83 FR 2276 - Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend a Cross-Reference in Rule 1017 (Openings in Options)

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 10 (January 16, 2018)

Page Range		2276-2277
FR Document		2018-00527
Federal Register, Volume 83 Issue 10 (Tuesday, January 16, 2018)
[Federal Register Volume 83, Number 10 (Tuesday, January 16, 2018)]
[Notices]
[Pages 2276-2277]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00527]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82470; File No. SR-Phlx-2018-05]


Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend a Cross-
Reference in Rule 1017 (Openings in Options)

January 9, 2018.
    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 January 5, 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 the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend a cross-reference in Rule 1017, 
entitled ``Openings in Options.''
    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 Exchange proposes to amend a cross-reference in Rule 1017, 
entitled ``Openings in Options.'' Specifically, the Exchange proposes 
to amend 1017(h) which currently states, ``In addition, paragraphs 
(i)(iii) and (j)(5)-(7) below contain additional provisions related to 
Potential Opening Price.'' The first citation is incomplete and 
contains a non-existent reference. The Exchange proposes to amend the 
sentence to state, ``In addition, paragraphs (i)(A)(iii) and (j)(5)-(7) 
below contain additional provisions related to Potential Opening 
Price.'' The reference is to the phrase, ``The Exchange will open the 
option series for trading with a trade on Exchange interest only at the 
Opening Price, if any of these conditions occur where there is no ABBO, 
the Potential Opening Price is at or within the Pre-Market BBO which is 
also a Quality Opening Market.'' The reference was intended to act as a 
roadmap within the rule to direct the reader to the possible outcomes 
in the Opening Process.
    The Exchange believes that this non-substantive rule change will 
bring greater clarity to the rule text by providing the intended 
guidance concerning the manner in which the Exchange could calculate 
the Potential Opening Price.
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 Section 
6(b)(5) of the Act,\4\ in particular, in that it is designed to promote 
just and equitable principles of trade, to remove impediments to and 
perfect the mechanism of a free and

[[Page 2277]]

open market and a national market system, and, in general to protect 
investors and the public interest, by correcting a citation within Rule 
1017 which is currently inaccurate. Rule 1017(h) contains a sentence 
which was intended to act as a roadmap within the rule to direct the 
reader to the possible outcomes in the Opening Process. The Exchange 
believes that the amendment is consistent with the Act because it will 
amend the rule text to properly specify the intended guidance 
concerning the manner in which the Exchange could calculate the 
Potential Opening Price.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
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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 believes that this 
non-substantive rule change will not impose an undue burden on 
competition, rather it will bring greater clarity to the rule text 
[sic]

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 foregoing 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, it has become 
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \5\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\6\
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    \5\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \6\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the 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.
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days after the date of its filing. However, 
Rule 19b-4(f)(6)(iii) \7\ permits the Commission to designate a shorter 
time if such action is consistent with the protection of investors and 
the public interest. The Exchange has requested that the Commission 
waive the 30-day operative delay so that the proposed rule change will 
become operative upon filing. The Commission believes that waiver of 
the 30-day operative delay is consistent with the protection of 
investors and the public interest because the proposal does not raise 
any novel issues and waiver will allow the Exchange to correct the 
erroneous cross-reference without delay. Therefore, the Commission 
hereby waives the operative delay and designates the proposed rule 
change operative upon filing.\8\
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    \7\ 17 CFR 240.19b-4(f)(6)(iii).
    \8\ For purposes only of waiving the 30-day operative delay, the 
Commission also has 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: (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-2018-05 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-2018-05. 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-2018-05, and should be submitted on 
or before February 6, 2018.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-00527 Filed 1-12-18; 8:45 am]
 BILLING CODE 8011-01-P
2276 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Notices

on the collection of information enhance the quality, utility, and clarity II. Self-Regulatory Organization’s
summarized below. The Commission of the information collected; and (d) Statement of the Purpose of, and
plans to submit this existing collection ways to minimize the burden of the Statutory Basis for, the Proposed Rule
of information to the Office of collection of information on Change
Management and Budget (‘‘OMB’’) for respondents, including through the use In its filing with the Commission, the
extension and approval. of automated collection techniques or Exchange included statements
Rules 8b–1 to 8b–33 (17 CFR 270.8b– other forms of information technology. concerning the purpose of and basis for
1 to 8b–33) under the Investment Consideration will be given to the proposed rule change and discussed
Company Act of 1940 (15 U.S.C. 80a–1 comments and suggestions submitted in any comments it received on the
et seq.) (‘‘Investment Company Act’’) set writing within 60 days of this proposed rule change. The text of these
forth the procedures for preparing and publication. statements may be examined at the
filing a registration statement under the Please direct your written comments places specified in Item IV below. The
Investment Company Act. These to Pamela Dyson, Director/Chief Exchange has prepared summaries, set
procedures are intended to facilitate the Information Officer, Securities and forth in sections A, B, and C below, of
registration process. These rules Exchange Commission, C/O Remi the most significant aspects of such
generally do not require respondents to Pavlik-Simon, 100 F Street NE, statements.
report information.1 Washington, DC 20549; or send an email
The Commission believes that it is to: PRA_Mailbox@sec.gov. A. Self-Regulatory Organization’s
appropriate to estimate the total Statement of the Purpose of, and
respondent burden associated with Dated: January 9, 2018.
Statutory Basis for, the Proposed Rule
preparing each registration statement Eduardo A. Aleman,
Change
form rather than attempt to isolate the Assistant Secretary.
impact of the procedural instructions [FR Doc. 2018–00494 Filed 1–12–18; 8:45 am] 1. Purpose
under Section 8(b) of the Investment BILLING CODE 8011–01–P The Exchange proposes to amend a
Company Act, which impose burdens cross-reference in Rule 1017, entitled
only in the context of the preparation of ‘‘Openings in Options.’’ Specifically, the
the various registration statement forms. SECURITIES AND EXCHANGE Exchange proposes to amend 1017(h)
Accordingly, the Commission is not COMMISSION which currently states, ‘‘In addition,
submitting a separate burden estimate [Release No. 34–82470; File No. SR–Phlx–
paragraphs (i)(iii) and (j)(5)–(7) below
for rules 8b–1 through 8b–33, but 2018–05] contain additional provisions related to
instead will include the burden for Potential Opening Price.’’ The first
these rules in its estimates of burden for Self-Regulatory Organizations; Nasdaq citation is incomplete and contains a
each of the registration forms under the PHLX LLC; Notice of Filing and non-existent reference. The Exchange
Investment Company Act. The Immediate Effectiveness of Proposed proposes to amend the sentence to state,
Commission is, however, submitting an Rule Change To Amend a Cross- ‘‘In addition, paragraphs (i)(A)(iii) and
hourly burden estimate of one hour for Reference in Rule 1017 (Openings in (j)(5)–(7) below contain additional
administrative purposes. Options) provisions related to Potential Opening
The collection of information under Price.’’ The reference is to the phrase,
rules 8b–1 to 8b–33 is mandatory. The January 9, 2018. ‘‘The Exchange will open the option
information provided under rules 8b–1 Pursuant to Section 19(b)(1) of the series for trading with a trade on
to 8b–33 is not kept confidential. An Securities Exchange Act of 1934 Exchange interest only at the Opening
agency may not conduct or sponsor, and (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Price, if any of these conditions occur
a person is not required to respond to, notice is hereby given that on January 5, where there is no ABBO, the Potential
a collection of information unless it 2018, Nasdaq PHLX LLC (‘‘Phlx’’ or Opening Price is at or within the Pre-
displays a currently valid OMB control ‘‘Exchange’’) filed with the Securities Market BBO which is also a Quality
number. and Exchange Commission Opening Market.’’ The reference was
Written comments are invited on: (a) (‘‘Commission’’) the proposed rule intended to act as a roadmap within the
Whether the collection of information is change as described in Items I and II rule to direct the reader to the possible
necessary for the proper performance of below, which Items have been prepared outcomes in the Opening Process.
the functions of the Commission, by the Exchange. The Commission is The Exchange believes that this non-
including whether the information has publishing this notice to solicit substantive rule change will bring
practical utility; (b) the accuracy of the comments on the proposed rule change greater clarity to the rule text by
Commission’s estimate of the burden of from interested persons. providing the intended guidance
the collection of information; (c) ways to concerning the manner in which the
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance Exchange could calculate the Potential
1 Although the rules under Section 8(b) of the
of the Proposed Rule Change Opening Price.
Investment Company Act are generally procedural
in nature, two of the rules require respondents to
The Exchange proposes to amend a 2. Statutory Basis
disclose some limited information. Rule 8b–3 (17
CFR 270.8b–3) provides that whenever a cross-reference in Rule 1017, entitled The Exchange believes that its
registration form requires the title of securities to ‘‘Openings in Options.’’ proposal is consistent with Section 6(b)
be stated, the registrant must indicate the type and The text of the proposed rule change of the Act,3 in general, and furthers the
general character of the securities to be issued. Rule
is available on the Exchange’s website at objectives of Section 6(b)(5) of the Act,4
daltland on DSKBBV9HB2PROD with NOTICES

8b–22 (17 CFR 270.8b–22) provides that if the
existence of control is open to reasonable doubt, the http://nasdaqphlx.cchwallstreet.com/, in particular, in that it is designed to
registrant may disclaim the existence of control, but at the principal office of the Exchange, promote just and equitable principles of
it must state the material facts pertinent to the and at the Commission’s Public trade, to remove impediments to and
possible existence of control. The information
required by both of these rules is necessary to
Reference Room. perfect the mechanism of a free and
insure that investors have clear and complete
1 15 U.S.C. 78s(b)(1). 3 15 U.S.C. 78f(b).
information upon which to base an investment
decision. 2 17 CFR 240.19b–4. 4 15 U.S.C. 78f(b)(5).

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Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Notices 2277

open market and a national market Commission waive the 30-day operative change that are filed with the
system, and, in general to protect delay so that the proposed rule change Commission, and all written
investors and the public interest, by will become operative upon filing. The communications relating to the
correcting a citation within Rule 1017 Commission believes that waiver of the proposed rule change between the
which is currently inaccurate. Rule 30-day operative delay is consistent Commission and any person, other than
1017(h) contains a sentence which was with the protection of investors and the those that may be withheld from the
intended to act as a roadmap within the public interest because the proposal public in accordance with the
rule to direct the reader to the possible does not raise any novel issues and provisions of 5 U.S.C. 552, will be
outcomes in the Opening Process. The waiver will allow the Exchange to available for website viewing and
Exchange believes that the amendment correct the erroneous cross-reference
printing in the Commission’s Public
is consistent with the Act because it will without delay. Therefore, the
Reference Room, 100 F Street NE,
amend the rule text to properly specify Commission hereby waives the
the intended guidance concerning the operative delay and designates the Washington, DC 20549 on official
manner in which the Exchange could proposed rule change operative upon business days between the hours of
calculate the Potential Opening Price. filing.8 10:00 a.m. and 3:00 p.m. Copies of the
At any time within 60 days of the filing also will be available for
B. Self-Regulatory Organization’s filing of the proposed rule change, the inspection and copying at the principal
Statement on Burden on Competition Commission summarily may office of the Exchange. All comments
The Exchange does not believe that temporarily suspend such rule change if received will be posted without change.
the proposed rule change will impose it appears to the Commission that such Persons submitting comments are
any burden on competition not action is: (i) Necessary or appropriate in cautioned that we do not redact or edit
necessary or appropriate in furtherance the public interest; (ii) for the protection personal identifying information from
of the purposes of the Act. The of investors; or (iii) otherwise in comment submissions. You should
Exchange believes that this non- furtherance of the purposes of the Act. submit only information that you wish
substantive rule change will not impose If the Commission takes such action, the to make available publicly. All
an undue burden on competition, rather Commission shall institute proceedings submissions should refer to File
it will bring greater clarity to the rule to determine whether the proposed rule Number SR–Phlx–2018–05, and should
text [sic] should be approved or disapproved. be submitted on or before February 6,
C. Self-Regulatory Organization’s IV. Solicitation of Comments 2018.
Statement on Comments on the Interested persons are invited to For the Commission, by the Division of
Proposed Rule Change Received From submit written data, views, and Trading and Markets, pursuant to delegated
Members, Participants, or Others arguments concerning the foregoing, authority.9
No written comments were either including whether the proposed rule Eduardo A. Aleman,
solicited or received. change is consistent with the Act. Assistant Secretary.
III. Date of Effectiveness of the Comments may be submitted by any of
[FR Doc. 2018–00527 Filed 1–12–18; 8:45 am]
Proposed Rule Change and Timing for the following methods:
BILLING CODE 8011–01–P
Commission Action Electronic Comments
Because the foregoing proposed rule • Use the Commission’s internet
change does not: (i) Significantly affect comment form (http://www.sec.gov/
the protection of investors or the public rules/sro.shtml); or
interest; (ii) impose any significant • Send an email to rule-comments@
burden on competition; and (iii) become sec.gov. Please include File Number SR–
operative for 30 days from the date on Phlx–2018–05 on the subject line.
which it was filed, or such shorter time
as the Commission may designate, it has Paper Comments
become effective pursuant to Section • Send paper comments in triplicate
19(b)(3)(A)(iii) of the Act 5 and to Secretary, Securities and Exchange
subparagraph (f)(6) of Rule 19b–4 Commission, 100 F Street NE,
thereunder.6 Washington, DC 20549–1090.
A proposed rule change filed under All submissions should refer to File
Rule 19b–4(f)(6) normally does not Number SR–Phlx–2018–05. This file
become operative for 30 days after the number should be included on the
date of its filing. However, Rule 19b– subject line if email is used. To help the
4(f)(6)(iii) 7 permits the Commission to Commission process and review your
designate a shorter time if such action comments more efficiently, please use
is consistent with the protection of only one method. The Commission will
investors and the public interest. The post all comments on the Commission’s
Exchange has requested that the internet website (http://www.sec.gov/
rules/sro.shtml). Copies of the
5 15 U.S.C. 78s(b)(3)(A)(iii). submission, all subsequent
daltland on DSKBBV9HB2PROD with NOTICES

6 17 CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
amendments, all written statements
Commission with written notice of its intent to file with respect to the proposed rule
the proposed rule change, along with a brief
description and the text of the proposed rule 8 For purposes only of waiving the 30-day
change, at least five business days prior to the date operative delay, the Commission also has
of filing of the proposed rule change, or such considered the proposed rule’s impact on
shorter time as designated by the Commission. efficiency, competition, and capital formation. See
7 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). 9 17 CFR 200.30–3(a)(12).

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Document Created: 2018-01-13 02:02:48
Document Modified: 2018-01-13 02:02:48
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		83 FR 2276