make it easier for the Exchange to administer and surveil the use of the Snapshot functionality.\45\ In addition, the Commission notes that the changes may create additional opportunities for orders to interact in the trading crowd in those occasional instances when a provisional execution pursuant to Phlx Rule 1000(f)(iii)(E) does not result in a validated execution in the Trading System. Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act,\46\ to approve the proposed rule change, as modified by Amendment No. 1, on an accelerated basis. --------------------------------------------------------------------------- \44\ See Amendment No. 1, supra note 6, at 3-7. \45\ See id. at 5-6. \46\ 15 U.S.C. 78s(b)(2) --------------------------------------------------------------------------- VI. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\47\ that the proposed rule change (SR-Phlx-2017-34), as modified by Amendment No. 1, be, and it hereby is, approved on an accelerated basis. --------------------------------------------------------------------------- \47\ 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\48\ --------------------------------------------------------------------------- \48\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-23926 Filed 11-2-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 212 / Friday, November 3, 2017 / Notices 51313
typographical errors and corrects errors significant burden on competition; and available for Web site viewing and
in the hierarchical heading scheme to (iii) by its terms, does not become printing in the Commission’s Public
provide uniformity in the Exchange’s operative for 30 days after the date of Reference Room, 100 F Street NE.,
rulebook. The Exchange notes that the the filing, or such shorter time as the Washington, DC 20549, on official
proposed changes to Exchange Rule 700, Commission may designate if consistent business days between the hours of
Exercise of Option Contracts; Rule 1322, with the protection of investors and the 10:00 a.m. and 3:00 p.m. Copies of the
Options Communications; and Rule 517, public interest.9 filing also will be available for
Quote Types Defined do not alter the At any time within 60 days of the inspection and copying at the principal
application of each rule. As such, the filing of the proposed rule change, the office of the Exchange. All comments
proposed amendments would foster Commission summarily may received will be posted without change.
cooperation and coordination with temporarily suspend such rule change if Persons submitting comments are
persons engaged in facilitating it appears to the Commission that such cautioned that we do not redact or edit
transactions in securities and would action is necessary or appropriate in the personal identifying information from
remove impediments to and perfect the public interest, for the protection of comment submissions. You should
mechanism of a free and open market investors, or otherwise in furtherance of submit only information that you wish
and a national exchange system. In the purposes of the Act. to make available publicly. All
particular, the Exchange believes that submissions should refer to File
the proposed changes will provide IV. Solicitation of Comments
Number SR–MIAX–2017–43 and should
greater clarity to Members 6 and the Interested persons are invited to be submitted on or before November 24,
public regarding the Exchange’s Rules. submit written data, views, and 2017.
It is in the public interest for rules to be arguments concerning the foregoing, For the Commission, by the Division of
accurate and concise so as to eliminate including whether the proposed rule Trading and Markets, pursuant to delegated
the potential for confusion. change is consistent with the Act. authority.10
Comments may be submitted by any of Eduardo A. Aleman,
B. Self-Regulatory Organization’s
the following methods: Assistant Secretary.
Statement on Burden on Competition
MIAX Options does not believe that Electronic Comments [FR Doc. 2017–23922 Filed 11–2–17; 8:45 am]
the proposed rule change will impose • Use the Commission’s Internet BILLING CODE 8011–01–P
any burden on competition not comment form (http://www.sec.gov/
necessary or appropriate in furtherance rules/sro.shtml); or
SECURITIES AND EXCHANGE
of the purposes of the Act. The • Send an email to rule-comments@
proposed rule change will have no COMMISSION
sec.gov. Please include File Number SR–
impact on competition as it is not MIAX–2017–43 on the subject line.
designed to address any competitive [Release No. 34–81980; File No. SR–Phlx–
issues but rather is designed to add Paper Comments 2017–34]
additional clarity to existing rules and • Send paper comments in triplicate Self-Regulatory Organizations; Nasdaq
to remedy minor non-substantive issues to Secretary, Securities and Exchange PHLX LLC; Notice of Filing of
in the text of various rules identified in Commission, 100 F Street NE., Amendment No. 1, and Order Granting
this proposal. Washington, DC 20549–1090. Accelerated Approval of a Proposed
The Exchange does not believe that All submissions should refer to File Rule Change, as Modified by
the proposed rule change will impose Number SR–MIAX–2017–43. This file Amendment No. 1, To add an
any burden on intermarket competition number should be included on the Exception to Phlx Rule 1000(f)(iii) for
as the Rules apply equally to all subject line if email is used. To help the Certain Floor Broker Transactions and
Exchange Members. Commission process and review your add the Snapshot Functionality to the
C. Self-Regulatory Organization’s comments more efficiently, please use Options Floor Broker Management
Statement on Comments on the only one method. The Commission will System
Proposed Rule Change Received From post all comments on the Commission’s
Internet Web site (http://www.sec.gov/ October 30, 2017.
Members, Participants, or Others
rules/sro.shtml). Copies of the I. Introduction
Written comments were neither
submission, all subsequent
solicited nor received. On July 18, 2017, Nasdaq PHLX LLC
amendments, all written statements
III. Date of Effectiveness of the with respect to the proposed rule (‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Proposed Rule Change and Timing for change that are filed with the Securities and Exchange Commission
Commission Action Commission, and all written (‘‘Commission’’), pursuant to Section
communications relating to the 19(b)(1) of the Securities Exchange Act
Pursuant to Section 19(b)(3)(A) of the of 1934 (‘‘Act’’) 1 and Rule 19b–4
Act 7 and Rule 19b–4(f)(6) 8 thereunder, proposed rule change between the
Commission and any person, other than thereunder,2 a proposed rule change to
the Exchange has designated this add an exception to Phlx Rule
proposal as one that effects a change those that may be withheld from the
public in accordance with the 1000(f)(iii) to permit Floor Brokers to
that: (i) Does not significantly affect the execute (1) multi-leg orders and (2)
protection of investors or the public provisions of 5 U.S.C. 552, will be
simple orders in options on Exchange
interest; (ii) does not impose any Trade Funds (‘‘ETFs’’) that are included
ethrower on DSK3G9T082PROD with NOTICES
9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
6 The
4(f)(6)(iii) requires a self-regulatory organization to in the Options Penny Pilot,3 in the
term ‘‘Member’’ means an individual or give the Commission written notice of its intent to
organization approved to exercise the trading rights file the proposed rule change, along with a brief 10 17CFR 200.30–3(a)(12).
associated with a Trading Permit. Members are description and the text of the proposed rule
deemed ‘‘members’’ under the Exchange Act. See change, at least five business days prior to the date
1 15U.S.C. 78s(b)(1).
Exchange Rule 100. of filing of the proposed rule change, or such 2 17 CFR 240.19b–4.
7 15 U.S.C. 78s(b)(3)(A).
shorter time as designated by the Commission. The 3 See Phlx Rule 1034 (defining terms of the
8 17 CFR 240.19b–4(f)(6). Exchange has satisfied this requirement. Options Penny Pilot).
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![51314 Federal Register / Vol. 82, No. 212 / Friday, November 3, 2017 / Notices
trading crowd using ‘‘Snapshot,’’ a new Exchange’s options trading crowd none According to the Exchange, Snapshot
functionality Phlx is proposing for its of whom is a Floor Broker; or (iii) will record the time when a Floor
Floor Broker Management System through the Options [FBMS] for trades Broker triggers the functionality and the
(‘‘FBMS’’). The proposed rule change involving at least one Floor Broker.’’ 8 prevailing market conditions for an
was published for comment in the Although a Floor Broker may represent options class or series,16 which includes
Federal Register on August 1, 2017.4 On orders in the trading crowd, a Floor all information required to determine
September 11, 2017, the Commission Broker is not permitted to execute an compliance with priority and trade-
extended the time period within which order in the trading crowd unless one of through requirements, including the
to approve the proposed rule change, four exceptions applies.9 These Away Best Bid and Offer, the Exchange
disapprove the proposed rule change, or exceptions are listed in Phlx Rule Best Bid and Offer, customer orders at
institute proceedings to determine 1000(f)(iii)(A)–(D) and permit a Floor the top of the Exchange book, and the
whether to approve or disapprove the Broker to execute orders in the trading best bid and offer of all-or-none
proposed rule change to October 30, crowd (rather than through FBMS) if: orders.17 According to the Exchange, the
2017.5 On October 17, 2017, the (A) There is a problem with the market conditions captured by Snapshot
Exchange filed Amendment No. 1 to the Exchange’s systems; (B) the Floor Broker will be derived from the same real-time
proposed rule change.6 The Commission is executing the trade pursuant to Phlx market information that exists in the
received no comment letters on the Rule 1059 (‘‘Accommodation Trading System.18 At any given time,
proposed rule change. This order Transactions’’) or Phlx Rule 1079 Phlx would only permit a Floor Broker
provides notice of filing of Amendment (‘‘FLEX Index, Equity and Currency to have one Snapshot outstanding across
No. 1 and approves the proposal, as Options’’); (C) the transaction involves a all options classes and series.19
modified by Amendment No. 1, on an multi-leg order with more than 15 legs; After a Floor Broker triggers Snapshot
accelerated basis. or (D) the transaction involves certain and captures the prevailing market
types of split-price orders that, due to conditions, the Floor Broker will have
II. Description of the Proposal 7 no more than 30 seconds to enter the
FBMS system limitations, require
A. Proposed Exception to Phlx Rule manual calculation.10 final terms of the trade into FBMS and
1000(f) then submit the provisional execution
The Exchange is proposing to add a (along with the prevailing price and
Currently, Phlx Rule 1000(f) requires new exception to Rule 1000(f)(iii).11 market conditions captured by Snapshot
that all Exchange options transactions Proposed Phlx Rule 1000(f)(iii)(E) for the options class or series) to the
be executed in one of the following would permit Floor Brokers to execute Trading System.20 If the Floor Broker
three ways: ‘‘(i) [a]utomatically by the multi-leg orders 12 and simple orders in fails to submit this information to the
[Trading System] pursuant to [Phlx] options on ETFs that are included in the Trading System by way of FBMS within
Rule 1080 and other applicable options Options Penny Pilot in the trading 30 seconds, the Snapshot will
rules; (ii) by and among members in the crowd using ‘‘Snapshot,’’ a new automatically expire and become
functionality that Phlx is proposing to unavailable.21
4 See Securities Exchange Act Release No. 81230
add to FBMS.13 After the Trading System receives the
(July 27, 2016), 82 FR 35858 (‘‘Notice’’).
5 See Securities Exchange Act Release No. 81567, B. Proposed Snapshot Functionality for provisional execution, Phlx proposes
82 FR 43432 (September 15, 2017). FBMS that the Trading System will compare
6 See Amendment No. 1, dated October 17, 2017 the price and terms of the provisional
(‘‘Amendment No. 1’’). Amendment No. 1 updated Under the proposal, Phlx would execution, as entered into FBMS by the
the original filing to: (1) Reflect the implementation permit a Floor Broker to use the
of the new Snapshot functionality prior to the end
Floor Broker, against the prevailing
of the fourth quarter of 2017; (2) modify the Snapshot functionality at the time the
proposal to allow Floor Brokers 30 seconds within Floor Broker ‘‘provisionally executes’’ a provided that he or she satisfies certain
which to submit a provisionally executed trade and trade in the trading crowd that involves requirements.
Snapshot to the Trading System, rather than the 15 16 A Floor Broker ‘‘triggers’’ the snapshot by
a multi-leg order or a simple order in an pressing a button in the FBMS and in doing so
seconds that was originally proposed; (3) clarify
that if a Snapshot expires, or if the Floor Broker option on an ETF that is included in the captures the market conditions that exist at the time
cancels the Snapshot or expects that the Trading Options Penny Pilot.14 For purposes of when the Floor Broker provisionally executes an
System will reject the Snapshot, the Floor Broker the proposed Phlx Rule 1000(f)(iii)(E) order in the trading crowd. See Notice, supra note
must re-announce the order to the trading crowd, 4, at 35860–61.
exception, a ‘‘provisional execution’’ 17 See proposed Phlx Rule 1063(e)(v). See also
provisionally re-execute the order, and take a new
Snapshot; (4) further explain how limit orders on would occur in the trading crowd when Notice, supra note 4, at 35860 n.8.
the limit order book will interact with the Snapshot either (i) the participants to a trade 18 See Amendment No. 1, supra note 6, at 6–7.
functionality; and (5) make conforming changes to reach a verbal agreement in the trading 19 See proposed Phlx Rule 1063(e)(v)(A)(3).
Phlx Rule 1064 and Options Floor Procedure crowd as to the terms of the trade, or (ii) 20 See Amendment No. 1, supra note 6, at 8. The
Advices and Order and Decorum Regulations C–2 Exchange represents that in most instances, 30
(‘‘Options Floor Procedure Advice C–2’’ or a Floor Broker announces a cross in
seconds will provide ample time for Floor Brokers
‘‘Advice’’). To promote transparency of its proposed accordance with Phlx Rule 1064(a).15 to enter their trades into FBMS. See id. at 5.
amendment, when Phlx filed Amendment No. 1 21 See proposed Phlx Rule 1063(e)(v)(B). See also
with the Commission, it also submitted 8 See Phlx Rule 1000(f). Amendment No. 1, supra note 6, at 13. The
Amendment No. 1 as a comment letter to the file, 9 See Phlx Rule 1000(f)(iii). Exchange represents that every time a Floor Broker
which the Commission posted on its Web site and 10 See Phlx Rule 1000(f)(iii)(A)–(D). triggers Snapshot, a record of the Snapshot will be
placed in the public comment file for SR–Phlx– 11 See Notice, supra note 4, at 35860 n.7. created and retained for audit trail purposes
2017–34 (available at https://www.sec.gov/ regardless of whether the Floor Broker submits the
12 As defined in Phlx Rule 1066(f).
comments/sr-phlx-2017-34/phlx201734-2642790- provisional execution and Snapshot to the Trading
13 See proposed Phlx Rule 1000(f)(iii)(E).
161304.pdf). The Exchange also posted a copy of its System. This record is in addition to the record the
ethrower on DSK3G9T082PROD with NOTICES
Amendment No. 1 on its Web site at http:// 14 See proposed Phlx Rule 1063(e)(v)(A)(1).
Exchange presently creates upon initiation of an
nasdaqphlx.cchwallstreet.com/NASDAQPHLXTools According to the Exchange, due to system order in FBMS. Moreover, according to the
/PlatformViewer limitations in FBMS, Floor Brokers are not able to Exchange, when a Floor Broker submits a trade
.asp?selectednode=chp%5F1%5F1%5F1& use Snapshot to execute Multi-leg Orders with more subject to a Snapshot to the Trading System and the
manual=%2FNASDAQOMXPHLX%2Ffilings than 15 legs. See Amendment No. 1, supra note 6, trade is thereafter reported to the consolidated tape,
%2Fphlx%2Dfilings%2F) when it filed Amendment at 6 and 8. an additional execution record will be created and
No.1 with the Commission. 15 Phlx Rule 1064(a) allows a Floor Broker who retained for audit trail purposes that will contain all
7 A more detailed description of the proposal holds orders to buy and to sell the same options of the same details as the other trade records. See
appears in the Notice and in Amendment No. 1. series the opportunity to cross such orders, Notice, supra note 4, at 35860 n.9.
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![Federal Register / Vol. 82, No. 212 / Friday, November 3, 2017 / Notices 51315
market conditions captured by Snapshot execution.28 In each of these three The Exchange proposes to make the
for the options class or series to instances, the Floor Broker must re- Snapshot functionality available to its
determine whether the provisional announce and provisionally re-execute Floor Brokers during the fourth quarter
execution is consistent with applicable the order in the trading crowd, and take of 2017. The Exchange represents that it
priority and trade-through rules.22 If the a new Snapshot before submitting the will notify members via an Options
price and terms of the provisional new provisional execution to the Trader Alert, which will be posted on
execution entered into FBMS by the Trading System.29 the Exchange’s Web site, at least seven
Floor Broker is consistent with the Phlx is proposing Phlx Rule calendar days prior to the date on which
applicable priority and trade-through 1063(e)(v)(A)(2), and amending Options the Snapshot functionality will be
rules based on the market conditions Floor Procedure Advice C–2 to specify, available for use.34
reflected in the Snapshot, the Trading that ‘‘[a] Floor Broker is prohibited from
triggering the Snapshot feature for the III. Discussion and Commission
System would report the trade to the
purpose of obtaining favorable priority Findings
Consolidated Tape; 23 if not, the Trading
System will reject the provisional or trade-through conditions or avoiding After careful review, the Commission
execution.24 The Exchange represents unfavorable priority or trade-through finds that the proposed rule change, as
that its Trading System’s automated conditions.’’ 30 According to the modified by Amendment No. 1, is
process for verifying trades for priority Exchange, conduct that would violate consistent with the requirements of the
and trade-through compliance remains this Advice includes repeated instances Act and the rules and regulations
unchanged.25 in which Floor Brokers cancel, or permit thereunder applicable to a national
Phlx proposes that, if an order is valid Snapshots to expire, without securities exchange.35 In particular, the
present on the Exchange’s limit order submitting trades subject to Snapshots Commission finds that the proposed
book that has priority at the time a Floor to the Trading System for verification rule change is consistent with Section
Broker triggers a Snapshot, the Trading and reporting to the consolidated tape. 6(b)(5) of the Act,36 which requires,
System would not prevent the Floor According to the Exchange, violations among other things, that the rules of a
Broker from capturing the Snapshot; would also include repeated instances national securities exchange be
however, the Trading System would in which a Floor Broker takes more time designed to promote just and equitable
reject the provisional execution because than is reasonably necessary under the principles of trade, to foster cooperation
the order on the limit order book would circumstances to submit provisional and coordination with persons engaged
have priority.26 In these circumstances, executions to the Trading System that in regulating, clearing, settling,
Phlx proposes that the Floor Broker are subject to valid Snapshots.31 The processing information with respect to,
must clear the order with priority on the Exchange notes that it expects Floor and facilitating transactions in securities
limit order book, re-announce and again Brokers to submit a provisional and, in general, to protect investors and
provisionally execute the Floor Broker’s execution that is subject to a Snapshot the public interest, and not be designed
order, and take a new Snapshot before as quickly as possible, notwithstanding to permit unfair discrimination between
submitting the new provisional the existence of the 30-second time customers, issuers, brokers, or dealers.
execution and Snapshot to the Trading frame within which to do so, and notes The Commission notes that the
System for validation.27 that, in most instances, it should not Exchange’s rules require Floor Brokers
Phlx proposes to allow a Floor Broker require a full 30 seconds for a Floor to execute transactions through FBMS
to take a new Snapshot when the Broker to submit a simple trade or a and prohibit Floor Brokers from
original Snapshot becomes invalid in cross to the Trading System.32 The executing orders in the trading crowd
the occasional event a provisional Exchange represents that its unless an exception applies.37
execution pursuant to Phlx Rule Surveillance Staff will monitor Floor According to the Exchange, however,
1000(f)(iii)(E) does not result in a Brokers’ use of the Snapshot transactions involving multi-leg orders
validated execution in the Trading functionality and the Exchange will take and simple orders in options on ETFs in
System; however, the Floor Broker must appropriate action if it determines Floor the Options Penny Pilot that a Floor
re-expose the order to the trading crowd Brokers are abusing the functionality.33 Broker submits through FBMS are at a
before triggering a new Snapshot. heightened risk of failing to execute
Specifically, proposed Phlx Rule 28 See Amendment No. 1, supra note 6, at 10–12 when market conditions change
1063(e)(v)(D) would allow a Floor and 13. The Trading System would reject a between the time when Floor Brokers
provisionally executed order if, for example, there and participants in the crowd agree
Broker to obtain a new Snapshot if: (1) was an order on the limit order book with priority
The original Snapshot expires before the at the time the order was provisionally executed in upon the terms of the trade and the time
Floor Broker submits the provisional the trading crowed or the provisionally executed when the Trading System receives the
execution to the Trading System; (2) the order did not comply with applicable trade-through trade for verification and execution. In
rules. See Notice, supra note 4, at 35860–61
Trading System rejects a provisional (providing examples of orders executed using the
these circumstances, the Trading
execution that was subject to a Snapshot functionality) and Amendment No. 1, System would reject the Floor Broker’s
Snapshot; or (3) the Floor Broker supra note 6, at 10–12 (providing examples of when trade because it is inconsistent with the
cancels the Snapshot by taking a new a Floor Broker would be permitted to take a new Exchange’s priority or trade-through
Snapshot).
Snapshot or allows the original 29 In this instance, triggering a new Snapshot rules.38 To mitigate this risk, the new
Snapshot to expire because the Floor would cause a new 30-second Snapshot timer to exception under Phlx Rule
Broker anticipates that the Trading begin, and the Floor Broker must submit the new 1000(f)(iii)(E) is designed to permit
System will reject a provisional provisionally executed trade and Snapshot to the Floor Brokers to use the Snapshot
Trading System before the end of that 30-second
ethrower on DSK3G9T082PROD with NOTICES
timer. See Amendment No. 1, supra note 6, at 10–
22 See proposed Phlx Rule 1063(e)(v)(C). 34 See Amendment No. 1, supra note 6, at 12.
12.
23 See proposed Phlx Rule 1063(e)(v)(C)(1). 30 See proposed Phlx Rule 1063(e)(v)(A)(2) and 35 Inapproving this proposed rule change, the
24 See proposed Phlx Rule 1063(e)(v)(C)(2). See Options Floor Procedure Advice C–2. Commission has considered the proposed rule’s
Notice, supra note 4, at 35863. 31 See Amendment No. 1, supra note 6, at 9 and impact on efficiency, competition, and capital
25 See Notice, supra note 4, at 35863. 12. formation. See 15 U.S.C. 78c(f).
26 See proposed Phlx Rule 1063(e)(v)(C)(3). See 32 See id. at 9. 36 15 U.S.C. 78f(b)(5).
also Amendment No. 1, supra note 6, at 8. 33 See Notice, supra note 4, at 35860. See 37 See Phlx Rule 1000(f).
27 See id. Amendment No. 1, supra note 6, at 9 and 12. 38 See Notice, supra note 4, at 35859.
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![Federal Register / Vol. 82, No. 212 / Friday, November 3, 2017 / Notices 51317
No. 1 eliminated the concept of ‘‘Act’’),1 and Rule 19b–4 thereunder,2 A. Self-Regulatory Organization’s
‘‘refreshing’’ a Snapshot and instead notice is hereby given that on October Statement of the Purpose of, and
clarified the specific circumstances in 19, 2017, C2 Options Exchange, Statutory Basis for, the Proposed Rule
which a Floor Broker will be permitted Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) Change
to take a new Snapshot and the filed with the Securities and Exchange
conditions that must be satisfied to do 1. Purpose
Commission (the ‘‘Commission’’) the
so (e.g., re-announcing the order to the proposed rule change as described in Background
trading crowd and provisionally re- Items I, II, and III below, which Items The purpose of this filing is to reflect
executing the order). The Exchange have been prepared by the Exchange. in the Exchange’s governing documents
states that the changes in Amendment (and the governing documents of its
The Commission is publishing this
No. 1 simplify the proposal and will parent company, CBOE Holdings) and
notice to solicit comments on the
make it easier for the Exchange to the Exchange’s rulebook and fees
administer and surveil the use of the proposed rule change from interested
persons. schedules, a non-substantive corporate
Snapshot functionality.45 In addition,
branding change, including changes to
the Commission notes that the changes I. Self-Regulatory Organization’s the Company’s name and the
may create additional opportunities for Statement of the Terms of Substance of Exchange’s name.3 Particularly,
orders to interact in the trading crowd the Proposed Rule Change references to Company’s and Exchange’s
in those occasional instances when a names will be deleted and revised to
provisional execution pursuant to Phlx The Exchange filed a proposed rule state the new names, as described more
Rule 1000(f)(iii)(E) does not result in a change with respect to amendments of fully below. No other substantive
validated execution in the Trading the Second Amended and Restated changes are being proposed in this
System. Accordingly, the Commission Certificate of Incorporation (the filing. The Exchange represents that
finds good cause, pursuant to Section ‘‘Company’s Certificate’’) and Third these changes are concerned solely with
19(b)(2) of the Act,46 to approve the Amended and Restated Bylaws (the the administration of the Exchange and
proposed rule change, as modified by ‘‘Company’s Bylaws’’) of its parent do not affect the meaning,
Amendment No. 1, on an accelerated corporation, CBOE Holdings, Inc. administration, or enforcement of any
basis. (‘‘CBOE Holdings’’ or the ‘‘Company’’) rules of the Exchange or the rights,
VI. Conclusion to change the name of the Company to obligations, or privileges of Exchange
It is therefore ordered, pursuant to Cboe Global Markets, Inc. The Exchange members or their associated persons is
Section 19(b)(2) of the Act,47 that the also proposes to amend its Fourth [sic] any way. Accordingly, this filing is
proposed rule change (SR–Phlx–2017– Amended and Restated Certificate of being submitted under Rule 19b–4(f)(3).
34), as modified by Amendment No. 1, Incorporation (the ‘‘Exchange In lieu of providing a copy of the
be, and it hereby is, approved on an Certificate’’), Eighth Amended and marked name changes, the Exchange
accelerated basis. Restated Bylaws of C2 Options represents that it will make the
Exchange, Incorporated (the ‘‘Exchange necessary non-substantive revisions
For the Commission, by the Division of described below to the Exchange’s
Trading and Markets, pursuant to delegated Bylaws’’), rulebook and fees schedules
authority.48 (collectively ‘‘operative documents’’) in corporate governance documents,
connection with the name change of its rulebook, and fees schedules, and post
Eduardo A. Aleman,
parent Company and the Exchange. updated versions of each on the
Assistant Secretary.
Exchange’s Web site pursuant to Rule
[FR Doc. 2017–23926 Filed 11–2–17; 8:45 am] The text of the proposed rule change 19b–4(m)(2).
BILLING CODE 8011–01–P is also available on the Exchange’s Web
site (http://www.c2exchange.com/Legal/ The Company’s Name Change
), at the Exchange’s Office of the In connection with the corporate
SECURITIES AND EXCHANGE Secretary, and at the Commission’s name change of its parent company, the
COMMISSION Public Reference Room. Exchange is proposing to amend the
[Release No. 34–81979; File No. SR–C2– Company’s Certificate and Bylaws.
2017–028] II. Self-Regulatory Organization’s Specifically, the Company is changing
Statement of the Purpose of, and its name from ‘‘CBOE Holdings, Inc.’’ to
Self-Regulatory Organizations; C2 Statutory Basis for, the Proposed Rule ‘‘Cboe Global Markets, Inc.’’
Options Exchange, Incorporated; Change
Notice of Filing and Immediate (a) Company’s Certificate
Effectiveness of a Proposed Rule In its filing with the Commission, the
The Exchange proposes to (i) delete
Change Relating To Reflect in the Exchange included statements the following language from Paragraph
Exchange’s Governing Documents, concerning the purpose of and basis for (1) of the introductory paragraph: ‘‘The
Rulebook and Fees Schedules, a Non- the proposed rule change and discussed name of the Corporation is CBOE
Substantive Corporate Branding any comments it received on the Holdings, Inc.’’ and (ii) amend Article
Change, Including Changes to the proposed rule change. The text of these First of the Company’s Certificate to
Company’s Name, the Intermediate’s statements may be examined at the reflect the new name, ‘‘Cboe Global
Name, and the Exchange’s Name places specified in Item IV below. The Markets, Inc.’’. The Exchange also
Exchange has prepared summaries, set proposes to add clarifying language and
October 30, 2017.
ethrower on DSK3G9T082PROD with NOTICES
forth in sections A, B, and C below, of cite to the applicable provisions of the
Pursuant to Section 19(b)(1) of the
the most significant aspects of such General Corporation Law of the State of
Securities Exchange Act of 1934 (the
statements.
3 The Exchange initially filed the proposed rule
45 See id. at 5–6. changes on October 16, 2017 (SR–C2–2017–027).
46 15 U.S.C. 78s(b)(2) On October 19, 2017 the Exchange withdrew SR–
47 15 U.S.C. 78s(b)(2). 1 15 U.S.C. 78s(b)(1). C2–2017–027 and then subsequently submitted this
48 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. filing (SR–C2–2017–028).
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Document Created: 2018-10-25 10:23:01
Document Modified: 2018-10-25 10:23:01
| 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 51313 |
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