Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delay the Implementation of a Recent Proposal Relating to Joint Back Office Participants, 42066-42067 [2014-16888]
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Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Notices
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sroberts on DSK5SPTVN1PROD with NOTICES
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[FR Doc. 2014–16952 Filed 7–17–14; 8:45 am]
BILLING CODE 6325–38–P
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Jkt 232001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72605; File No. SR–Phlx–
2014–44]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Delay the
Implementation of a Recent Proposal
Relating to Joint Back Office
Participants
July 14, 2014.
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 July 1,
2014, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to [sic]
proposal [sic] to delay the
implementation of a recent proposal to
assess joint back office (‘‘JBO’’) 3
participants pricing the same as BrokerDealers 4 and require JBO participants to
utilize a new origin code to identify JBO
orders.
The Exchange proposes that the
proposal become operative on
September 1, 2014.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxphlx.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
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 A JBO participant is a member, member
organization or non-member organization that
maintains a JBO arrangement with a clearing
broker-dealer (‘‘JBO Broker’’) subject to the
requirements of Regulation T Section 220.7 of the
Federal Reserve System. See also Exchange Rule
703.
4 The term ‘‘Broker-Dealer’’ applies to any
transaction which is not subject to any of the other
transaction fees applicable within a particular
category.
PO 00000
1 15
2 17
Frm 00113
Fmt 4703
Sfmt 4703
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 delay the implementation
of a recent proposal 5 to introduce a new
origin code in the Exchange’s Pricing
Schedule which will be used to indicate
orders for a JBO account to be cleared
into the Firm 6 range at The Options
Clearing Corporation (‘‘OCC’’) for
purposes of pricing only. In addition,
the proposal assessed fees and paid
rebates to JBO Orders the same as
Broker-Dealers, and applied a certain fee
cap. The Exchange initially indicated
that the proposal would be
implemented on July 1, 2014. At this
time, in light of feedback from a market
participant, the Exchange seeks to be
able to implement these changes on
September 1, 2014. Some participants
may be ready to use the new indicator
July 1 and may do so (although it will
not be used by the Exchange until
September 1), but participants will not
be required to use the new indicator
until September 1, which is also when
the new fees will apply.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 7 in general, and furthers the
objectives of Section 6(b)(5) of the Act 8
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
system, and, in general to protect
investors and the public interest,
because delaying the implementation of
the JBO origin code requirement and
attendant fees should permit
participants to use the additional time
5 See Securities Exchange Act Release No. 72094
(May 5, 2014), 79 FR 26787 (May 9, 2014) (SR–
Phlx–2014–28).
6 The term ‘‘Firm’’ applies to any transaction that
is identified by a member or member organization
for clearing in the Firm range at OCC.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
E:\FR\FM\18JYN1.SGM
18JYN1
Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Notices
to prepare for compliance with this
requirement.
The Exchange believes that market
participants will benefit from the
additional time to implement the proper
technical changes to comply with the
requirements associated with marking
JBO Orders with a new origin code,
which should, in turn, enable JBO
participants to continue to participate in
the Phlx options market.
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 is allowing participants
additional time to comply with a new
origin code and attendant fees, which
will apply to all JBOs (member and nonmember) in a similar manner on
September 1, 2014.
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.
sroberts on DSK5SPTVN1PROD with NOTICES
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
effective pursuant to Section 19(b)(3)(A)
of the Act 9 and Rule 19b–4(f)(6)(iii)
thereunder.10
The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it will allow additional time for
market participants to implement
technology changes necessary to comply
9 15
U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(6)(iii). 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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23:20 Jul 17, 2014
Jkt 232001
with the new origin code and attendant
fees. For this reason, the Commission
waives the operative delay and
designates the proposed rule change to
be operative upon filing.11
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
Phlx–2014–44 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–2014–44. 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 (https://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
11 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
PO 00000
Frm 00114
Fmt 4703
Sfmt 4703
42067
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
offices of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–Phlx–
2014–44, and should be submitted on or
before August 8, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–16888 Filed 7–17–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72603; File No. SR–Phlx–
2014–24]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Order
Approving a Proposed Rule Change
and Amendment No. 1 Thereto To
Modify the Order Execution Algorithm
of NASDAQ OMX PSX
July 14, 2014.
I. Introduction
On May 13, 2014, NASDAQ OMX
PHLX LLC (‘‘Exchange’’ or ‘‘Phlx’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposal to modify
the order execution algorithm of Phlx’s
NASDAQ OMX PSX facility (‘‘PSX’’).
The Exchange filed Amendment No. 1
to the proposed rule change on May 16,
2014.3 The proposed rule, as amended,
was published for comment in the
Federal Register on May 30, 2014.4 The
Commission received no comments on
the proposal. This order approves the
proposed rule change.
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 In Amendment No. 1, the Exchange corrected
figures in both the filing and the proposed rule text
for price and share amounts used in examples of the
proposed execution algorithms.
4 See Securities Exchange Act Release No. 72250
(May 23, 2014), 79 FR 31147 (May 30, 2014)
(‘‘Notice’’).
1 15
E:\FR\FM\18JYN1.SGM
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]]>Agencies
[Federal Register Volume 79, Number 138 (Friday, July 18, 2014)]
[Notices]
[Pages 42066-42067]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-16888]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72605; File No. SR-Phlx-2014-44]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Delay the
Implementation of a Recent Proposal Relating to Joint Back Office
Participants
July 14, 2014.
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 July 1, 2014, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to [sic] proposal [sic] to delay the
implementation of a recent proposal to assess joint back office
(``JBO'') \3\ participants pricing the same as Broker-Dealers \4\ and
require JBO participants to utilize a new origin code to identify JBO
orders.
---------------------------------------------------------------------------
\3\ A JBO participant is a member, member organization or non-
member organization that maintains a JBO arrangement with a clearing
broker-dealer (``JBO Broker'') subject to the requirements of
Regulation T Section 220.7 of the Federal Reserve System. See also
Exchange Rule 703.
\4\ The term ``Broker-Dealer'' applies to any transaction which
is not subject to any of the other transaction fees applicable
within a particular category.
---------------------------------------------------------------------------
The Exchange proposes that the proposal become operative on
September 1, 2014.
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaqomxphlx.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 delay the
implementation of a recent proposal \5\ to introduce a new origin code
in the Exchange's Pricing Schedule which will be used to indicate
orders for a JBO account to be cleared into the Firm \6\ range at The
Options Clearing Corporation (``OCC'') for purposes of pricing only. In
addition, the proposal assessed fees and paid rebates to JBO Orders the
same as Broker-Dealers, and applied a certain fee cap. The Exchange
initially indicated that the proposal would be implemented on July 1,
2014. At this time, in light of feedback from a market participant, the
Exchange seeks to be able to implement these changes on September 1,
2014. Some participants may be ready to use the new indicator July 1
and may do so (although it will not be used by the Exchange until
September 1), but participants will not be required to use the new
indicator until September 1, which is also when the new fees will
apply.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 72094 (May 5, 2014),
79 FR 26787 (May 9, 2014) (SR-Phlx-2014-28).
\6\ The term ``Firm'' applies to any transaction that is
identified by a member or member organization for clearing in the
Firm range at OCC.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \7\ in general, and furthers the objectives of Section
6(b)(5) of the Act \8\ 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
system, and, in general to protect investors and the public interest,
because delaying the implementation of the JBO origin code requirement
and attendant fees should permit participants to use the additional
time
[[Page 42067]]
to prepare for compliance with this requirement.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that market participants will benefit from
the additional time to implement the proper technical changes to comply
with the requirements associated with marking JBO Orders with a new
origin code, which should, in turn, enable JBO participants to continue
to participate in the Phlx options market.
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 is allowing
participants additional time to comply with a new origin code and
attendant fees, which will apply to all JBOs (member and non-member) in
a similar manner on September 1, 2014.
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 effective
pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6)(iii) thereunder.\10\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6)(iii). 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.
---------------------------------------------------------------------------
The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Commission believes that waiving the 30-day operative delay
is consistent with the protection of investors and the public interest
because it will allow additional time for market participants to
implement technology changes necessary to comply with the new origin
code and attendant fees. For this reason, the Commission waives the
operative delay and designates the proposed rule change to be operative
upon filing.\11\
---------------------------------------------------------------------------
\11\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-Phlx-2014-44 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-2014-44. 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 (https://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 such filing also will be available
for inspection and copying at the principal offices of the Exchange.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-Phlx-2014-44,
and should be submitted on or before August 8, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-16888 Filed 7-17-14; 8:45 am]
BILLING CODE 8011-01-P
