83 FR 6283 - Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delete Cross-Reference to Rule 124(d) From Rule 1092

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 30 (February 13, 2018)

Page Range		6283-6284
FR Document		2018-02860
Federal Register, Volume 83 Issue 30 (Tuesday, February 13, 2018)
[Federal Register Volume 83, Number 30 (Tuesday, February 13, 2018)]
[Notices]
[Pages 6283-6284]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-02860]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82649; File No. SR-Phlx-2018-15]


Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Delete Cross-
Reference to Rule 124(d) From Rule 1092

February 7, 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 February 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 Rule 1092, Nullification and 
Adjustment of Options Transactions including Obvious Errors, by 
deleting a cross-reference to Rule 124(d).
    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
    Exchange Rule 1092 provides rules and procedures with respect to 
the nullification and adjustment of options transactions including 
obvious errors. Rule 1092(l) governs appeals to the Exchange Review 
Council of nullification and adjustment decisions by Options Exchange 
Officials.\3\ It provides that a party affected by a determination made 
under Rule 1092 may request the Exchange Review Council to review that 
determination ``in accordance with Exchange Rule 124(d).'' However, 
Rule 124, Disputes-Options, section (d) applies by its terms only to 
appeals to the Exchange Review Council of Options Exchange Official 
decisions regarding trading disputes occurring on, and relating to, the 
trading floor. In fact, Rule 124(a) specifically states that Rule 124 
shall not apply to options transactions that are the result of an 
obvious error or catastrophic error as defined in Rule 1092, and that 
options transactions that are the result of an obvious error or 
catastrophic error shall be subject to the provisions and procedures 
set forth in Rule 1092.
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    \3\ An Options Exchange Official is an Exchange staff member or 
contract employee designated as such by the Chief Regulatory 
Officer. A list of individual Options Exchange Officials is 
displayed on the Exchange website. The Chief Regulatory Officer 
maintains the list of Options Exchange Officials and updates the 
website each time a name is added to, or deleted from, the list of 
Options Exchange Officials. In the event no Options Exchange 
Official is available to rule on a particular matter, the Chief 
Regulatory Officer or his/her designee rules on the matter.
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    The cross-reference to Rule 124(d) in Rule 1092 is therefore 
incorrect and inappropriate, and needlessly confusing. Moreover, it is 
unnecessary as Rule 1092 itself provides the necessary process for 
requesting and obtaining an appeal by the Exchange Review Council of 
nullification and adjustment decisions. The Exchange therefore proposes 
to remove the cross-reference.
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 Section 
6(b)(5) of the Act,\5\ 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 open market and a national market

[[Page 6284]]

system, and, in general to protect investors and the public interest, 
by removing an inappropriate and incorrect cross-reference to Rule 
124(d) from Rule 1092, thereby providing market participants with a 
clearer description of the appropriate appeal process in Rule 1092.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 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 enhanced clarity of Rule 
1092 resulting from this proposed rule change will benefit all market 
participants equally.

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 \6\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\7\
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    \6\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \7\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its 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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    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-2018-15 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-2018-15. 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 such 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-2018-15, and should be submitted on 
or before March 6, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-02860 Filed 2-12-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 30 / Tuesday, February 13, 2018 / Notices 6283

Paper Comments SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
COMMISSION Statement of the Purpose of, and
• Send paper comments in triplicate Statutory Basis for, the Proposed Rule
to Secretary, Securities and Exchange Change
[Release No. 34–82649; File No. SR–Phlx–
Commission, 100 F Street NE,
2018–15] 1. Purpose
Washington, DC 20549–1090.
Self-Regulatory Organizations; Nasdaq Exchange Rule 1092 provides rules
All submissions should refer to File
PHLX LLC; Notice of Filing and and procedures with respect to the
Number SR–BOX–2018–03. This file
nullification and adjustment of options
number should be included on the Immediate Effectiveness of Proposed
transactions including obvious errors.
subject line if email is used. To help the Rule Change To Delete Cross-
Rule 1092(l) governs appeals to the
Commission process and review your Reference to Rule 124(d) From Rule
Exchange Review Council of
comments more efficiently, please use 1092 nullification and adjustment decisions
only one method. The Commission will by Options Exchange Officials.3 It
February 7, 2018.
post all comments on the Commission’s provides that a party affected by a
internet website (http://www.sec.gov/ Pursuant to Section 19(b)(1) of the determination made under Rule 1092
rules/sro.shtml). Copies of the Securities Exchange Act of 1934 (the may request the Exchange Review
submission, all subsequent ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Council to review that determination
amendments, all written statements notice is hereby given that on February ‘‘in accordance with Exchange Rule
with respect to the proposed rule 5, 2018, Nasdaq PHLX LLC (‘‘Phlx’’ or 124(d).’’ However, Rule 124, Disputes-
change that are filed with the ‘‘Exchange’’) filed with the Securities Options, section (d) applies by its terms
Commission, and all written and Exchange Commission only to appeals to the Exchange Review
communications relating to the (‘‘Commission’’) the proposed rule Council of Options Exchange Official
proposed rule change between the change as described in Items I and II decisions regarding trading disputes
Commission and any person, other than below, which Items have been prepared occurring on, and relating to, the trading
those that may be withheld from the by the Exchange. The Commission is floor. In fact, Rule 124(a) specifically
public in accordance with the publishing this notice to solicit states that Rule 124 shall not apply to
provisions of 5 U.S.C. 552, will be comments on the proposed rule change options transactions that are the result
available for website viewing and from interested persons. of an obvious error or catastrophic error
printing in the Commission’s Public as defined in Rule 1092, and that
I. Self-Regulatory Organization’s options transactions that are the result
Reference Room, 100 F Street NE, Statement of the Terms of the Substance of an obvious error or catastrophic error
Washington, DC 20549 on official of the Proposed Rule Change shall be subject to the provisions and
business days between the hours of
procedures set forth in Rule 1092.
10:00 a.m. and 3:00 p.m. Copies of such The Exchange proposes to amend The cross-reference to Rule 124(d) in
filing also will be available for Rule 1092, Nullification and Rule 1092 is therefore incorrect and
inspection and copying at the principal Adjustment of Options Transactions inappropriate, and needlessly
office of the Exchange. All comments including Obvious Errors, by deleting a confusing. Moreover, it is unnecessary
received will be posted without change. cross-reference to Rule 124(d). as Rule 1092 itself provides the
Persons submitting comments are The text of the proposed rule change necessary process for requesting and
cautioned that we do not redact or edit is available on the Exchange’s website at obtaining an appeal by the Exchange
personal identifying information from http://nasdaqphlx.cchwallstreet.com/, Review Council of nullification and
comment submissions. You should at the principal office of the Exchange, adjustment decisions. The Exchange
submit only information that you wish and at the Commission’s Public therefore proposes to remove the cross-
to make available publicly. All Reference Room. reference.
submissions should refer to File 2. Statutory Basis
Number SR–BOX–2018–03, and should II. Self-Regulatory Organization’s
be submitted on or before March 6, Statement of the Purpose of, and The Exchange believes that its
2018. Statutory Basis for, the Proposed Rule proposal is consistent with Section 6(b)
Change of the Act,4 in general, and furthers the
For the Commission, by the Division of objectives of Section 6(b)(5) of the Act,5
Trading and Markets, pursuant to delegated In its filing with the Commission, the in particular, in that it is designed to
authority.10 Exchange included statements promote just and equitable principles of
Eduardo A. Aleman, concerning the purpose of and basis for trade, to remove impediments to and
Assistant Secretary. the proposed rule change and discussed perfect the mechanism of a free and
[FR Doc. 2018–02865 Filed 2–12–18; 8:45 am] any comments it received on the open market and a national market
BILLING CODE 8011–01–P proposed rule change. The text of these
3 An Options Exchange Official is an Exchange
statements may be examined at the
staff member or contract employee designated as
places specified in Item IV below. The such by the Chief Regulatory Officer. A list of
Exchange has prepared summaries, set individual Options Exchange Officials is displayed
forth in sections A, B, and C below, of on the Exchange website. The Chief Regulatory
sradovich on DSK3GMQ082PROD with NOTICES

Officer maintains the list of Options Exchange
the most significant aspects of such Officials and updates the website each time a name
statements. is added to, or deleted from, the list of Options
Exchange Officials. In the event no Options
Exchange Official is available to rule on a particular
matter, the Chief Regulatory Officer or his/her
designee rules on the matter.
1 15 U.S.C. 78s(b)(1). 4 15 U.S.C. 78f(b).
10 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. 5 15 U.S.C. 78f(b)(5).

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6284 Federal Register / Vol. 83, No. 30 / Tuesday, February 13, 2018 / Notices

system, and, in general to protect including whether the proposed rule SECURITIES AND EXCHANGE
investors and the public interest, by change is consistent with the Act. COMMISSION
removing an inappropriate and incorrect Comments may be submitted by any of
[Release No. 34–82654; File No. SR–BOX–
cross-reference to Rule 124(d) from Rule the following methods: 2018–04]
1092, thereby providing market
Electronic Comments
participants with a clearer description Self-Regulatory Organizations; BOX
of the appropriate appeal process in • Use the Commission’s internet Options Exchange LLC; Notice of
Rule 1092. comment form (http://www.sec.gov/ Filing and Immediate Effectiveness of
rules/sro.shtml); or a Proposed Rule Change To Amend
B. Self-Regulatory Organization’s • Send an email to rule-comments@
Statement on Burden on Competition Section VI. (Technology Fees) of the
sec.gov. Please include File Number SR–
BOX Fee Schedule
The Exchange does not believe that Phlx–2018–15 on the subject line.
the proposed rule change will impose February 7, 2018.
any burden on competition not Paper Comments
Pursuant to Section 19(b)(1) of the
necessary or appropriate in furtherance • Send paper comments in triplicate Securities Exchange Act of 1934 (the
of the purposes of the Act. The to Brent J. Fields, Secretary, Securities ‘‘Act’’),1 and Rule 19b–4 thereunder,2
enhanced clarity of Rule 1092 resulting and Exchange Commission, 100 F Street notice is hereby given that on January
from this proposed rule change will NE, Washington, DC 20549–1090. 31, 2018, BOX Options Exchange LLC
benefit all market participants equally. All submissions should refer to File (the ‘‘Exchange’’) filed with the
C. Self-Regulatory Organization’s Number SR–Phlx–2018–15. This file Securities and Exchange Commission
Statement on Comments on the number should be included on the (‘‘Commission’’) the proposed rule
Proposed Rule Change Received From subject line if email is used. To help the change as described in Items I, II, and
Members, Participants, or Others Commission process and review your III below, which Items have been
comments more efficiently, please use prepared by the Exchange. The
No written comments were either only one method. The Commission will Exchange filed the proposed rule change
solicited or received. post all comments on the Commission’s pursuant to Section 19(b)(3)(A)(ii) of the
III. Date of Effectiveness of the internet website (http://www.sec.gov/ Act,3 and Rule 19b–4(f)(2) thereunder,4
Proposed Rule Change and Timing for rules/sro.shtml). Copies of the which renders the proposal effective
Commission Action submission, all subsequent upon filing with the Commission. The
amendments, all written statements Commission is publishing this notice to
Because the foregoing proposed rule
with respect to the proposed rule solicit comments on the proposed rule
change does not: (i) Significantly affect
change that are filed with the change from interested persons.
the protection of investors or the public
Commission, and all written
interest; (ii) impose any significant I. Self-Regulatory Organization’s
communications relating to the
burden on competition; and (iii) become Statement of the Terms of the Substance
proposed rule change between the
operative for 30 days from the date on of the Proposed Rule Change
Commission and any person, other than
which it was filed, or such shorter time
those that may be withheld from the The Exchange is filing with the
as the Commission may designate, it has
public in accordance with the Securities and Exchange Commission
become effective pursuant to Section
provisions of 5 U.S.C. 552, will be (‘‘Commission’’) a proposed rule change
19(b)(3)(A)(iii) of the Act 6 and
available for website viewing and to amend Section VI. (Technology Fees)
subparagraph (f)(6) of Rule 19b–4
printing in the Commission’s Public of the BOX Fee Schedule. While
thereunder.7
At any time within 60 days of the Reference Room, 100 F Street NE, changes to the fee schedule pursuant to
filing of the proposed rule change, the Washington, DC 20549 on official this proposal will be effective upon
Commission summarily may business days between the hours of filing, the changes will become
temporarily suspend such rule change if 10:00 a.m. and 3:00 p.m. Copies of such operative on February 1, 2018. The text
it appears to the Commission that such filing also will be available for of the proposed rule change is available
action is: (i) Necessary or appropriate in inspection and copying at the principal from the principal office of the
the public interest; (ii) for the protection office of the Exchange. All comments Exchange, at the Commission’s Public
of investors; or (iii) otherwise in received will be posted without change. Reference Room and also on the
furtherance of the purposes of the Act. Persons submitting comments are Exchange’s internet website at http://
If the Commission takes such action, the cautioned that we do not redact or edit boxexchange.com.
Commission shall institute proceedings personal identifying information from
II. Self-Regulatory Organization’s
to determine whether the proposed rule comment submissions. You should
Statement of the Purpose of, and
should be approved or disapproved. submit only information that you wish
Statutory Basis for, the Proposed Rule
to make available publicly. All
IV. Solicitation of Comments Change
submissions should refer to File
Interested persons are invited to Number SR–Phlx–2018–15, and should In its filing with the Commission, the
submit written data, views, and be submitted on or before March 6, Exchange included statements
arguments concerning the foregoing, 2018. concerning the purpose of and basis for
the proposed rule change and discussed
For the Commission, by the Division of
6 15 U.S.C. 78s(b)(3)(A)(iii). Trading and Markets, pursuant to delegated
any comments it received on the
sradovich on DSK3GMQ082PROD with NOTICES

7 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
authority.8 proposed rule change. The text of these
4(f)(6) requires a self-regulatory organization to give
Eduardo A. Aleman,
statements may be examined at the
the Commission written notice of its intent to file places specified in Item IV below. The
the proposed rule change, along with a brief Assistant Secretary.
description and text of the proposed rule change, [FR Doc. 2018–02860 Filed 2–12–18; 8:45 am] 1 15
at least five business days prior to the date of filing U.S.C. 78s(b)(1).
BILLING CODE 8011–01–P 2 17 CFR 240.19b–4.
of the proposed rule change, or such shorter time
3 15 U.S.C. 78s(b)(3)(A)(ii).
as designated by the Commission. The Exchange
has satisfied this requirement. 8 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(2).

VerDate Sep<11>2014 23:12 Feb 12, 2018 Jkt 244001 PO 00000 Frm 00126 Fmt 4703 Sfmt 4703 E:\FR\FM\13FEN1.SGM 13FEN1
Document Created: 2018-02-13 02:32:33
Document Modified: 2018-02-13 02:32:33
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 6283