Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Pricing Schedule Under Section VIII With Respect To Execution and Routing of Orders in Securities Priced at $1 or More Per Share, 69725-69728 [2013-27754]
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Federal Register / Vol. 78, No. 224 / Wednesday, November 20, 2013 / Notices
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
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the Exchange consents, the Commission
will:
A. By order approve or disapprove
such proposed rule change, or
B. institute proceedings to determine
whether the proposed rule change
should be disapproved.
filing also will be available for
inspection and copying at the principal
offices of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CBOE–
2013–110, and should be submitted on
or before December 11, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–27755 Filed 11–19–13; 8:45 am]
IV. Solicitation of Comments
BILLING CODE 8011–01–P
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:
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70874; File No. SR–Phlx–
2013–111]
• 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–
CBOE–2013–110 on the subject line.
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Exchange’s Pricing Schedule Under
Section VIII With Respect To Execution
and Routing of Orders in Securities
Priced at $1 or More Per Share
Paper Comments
November 14, 2013.
• 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–CBOE–2013–110. 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 20549–1090 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
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 October
31, 2013, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
II below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
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Electronic Comments
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Exchange’s Pricing Schedule under
Section VIII, entitled ‘‘NASDAQ OMX
PSX FEES,’’ with respect to execution
and routing of orders in securities
priced at $1 or more per share.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxphlx.cchwallstreet.com/, at
the principal office of the Exchange, and
11 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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69725
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to amend the certain fees and
rebates for order execution and routing
applicable to the use of the order
execution and routing services of the
NASDAQ OMX PSX System by member
organizations for all securities traded at
$1 or more per share.
Amended Fees for Execution of Quotes/
Orders in Securities Listed on Nasdaq
The Exchange is proposing to amend
fees assessed for the execution of orders
in securities listed on the Nasdaq Stock
Market LLC (‘‘Nasdaq’’) that execute in
NASDAQ OMX PSX (‘‘PSX’’). Currently,
the Exchange assesses a charge of
$0.0028 per share executed for an order
entered through a PSX Market
Participant Identifier (‘‘MPID’’) through
which the member organization
provides an average daily volume of
10,000 or more shares of liquidity
during the month. The Exchange is
proposing to increase the charge
assessed for such orders executed at
PSX to $0.0030.
The Exchange is also proposing to
increase the charge assessed for an order
executed in PSX in Nasdaq securities
that is designated as eligible for routing.
Currently, the Exchange assesses a
charge of $0.0028 per share executed for
an order that is designated as eligible for
routing. The Exchange is proposing to
increase the charge assessed for such
orders executed at PSX to $0.0030.
Amended Fees for Execution of Quotes/
Orders in Securities Listed on NYSE
The Exchange is proposing to amend
fees assessed and credits provided for
the execution of orders in securities
listed on the New York Stock Exchange,
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Federal Register / Vol. 78, No. 224 / Wednesday, November 20, 2013 / Notices
Inc. (‘‘NYSE’’) that execute in PSX.
Currently, the Exchange assesses a
charge of $0.0028 per share executed for
an order entered through a PSX MPID
through which the member organization
provides an average daily volume of
10,000 or more shares of liquidity
during the month. The Exchange is
proposing to increase the charge
assessed for such orders executed at
PSX to $0.0030.
The Exchange is also proposing to
increase the charge assessed for an order
executed in PSX in NYSE-listed
securities that is designated as eligible
for routing. Currently, the Exchange
assesses a charge of $0.0028 per share
executed for an order that is designated
as eligible for routing. The Exchange is
proposing to increase the charge
assessed for such orders executed in
PSX to $0.0030.
The Exchange is proposing to amend
the credit provided to a member
organization providing displayed
liquidity in NYSE-listed securities
through the PSX System. Currently, the
Exchange provides a credit of $0.0028
per share executed for a displayed
quote/order entered by a member
organization that provides an average
daily volume of 2 million or more
shares of liquidity during the month. To
be eligible, either (1) the quote/order is
entered through a PSX MPID through
which the member organization
displays, on average over the course of
the month, 100 shares or more at the
national best bid and/or national best
offer at least 25% of the time during
regular market hours in the security that
is the subject of the quote/order, or (2)
the member organization displays, on
average over the course of the month,
100 shares or more at the national best
bid and/or national best offer at least
25% of the time during regular market
hours in 500 or more securities. The
Exchange is proposing to increase the
credit to $0.0029 per share executed.
The Exchange is also proposing a new
credit provided to a member
organization providing displayed
liquidity in NYSE-listed securities
through the PSX System. Specifically,
the Exchange is proposing to offer a
credit of $0.0030 per share executed for
a displayed quote/order entered by a
member organization that provides an
average daily volume of 6 million or
more shares of liquidity during the
month. Like the current credit, in order
to be eligible, either (1) the quote/order
is entered through a PSX MPID through
which the member organization
displays, on average over the course of
the month, 100 shares or more at the
national best bid and/or national best
offer at least 25% of the time during
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regular market hours in the security that
is the subject of the quote/order, or (2)
the member organization displays, on
average over the course of the month,
100 shares or more at the national best
bid and/or national best offer at least
25% of the time during regular market
hours in 500 or more securities.
Amended Fees for Execution of Quotes/
Orders in Securities Listed on
Exchanges Other Than Nasdaq or NYSE
The Exchange is proposing to amend
fees assessed and credits provided for
the execution of orders in securities
listed on exchanges other than Nasdaq
or NYSE that execute at PSX. Currently,
the Exchange assesses a charge of
$0.0028 per share executed for an order
entered through a PSX MPID through
which the member organization
provides an average daily volume of
10,000 or more shares of liquidity
during the month. The Exchange is
proposing to increase the charge
assessed for such orders executed at
PSX to $0.0030.
The Exchange is also proposing to
increase the charge assessed for an order
executed in PSX in securities listed on
exchanges other than Nasdaq or NYSE
that is designated as eligible for routing.
Currently, the Exchange assesses a
charge of $0.0028 per share executed for
an order that is designated as eligible for
routing. The Exchange is proposing to
increase the charge assessed for such
orders executed at PSX to $0.0030.
The Exchange is proposing to amend
the credit provided to a member
organization providing displayed
liquidity through the PSX System.
Currently, the Exchange provides a
credit of $0.0028 per share executed for
a displayed quote/order in securities
listed on exchanges other than Nasdaq
or NYSE entered by a member
organization that provides an average
daily volume of 2 million or more
shares of liquidity during the month. To
be eligible, either (1) the quote/order is
entered through a PSX MPID through
which the member organization
displays, on average over the course of
the month, 100 shares or more at the
national best bid and/or national best
offer at least 25% of the time during
regular market hours in the security that
is the subject of the quote/order, or (2)
the member organization displays, on
average over the course of the month,
100 shares or more at the national best
bid and/or national best offer at least
25% of the time during regular market
hours in 500 or more securities. The
Exchange is proposing to increase the
credit to $0.0029 per share executed.
The Exchange is also proposing a new
credit provided to a member
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Frm 00087
Fmt 4703
Sfmt 4703
organization providing displayed
liquidity through the PSX System in
securities listed on exchanges other than
Nasdaq or NYSE. Specifically, the
Exchange is proposing to offer a credit
of $0.0030 per share executed for a
displayed quote/order entered by a
member organization that provides an
average daily volume of 6 million or
more shares of liquidity during the
month. Like the current credit, in order
to be eligible, either (1) the quote/order
is entered through a PSX MPID through
which the member organization
displays, on average over the course of
the month, 100 shares or more at the
national best bid and/or national best
offer at least 25% of the time during
regular market hours in the security that
is the subject of the quote/order, or (2)
the member organization displays, on
average over the course of the month,
100 shares or more at the national best
bid and/or national best offer at least
25% of the time during regular market
hours in 500 or more securities.
Amended Fees for Routing of Orders in
All Securities
The Exchange is proposing to amend
fees assessed and credits provided for
the routing of orders in all securities.
Currently, for PSTG or PSCN orders that
execute in a venue other than PSX the
Exchange assesses a charge of $0.0025
per share executed at the NYSE, a credit
of $0.0014 per share executed at BX and
a charge of $0.28 [sic] per share
executed in other venues. The Exchange
proposes to decrease the credit provided
for executions at BX to $0.0011, and to
increase the charges for executions
elsewhere, including the NYSE, to
$0.0030 per share executed.
The Exchange is also proposing to
amend the fees assessed member
organizations for entering a PMOP order
that executes in a venue other than PSX.
Currently, the Exchange assesses a
charge of $0.0027 per share executed at
the NYSE and a charge of $0.0031 per
share executed at venues other than the
NYSE. The Exchange proposes
increasing these fees to $0.0030 per
share executed at the NYSE and $0.0035
per share executed at venues other than
the NYSE.
The Exchange is proposing to amend
the fees assessed and credits provided
for member organizations entering a
PTFY order that executes in a venue
other than PSX. Currently, the Exchange
assesses a charge of $0.0024 per share
executed at the NYSE, a charge of
$0.0005 per share executed at venues
other than the NYSE, Nasdaq or BX, a
charge of $0.0028 per share executed at
Nasdaq, and provides a credit of
$0.0014 per share executed at BX. The
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tkelley on DSK3SPTVN1PROD with NOTICES
Exchange is proposing to decrease the
credit provided to $0.0011 per share
executed at BX, and increase the charges
for shares executed at NYSE and Nasdaq
to $0.0030 per share executed.
The Exchange is proposing to amend
the fees assessed and credits provided
for member organizations entering a
PCRT order that executes in a venue
other than PSX. Currently, the Exchange
assesses a charge of $0.0028 per share
executed at Nasdaq and provides a
credit of $0.0014 per share executed at
BX. The Exchange is proposing to
increase the charge assessed for
executions on Nasdaq to $0.0030 per
share executed, and to decrease the
credit provided for executions on BX to
$0.0011 per share executed.
Last, the Exchange is proposing to
amend the credit provided to a member
organization for entering an XCST order
that executes at BX. Currently, the
Exchange provides a credit of $0.0014
per share executed at BX. The Exchange
is proposing to decrease the credit
provided to $0.0011.
2. Statutory Basis
The Exchange believes that its
proposal to amend its Pricing Schedule
is consistent with Section 6(b) of the
Act 3 in general, and furthers the
objectives of Sections 6(b)(4) and (b)(5)
of the Act 4 in particular, in that it is an
equitable allocation of reasonable fees
and other charges among Exchange
members and other persons using its
facilities, and it does not unfairly
discriminate between customers,
issuers, brokers or dealers. The
proposed changes are reasonable
because they reflect a modest decrease
in the credits provided in the execution
of certain orders and a modest increase
in the fees assessed for others, which
will allow the Exchange to reduce costs
and increase revenue.
The change with respect to fees for
execution of quotes/orders in securities
that execute on PSX is reasonable
because it will make the applicable fees
for orders that execute in PSX uniform,
without regard to the nature of entry,
eligibility for routing, or the listing
venue of the security. Moreover, the
change will result in a modest increase
of only $0.0002 per share executed for
PSX MPID-entered orders eligible for
the existing tier, and for orders
designated as eligible for routing. The
change is consistent with an equitable
allocation of fees and not unfairly
discriminatory because it will eliminate
an existing disparity between the fees
charged for orders that execute in PSX,
3 15
4 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
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16:04 Nov 19, 2013
thereby making the applicable fees
consistent. In addition, the change is
equitable and not unfairly
discriminatory because it affects all
member organizations that execute
orders in PSX.
The change with respect to the credits
provided for execution of quotes/orders
in NYSE-listed securities and securities
listed on exchanges other than Nasdaq
is reasonable because it further
incentivizes member organizations to
provide displayed quotes and orders on
PSX. Specifically, the change achieves
this goal by increasing the credit
provided under the current tier, and
creating a new tier that provides a larger
credit to member organizations that
provide a larger average daily volume of
shares of liquidity during the month.
The change is consistent with an
equitable allocation of fees and not
unfairly discriminatory because it
applies the same criteria and provides
the same rebate to member
organizations trading in non-Nasdaq
securities that provide displayed
liquidity to PSX, under each of the tiers.
The changes with respect to the
charges assessed and credits provided
for routing of orders in all securities are
reasonable because they represent a
modest increases in charges assessed a
member organization for PSTG, PSCN,
PMOP, PTFY and PCRT orders that
execute in a venue other than PSX, and
a modest decrease in the credits
provided to member organizations for
PSTG, PSCN, PTFY, PCRT and XCST
orders that execute at BX. The Exchange
notes that the increase in fees and
decrease in credits are designed to
incentivize member organizations to
provide orders and quotes that execute
on PSX. In addition, the change is
equitable and not unfairly
discriminatory because it affects only
those members that opt to use the
Exchange’s optional routing services.
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, as amended.5
The Exchange notes that it operates in
a highly competitive market in which
market participants can readily favor
competing venues if they deem fee
levels at a particular venue to be
excessive, or rebate opportunities
available at other venues to be more
favorable. In such an environment, the
Exchange must continually adjust its
fees to remain competitive with other
exchanges and with alternative trading
systems that have been exempted from
compliance with the statutory standards
applicable to exchanges. Because
competitors are free to modify their own
fees in response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited. In this instance, the decreased
credits and increased fees are intended
to reduce the Exchange’s costs, while
still continuing to provide an incentive
for members to execute shares on PSX
and make use of its optional routing
functionality. Because there are
numerous competitive alternatives to
PSX, it is likely the Exchange will lose
market share as a result of the changes
if they are unattractive to market
participants. Accordingly, the Exchange
does not believe the proposed changes
will impair the ability of members or
competing order execution venues to
maintain their competitive standing in
the financial markets.
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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 6 and paragraph (f) of Rule
19b–4 thereunder.7 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.
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
6 15
5 15
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U.S.C. 78f(b)(8).
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7 17
Sfmt 4703
69727
E:\FR\FM\20NON1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
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69728
Federal Register / Vol. 78, No. 224 / Wednesday, November 20, 2013 / Notices
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
Phlx–2013–111 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–70876; File No. SR–FINRA–
2013–048]
• 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–2013–111. 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 the
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–
2013–111 and should be submitted on
or before December 11, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–27754 Filed 11–19–13; 8:45 am]
tkelley on DSK3SPTVN1PROD with NOTICES
BILLING CODE 8011–01–P
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of a
Proposed Rule Change To Amend
FINRA Rule 8312 (FINRA BrokerCheck
Disclosure) To Expand the Categories
of Civil Judicial Disclosures
Permanently Included in BrokerCheck
November 14, 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 November
1, 2013, the Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
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 FINRA. 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
FINRA is proposing to amend FINRA
Rule 8312 (FINRA BrokerCheck
Disclosure) to permanently make
publicly available in BrokerCheck
information about former associated
persons of a member firm who have
been the subject of an investmentrelated civil action brought by a state or
foreign financial regulatory authority
that has been dismissed pursuant to a
settlement agreement.
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA 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,
FINRA 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. FINRA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
1 15
8 17
CFR 200.30–3(a)(12).
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16:04 Nov 19, 2013
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Jkt 232001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00089
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
FINRA established BrokerCheck in
1988 (then known as the Public
Disclosure Program) to provide the
public with information on the
professional background, business
practices, and conduct of FINRA
member firms and their associated
persons. The information that FINRA
releases to the public through
BrokerCheck is derived from the Central
Registration Depository (‘‘CRD®’’), the
securities industry online registration
and licensing database. FINRA member
firms, their associated persons and
regulators report information to the CRD
system via the uniform registration
forms. By making most of this
information publicly available,
BrokerCheck, among other things, helps
investors make informed choices about
the individuals and firms with which
they conduct business.
In January 2011, Commission staff
released its Study and
Recommendations on Improved Investor
Access to Registration Information
About Investment Advisers and BrokerDealers (‘‘Study’’),3 in furtherance of
Section 919B of the Dodd-Frank Act.4
The Study contains four
recommendations for improving
investor access to registration
information through BrokerCheck and
the Commission’s Investment Adviser
Public Disclosure (‘‘IAPD’’) database. In
May 2012, FINRA implemented the
Study’s three ‘‘near-term’’
recommendations.5 FINRA is currently
working on the Study’s ‘‘intermediateterm’’ recommendation, which involves
analyzing the feasibility and advisability
of expanding the information available
through BrokerCheck, as well as the
method and format that BrokerCheck
information is displayed.
In light of the Study’s ‘‘intermediateterm’’ recommendation and FINRA’s
belief that regular evaluation of its
BrokerCheck program is an important
part of its statutory obligation to make
information available to the public,6
3 The Study is available online at https://
www.sec.gov/news/studies/2011/919bstudy.pdf.
4 Dodd-Frank Wall Street Reform and Consumer
Protection Act, Public Law 111–203, 124 Stat. 1376
(2010).
5 These recommendations are to unify search
returns for BrokerCheck and IAPD, add the ability
to search BrokerCheck by ZIP code, and increase
the educational content on BrokerCheck.
6 See Section 15A(i) of the Act. 15 U.S.C. 78o–
3(i). Since establishing BrokerCheck, FINRA has
regularly assessed the scope and utility of the
information it provides to the public and, as a
E:\FR\FM\20NON1.SGM
20NON1
]]>Agencies
[Federal Register Volume 78, Number 224 (Wednesday, November 20, 2013)]
[Notices]
[Pages 69725-69728]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-27754]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70874; File No. SR-Phlx-2013-111]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Exchange's Pricing Schedule Under Section VIII With Respect To
Execution and Routing of Orders in Securities Priced at $1 or More Per
Share
November 14, 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 October 31, 2013, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'')
filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the Exchange's Pricing Schedule
under Section VIII, entitled ``NASDAQ OMX PSX FEES,'' with respect to
execution and routing of orders in securities priced at $1 or more per
share.
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaqomxphlx.cchwallstreet.com/, at the principal
office of the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to amend the certain
fees and rebates for order execution and routing applicable to the use
of the order execution and routing services of the NASDAQ OMX PSX
System by member organizations for all securities traded at $1 or more
per share.
Amended Fees for Execution of Quotes/Orders in Securities Listed on
Nasdaq
The Exchange is proposing to amend fees assessed for the execution
of orders in securities listed on the Nasdaq Stock Market LLC
(``Nasdaq'') that execute in NASDAQ OMX PSX (``PSX''). Currently, the
Exchange assesses a charge of $0.0028 per share executed for an order
entered through a PSX Market Participant Identifier (``MPID'') through
which the member organization provides an average daily volume of
10,000 or more shares of liquidity during the month. The Exchange is
proposing to increase the charge assessed for such orders executed at
PSX to $0.0030.
The Exchange is also proposing to increase the charge assessed for
an order executed in PSX in Nasdaq securities that is designated as
eligible for routing. Currently, the Exchange assesses a charge of
$0.0028 per share executed for an order that is designated as eligible
for routing. The Exchange is proposing to increase the charge assessed
for such orders executed at PSX to $0.0030.
Amended Fees for Execution of Quotes/Orders in Securities Listed on
NYSE
The Exchange is proposing to amend fees assessed and credits
provided for the execution of orders in securities listed on the New
York Stock Exchange,
[[Page 69726]]
Inc. (``NYSE'') that execute in PSX. Currently, the Exchange assesses a
charge of $0.0028 per share executed for an order entered through a PSX
MPID through which the member organization provides an average daily
volume of 10,000 or more shares of liquidity during the month. The
Exchange is proposing to increase the charge assessed for such orders
executed at PSX to $0.0030.
The Exchange is also proposing to increase the charge assessed for
an order executed in PSX in NYSE-listed securities that is designated
as eligible for routing. Currently, the Exchange assesses a charge of
$0.0028 per share executed for an order that is designated as eligible
for routing. The Exchange is proposing to increase the charge assessed
for such orders executed in PSX to $0.0030.
The Exchange is proposing to amend the credit provided to a member
organization providing displayed liquidity in NYSE-listed securities
through the PSX System. Currently, the Exchange provides a credit of
$0.0028 per share executed for a displayed quote/order entered by a
member organization that provides an average daily volume of 2 million
or more shares of liquidity during the month. To be eligible, either
(1) the quote/order is entered through a PSX MPID through which the
member organization displays, on average over the course of the month,
100 shares or more at the national best bid and/or national best offer
at least 25% of the time during regular market hours in the security
that is the subject of the quote/order, or (2) the member organization
displays, on average over the course of the month, 100 shares or more
at the national best bid and/or national best offer at least 25% of the
time during regular market hours in 500 or more securities. The
Exchange is proposing to increase the credit to $0.0029 per share
executed.
The Exchange is also proposing a new credit provided to a member
organization providing displayed liquidity in NYSE-listed securities
through the PSX System. Specifically, the Exchange is proposing to
offer a credit of $0.0030 per share executed for a displayed quote/
order entered by a member organization that provides an average daily
volume of 6 million or more shares of liquidity during the month. Like
the current credit, in order to be eligible, either (1) the quote/order
is entered through a PSX MPID through which the member organization
displays, on average over the course of the month, 100 shares or more
at the national best bid and/or national best offer at least 25% of the
time during regular market hours in the security that is the subject of
the quote/order, or (2) the member organization displays, on average
over the course of the month, 100 shares or more at the national best
bid and/or national best offer at least 25% of the time during regular
market hours in 500 or more securities.
Amended Fees for Execution of Quotes/Orders in Securities Listed on
Exchanges Other Than Nasdaq or NYSE
The Exchange is proposing to amend fees assessed and credits
provided for the execution of orders in securities listed on exchanges
other than Nasdaq or NYSE that execute at PSX. Currently, the Exchange
assesses a charge of $0.0028 per share executed for an order entered
through a PSX MPID through which the member organization provides an
average daily volume of 10,000 or more shares of liquidity during the
month. The Exchange is proposing to increase the charge assessed for
such orders executed at PSX to $0.0030.
The Exchange is also proposing to increase the charge assessed for
an order executed in PSX in securities listed on exchanges other than
Nasdaq or NYSE that is designated as eligible for routing. Currently,
the Exchange assesses a charge of $0.0028 per share executed for an
order that is designated as eligible for routing. The Exchange is
proposing to increase the charge assessed for such orders executed at
PSX to $0.0030.
The Exchange is proposing to amend the credit provided to a member
organization providing displayed liquidity through the PSX System.
Currently, the Exchange provides a credit of $0.0028 per share executed
for a displayed quote/order in securities listed on exchanges other
than Nasdaq or NYSE entered by a member organization that provides an
average daily volume of 2 million or more shares of liquidity during
the month. To be eligible, either (1) the quote/order is entered
through a PSX MPID through which the member organization displays, on
average over the course of the month, 100 shares or more at the
national best bid and/or national best offer at least 25% of the time
during regular market hours in the security that is the subject of the
quote/order, or (2) the member organization displays, on average over
the course of the month, 100 shares or more at the national best bid
and/or national best offer at least 25% of the time during regular
market hours in 500 or more securities. The Exchange is proposing to
increase the credit to $0.0029 per share executed.
The Exchange is also proposing a new credit provided to a member
organization providing displayed liquidity through the PSX System in
securities listed on exchanges other than Nasdaq or NYSE. Specifically,
the Exchange is proposing to offer a credit of $0.0030 per share
executed for a displayed quote/order entered by a member organization
that provides an average daily volume of 6 million or more shares of
liquidity during the month. Like the current credit, in order to be
eligible, either (1) the quote/order is entered through a PSX MPID
through which the member organization displays, on average over the
course of the month, 100 shares or more at the national best bid and/or
national best offer at least 25% of the time during regular market
hours in the security that is the subject of the quote/order, or (2)
the member organization displays, on average over the course of the
month, 100 shares or more at the national best bid and/or national best
offer at least 25% of the time during regular market hours in 500 or
more securities.
Amended Fees for Routing of Orders in All Securities
The Exchange is proposing to amend fees assessed and credits
provided for the routing of orders in all securities. Currently, for
PSTG or PSCN orders that execute in a venue other than PSX the Exchange
assesses a charge of $0.0025 per share executed at the NYSE, a credit
of $0.0014 per share executed at BX and a charge of $0.28 [sic] per
share executed in other venues. The Exchange proposes to decrease the
credit provided for executions at BX to $0.0011, and to increase the
charges for executions elsewhere, including the NYSE, to $0.0030 per
share executed.
The Exchange is also proposing to amend the fees assessed member
organizations for entering a PMOP order that executes in a venue other
than PSX. Currently, the Exchange assesses a charge of $0.0027 per
share executed at the NYSE and a charge of $0.0031 per share executed
at venues other than the NYSE. The Exchange proposes increasing these
fees to $0.0030 per share executed at the NYSE and $0.0035 per share
executed at venues other than the NYSE.
The Exchange is proposing to amend the fees assessed and credits
provided for member organizations entering a PTFY order that executes
in a venue other than PSX. Currently, the Exchange assesses a charge of
$0.0024 per share executed at the NYSE, a charge of $0.0005 per share
executed at venues other than the NYSE, Nasdaq or BX, a charge of
$0.0028 per share executed at Nasdaq, and provides a credit of $0.0014
per share executed at BX. The
[[Page 69727]]
Exchange is proposing to decrease the credit provided to $0.0011 per
share executed at BX, and increase the charges for shares executed at
NYSE and Nasdaq to $0.0030 per share executed.
The Exchange is proposing to amend the fees assessed and credits
provided for member organizations entering a PCRT order that executes
in a venue other than PSX. Currently, the Exchange assesses a charge of
$0.0028 per share executed at Nasdaq and provides a credit of $0.0014
per share executed at BX. The Exchange is proposing to increase the
charge assessed for executions on Nasdaq to $0.0030 per share executed,
and to decrease the credit provided for executions on BX to $0.0011 per
share executed.
Last, the Exchange is proposing to amend the credit provided to a
member organization for entering an XCST order that executes at BX.
Currently, the Exchange provides a credit of $0.0014 per share executed
at BX. The Exchange is proposing to decrease the credit provided to
$0.0011.
2. Statutory Basis
The Exchange believes that its proposal to amend its Pricing
Schedule is consistent with Section 6(b) of the Act \3\ in general, and
furthers the objectives of Sections 6(b)(4) and (b)(5) of the Act \4\
in particular, in that it is an equitable allocation of reasonable fees
and other charges among Exchange members and other persons using its
facilities, and it does not unfairly discriminate between customers,
issuers, brokers or dealers. The proposed changes are reasonable
because they reflect a modest decrease in the credits provided in the
execution of certain orders and a modest increase in the fees assessed
for others, which will allow the Exchange to reduce costs and increase
revenue.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(4) and (5).
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The change with respect to fees for execution of quotes/orders in
securities that execute on PSX is reasonable because it will make the
applicable fees for orders that execute in PSX uniform, without regard
to the nature of entry, eligibility for routing, or the listing venue
of the security. Moreover, the change will result in a modest increase
of only $0.0002 per share executed for PSX MPID-entered orders eligible
for the existing tier, and for orders designated as eligible for
routing. The change is consistent with an equitable allocation of fees
and not unfairly discriminatory because it will eliminate an existing
disparity between the fees charged for orders that execute in PSX,
thereby making the applicable fees consistent. In addition, the change
is equitable and not unfairly discriminatory because it affects all
member organizations that execute orders in PSX.
The change with respect to the credits provided for execution of
quotes/orders in NYSE-listed securities and securities listed on
exchanges other than Nasdaq is reasonable because it further
incentivizes member organizations to provide displayed quotes and
orders on PSX. Specifically, the change achieves this goal by
increasing the credit provided under the current tier, and creating a
new tier that provides a larger credit to member organizations that
provide a larger average daily volume of shares of liquidity during the
month. The change is consistent with an equitable allocation of fees
and not unfairly discriminatory because it applies the same criteria
and provides the same rebate to member organizations trading in non-
Nasdaq securities that provide displayed liquidity to PSX, under each
of the tiers.
The changes with respect to the charges assessed and credits
provided for routing of orders in all securities are reasonable because
they represent a modest increases in charges assessed a member
organization for PSTG, PSCN, PMOP, PTFY and PCRT orders that execute in
a venue other than PSX, and a modest decrease in the credits provided
to member organizations for PSTG, PSCN, PTFY, PCRT and XCST orders that
execute at BX. The Exchange notes that the increase in fees and
decrease in credits are designed to incentivize member organizations to
provide orders and quotes that execute on PSX. In addition, the change
is equitable and not unfairly discriminatory because it affects only
those members that opt to use the Exchange's optional routing services.
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, as amended.\5\ The Exchange
notes that it operates in a highly competitive market in which market
participants can readily favor competing venues if they deem fee levels
at a particular venue to be excessive, or rebate opportunities
available at other venues to be more favorable. In such an environment,
the Exchange must continually adjust its fees to remain competitive
with other exchanges and with alternative trading systems that have
been exempted from compliance with the statutory standards applicable
to exchanges. Because competitors are free to modify their own fees in
response, and because market participants may readily adjust their
order routing practices, the Exchange believes that the degree to which
fee changes in this market may impose any burden on competition is
extremely limited. In this instance, the decreased credits and
increased fees are intended to reduce the Exchange's costs, while still
continuing to provide an incentive for members to execute shares on PSX
and make use of its optional routing functionality. Because there are
numerous competitive alternatives to PSX, it is likely the Exchange
will lose market share as a result of the changes if they are
unattractive to market participants. Accordingly, the Exchange does not
believe the proposed changes will impair the ability of members or
competing order execution venues to maintain their competitive standing
in the financial markets.
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\5\ 15 U.S.C. 78f(b)(8).
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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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \6\ and paragraph (f) of Rule 19b-4
thereunder.\7\ 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.
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f).
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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
[[Page 69728]]
Send an email to rule-comments@sec.gov. Please include
File Number SR-Phlx-2013-111 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-2013-111. 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 the 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-2013-111 and should be
submitted on or before December 11, 2013.
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\8\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-27754 Filed 11-19-13; 8:45 am]
BILLING CODE 8011-01-P
