82 FR 55148 - Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Section VIII of the Nasdaq PHLX LLC Pricing Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 222 (November 20, 2017)

Page Range		55148-55149
FR Document		2017-25038
Federal Register, Volume 82 Issue 222 (Monday, November 20, 2017)
[Federal Register Volume 82, Number 222 (Monday, November 20, 2017)]
[Notices]
[Pages 55148-55149]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-25038]



[[Page 55148]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82074; File No. SR-Phlx-2017-90]


Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Section 
VIII of the Nasdaq PHLX LLC Pricing Schedule

November 14, 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 November 1, 2017, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III, below, which 
Items have been prepared by the Exchange. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Section VIII (Nasdaq PSX Fees) of 
the Exchange's Pricing Schedule to decrease both the amount of and the 
Consolidated Volume necessary to qualify for the credit that the 
Exchange pays to member organizations for displayed quotes and orders 
that provide liquidity throughout the Nasdaq PSX System.
    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 the proposed rule change is to amend Chapter VIII of 
the Exchange's Pricing Schedule to decrease both the amount of and the 
Consolidated Volume necessary to qualify for the credit that the 
Exchange pays to member organizations for displayed quotes and orders 
that provide liquidity throughout the Nasdaq PSX System. Presently, the 
Exchange provides a credit of $0.0031 per share executed for Quotes/
Orders entered by a member organization that provides and accesses 
0.25% or more of Consolidated Volume during the month. The Exchange is 
proposing to decrease the amount of this credit from $0.0031 to $0.0030 
while also decreasing the level of monthly Consolidated Volume that is 
required of a member organization to qualify for the credit from 0.25% 
to 0.20%.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\3\ in general, and furthers the objectives of Sections 
6(b)(4) and 6(b)(5) of the Act,\4\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees and other charges 
among members and issuers and other persons using any facility, and is 
not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposed $0.0030 per share executed 
credit provided to a member organization for displayed quotes and 
orders remains competitive with the fees of other exchanges. For 
example, Rule 7018(a)(1) of the Rules of The Nasdaq Stock Market 
provide for a credit of up to $0.00305 per share executed for displayed 
quotes and orders. Moreover, the effect of the proposed decrease in 
this credit is offset, in part, by a corresponding decrease in the 
Consolidated Volume threshold that is applicable to the credit. The net 
effect of the changes, in other words, will be to increase the universe 
of member organizations that qualify for the credit while decreasing 
the size of the credit.
    Meanwhile, the Exchange believes that the proposed changes are an 
equitable allocation and are not unfairly discriminatory because they 
will apply to all member organizations, any of which may provide the 
level of Consolidated Volume required to qualify for the credit.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. In terms of inter-market 
competition, the Exchange notes that it operates in a highly 
competitive market in which market participants can readily favor 
competing venues if they deem fee levels at a particular venue to be 
excessive, or rebate opportunities available at other venues to be more 
favorable. In such an environment, the Exchange must continually adjust 
its fees to remain competitive with other exchanges and with 
alternative trading systems that have been exempted from compliance 
with the statutory standards applicable to exchanges. Because 
competitors are free to modify their own fees in response, and because 
market participants may readily adjust their order routing practices, 
the Exchange believes that the degree to which fee changes in this 
market may impose any burden on competition is extremely limited.
    In this instance, the proposed changes to the credits available to 
member organizations for displayed quotes and orders do not impose a 
burden on competition because the Exchange's execution services are 
completely voluntary and subject to extensive competition both from 
other exchanges and from off-exchange venues. The Exchange has 
determined that the existing credit level and corresponding 
Consolidated Volume threshold has not achieved the desired 
participation on the Exchange. Consequently, the Exchange is decreasing 
to 0.20% the Consolidated Volume threshold required to receive the 
credit while also decreasing the amount of the credit from $0.0031 to 
$0.0030 per share executed credit [sic]. In sum, the Exchange intends 
to make it easier for member organizations to receive a credit in an 
effort to increase participation on the Exchange.
    If the changes proposed herein are unattractive to market 
participants, it is likely that the Exchange will lose market share as 
a result. The Exchange notes that competing order execution venues are 
free to increase their credits, or decrease qualification criteria 
required to receive credits, in reaction to the proposed changes. 
Accordingly, the Exchange does not believe that the

[[Page 55149]]

proposed changes will impair the ability of members or competing order 
execution venues to maintain their competitive standing in the 
financial markets.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act.\5\
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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
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    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 Comments

     Use 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-2017-90 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2017-90. 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. 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 Number SR-Phlx-2017-90 and should be 
submitted on or before December 11, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-25038 Filed 11-17-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 222 / Monday, November 20, 2017 / Notices 55149

proposed changes will impair the ability with respect to the proposed rule Department on policies, regulations, and
of members or competing order change that are filed with the technical issues affecting defense trade.
execution venues to maintain their Commission, and all written The purpose of the meeting will be to
competitive standing in the financial communications relating to the discuss current defense trade issues and
markets. proposed rule change between the topics for further study.
Commission and any person, other than The following agenda topics will be
C. Self-Regulatory Organization’s those that may be withheld from the
Statement on Comments on the discussed and final reports presented:
public in accordance with the
Proposed Rule Change Received From (1) One-Form electronic filing, review
provisions of 5 U.S.C. 552, will be
Members, Participants, or Others and discuss recommendations for
available for Web site viewing and
No written comments were either making electronic filing more cost-
printing in the Commission’s Public
solicited or received. Reference Room, 100 F Street NE., effective and efficient for industry; (2)
Washington, DC 20549, on official Identify key areas of concern with the
III. Date of Effectiveness of the proposed definition for defense services
Proposed Rule Change and Timing for business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the in 80 FR 31525 (June 3, 2015); (3)
Commission Action Review and provide feedback in
filing also will be available for
The foregoing rule change has become inspection and copying at the principal accurately and effectively defining
effective pursuant to Section office of the Exchange. All comments ‘‘manufacturing’’ and distinguishing it
19(b)(3)(A)(ii) of the Act.5 received will be posted without change. from other related activities like
At any time within 60 days of the Persons submitting comments are assembly, integration, installment and
filing of the proposed rule change, the cautioned that we do not redact or edit various services; and (4) Examine and
Commission summarily may personal identifying information from discuss the current rules regarding the
temporarily suspend such rule change if comment submissions. You should release of technical data to foreign dual-
it appears to the Commission that such submit only information that you wish nationals and identify alternative
action is: (i) Necessary or appropriate in to make available publicly. All options that sufficiently facilitate risk
the public interest; (ii) for the protection submissions should refer to File assessment and risk mitigation.
of investors; or (iii) otherwise in Number SR–Phlx–2017–90 and should Members of the public may attend
furtherance of the purposes of the Act. be submitted on or before December 11, this open session and will be permitted
If the Commission takes such action, the 2017. to participate in the discussion in
Commission shall institute proceedings
For the Commission, by the Division of accordance with the Chair’s
to determine whether the proposed rule
Trading and Markets, pursuant to delegated instructions. Members of the public
should be approved or disapproved. authority.6 may, if they wish, submit a brief
IV. Solicitation of Comments Eduardo A. Aleman, statement to the committee in writing.
Interested persons are invited to Assistant Secretary. As seating is limited to 125 persons,
submit written data, views, and [FR Doc. 2017–25038 Filed 11–17–17; 8:45 am] each member of the public or DTAG
arguments concerning the foregoing, BILLING CODE 8011–01–P member that wishes to attend this
including whether the proposed rule plenary session should provide: his/her
change is consistent with the Act. name and contact information such as
Comments may be submitted by any of DEPARTMENT OF STATE email address and/or phone number and
the following methods: [Public Notice: 10207] any request for reasonable
Electronic Comments accommodation to the DTAG Alternate
Defense Trade Advisory Group; Notice Designated Federal Officer (DFO),
• Use the Commission’s Internet of Open Meeting Anthony Dearth, via email at DTAG@
comment form (http://www.sec.gov/ state.gov by COB Monday, January 22,
rules/sro.shtml); or Title: Defense Trade Advisory Group; 2018. If notified after this date, the
• Send an email to rule-comments@ Notice of Open Meeting. Department might be unable to
sec.gov. Please include File Number SR– SUMMARY: The Defense Trade Advisory accommodate requests due to
Phlx–2017–90 on the subject line. Group (DTAG) originally scheduled an requirements at the meeting location.
open session on Thursday, December 7, One of the following forms of valid
Paper Comments
2017 (See Federal Register/Vol. 82, No. photo identification will be required for
• Send paper comments in triplicate 212/November 3, 2017/Notices) admission to the meeting: U.S. driver’s
to Brent J. Fields, Secretary, Securities however this session has been license, passport, U.S. Government ID or
and Exchange Commission, 100 F Street cancelled. The session has been other valid photo ID.
NE., Washington, DC 20549–1090. rescheduled for February 1, 2018 from
All submissions should refer to File 1:00 p.m. until 5:00 p.m. at 1777 F FOR FURTHER INFORMATION CONTACT: Ms.
Number SR–Phlx–2017–90. This file Street NW., Washington, DC 20006. If Glennis Gross-Peyton, PM/DDTC, SA–1,
number should be included on the you wish to attend this meeting, you 12th Floor, Directorate of Defense Trade
subject line if email is used. To help the must submit your registration for the Controls, Bureau of Political-Military
Commission process and review your February session even if you previously Affairs, U.S. Department of State,
comments more efficiently, please use registered for the December session. Washington, DC 20522–0112; telephone
only one method. The Commission will Entry will begin at 12:30 p.m. The (202) 663–2862; FAX (202) 261–8199; or
nshattuck on DSK9F9SC42PROD with NOTICES

post all comments on the Commission’s membership of this advisory committee email DTAG@state.gov.
Internet Web site (http://www.sec.gov/ consists of private sector defense trade
Anthony Dearth,
rules/sro.shtml). Copies of the representatives, appointed by the
submission, all subsequent Assistant Secretary of State for Political- Alternate Designated Federal Officer, Defense
amendments, all written statements Military Affairs, who advise the Trade Advisory Group, Department of State.
[FR Doc. 2017–25083 Filed 11–17–17; 8:45 am]
5 15 U.S.C. 78s(b)(3)(A)(ii). 6 17 CFR 200.30–3(a)(12). BILLING CODE 4710–25–P

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Document Created: 2018-10-25 10:41:54
Document Modified: 2018-10-25 10:41:54
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 55148