82 FR 60237 - Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Chapter VIII of the Phlx Pricing Schedule To Waive Port Fees for New PSX Participants for a Limited Time

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 242 (December 19, 2017)

Page Range		60237-60238
FR Document		2017-27233
Federal Register, Volume 82 Issue 242 (Tuesday, December 19, 2017)
[Federal Register Volume 82, Number 242 (Tuesday, December 19, 2017)]
[Notices]
[Pages 60237-60238]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-27233]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82314; File No. SR-Phlx-2017-100]


Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Chapter 
VIII of the Phlx Pricing Schedule To Waive Port Fees for New PSX 
Participants for a Limited Time

December 13, 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 29, 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 the Exchange's connectivity fees at 
Chapter VIII of the Phlx Pricing Schedule to provide a waiver of all 
connectivity fees to new PSX Participants for a limited time
    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaqphlx.cchwallstreet.com/, at the principal 
office of the Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

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 the Exchange's 
connectivity fees under ``Port Fees'' at Chapter VIII of the Nasdaq 
PHLX LLC Pricing Schedule to provide a waiver of all such fees to new 
PSX Participants for a limited time. Port fees include the choices for 
connecting to PSX and receipt of data therefrom, together with the fees 
assessed for that connectivity. Specifically, the Exchange is proposing 
to waive all Port Fees for every Participant that is a ``new PSX 
Participant'' through December 31, 2018. The Exchange is defining a 
``new PSX Participant'' as a Participant that was not a Participant 
before September 1, 2017. The Exchange believes that the proposed fee 
waiver will make PSX a more attractive venue for prospective 
Participants. The Exchange notes that its proposal is similar to one 
that it implemented previously to attract new Participants.\3\
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    \3\ See Securities Exchange Act Release No. 34-78665 (Aug. 24, 
2016), 81 FR 59693 (Aug. 30, 2016) (SR-Phlx-2016-85) (waiving port 
fees through August 1, 2017 for those who were not Participants 
after July 1, 2016).
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2. Statutory Basis

    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\4\ in general, and furthers the objectives of Sections 
6(b)(4) and 6(b)(5) of the Act,\5\ 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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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposed change is reasonable 
because it will limit the overall costs incurred by new Participants in 
connecting to the Exchange, which may as a consequence attract new 
Participants. Attracting new Participants will benefit all market 
participants on PSX by ensuring that PSX remains deep and liquid. The 
Exchange believes that the proposed change is an equitable allocation 
and is not unfairly discriminatory because the Exchange will uniformly 
apply the same fee to all similarly situated Participants. In this 
regard, the Exchange is proposing to apply the fee waiver to new PSX 
Participants, which the Exchange proposes to define as a

[[Page 60238]]

Participant that was not a Participant prior to September 1, 2017.
    Limiting eligibility for the fee waiver, as described, will ensure 
that the waiver is tailored to and effective in its purpose of 
attracting new Participants. Waiving the fees for new Participants will 
ease the burden of participating on PSX, which may be a significant 
reason that such market participants have historically declined to 
become Participants. Thus, to the extent this waiver is successful, the 
proposed change will broaden participation on PSX, which will benefit 
all Participants by providing more liquidity.

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 generally reduce the fee 
burdens on Participants in an effort to attract and retain 
Participants, which benefits all market participants on PSX to the 
extent the incentives are effective.
    The Exchange notes that participation on PSX is completely 
voluntary and subject to extensive competition both from other 
exchanges and from off-exchange venues. Thus, to the extent that the 
proposed changes to the connectivity fees proposed herein are 
unattractive to market participants, it is likely that the Exchange 
will lose market share and Participants as a result. Accordingly, the 
Exchange does not believe that the 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.\6\
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    \6\ 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-2017-100 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-Phlx-2017-100. 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 website (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 website 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-2017-100 and should be submitted on 
or before January 9, 2018.
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    \7\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-27233 Filed 12-18-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 242 / Tuesday, December 19, 2017 / Notices 60237

(Public Representative). Section II also SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
establishes comment deadline(s) COMMISSION Statement of the Purpose of, and
pertaining to each request. Statutory Basis for, the Proposed Rule
The public portions of the Postal [Release No. 34–82314; File No. SR–Phlx– Change
Service’s request(s) can be accessed via 2017–100] 1. Purpose
the Commission’s website (http:// The purpose of the proposed rule
www.prc.gov). Non-public portions of Self-Regulatory Organizations; Nasdaq
change is to amend the Exchange’s
the Postal Service’s request(s), if any, PHLX LLC; Notice of Filing and
connectivity fees under ‘‘Port Fees’’ at
can be accessed through compliance Immediate Effectiveness of Proposed Chapter VIII of the Nasdaq PHLX LLC
with the requirements of 39 CFR Rule Change To Amend Chapter VIII of Pricing Schedule to provide a waiver of
3007.40. the Phlx Pricing Schedule To Waive all such fees to new PSX Participants for
Port Fees for New PSX Participants for a limited time. Port fees include the
The Commission invites comments on
a Limited Time choices for connecting to PSX and
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent receipt of data therefrom, together with
December 13, 2017.
with the policies of title 39. For the fees assessed for that connectivity.
Pursuant to Section 19(b)(1) of the Specifically, the Exchange is proposing
request(s) that the Postal Service states
Securities Exchange Act of 1934 to waive all Port Fees for every
concern market dominant product(s),
(‘‘Act’’) 1, and Rule 19b–4 thereunder,2 Participant that is a ‘‘new PSX
applicable statutory and regulatory Participant’’ through December 31,
notice is hereby given that on November
requirements include 39 U.S.C. 3622, 39 2018. The Exchange is defining a ‘‘new
29, 2017, Nasdaq PHLX LLC (‘‘Phlx’’ or
U.S.C. 3642, 39 CFR part 3010, and 39 PSX Participant’’ as a Participant that
‘‘Exchange’’) filed with the Securities
CFR part 3020, subpart B. For request(s) was not a Participant before September
and Exchange Commission
that the Postal Service states concern 1, 2017. The Exchange believes that the
(‘‘Commission’’) the proposed rule
competitive product(s), applicable proposed fee waiver will make PSX a
change as described in Items I, II, and
statutory and regulatory requirements more attractive venue for prospective
III, below, which Items have been
include 39 U.S.C. 3632, 39 U.S.C. 3633, Participants. The Exchange notes that its
prepared by the Exchange. The
39 U.S.C. 3642, 39 CFR part 3015, and proposal is similar to one that it
Commission is publishing this notice to
39 CFR part 3020, subpart B. Comment implemented previously to attract new
solicit comments on the proposed rule
deadline(s) for each request appear in Participants.3
change from interested persons.
section II. 2. Statutory Basis
I. Self-Regulatory Organization’s
II. Docketed Proceeding(s) The Exchange believes that its
Statement of the Terms of Substance of
the Proposed Rule Change proposal is consistent with Section 6(b)
1. Docket No(s).: MC2018–53 and of the Act,4 in general, and furthers the
CP2018–86; Filing Title: USPS Request objectives of Sections 6(b)(4) and 6(b)(5)
The Exchange proposes to amend the
to Add Priority Mail Contract 388 to of the Act,5 in particular, in that it
Exchange’s connectivity fees at Chapter
Competitive Product List and Notice of provides for the equitable allocation of
VIII of the Phlx Pricing Schedule to
Filing Materials Under Seal; Filing reasonable dues, fees and other charges
provide a waiver of all connectivity fees
Acceptance Date: December 13, 2017; among members and issuers and other
to new PSX Participants for a limited
Filing Authority: 39 U.S.C. 3642 and 39 persons using any facility, and is not
time
CFR 3020.30 et seq.; Public designed to permit unfair
Representative: Jennaca D. Upperman; The text of the proposed rule change discrimination between customers,
Comments Due: December 21, 2017. is available on the Exchange’s website at issuers, brokers, or dealers.
http://nasdaqphlx.cchwallstreet.com/, The Exchange believes that the
2. Docket No(s).: MC2018–54 and
at the principal office of the Exchange, proposed change is reasonable because
CP2018–87; Filing Title: USPS Request
and at the Commission’s Public it will limit the overall costs incurred by
to Add Priority Mail Contract 389 to
Reference Room. new Participants in connecting to the
Competitive Product List and Notice of
Exchange, which may as a consequence
Filing Materials Under Seal; Filing II. Self-Regulatory Organization’s
attract new Participants. Attracting new
Acceptance Date: December 13, 2017; Statement of the Purpose of, and Participants will benefit all market
Filing Authority: 39 U.S.C. 3642 and 39 Statutory Basis for, the Proposed Rule participants on PSX by ensuring that
CFR 3020.30 et seq.; Public Change PSX remains deep and liquid. The
Representative: Jennaca D. Upperman; Exchange believes that the proposed
Comments Due: December 21, 2017. In its filing with the Commission, the
Exchange included statements change is an equitable allocation and is
This notice will be published in the not unfairly discriminatory because the
concerning the purpose of and basis for
Federal Register. Exchange will uniformly apply the same
the proposed rule change and discussed
Stacy L. Ruble, fee to all similarly situated Participants.
any comments it received on the
In this regard, the Exchange is
Secretary. proposed rule change. The text of these proposing to apply the fee waiver to
[FR Doc. 2017–27260 Filed 12–18–17; 8:45 am] statements may be examined at the new PSX Participants, which the
places specified in Item IV below. The
sradovich on DSK3GMQ082PROD with NOTICES

BILLING CODE 7710–FW–P Exchange proposes to define as a
Exchange has prepared summaries, set
forth in sections A, B, and C below, of 3 See Securities Exchange Act Release No. 34–

the most significant aspects of such 78665 (Aug. 24, 2016), 81 FR 59693 (Aug. 30, 2016)
statements. (SR–Phlx–2016–85) (waiving port fees through
August 1, 2017 for those who were not Participants
after July 1, 2016).
1 15 U.S.C. 78s(b)(1). 4 15 U.S.C. 78f(b).
2 17 CFR 240.19b–4. 5 15 U.S.C. 78f(b)(4) and (5).

VerDate Sep<11>2014 17:47 Dec 18, 2017 Jkt 244001 PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 E:\FR\FM\19DEN1.SGM 19DEN1
Document Created: 2017-12-19 01:31:23
Document Modified: 2017-12-19 01:31:23
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 60237