Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 3100 To Adopt a Modification in the Process for Initiating Trading of a Security That Is the Subject of a Trading Halt or Pause on NASDAQ OMX PSX, 38777-38779 [2013-15345]
Download as PDF
<![CDATA[
Federal Register / Vol. 78, No. 124 / Thursday, June 27, 2013 / Notices
2. Statutory Basis
The Exchange believes that its
proposal to amend its fee schedule is
consistent with Section 6(b) of the Act 3
in general, and furthers the objectives of
Section 6(b)(4) of the Act 4 in particular,
in that it is an equitable allocation of
reasonable fees and other charges among
Exchange members. The proposal to
make several technical changes to the
Fee Schedule to delete obsolete or
unnecessary dates, delete obsolete fees,
and to correctly rename a market data
product should reduce possible
confusion among members to which
fees apply.
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:
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
proposed technical changes to the Fee
Schedule to delete obsolete or
unnecessary dates, delete obsolete fees,
and to correctly rename a market data
product should reduce possible
confusion among members at to which
fees apply. Since the Exchange proposes
no substantive changes other than the
technical changes, the proposal should
not impose any burden on competition.
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
mstockstill on DSK4VPTVN1PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor 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.5 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
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2013–15364 Filed 6–26–13; 8:45 am]
Electronic Comments
BILLING CODE 8011–01–P
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
No. SR–MIAX–2013–29 on the subject
line.
Paper Comments
All submissions should refer to File No.
SR–MIAX–2013–29. 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
office 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 No. SR–MIAX–
2013–29 and should be submitted on or
before July 18, 2013.
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
5 15 U.S.C. 78s(b)(3)(A)(ii).
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69817; File No. SR–Phlx–
2013–66]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Amend
Rule 3100 To Adopt a Modification in
the Process for Initiating Trading of a
Security That Is the Subject of a
Trading Halt or Pause on NASDAQ
OMX PSX
June 21, 2013.
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 June 14,
2013, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or the ‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 3100 to adopt a modification in the
process for initiating trading of a
security that is the subject of a trading
halt or pause on NASDAQ OMX PSX
(‘‘PSX’’). The text of the proposed rule
change is available on the Exchange’s
Web site at https://
nasdaqomxphlx.cchwallstreet.com/
nasdaqomxphlx/phlx/, 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
3 15
6 17
4 15
1 15
VerDate Mar<15>2010
18:12 Jun 26, 2013
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
Jkt 229001
PO 00000
Frm 00096
Fmt 4703
38777
Sfmt 4703
E:\FR\FM\27JNN1.SGM
27JNN1
38778
Federal Register / Vol. 78, No. 124 / Thursday, June 27, 2013 / Notices
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
mstockstill on DSK4VPTVN1PROD with NOTICES
In 2012, The NASDAQ Stock Market
(‘‘NASDAQ’’) modified its process for
commencing trading of a security that is
the subject of an initial public offering
(an ‘‘IPO’’) on NASDAQ by allowing
market participants to enter orders to be
held in an undisplayed state until the
commencement of the Display-Only
Period that occurs prior to the IPO.3
NASDAQ recently proposed a similar
change with regard to entering orders
prior to the end of other trading halts or
pauses on NASDAQ.4 The Exchange is
proposing to make a similar change with
regard to entering orders prior to the
end of trading halts or pauses on PSX.
Rule 3100(a) describes the
circumstances under which the
Exchange has the authority to initiate a
trading halt. As detailed in Rule 3100(a),
the specific bases for a halt include the
following:
• A halt to permit the dissemination
of material news with respect to a
security listed on another national
securities exchange (Rule 3100(a)(1)(A));
• a halt due to an order imbalance or
influx (Rule 3100(a)(1)(B));
• a halt with respect to an index
warrant when deemed appropriate in
the interests of a fair and orderly market
and to protect investors (Rule
3100(a)(2));
• a halt in a Derivative Securities
Product (as defined in Rule
3100(b)(4)(A)) for which a net asset
value (‘‘NAV’’) or a Disclosed Portfolio
is disseminated if the Exchange
becomes aware that the NAV or
Disclosed Portfolio is not being
disseminated to all market participants
at the same time (Rule 3100(a)(3));
• a trading pause with respect to
stocks that are not subject to the Limit
Up-Limit Down Plan 5 and for which the
3 Securities Exchange Act Release No. 66652
(March 23, 2012), 77 FR 13129 (March 29, 2012)
(SR–NASDAQ–2012–038).
4 Securities Exchange Act Release No. 69563 (May
13, 2013), 78 FR 29187 (May 17, 2013) (SR–
NASDAQ–2013–073).
5 Plan to Address Extraordinary Market Volatility
Submitted to the Commission Pursuant to Rule 608
of Regulation NMS under the Act, Securities
VerDate Mar<15>2010
18:12 Jun 26, 2013
Jkt 229001
primary listing market has issued an
individual stock trading pause (Rule
3100(a)(4)); and
• a trading halt in a Derivative
Security Product traded pursuant to
unlisted trading privileges for which a
‘‘Required Value,’’ such as an intraday
indicative value or disclosed portfolio,
is not being disseminated, under the
conditions described in Rule 3100(b).
Under the current process, quotes and
orders in a halted security may not be
entered until the resumption of trading.
However, the Exchange believes that the
quality of its process for commencing
trading in the halted security would be
enhanced by allowing market
participants to enter orders to be held
but not displayed until the resumption
of trading. Specifically, the Exchange
believes that this change will provide
for a greater number of orders being
entered prior to commencement of
trading, resulting in a higher level of
order interaction at the resumption of
trading.
Orders entered in this manner will be
held in a suspended state until the
resumption of trading, at which time
they will be entered into the system.
Market participants may cancel orders
entered in this manner in the same way
they would cancel any other order.
Orders entered prior to the resumption
of trading will be rejected unless they
are designated for holding. Specifically,
the orders will be entered into the
continuous market once trading
resumes.6
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,7
in general, and with Section 6(b)(5) of
the Act,8 in particular, in that the
proposal is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
Exchange Act Release No. 67091 (May 31, 2012), 77
FR 33498 (June 6, 2012).
6 Orders entered and held during the halt period
will be entered into the continuous market in the
order in which they were received. However, such
orders will be entered contemporaneously with any
orders received through order entry ports after the
halt is terminated. Thus, the relative priority of
orders received during the halt and orders received
through order entry ports after the halt is
terminated will be a function of the duration of
system processing associated with each particular
order. As a result, orders received during the halt
will not automatically have priority over orders
received at the conclusion of the halt.
7 15 U.S.C. 78f.
8 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00097
Fmt 4703
Sfmt 4703
securities, 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.
Specifically, the Exchange believes that
the change to allow entry of quotes and
orders for holding during a trading halt
will provide for a greater number of
orders being entered prior to
commencement of trading, resulting in
a higher level of order interaction in the
re-opening process. Thus, the Exchange
believes that the change will remove
impediments to and perfect the
mechanism of a free and open market.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
Specifically, the Exchange believes that
this change will provide for a greater
number of orders being entered prior to
commencement of trading, resulting in
a higher level of order interaction. The
Exchange believes that this change will
promote competition by enhancing the
attractiveness of PSX as a trading venue
through higher order fill rates and more
complete price discovery. Moreover,
because the change will not affect the
availability or price of goods or services
offered by PSX or others, it will not
impose any burden on competition.
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) of the Act 9 and
subparagraph (f)(6) of Rule 19b–4
thereunder.10
9 15
U.S.C. 78s(b)(3)(A).
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 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.
10 17
E:\FR\FM\27JNN1.SGM
27JNN1
Federal Register / Vol. 78, No. 124 / Thursday, June 27, 2013 / Notices
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.
publicly available. All submissions
should refer to File Number SR–Phlx–
2013–66 and should be submitted on or
before July 18, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority. 11
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2013–15345 Filed 6–26–13; 8:45 am]
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–Phlx–2013–66 on the
subject line.
mstockstill on DSK4VPTVN1PROD with NOTICES
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:
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Making a NonSubstantive, Technical Amendment to
Exchange Rule 900.3NY(o) To Correct
a Cross Reference To Exchange Rule
964NY
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–Phlx–2013–66. 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
office 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
June 21, 2013.
VerDate Mar<15>2010
18:12 Jun 26, 2013
Jkt 229001
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69827; File No. SR–
NYSEMKT–2013–54]
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on June 17,
2013, NYSE MKT LLC (the ‘‘Exchange’’
or ‘‘NYSE MKT’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. 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 make a
non-substantive, technical amendment
to Exchange Rule 900.3NY(o) to correct
a cross reference to Exchange Rule
964NY. The text of the proposed rule
change is available on the Exchange’s
Web site at www.nyse.com, at the
principal office of the Exchange, on the
Commission’s Web site at https://
www.sec.gov, 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
self-regulatory organization included
11 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
38779
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 those 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 parts 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 is proposing to make a
non-substantive, technical correction to
Exchange Rule 900.3NY(o) in order to
update a cross reference to Exchange
Rule 964NY. Current Rule 900.3NY(o)
incorrectly cross references Rule
964NY(c)(2)(D) with respect to the
routing instructions for NOW Orders.
The Exchange proposes to correct the
citation to cross reference Rule
964NY(c)(2)(E).
As described in Rule 900.3NY(o), a
‘‘NOW Order’’ is a Limit Order that is
to be executed in whole or in part on the
Exchange, and the portion not so
executed is routed to one or more NOW
Recipients for immediate execution as
soon as the order is received by the
NOW Recipient.4 Currently, Rule
900.3NY(o) incorrectly provides that a
NOW Order is routed pursuant to Rule
964NY(c)(2)(D), which relates to the
matching of an inbound order against
orders in the Working Order File.
The routing provisions actually
governing the routing of NOW Orders
are found in Rule 964NY(c)(2)(E), and,
as applied to NOW Orders, provide that
if the NOW Order has not been executed
in its entirety on the Exchange, the
order will be routed for execution to one
or more NOW Recipients. Specifically,
Rule 964NY(c)(2)(E)(iii) states that ‘‘if
the order locks or crosses the NBBO, it
will be routed via routing broker to the
away market(s) displaying the National
Best Bid or Offer Price.’’ Following the
routing of the NOW Order, and in
accordance with the terms of such
order, any portion not immediately
executed by the NOW Recipient is
cancelled. Accordingly, the Exchange
proposes to correct Rule 900.3NY(o) to
cross-reference Rule 964NY(c)(2)(E).
4 A NOW Recipient is defined as ‘‘any Market
Center (1) with which the Exchange maintains an
electronic linkage, and (2) that provides
instantaneous responses to NOW Orders routed
from the System.’’ NYSE Amex Options Rule
900.2NY(44).
E:\FR\FM\27JNN1.SGM
27JNN1
]]>Agencies
[Federal Register Volume 78, Number 124 (Thursday, June 27, 2013)]
[Notices]
[Pages 38777-38779]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-15345]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69817; File No. SR-Phlx-2013-66]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 3100 To Adopt a Modification in the Process for Initiating Trading
of a Security That Is the Subject of a Trading Halt or Pause on NASDAQ
OMX PSX
June 21, 2013.
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 June 14, 2013, NASDAQ OMX PHLX LLC (``Phlx'' or the ``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.
---------------------------------------------------------------------------
\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 amend Rule 3100 to adopt a modification in
the process for initiating trading of a security that is the subject of
a trading halt or pause on NASDAQ OMX PSX (``PSX''). The text of the
proposed rule change is available on the Exchange's Web site at https://nasdaqomxphlx.cchwallstreet.com/nasdaqomxphlx/phlx/, 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
[[Page 38778]]
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
In 2012, The NASDAQ Stock Market (``NASDAQ'') modified its process
for commencing trading of a security that is the subject of an initial
public offering (an ``IPO'') on NASDAQ by allowing market participants
to enter orders to be held in an undisplayed state until the
commencement of the Display-Only Period that occurs prior to the
IPO.\3\ NASDAQ recently proposed a similar change with regard to
entering orders prior to the end of other trading halts or pauses on
NASDAQ.\4\ The Exchange is proposing to make a similar change with
regard to entering orders prior to the end of trading halts or pauses
on PSX. Rule 3100(a) describes the circumstances under which the
Exchange has the authority to initiate a trading halt. As detailed in
Rule 3100(a), the specific bases for a halt include the following:
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 66652 (March 23, 2012),
77 FR 13129 (March 29, 2012) (SR-NASDAQ-2012-038).
\4\ Securities Exchange Act Release No. 69563 (May 13, 2013), 78
FR 29187 (May 17, 2013) (SR-NASDAQ-2013-073).
---------------------------------------------------------------------------
A halt to permit the dissemination of material news with
respect to a security listed on another national securities exchange
(Rule 3100(a)(1)(A));
a halt due to an order imbalance or influx (Rule
3100(a)(1)(B));
a halt with respect to an index warrant when deemed
appropriate in the interests of a fair and orderly market and to
protect investors (Rule 3100(a)(2));
a halt in a Derivative Securities Product (as defined in
Rule 3100(b)(4)(A)) for which a net asset value (``NAV'') or a
Disclosed Portfolio is disseminated if the Exchange becomes aware that
the NAV or Disclosed Portfolio is not being disseminated to all market
participants at the same time (Rule 3100(a)(3));
a trading pause with respect to stocks that are not
subject to the Limit Up-Limit Down Plan \5\ and for which the primary
listing market has issued an individual stock trading pause (Rule
3100(a)(4)); and
---------------------------------------------------------------------------
\5\ Plan to Address Extraordinary Market Volatility Submitted to
the Commission Pursuant to Rule 608 of Regulation NMS under the Act,
Securities Exchange Act Release No. 67091 (May 31, 2012), 77 FR
33498 (June 6, 2012).
---------------------------------------------------------------------------
a trading halt in a Derivative Security Product traded
pursuant to unlisted trading privileges for which a ``Required Value,''
such as an intraday indicative value or disclosed portfolio, is not
being disseminated, under the conditions described in Rule 3100(b).
Under the current process, quotes and orders in a halted security
may not be entered until the resumption of trading. However, the
Exchange believes that the quality of its process for commencing
trading in the halted security would be enhanced by allowing market
participants to enter orders to be held but not displayed until the
resumption of trading. Specifically, the Exchange believes that this
change will provide for a greater number of orders being entered prior
to commencement of trading, resulting in a higher level of order
interaction at the resumption of trading.
Orders entered in this manner will be held in a suspended state
until the resumption of trading, at which time they will be entered
into the system. Market participants may cancel orders entered in this
manner in the same way they would cancel any other order. Orders
entered prior to the resumption of trading will be rejected unless they
are designated for holding. Specifically, the orders will be entered
into the continuous market once trading resumes.\6\
---------------------------------------------------------------------------
\6\ Orders entered and held during the halt period will be
entered into the continuous market in the order in which they were
received. However, such orders will be entered contemporaneously
with any orders received through order entry ports after the halt is
terminated. Thus, the relative priority of orders received during
the halt and orders received through order entry ports after the
halt is terminated will be a function of the duration of system
processing associated with each particular order. As a result,
orders received during the halt will not automatically have priority
over orders received at the conclusion of the halt.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\7\ in general, and with
Section 6(b)(5) of the Act,\8\ in particular, in that the proposal is
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, 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. Specifically,
the Exchange believes that the change to allow entry of quotes and
orders for holding during a trading halt will provide for a greater
number of orders being entered prior to commencement of trading,
resulting in a higher level of order interaction in the re-opening
process. Thus, the Exchange believes that the change will remove
impediments to and perfect the mechanism of a free and open market.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended.
Specifically, the Exchange believes that this change will provide for a
greater number of orders being entered prior to commencement of
trading, resulting in a higher level of order interaction. The Exchange
believes that this change will promote competition by enhancing the
attractiveness of PSX as a trading venue through higher order fill
rates and more complete price discovery. Moreover, because the change
will not affect the availability or price of goods or services offered
by PSX or others, it will not impose any burden on competition.
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) of the Act \9\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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 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.
---------------------------------------------------------------------------
[[Page 38779]]
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.
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-2013-66 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-Phlx-2013-66. 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 office 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 publicly available. All
submissions should refer to File Number SR-Phlx-2013-66 and should be
submitted on or before July 18, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority. \11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2013-15345 Filed 6-26-13; 8:45 am]
BILLING CODE 8011-01-P
