Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Implement Transition to Friday Expiration for Most Options Contracts, 64559-64563 [2013-25444]
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Federal Register / Vol. 78, No. 209 / Tuesday, October 29, 2013 / Notices
expiration contracts from Saturday to
Friday night. The proposed changes
thus allow for a more orderly market by
allowing all options markets, including
the clearing agencies, to have the same
expiration date for standard options and
to have clarity around the procedures
that apply during the transition period
when both Friday and Saturday
expirations will exist for standard
options.
In addition, the proposed changes
will foster cooperation and coordination
with persons engaged in regulating
clearing, settling, processing
information with respect to, and
facilitating transactions in securities by
aligning a pivotal part of the options
processing to be consistent industry
wide. If the industry were to differ,
investors would suffer from confusion
and be more vulnerable to inadvertent
violations of different exchange rules.
The proposed changes do not permit
unfair discrimination between any
members because they are applied to all
members equally. In the alternative, the
Exchange believes that the proposed
changes help all members by keeping
the Exchange consistent with OCC
practices and those of other exchanges.
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASDAQ 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 does not
believe the proposed rule change will
impose a burden on intramarket
competition because it will be applied
to all members equally. In addition, the
Exchange does not believe the proposed
rule change will impose any burden to
intermarket competition because it will
be applied industry-wide, apply to all
market participants and is designed to
allow OCC to streamline the expiration
process for all monthly expiration
contracts and increase operational
efficiencies for OCC and its clearing
members.
The proposed rule change is
structured to enhance competition
because the shift from an expiration
date of the Saturday following the third
Friday to the third Friday is anticipated
to be adopted industry-wide and will
apply to multiple listed classes. The
proposed changes in turn will allow
NOM to continue to compete with other
exchanges making similar rule changes.
For the reasons above, the Exchange
does not believe that the proposed rule
change would impose a burden on
competition.
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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. The Exchange
notes, however, that a favorable
comment was submitted to the OCC
filing.
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 after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to 19(b)(3)(A)
of the Act 15 and Rule 19b–4(f)(6) 16
thereunder.
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
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:
64559
All submissions should refer to File
Number SR–NASDAQ–2013–133. 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–
NASDAQ–2013–133 and should be
submitted on or before November 19,
2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Kevin M. O’Neill,
Deputy Secretary.
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–
NASDAQ–2013–133 on the subject line.
[FR Doc. 2013–25446 Filed 10–28–13; 8:45 am]
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
[Release No. 34–70745; File No. SR-Phlx2013–104]
15 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.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to Implement
Transition to Friday Expiration for
Most Options Contracts
16 17
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October 23, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
17 17
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Federal Register / Vol. 78, No. 209 / Tuesday, October 29, 2013 / Notices
‘‘Act’’) 1 and Rule 19b-4 thereunder,2
notice is hereby given that on October
11, 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
certain procedural rules to implement
the change in the expiration date for
most option contracts to the third Friday
of the expiration month instead of the
Saturday following the third Friday. 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
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
On August 21, 2013, the Exchange
filed to change the expiration date for
most option contracts to the third Friday
of the expiration month instead of the
Saturday following the third Friday.3
1 15
U.S.C. 78s(b)(1).
CFR 240.19b-4.
3 See Securities Exchange Act Release No. 70258
(August 26, 2013), 78 FR 54340 (August 30, 2013)
(SR-Phlx-2013–89) (‘‘Expiration Date Filing’’).
Certain changes proposed in the Expiration Date
Filing became effective on filing and become
operative on September 20, 2013. The Exchange
filed a proposal to adopt a temporary rule to
implement the amended definition of ‘‘expiration
date’’ in Rule 1000(b)(21) as of September 16, 2013.
See Securities Exchange Act Release No. 70451
(September 19, 2013), 78 FR 59076 (September 25,
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2 17
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This proposed rule change is intended
to clarify certain rule changes that were
made in the Expiration Date Filing and
to amend additional procedural and
other rules intended to implement the
change in expiration date for most
option contracts to the third Friday of
the expiration month instead of the
Saturday following the third Friday.
The Exchange has adopted rules to
change the expiration date for most
option contracts to the third Friday of
the expiration month instead of the
Saturday following the third Friday.4
The changes to the expiration date
apply to all standard expiration
contracts including those in which the
rules are silent on the expiration date.
Option contracts having non-standard
expiration dates (‘‘non-standard
expiration contracts’’) were unaffected
by the proposed rule changes, except
that FLEX options having expiration
dates later than February 1, 2015 cannot
expire on a Saturday unless they are
specified by The Options Clearing
Corporation (‘‘OCC’’) as grandfathered.5
The Exchange is making the proposed
rule changes to further harmonize its
rules in connection with a recently
approved rule filing made by OCC
which made substantially similar
changes.6 The Exchange believes that
the industry must remain consistent in
expiration dates, and, thus, is proposing
to update its rules to remain consistent
with those of OCC. In addition, the
Exchange understands that other
exchanges have and will be filing
similar rules to effect this industry-wide
initiative.7
In order to provide a smooth
transition to the Friday expiration, OCC
has begun to move the expiration
exercise procedures to Friday for all
standard expiration contracts even
2013) (SR-Phlx-2013–95) (‘‘Temporary Rule
Filing’’).
4 See Rule 1000(b)(21) (definition of ‘‘expiration
date’’).
5 Examples of options with non-standard
expiration contracts include: FLEX options (Rule
1079), Quarterly Equity and Exchange-Traded Fund
Shares (‘‘ETFs’’) Option Series (Rule 1012,
Commentary .08), Quarterly Expiring Index Options
Series (Rule 1101A(b)(iv)), Quarterly Options Index
Series Program (Rule 1101A(b)(v)), Short Term
Option Series (Rule 1012, Commentary .11) and
Short Term Option Index Series (Rule
1101A(b)(vi)).
6 See Securities Exchange Act Release No. 34–
69772 (June 17, 2013), 78 FR 37645 (June 21, 2013)
(order approving SR–OCC–2013–004).
7 See Securities Exchange Act Release Nos. 70091
(August 1, 2013), 78 FR 48212 (August 7, 2013)
(SR–CBOE–2013–073); 69996 (July 17, 2013), 78 FR
44183 (July 23, 2013) (SR–MIAX–2013–32); 70373
(September 11, 2013), 78 FR 57198 (September 17,
2013) (SR–NYSEMKT–2013–73); 70372 (September
11, 2013), 78 FR 57186 (September 17, 2013) (SR–
NYSEARCA–2013–88); and 70488 (September 24,
2013), 78 FR 59998 (September 30, 2013) (SR–BOX–
2013–45).
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though the contracts would continue to
expire on Saturday.8 After February 1,
2015, virtually all standard expiration
contracts will actually expire on Friday.
The only standard expiration contracts
that will expire on a Saturday after
February 1, 2015 are certain options that
were listed prior to the effectiveness of
the OCC rule change, and a limited
number of options that may be listed
prior to necessary systems changes of
the options exchanges. Phlx, along with
the other option exchanges, has agreed
not to list any additional options with
Saturday expiration dates falling after
February 1, 2015. The Exchange
understands that the other exchanges
are committed to the same listing
schedule.9
Certain option contracts have already
been listed with Saturday expiration
dates as distant as January 2016 (which
is the furthest out expiration as of the
date of this filing). For these contracts,
transitioning to a Friday expiration for
newly listed option contracts expiring
after February 1, 2015 would create a
situation under which certain options
with open interest would expire on a
Saturday while other options with open
interest would expire on a Friday in the
same expiration month.
Clearing members have expressed a
clear preference to not have a mix of
options with open interest that expire
on different days in a single month.10
Accordingly, OCC represented in its
recently approved filing that it will not
issue and clear any new option
contracts with a Friday expiration if
existing option contracts of the same
options class expire on the Saturday
following the third Friday of the same
month. However, Friday expiration
processing will be in effect for these
Saturday expiration contracts. As with
standard expiration options during the
transition period, exercise requests
received after Friday expiration
processing is complete but before the
Saturday contract expiration time will
continue to be processed without fines
or penalties.
Since the rule changes implementing
the change in expiration date apply only
to new series of standard expiration
contracts opened for trading consistent
with the OCC rules and having
expiration dates later than February 1,
2015, the Exchange is proposing to
amend certain rules relating to the
procedures of the Exchange. The
proposed changes take into account
that, during a transition period, there
will be options with open interest
8 See
9 See
note 6 supra.
note 7 supra.
10 Id.
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Federal Register / Vol. 78, No. 209 / Tuesday, October 29, 2013 / Notices
having both Friday and Saturday
expiration dates.
More specifically, the Exchange seeks
to amend Rule 1006 with respect to
certain timing for restrictions on the
exercise of American style option.
Specifically, the Exchange proposes to
specify that the 10 business day period
referenced in Rule 1006 includes the
expiration date for an option contract
that expires on a business day. In
addition, the proposal would amend
Rule 1006A to provide that restrictions
may be in effect for index options until
the open of business on the business
day of expiration, or, in the case of an
option contract expiring on a day that is
not a business day, the business day
prior to the expiration date.
The Exchange also proposes to amend
Rule 1012, Series of Options Open for
Trading, to differentiate between Friday
and Saturday expirations. Specifically,
the Exchange proposes to amend Rule
1012(a)(i)(B) to specify that additional
series of individual stock options may
be added in unusual market conditions
until the close of trading on the business
day prior to expiration in the case of an
option contract expiring on a business
day (i.e., Thursday for a Friday
expiration), or, in the case of an option
contract expiring on a day that is not a
business day, and as is currently the
case for Saturday expirations, until the
close of trading on the second business
day prior to expiration (i.e., until the
close of trading on Thursday for
Saturday expirations). The Exchange
also seeks to modify Rule 1012(b) to
specify that, on a business day of
expiration, or, in the case of an option
contract expiring on a non-business day,
on the business day prior to the
expiration date of a series of options, a
closing rotation shall commence at 4:00
p.m. in the case of options on stocks or
4:15 p.m. in the case of options on
designated Exchange-Traded Fund
Shares.
The Exchange’s proposal includes
several proposed changes to Rules 1042
and 1042A in order to differentiate
between the exercise procedures for
Friday and Saturday expirations. First,
the Exchange proposes to specify in
Rule 1042(b) that special procedures
apply to the exercise of equity options
on the business day of their expiration
(i.e., for Friday expirations), or, in the
case of an option contract expiring on a
day that is not a business day, and as
is currently the case for Saturday
expirations, on the last business day
before their expiration. Second, the
Exchange proposes to specify in Rule
1042(c) that, regarding exercise cut-off
times, option holders have until 5:30
p.m. EST on the business day of their
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expiration (i.e., for Friday expirations),
or, in the case of an option contract
expiring on a day that is not a business
day, and as is currently the case for
Saturday expirations, on the business
day immediately prior to the expiration
date. Third, the Exchange proposes to
specify in Rule 1042(h) that the advance
notice described therein is applicable if
provided by the Exchange on or before
5:30 p.m. EST on the business day (i.e.,
on Thursday) immediately prior to the
business day of expiration (i.e., for
Friday expirations), or, in the case of an
option contract expiring on a day that is
not a business day, and as is currently
the case for Saturday expirations, the
business day immediately prior to the
last business day before the expiration
date (i.e., Thursday for Saturday
expirations). Fourth, the Exchange
proposes to amend Rule 1042,
Commentary .03 to specify that the
reference therein to ‘‘unusual
circumstances’’ includes, but is not
limited to, a significant news
announcement concerning the
underlying security of an option
contract that is scheduled to be released
just after the close on the business day
the option contract expires (i.e., for
Friday expirations), or, in the case of an
option contract expiring on a day that is
not a business day, and as is currently
the case for Saturday expirations, the
business day immediately prior to
expiration. In addition, the Exchange
proposes to amend Rule 1042A(b) to
make clear when certain procedures do
not apply with respect to the exercise of
any stock index option series on the
business day of expiration, or in the
case of an option expiring on a day that
is not a business day, the business day
prior to the expiration date.
The Exchange also seeks to modify
Rule 1047(c) to specify that an Options
Exchange Official has the authority to
conduct a closing rotation on a business
day of expiration, or, in the case of an
option contract expiring on a nonbusiness day, on the trading day prior
to expiration where the underlying
stock or Exchange-Traded Fund Share
did not open or was halted, whenever
such action is deemed necessary in the
interests of maintaining a fair and
orderly market and to protect investors.
Rule 1047, Commentary .01(c) also
would be modified to clarify certain
procedures relating to closing rotations
that may commence on a business day
of expiration, or, in the case of an option
contract expiring on a non-business day,
on the last trading day prior to
expiration with respect to expiring stock
option contracts, expiring stock option
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64561
contracts or options on ExchangeTraded Fund Shares.
Additionally, the Exchange proposes
to amend Rule 1092 to add greater
specificity regarding the timing
surrounding notifications to the
Exchange of a Catastrophic Error.
Specifically, the Exchange proposes to
specify that, for such transactions in an
expiring options series that take place
on an expiration day that is a business
day (i.e., for Friday expirations), a party
must notify the Exchange by 5:00 p.m.
ET that same day. For such transactions
in an options series that take place on
the business day immediately prior to
an expiration day that is not a business
day (i.e., for Saturday expirations), an
Exchange member must notify the
Exchange’s Regulatory staff by 5:00 p.m.
ET on such business day (i.e., on
Friday).
Additionally, it is proposed that Rule
1101A(b)(i) would be amended to
specify that due to unusual market
conditions new series of index option
contracts may be added up to, but not
on or after, the fourth business day prior
to expiration for an option contract
expiring on a business day (i.e., up to,
but not on or after, the opening of
trading on Monday morning for Friday
expirations), or, in the case of an option
contract expiring on a day that is not a
business day, and as is currently the
case for Saturday expirations, the fifth
business day prior to expiration.
Similarly, Rule 1002C is proposed to be
modified to specify that due to unusual
market conditions new series of PHLX
FOREX Options may be added
consistent with the timing described
above for new series of index option
contracts. The Exchange also proposes
to modify Rule 1101A(c) and Rule
1101A, Commentary .01 to specify the
applicable hours for trading for index
options series and options on the Full
Value MSCI EAFE Index on an
expiration date that is a business day or
the business day prior to expiration
when the expiration date is a nonbusiness day.
The Exchange also seeks to clarify
rules governing the closing settlement
value of certain option contracts. Rule
1057, as proposed to be amended,
would provide that the closing
settlement value for U.S. dollar-settled
foreign currency options on the
currencies listed therein, shall be the
Exchange Spot Price at 12:00:00 Eastern
Time (noon) on the expiration date, if
that expiration date is a business day, or
on the business day prior to expiration,
when the expiration date is a nonbusiness day, unless the Exchange
determines to apply an alternative
closing settlement value as a result of
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extraordinary circumstances. The
proposal would amend Rule 1009A(f)(1)
to provide that the exercise settlement
value for Alpha Index options will be
based upon the opening prices of the
individual stock or ETF from the
primary listing market on the business
day of expiration, or, in the case of an
option contract expiring on a day that is
not a business day, the business day
prior to the expiration date. Under
proposed Rule 1006C, the closing
settlement value for PHLX FOREX
Options and for the FLEX PHLX FOREX
Options on the currencies listed in the
rule shall be the spot market price at
12:00:00 Eastern Time (noon) on an
expiration date that is a business day or
on the business day prior to expiration,
when the expiration date is a nonbusiness day, unless the Exchange
determines to apply an alternative
closing settlement value as a result of
extraordinary circumstances.
As stated above, the Exchange
believes the proposed change will keep
the Exchange consistent with the
processing at OCC and will enable the
Exchange to give effect to the industrywide initiative. In addition, the
Exchange understands that other
exchanges have filed similar rules to
differentiate between Friday and
Saturday expiration dates for standard
options on listed classes.11
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.12 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 13 requirements that the rules of
an exchange be 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.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 14 requirement that
the rules of an exchange not be designed
11 See
note 7 supra.
U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
14 Id.
12 15
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to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes that
implementing the change to Friday
expiration processing and eventually
transitioning to Friday expiration for all
monthly expiration contracts would
foster cooperation and coordination
with persons engaged in facilitating
transactions in securities. In particular,
the Exchange believes that keeping its
rules consistent with those of the
industry will protect all participants in
the market by eliminating confusion and
would facilitate the long-term goal of
OCC and its clearing members to move
the expiration process for all monthly
expiration contracts from Saturday to
Friday night. The proposed changes
thus allow for a more orderly market by
allowing all options markets, including
the clearing agencies, to have the same
expiration date for standard options and
to have clarity around the procedures
that apply during the transition period
when both Friday and Saturday
expirations will exist for standard
options.
In addition, the proposed changes
will foster cooperation and coordination
with persons engaged in regulating
clearing, settling, processing
information with respect to, and
facilitating transactions in securities by
aligning a pivotal part of the options
processing to be consistent industry
wide. If the industry were to differ,
investors would suffer from confusion
and be more vulnerable to inadvertent
violations of different exchange rules.
The proposed changes do not permit
unfair discrimination between any
members because they are applied to all
members equally. In the alternative, the
Exchange believes that the proposed
changes help all members by keeping
the Exchange consistent with OCC
practices and those of other exchanges.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Phlx 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 does not
believe the proposed rule change will
impose a burden on intramarket
competition because it will be applied
to all members equally. In addition, the
Exchange does not believe the proposed
rule change will impose any burden to
intermarket competition because it will
be applied industry-wide, apply to all
market participants and is designed to
allow OCC to streamline the expiration
process for all monthly expiration
contracts and increase operational
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efficiencies for OCC and its clearing
members.
The proposed rule change is
structured to enhance competition
because the shift from an expiration
date of the Saturday following the third
Friday to the third Friday is anticipated
to be adopted industry-wide and will
apply to multiple listed classes. The
proposed changes in turn will allow
Phlx to continue to compete with other
exchanges making similar rule changes.
For the reasons above, the Exchange
does not believe that the proposed rule
change would impose a burden on
competition.
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. The Exchange
notes, however, that a favorable
comment was submitted to the OCC
filing.
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 after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to 19(b)(3)(A)
of the Act 15 and Rule 19b–4(f)(6) 16
thereunder.
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
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
15 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.
16 17
E:\FR\FM\29OCN1.SGM
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Federal Register / Vol. 78, No. 209 / Tuesday, October 29, 2013 / Notices
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
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–2013–104 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.
mstockstill on DSK4VPTVN1PROD with NOTICES
All submissions should refer to File
Number SR–Phlx–2013–104. 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–
2013–104 and should be submitted on
or before November 19, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Kevin M. O’Neill,
Deputy Secretary.
[Release No. 34–70746; File No. SR–BX–
2013–055]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Implement
Transition to Friday Expiration for
Most Options Contracts
October 23, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
11, 2013, NASDAQ OMX BX LLC (‘‘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
certain procedural rules to implement
the change in the expiration date for
most option contracts to the third Friday
of the expiration month instead of the
Saturday following the third Friday. The
text of the proposed rule change is
available at https://
nasdaqomxbx.cchwallstreet.com/, at the
Exchange’s principal office, 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.
[FR Doc. 2013–25444 Filed 10–28–13; 8:45 am]
BILLING CODE 8011–01–P
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17 17
CFR 200.30–3(a)(12).
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2 17
Jkt 232001
PO 00000
U.S.C.78s(b)(1).
CFR 240.196–4.
Frm 00097
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64563
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On August 21, 2013, the Exchange
filed to change the expiration date for
most option contracts to the third Friday
of the expiration month instead of the
Saturday following the third Friday.3
This proposed rule change is intended
to clarify certain rule changes that were
made in the Expiration Date Filing and
to amend additional procedural and
other rules intended to implement the
change in expiration date for most
option contracts to the third Friday of
the expiration month instead of the
Saturday following the third Friday.
The Exchange has adopted rules to
change the expiration date for most
option contracts to the third Friday of
the expiration month instead of the
Saturday following the third Friday.4
The changes to the expiration date
apply to all standard expiration
contracts including those in which the
rules are silent on the expiration date.
Option contracts having non-standard
expiration dates (‘‘non-standard
expiration contracts’’) were unaffected
by the proposed rule changes, except
that FLEX options having expiration
dates later than February 1, 2015 cannot
expire on a Saturday unless they are
specified by The Options Clearing
Corporation (‘‘OCC’’) as grandfathered.5
The Exchange is making the proposed
rule changes to further harmonize its
rules in connection with a recently
approved rule filing made by OCC
which made substantially similar
changes.6 The Exchange believes that
the industry must remain consistent in
expiration dates, and, thus, is proposing
to update its rules to remain consistent
with those of OCC. In addition, the
Exchange understands that other
exchanges have and will be filing
3 See Securities Exchange Act Release No. 70258
(August 26, 2013), 78 FR 53797 (August 30, 2013)
(SR–BX–2013–50) (‘‘Expiration Date Filing’’). The
changes proposed in the Expiration Date Filing
were effective on filing and became operative on
September 20, 2013.
4 See Chapter XIV, Index Rules, Section 2(p)
(definition of ‘‘expiration date’’).
5 Examples of options with non-standard
expiration contracts include: Quarterly Equity and
Exchange-Traded Fund Shares (‘‘ETFs’’) Option
Series (Chapter IV, Section 6, Commentary .04),
Quarterly Options Series for indexes (Chapter XIV,
Section 11(g)), Short Term Option Series (Chapter
IV, Section 6, Commentary .07) and Short Term
Option Series for indexes (Chapter XIV, Section
11(h)).
6 See Securities Exchange Act Release No. 34–
69772 (June 17, 2013), 78 FR 37645 (June 21, 2013)
(order approving SR–OCC–2013–004).
E:\FR\FM\29OCN1.SGM
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]]>Agencies
[Federal Register Volume 78, Number 209 (Tuesday, October 29, 2013)]
[Notices]
[Pages 64559-64563]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-25444]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70745; File No. SR-Phlx-2013-104]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to Implement
Transition to Friday Expiration for Most Options Contracts
October 23, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the
[[Page 64560]]
``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 11, 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 certain procedural rules to
implement the change in the expiration date for most option contracts
to the third Friday of the expiration month instead of the Saturday
following the third Friday. 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 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
On August 21, 2013, the Exchange filed to change the expiration
date for most option contracts to the third Friday of the expiration
month instead of the Saturday following the third Friday.\3\ This
proposed rule change is intended to clarify certain rule changes that
were made in the Expiration Date Filing and to amend additional
procedural and other rules intended to implement the change in
expiration date for most option contracts to the third Friday of the
expiration month instead of the Saturday following the third Friday.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 70258 (August 26,
2013), 78 FR 54340 (August 30, 2013) (SR-Phlx-2013-89) (``Expiration
Date Filing''). Certain changes proposed in the Expiration Date
Filing became effective on filing and become operative on September
20, 2013. The Exchange filed a proposal to adopt a temporary rule to
implement the amended definition of ``expiration date'' in Rule
1000(b)(21) as of September 16, 2013. See Securities Exchange Act
Release No. 70451 (September 19, 2013), 78 FR 59076 (September 25,
2013) (SR-Phlx-2013-95) (``Temporary Rule Filing'').
---------------------------------------------------------------------------
The Exchange has adopted rules to change the expiration date for
most option contracts to the third Friday of the expiration month
instead of the Saturday following the third Friday.\4\ The changes to
the expiration date apply to all standard expiration contracts
including those in which the rules are silent on the expiration date.
Option contracts having non-standard expiration dates (``non-standard
expiration contracts'') were unaffected by the proposed rule changes,
except that FLEX options having expiration dates later than February 1,
2015 cannot expire on a Saturday unless they are specified by The
Options Clearing Corporation (``OCC'') as grandfathered.\5\
---------------------------------------------------------------------------
\4\ See Rule 1000(b)(21) (definition of ``expiration date'').
\5\ Examples of options with non-standard expiration contracts
include: FLEX options (Rule 1079), Quarterly Equity and Exchange-
Traded Fund Shares (``ETFs'') Option Series (Rule 1012, Commentary
.08), Quarterly Expiring Index Options Series (Rule 1101A(b)(iv)),
Quarterly Options Index Series Program (Rule 1101A(b)(v)), Short
Term Option Series (Rule 1012, Commentary .11) and Short Term Option
Index Series (Rule 1101A(b)(vi)).
---------------------------------------------------------------------------
The Exchange is making the proposed rule changes to further
harmonize its rules in connection with a recently approved rule filing
made by OCC which made substantially similar changes.\6\ The Exchange
believes that the industry must remain consistent in expiration dates,
and, thus, is proposing to update its rules to remain consistent with
those of OCC. In addition, the Exchange understands that other
exchanges have and will be filing similar rules to effect this
industry-wide initiative.\7\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 34-69772 (June 17,
2013), 78 FR 37645 (June 21, 2013) (order approving SR-OCC-2013-
004).
\7\ See Securities Exchange Act Release Nos. 70091 (August 1,
2013), 78 FR 48212 (August 7, 2013) (SR-CBOE-2013-073); 69996 (July
17, 2013), 78 FR 44183 (July 23, 2013) (SR-MIAX-2013-32); 70373
(September 11, 2013), 78 FR 57198 (September 17, 2013) (SR-NYSEMKT-
2013-73); 70372 (September 11, 2013), 78 FR 57186 (September 17,
2013) (SR-NYSEARCA-2013-88); and 70488 (September 24, 2013), 78 FR
59998 (September 30, 2013) (SR-BOX-2013-45).
---------------------------------------------------------------------------
In order to provide a smooth transition to the Friday expiration,
OCC has begun to move the expiration exercise procedures to Friday for
all standard expiration contracts even though the contracts would
continue to expire on Saturday.\8\ After February 1, 2015, virtually
all standard expiration contracts will actually expire on Friday. The
only standard expiration contracts that will expire on a Saturday after
February 1, 2015 are certain options that were listed prior to the
effectiveness of the OCC rule change, and a limited number of options
that may be listed prior to necessary systems changes of the options
exchanges. Phlx, along with the other option exchanges, has agreed not
to list any additional options with Saturday expiration dates falling
after February 1, 2015. The Exchange understands that the other
exchanges are committed to the same listing schedule.\9\
---------------------------------------------------------------------------
\8\ See note 6 supra.
\9\ See note 7 supra.
---------------------------------------------------------------------------
Certain option contracts have already been listed with Saturday
expiration dates as distant as January 2016 (which is the furthest out
expiration as of the date of this filing). For these contracts,
transitioning to a Friday expiration for newly listed option contracts
expiring after February 1, 2015 would create a situation under which
certain options with open interest would expire on a Saturday while
other options with open interest would expire on a Friday in the same
expiration month.
Clearing members have expressed a clear preference to not have a
mix of options with open interest that expire on different days in a
single month.\10\ Accordingly, OCC represented in its recently approved
filing that it will not issue and clear any new option contracts with a
Friday expiration if existing option contracts of the same options
class expire on the Saturday following the third Friday of the same
month. However, Friday expiration processing will be in effect for
these Saturday expiration contracts. As with standard expiration
options during the transition period, exercise requests received after
Friday expiration processing is complete but before the Saturday
contract expiration time will continue to be processed without fines or
penalties.
---------------------------------------------------------------------------
\10\ Id.
---------------------------------------------------------------------------
Since the rule changes implementing the change in expiration date
apply only to new series of standard expiration contracts opened for
trading consistent with the OCC rules and having expiration dates later
than February 1, 2015, the Exchange is proposing to amend certain rules
relating to the procedures of the Exchange. The proposed changes take
into account that, during a transition period, there will be options
with open interest
[[Page 64561]]
having both Friday and Saturday expiration dates.
More specifically, the Exchange seeks to amend Rule 1006 with
respect to certain timing for restrictions on the exercise of American
style option. Specifically, the Exchange proposes to specify that the
10 business day period referenced in Rule 1006 includes the expiration
date for an option contract that expires on a business day. In
addition, the proposal would amend Rule 1006A to provide that
restrictions may be in effect for index options until the open of
business on the business day of expiration, or, in the case of an
option contract expiring on a day that is not a business day, the
business day prior to the expiration date.
The Exchange also proposes to amend Rule 1012, Series of Options
Open for Trading, to differentiate between Friday and Saturday
expirations. Specifically, the Exchange proposes to amend Rule
1012(a)(i)(B) to specify that additional series of individual stock
options may be added in unusual market conditions until the close of
trading on the business day prior to expiration in the case of an
option contract expiring on a business day (i.e., Thursday for a Friday
expiration), or, in the case of an option contract expiring on a day
that is not a business day, and as is currently the case for Saturday
expirations, until the close of trading on the second business day
prior to expiration (i.e., until the close of trading on Thursday for
Saturday expirations). The Exchange also seeks to modify Rule 1012(b)
to specify that, on a business day of expiration, or, in the case of an
option contract expiring on a non-business day, on the business day
prior to the expiration date of a series of options, a closing rotation
shall commence at 4:00 p.m. in the case of options on stocks or 4:15
p.m. in the case of options on designated Exchange-Traded Fund Shares.
The Exchange's proposal includes several proposed changes to Rules
1042 and 1042A in order to differentiate between the exercise
procedures for Friday and Saturday expirations. First, the Exchange
proposes to specify in Rule 1042(b) that special procedures apply to
the exercise of equity options on the business day of their expiration
(i.e., for Friday expirations), or, in the case of an option contract
expiring on a day that is not a business day, and as is currently the
case for Saturday expirations, on the last business day before their
expiration. Second, the Exchange proposes to specify in Rule 1042(c)
that, regarding exercise cut-off times, option holders have until 5:30
p.m. EST on the business day of their expiration (i.e., for Friday
expirations), or, in the case of an option contract expiring on a day
that is not a business day, and as is currently the case for Saturday
expirations, on the business day immediately prior to the expiration
date. Third, the Exchange proposes to specify in Rule 1042(h) that the
advance notice described therein is applicable if provided by the
Exchange on or before 5:30 p.m. EST on the business day (i.e., on
Thursday) immediately prior to the business day of expiration (i.e.,
for Friday expirations), or, in the case of an option contract expiring
on a day that is not a business day, and as is currently the case for
Saturday expirations, the business day immediately prior to the last
business day before the expiration date (i.e., Thursday for Saturday
expirations). Fourth, the Exchange proposes to amend Rule 1042,
Commentary .03 to specify that the reference therein to ``unusual
circumstances'' includes, but is not limited to, a significant news
announcement concerning the underlying security of an option contract
that is scheduled to be released just after the close on the business
day the option contract expires (i.e., for Friday expirations), or, in
the case of an option contract expiring on a day that is not a business
day, and as is currently the case for Saturday expirations, the
business day immediately prior to expiration. In addition, the Exchange
proposes to amend Rule 1042A(b) to make clear when certain procedures
do not apply with respect to the exercise of any stock index option
series on the business day of expiration, or in the case of an option
expiring on a day that is not a business day, the business day prior to
the expiration date.
The Exchange also seeks to modify Rule 1047(c) to specify that an
Options Exchange Official has the authority to conduct a closing
rotation on a business day of expiration, or, in the case of an option
contract expiring on a non-business day, on the trading day prior to
expiration where the underlying stock or Exchange-Traded Fund Share did
not open or was halted, whenever such action is deemed necessary in the
interests of maintaining a fair and orderly market and to protect
investors. Rule 1047, Commentary .01(c) also would be modified to
clarify certain procedures relating to closing rotations that may
commence on a business day of expiration, or, in the case of an option
contract expiring on a non-business day, on the last trading day prior
to expiration with respect to expiring stock option contracts, expiring
stock option contracts or options on Exchange-Traded Fund Shares.
Additionally, the Exchange proposes to amend Rule 1092 to add
greater specificity regarding the timing surrounding notifications to
the Exchange of a Catastrophic Error. Specifically, the Exchange
proposes to specify that, for such transactions in an expiring options
series that take place on an expiration day that is a business day
(i.e., for Friday expirations), a party must notify the Exchange by
5:00 p.m. ET that same day. For such transactions in an options series
that take place on the business day immediately prior to an expiration
day that is not a business day (i.e., for Saturday expirations), an
Exchange member must notify the Exchange's Regulatory staff by 5:00
p.m. ET on such business day (i.e., on Friday).
Additionally, it is proposed that Rule 1101A(b)(i) would be amended
to specify that due to unusual market conditions new series of index
option contracts may be added up to, but not on or after, the fourth
business day prior to expiration for an option contract expiring on a
business day (i.e., up to, but not on or after, the opening of trading
on Monday morning for Friday expirations), or, in the case of an option
contract expiring on a day that is not a business day, and as is
currently the case for Saturday expirations, the fifth business day
prior to expiration. Similarly, Rule 1002C is proposed to be modified
to specify that due to unusual market conditions new series of PHLX
FOREX Options may be added consistent with the timing described above
for new series of index option contracts. The Exchange also proposes to
modify Rule 1101A(c) and Rule 1101A, Commentary .01 to specify the
applicable hours for trading for index options series and options on
the Full Value MSCI EAFE Index on an expiration date that is a business
day or the business day prior to expiration when the expiration date is
a non-business day.
The Exchange also seeks to clarify rules governing the closing
settlement value of certain option contracts. Rule 1057, as proposed to
be amended, would provide that the closing settlement value for U.S.
dollar-settled foreign currency options on the currencies listed
therein, shall be the Exchange Spot Price at 12:00:00 Eastern Time
(noon) on the expiration date, if that expiration date is a business
day, or on the business day prior to expiration, when the expiration
date is a non-business day, unless the Exchange determines to apply an
alternative closing settlement value as a result of
[[Page 64562]]
extraordinary circumstances. The proposal would amend Rule 1009A(f)(1)
to provide that the exercise settlement value for Alpha Index options
will be based upon the opening prices of the individual stock or ETF
from the primary listing market on the business day of expiration, or,
in the case of an option contract expiring on a day that is not a
business day, the business day prior to the expiration date. Under
proposed Rule 1006C, the closing settlement value for PHLX FOREX
Options and for the FLEX PHLX FOREX Options on the currencies listed in
the rule shall be the spot market price at 12:00:00 Eastern Time (noon)
on an expiration date that is a business day or on the business day
prior to expiration, when the expiration date is a non-business day,
unless the Exchange determines to apply an alternative closing
settlement value as a result of extraordinary circumstances.
As stated above, the Exchange believes the proposed change will
keep the Exchange consistent with the processing at OCC and will enable
the Exchange to give effect to the industry-wide initiative. In
addition, the Exchange understands that other exchanges have filed
similar rules to differentiate between Friday and Saturday expiration
dates for standard options on listed classes.\11\
---------------------------------------------------------------------------
\11\ See note 7 supra.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\12\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \13\ requirements that the rules of an exchange be
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. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \14\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
\14\ Id.
---------------------------------------------------------------------------
The Exchange believes that implementing the change to Friday
expiration processing and eventually transitioning to Friday expiration
for all monthly expiration contracts would foster cooperation and
coordination with persons engaged in facilitating transactions in
securities. In particular, the Exchange believes that keeping its rules
consistent with those of the industry will protect all participants in
the market by eliminating confusion and would facilitate the long-term
goal of OCC and its clearing members to move the expiration process for
all monthly expiration contracts from Saturday to Friday night. The
proposed changes thus allow for a more orderly market by allowing all
options markets, including the clearing agencies, to have the same
expiration date for standard options and to have clarity around the
procedures that apply during the transition period when both Friday and
Saturday expirations will exist for standard options.
In addition, the proposed changes will foster cooperation and
coordination with persons engaged in regulating clearing, settling,
processing information with respect to, and facilitating transactions
in securities by aligning a pivotal part of the options processing to
be consistent industry wide. If the industry were to differ, investors
would suffer from confusion and be more vulnerable to inadvertent
violations of different exchange rules. The proposed changes do not
permit unfair discrimination between any members because they are
applied to all members equally. In the alternative, the Exchange
believes that the proposed changes help all members by keeping the
Exchange consistent with OCC practices and those of other exchanges.
B. Self-Regulatory Organization's Statement on Burden on Competition
Phlx 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 does not believe the proposed rule change will impose a burden
on intramarket competition because it will be applied to all members
equally. In addition, the Exchange does not believe the proposed rule
change will impose any burden to intermarket competition because it
will be applied industry-wide, apply to all market participants and is
designed to allow OCC to streamline the expiration process for all
monthly expiration contracts and increase operational efficiencies for
OCC and its clearing members.
The proposed rule change is structured to enhance competition
because the shift from an expiration date of the Saturday following the
third Friday to the third Friday is anticipated to be adopted industry-
wide and will apply to multiple listed classes. The proposed changes in
turn will allow Phlx to continue to compete with other exchanges making
similar rule changes. For the reasons above, the Exchange does not
believe that the proposed rule change would impose a burden on
competition.
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. The Exchange
notes, however, that a favorable comment was submitted to the OCC
filing.
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 after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \15\ and Rule 19b-4(f)(6) \16\
thereunder.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 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.
---------------------------------------------------------------------------
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
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act.
[[Page 64563]]
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-2013-104 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-2013-104. 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-2013-104 and should be
submitted on or before November 19, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-25444 Filed 10-28-13; 8:45 am]
BILLING CODE 8011-01-P
