Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Trading Halts or Suspension When an Exchange Trading System Experiences Technical Failure or Failures, 48516-48518 [2013-19148]
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48516
Federal Register / Vol. 78, No. 153 / Thursday, August 8, 2013 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
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 the
filing will also 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 SRNYSEMKT–2013–66 and should be
submitted on or before August 29, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–19145 Filed 8–7–13; 8:45 am]
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:
BILLING CODE 8011–01–P
Electronic Comments
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Trading Halts or Suspension When an
Exchange Trading System Experiences
Technical Failure or Failures
• 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–NYSEMKT–2013–66 on the
subject line.
tkelley on DSK3SPTVN1PROD with NOTICES
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- NYSEMKT–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
VerDate Mar<15>2010
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70101; File No. SR–Phlx–
2013–78 ]
August 2, 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 July 25,
2013, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or ‘‘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
Exchange Rules 1047 and 1047A to
20 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Frm 00106
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expressly state another factor that is
considered in determining whether
trading on the Exchange in any class of
option contracts should be halted or
suspended.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nasdaqtrader.com/
micro.aspx?id=PHLXRulefilings, 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 is proposing to amend
Exchange Rule 1047, entitled ‘‘Trading
Rotations, Halts and Suspensions’’ and
Rule 1047A, entitled ‘‘Trading
Rotations, Halts or Reopenings’’ to
expressly state a factor which is
considered today in determining
whether to halt or suspend trading in
any class of option on the Exchange.
Today, Exchange Rule 1047 contains
four factors that an Options Exchange
Official 3 may consider appropriate in
the interests of a fair and orderly market
and to protect investors when
determining whether to halt or suspend
options trading. The current factors are
as follows: (i) Trading in the underlying
stock or Exchange-Traded Fund Share
has been halted or suspended in the
primary market; (ii) the opening of such
underlying stock or Exchange-Traded
Fund Share in the primary market has
been delayed because of unusual
3 See Rule 1. An ‘‘Option 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
shall be displayed on the Exchange Web site. The
Chief Regulatory Officer shall maintain the list of
Options Exchange Officials and update the Web site
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 shall rule on such matter.
E:\FR\FM\08AUN1.SGM
08AUN1
tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 78, No. 153 / Thursday, August 8, 2013 / Notices
circumstances; (iii) the Exchange has
been advised that the issuer of the
underlying stock or Exchange-Traded
Fund Share is about to make an
important announcement affecting such
issuer; or (iv) other unusual conditions
or circumstances are present. This
fourth factor is the basis on which
Options Exchange Officials today halt or
suspend options trading for technical
issues on Phlx.
The Exchange is proposing to
expressly state that technical failures
may be considered when determining to
halt or suspend options trading.
Specifically, the Exchange proposes to
expressly note that an Options Exchange
Official may consider a Trading System
technical failure or failures including,
but not limited to, the failure of the
central processing system, a number of
member or member organization trading
applications, or the electrical power
supply to the system itself or any related
system in determining when to halt or
suspend options trading. The Exchange
proposes to define Trading System for
purposes of this Rule as Phlx XL II, or
any other Exchange quotation,
transaction reporting, execution, order
routing or other systems for trading
options.
The Exchange believes that a Trading
System failure may be considered as an
unusual condition or circumstance as
noted in Rule 1047(iv) and Rule
1047A(iii), however the Exchange
desires to include specific language
regarding a technical failure within the
list of considerations, similar to other
options exchanges. Today, this factor is
included in the list of factors for halting
or suspending options trading on The
NASDAQ Options Market LLC (‘‘NOM’’)
and the NASDAQ OMX BX, Inc. (‘‘BX
Options’’).4 NOM and BX Options today
halt or suspend options trading for
technical failures utilizing the
corresponding rules at Chapter V,
Section 3. The Exchange believes that
expressly stating this factor within
Rules 1047 and 1047A will provide
clearer guidance to Options Exchange
Officials when they are determining
whether to halt or suspend options
trading on Phlx.
Similarly, the Exchange proposes to
add identical language to Rule 1047A
which relates to the trading of options
on indices. Rule 1047A currently
provides that ‘‘[t]rading on the Exchange
in any option may be halted with the
approval of an Options Exchange
Official, whenever trading on the
primary market in any underlying
security is halted or suspended. Trading
shall be halted whenever an Options
Exchange Official deems such action
appropriate in the interests of a fair and
orderly market and to protect investors.
Among the factors that may be
considered are the following: (i) Trading
has been halted or suspended in the
market that is the primary market for a
plurality of the underlying stocks; (ii)
the current calculation of the index
derived from the current market prices
of the stocks is not available; (iii) other
unusual conditions or circumstances
detrimental to the maintenance of a fair
and orderly market are present.’’ The
Exchange proposes to amend Rule
1047A by adding identical language to
that proposed for Rule 1047. The
Exchange also proposes to renumber
Rules 1047 and 1047(A) to include the
added factor.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 5 in general, and furthers the
objectives of Section 6(b)(5) of the Act 6
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, by
specifically noting that Options
Exchange Officials may consider
technical failures when halting or
suspending options trading.
The Exchange believes that expressly
noting that a system technical failure
should be among the factors considered
by an Options Exchange Official in
halting or suspending options trading
provides greater clarity to the factors
which may cause such a market halt or
suspension. Today, a technical failure of
either the exchange’s Trading System or
that of a number of Participants would
be considered in halting or suspending
options trading on NOM and BX
Options.7 An Options Exchange Official
must determine whether halting or
suspending options trading is
appropriate to ensure a fair and orderly
market and also to protect investors.
Options Exchange Officials must
consider the factors enumerated within
Rules 1047 and 1047A, depending on
the options impacted, and make
decisions as to whether to halt or
suspend trading after an analysis of the
facts. The Exchange believes that
expressly noting Trading System
failures as a consideration is appropriate
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
7 See NOM and BX Options Rules at Chapter V,
Section 3.
because such failures could prevent a
fair and orderly market and impact
investors. The Exchange believes that
the addition of the proposed text
provides greater clarity to the factors to
be considered by Options Exchange
Officials.
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 this proposed rule
change will benefit investors by
specifically noting that technical issues
are a consideration for an Options
Exchange Official when determining
whether to halt or suspend options
trading. Today, the Exchange halts and
suspends options trading for such
technical failures when those failures
impact investors as do other options
exchanges. This proposal will provide
greater clarity to Options Exchange
Officials in making these
determinations.
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)(ii) of the Act 8 and
subparagraph (f)(6) of Rule 19b–4
thereunder.9
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. The
Exchange has provided the Commission
6 15
4 See NOM and BX Options Rules at Chapter V,
Section 3.
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48517
8 15
9 17
E:\FR\FM\08AUN1.SGM
U.S.C. 78s(b)(3)(a)(ii).
CFR 240.19b–4(f)(6).
08AUN1
48518
Federal Register / Vol. 78, No. 153 / Thursday, August 8, 2013 / Notices
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.
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 rulecomments@sec.gov. Please include File
Number SR–Phlx–2013–78 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–2013–78. 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 Number SR–Phlx–
2013–78 and should be submitted on or
before August 29, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–19148 Filed 8–7–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70095; File No. SR–BX–
2013–046]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend
Options Fees and Rebates
August 2, 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 July 30,
2013, NASDAQ OMX BX, Inc. (‘‘BX’’ or
‘‘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
Chapter XV, Section 2 entitled ‘‘BX
Options Market—Fees and Rebates’’ to
add iPath S&P 500 VIX Short Term
Futures (‘‘VXX’’) to the list of options
underlying certain penny pilot options.
While the changes proposed herein
are effective upon filing, the Exchange
has designated these changes to be
operative on August 1, 2013.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxbx.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
BX proposes to amend Chapter XV,
Section 2(1) to add VXX to the list of
options underlying certain penny pilot
options (the others include BAC, IWM,
QQQ and SPY, collectively with VXX,
the ‘‘Specified Penny Pilot Options’’).
The proposed rule change will reflect
the fees and rebates as follows:
FEES AND REBATES
[per executed contract]
tkelley on DSK3SPTVN1PROD with NOTICES
Customer
BAC, IWM, QQQ, SPY and VXX:
Rebate to Add Liquidity ........................................................................................................
Fee to Add Liquidity .............................................................................................................
Rebate to Remove Liquidity .................................................................................................
Fee to Remove Liquidity ......................................................................................................
All Other Penny Pilot Options:
Rebate to Add Liquidity ........................................................................................................
10 17
CFR 200.30–3(a)(12).
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2 $0.00
2 $0.20
3 0.10
3 0.10
0.00
N/A
N/A
0.45
N/A
0.45
N/A
0.45
2 0.00
2 0.10
N/A
2 17
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BX options
market maker
E:\FR\FM\08AUN1.SGM
CFR 240.19b–4.
08AUN1
]]>Agencies
[Federal Register Volume 78, Number 153 (Thursday, August 8, 2013)]
[Notices]
[Pages 48516-48518]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-19148]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70101; File No. SR-Phlx-2013-78 ]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Trading Halts or Suspension When an Exchange Trading System Experiences
Technical Failure or Failures
August 2, 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 July 25, 2013, NASDAQ OMX PHLX LLC (``Phlx'' or ``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 Exchange Rules 1047 and 1047A to
expressly state another factor that is considered in determining
whether trading on the Exchange in any class of option contracts should
be halted or suspended.
The text of the proposed rule change is available on the Exchange's
Web site at https://www.nasdaqtrader.com/micro.aspx?id=PHLXRulefilings,
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 is proposing to amend Exchange Rule 1047, entitled
``Trading Rotations, Halts and Suspensions'' and Rule 1047A, entitled
``Trading Rotations, Halts or Reopenings'' to expressly state a factor
which is considered today in determining whether to halt or suspend
trading in any class of option on the Exchange. Today, Exchange Rule
1047 contains four factors that an Options Exchange Official \3\ may
consider appropriate in the interests of a fair and orderly market and
to protect investors when determining whether to halt or suspend
options trading. The current factors are as follows: (i) Trading in the
underlying stock or Exchange-Traded Fund Share has been halted or
suspended in the primary market; (ii) the opening of such underlying
stock or Exchange-Traded Fund Share in the primary market has been
delayed because of unusual
[[Page 48517]]
circumstances; (iii) the Exchange has been advised that the issuer of
the underlying stock or Exchange-Traded Fund Share is about to make an
important announcement affecting such issuer; or (iv) other unusual
conditions or circumstances are present. This fourth factor is the
basis on which Options Exchange Officials today halt or suspend options
trading for technical issues on Phlx.
---------------------------------------------------------------------------
\3\ See Rule 1. An ``Option 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
shall be displayed on the Exchange Web site. The Chief Regulatory
Officer shall maintain the list of Options Exchange Officials and
update the Web site 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 shall rule on such
matter.
---------------------------------------------------------------------------
The Exchange is proposing to expressly state that technical
failures may be considered when determining to halt or suspend options
trading. Specifically, the Exchange proposes to expressly note that an
Options Exchange Official may consider a Trading System technical
failure or failures including, but not limited to, the failure of the
central processing system, a number of member or member organization
trading applications, or the electrical power supply to the system
itself or any related system in determining when to halt or suspend
options trading. The Exchange proposes to define Trading System for
purposes of this Rule as Phlx XL II, or any other Exchange quotation,
transaction reporting, execution, order routing or other systems for
trading options.
The Exchange believes that a Trading System failure may be
considered as an unusual condition or circumstance as noted in Rule
1047(iv) and Rule 1047A(iii), however the Exchange desires to include
specific language regarding a technical failure within the list of
considerations, similar to other options exchanges. Today, this factor
is included in the list of factors for halting or suspending options
trading on The NASDAQ Options Market LLC (``NOM'') and the NASDAQ OMX
BX, Inc. (``BX Options'').\4\ NOM and BX Options today halt or suspend
options trading for technical failures utilizing the corresponding
rules at Chapter V, Section 3. The Exchange believes that expressly
stating this factor within Rules 1047 and 1047A will provide clearer
guidance to Options Exchange Officials when they are determining
whether to halt or suspend options trading on Phlx.
---------------------------------------------------------------------------
\4\ See NOM and BX Options Rules at Chapter V, Section 3.
---------------------------------------------------------------------------
Similarly, the Exchange proposes to add identical language to Rule
1047A which relates to the trading of options on indices. Rule 1047A
currently provides that ``[t]rading on the Exchange in any option may
be halted with the approval of an Options Exchange Official, whenever
trading on the primary market in any underlying security is halted or
suspended. Trading shall be halted whenever an Options Exchange
Official deems such action appropriate in the interests of a fair and
orderly market and to protect investors. Among the factors that may be
considered are the following: (i) Trading has been halted or suspended
in the market that is the primary market for a plurality of the
underlying stocks; (ii) the current calculation of the index derived
from the current market prices of the stocks is not available; (iii)
other unusual conditions or circumstances detrimental to the
maintenance of a fair and orderly market are present.'' The Exchange
proposes to amend Rule 1047A by adding identical language to that
proposed for Rule 1047. The Exchange also proposes to renumber Rules
1047 and 1047(A) to include the added factor.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \5\ in general, and furthers the objectives of Section
6(b)(5) of the Act \6\ 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,
by specifically noting that Options Exchange Officials may consider
technical failures when halting or suspending options trading.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that expressly noting that a system technical
failure should be among the factors considered by an Options Exchange
Official in halting or suspending options trading provides greater
clarity to the factors which may cause such a market halt or
suspension. Today, a technical failure of either the exchange's Trading
System or that of a number of Participants would be considered in
halting or suspending options trading on NOM and BX Options.\7\ An
Options Exchange Official must determine whether halting or suspending
options trading is appropriate to ensure a fair and orderly market and
also to protect investors. Options Exchange Officials must consider the
factors enumerated within Rules 1047 and 1047A, depending on the
options impacted, and make decisions as to whether to halt or suspend
trading after an analysis of the facts. The Exchange believes that
expressly noting Trading System failures as a consideration is
appropriate because such failures could prevent a fair and orderly
market and impact investors. The Exchange believes that the addition of
the proposed text provides greater clarity to the factors to be
considered by Options Exchange Officials.
---------------------------------------------------------------------------
\7\ See NOM and BX Options Rules at Chapter V, Section 3.
---------------------------------------------------------------------------
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 this
proposed rule change will benefit investors by specifically noting that
technical issues are a consideration for an Options Exchange Official
when determining whether to halt or suspend options trading. Today, the
Exchange halts and suspends options trading for such technical failures
when those failures impact investors as do other options exchanges.
This proposal will provide greater clarity to Options Exchange
Officials in making these determinations.
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)(ii) of the Act \8\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(a)(ii).
\9\ 17 CFR 240.19b-4(f)(6).
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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. The Exchange has
provided the Commission
[[Page 48518]]
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.
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-2013-78 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-2013-78. 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 Number SR-Phlx-2013-78 and should be
submitted on or before August 29, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-19148 Filed 8-7-13; 8:45 am]
BILLING CODE 8011-01-P
