83 FR 22572 - Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Memorialize Its Order and Execution Information Into Phlx Rule 1070

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 94 (May 15, 2018)

[Federal Register Volume 83, Number 94 (Tuesday, May 15, 2018)]
[Notices]
[Pages 22572-22574]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-10256]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83196; File No. SR-Phlx-2018-33]


Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Memorialize Its 
Order and Execution Information Into Phlx Rule 1070

May 9, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on April 27, 2018, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been prepared by the Exchange. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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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 memorialize its order and execution 
information into Phlx Rule 1070.
    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 the 
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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to memorialize its order and execution 
information into Rule 1070, entitled

[[Page 22573]]

``Data Feeds.'' The Exchange proposes to rename this rule ``Data Feeds 
and Trade Information.'' The Exchange proposes other grammatical 
corrections in Rule 1070(a) as well.
Section 1070(b)
    First, the Exchange proposes to adopt a new Rule 1070(b) and 
relocate the CTI description into 1070(b)(1) as this information 
concerns a member's specific trade information as compared to 
information available concerning the Phlx Order Book, which data is 
described in 1070(b). The current description includes examples in the 
first sentence which are not being replicated within the new 
description, e.g. trade corrections, trade cancels, options directory 
messages, Complex Order Strategy messages, trading action messages, and 
halt and system event messages. The Exchange is renumbering to be more 
consistent throughout Rule 1070 to conform the rule. A similar change 
to the numbering is being made with this proposal with the PHLX Depth 
of Market description in Rule 1070(a)(3). The Exchange is also noting 
within the CTI description that it ``contains trade details specific to 
that member'' to bring more clarity to the information being provided.
    The Exchange proposes to memorialize TradeInfo in new Rule 
1070(b)(2). The Exchange originally noted in the TradeInfo Filing \3\ 
that TradeInfo permits a member to: Scan for all orders in a particular 
security or all orders of a particular type, regardless of their status 
(open, canceled, executed, etc.). A subscribing member is able to 
cancel open orders at the order, port or firm mnemonic level. TradeInfo 
allows a subscribing member to scan other order statuses, such as 
executed, cancelled, broken, rejected and suspended orders. A 
subscribing member may generate reports of execution, order or cancel 
information, which can be exported into a spreadsheet for review. 
TradeInfo permits a subscribing member to manage their order flow and 
mitigate risk by giving them the ability to view their orders and 
executions, as well as the ability to perform cancels at the port 
level. Last, TradeInfo allows a subscribing member to download records 
of their orders and executions for record-keeping purposes.
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    \3\ See Securities Exchange Act Release No. 66284 (February 1, 
2012), 77 FR 6162 (February 7, 2012) (SR-Phlx-2012-04) (``TradeInfo 
Filing'').
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    The Exchange proposes to align the description of TradeInfo on Phlx 
with the description that was filed for The Nasdaq Options Market LLC 
and Nasdaq BX, Inc., where this service is also offered.\4\ The 
proposed description on those markets provided that TradeInfo permits a 
member to: (i) Search all orders submitted in a particular security or 
all orders of a particular type, regardless of their status (open, 
canceled, executed, etc.); (ii) cancellation of open orders at the 
order, port or firm mnemonic level; and (iii) a view of orders and 
executions; and download of orders and executions for recordkeeping 
purposes. The Exchange proposes to add to this description that 
TradeInfo is a user interface, as compared to a data stream, to add 
more detail to the description. While some descriptive language is 
being removed from the rules, such as permitting a subscribing member 
to scan other order statuses, such as executed, cancelled, broken, 
rejected and suspended orders, the Exchange believes that this language 
is covered in the current description in that the text indicates that 
all orders may be searched regardless of their status. Similarly, the 
description which provides that a subscribing member may generate 
reports of execution, order or cancel information, which can be 
exported into a spreadsheet for review is covered in that the Exchange 
notes that a view of the orders and execution may be downloaded. 
Finally, the Exchange proposes to rename ``TradeInfo'' as ``TradeInfo 
PHLX Interface'' to make it consistent with the naming of this offering 
on NOM and BX.
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    \4\ See Securities Exchange Act Release Nos. 65180 (August 22, 
2011), 76 FR 53521 (August 26, 2011) (SR-NASDAQ-2011-111); and 60826 
(October 14, 2009), 74 FR 54605 (October 22, 2009) (SR-BX-2009-062).
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    The Exchange considers it appropriate to memorialize the order and 
execution information available on Phlx within a rule so that members 
may understand the trade information which is available on the Exchange 
as it pertains to a firm's trading information. This data is available 
to all members regarding that members' transactions. Pricing for all 
ports is included in the Exchange's Pricing Schedule at VII, B.\5\
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    \5\ See also SR-Phlx-2018-34 (not yet published) which proposes 
conforming changes to the fee schedule.
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Rule1070(a)
    The Exchange proposes minor changes to Rule 1070(a)(1) and (2) to 
change the language to indicate the Top of PHLX Options and PHLX Orders 
each separately are data feeds and removing the ``A'' before the 
description. As mentioned above, the numbering is also being amended 
with the PHLX Depth of Market description within Rule 1070(a)(3).
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Securities Exchange Act of 1934 (the 
``Act''),\6\ in general, and furthers the objectives of Section 6(b)(5) 
of the Act,\7\ in particular, in that it is designed to promote just 
and equitable principles of trade, to remove impediments to and perfect 
the mechanism for a free and open market and a national market system, 
and, in general, to protect investors and the public interest, by 
providing greater transparency as to the order and execution 
information offered on Phlx. The Exchange notes that it described 
TradeInfo in a prior rule change.\8\ The Exchange believes that 
memorializing this information within a rule and updating the 
information will provide market participants with a list of information 
available specific to their trading on Phlx. The Exchange believes that 
this proposal is consistent with the Act because it provides 
information on the content available to market participants regarding 
the trades they execute on Phlx.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ See note 3.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange's proposal does 
not impose an undue burden on competition, rather the Exchange is 
seeking to provide greater transparency within its rules with respect 
to the various order and execution information offered on Phlx.

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

    No written comments were either solicited or received.

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

    Because the proposed rule change does not: (i) Significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become

[[Page 22574]]

effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice the 
Exchange's intent to file the proposed rule change, along with a 
brief description and text of the proposed rule change at least five 
business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission. The 
Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally 
does not become operative for 30 days after the date of filing. 
However, pursuant to Rule 19b-4(f)(6)(iii),\10\ the Commission may 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. The Exchange states that 
such waiver will allow it to update its rules immediately to provide 
more information regarding the order and execution information it 
offers and further the protection of investors and the public interest 
because it will provide greater transparency as to the trade detail 
available to members. For this reason, the Commission believes that 
waiving the 30-day operative delay is consistent with the protection of 
investors and the public interest and, therefore, the Commission 
designates the proposed rule change to be operative upon filing.\11\
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    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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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 necessary or 
appropriate in the public interest, for the protection of investors, or 
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-2018-33 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-2018-33. 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-2018-33 and should be submitted on 
or before June 5, 2018.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-10256 Filed 5-14-18; 8:45 am]
 BILLING CODE 8011-01-P