Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule Text Related to Acceptable Trade Range in Chapter VI, Section 10 of the BX Options Rules, 25633-25635 [2014-10170]
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Federal Register / Vol. 79, No. 86 / Monday, May 5, 2014 / Notices
purposes of the Act, in that the rule
change makes enhancements to CFE’s
financial surveillance of FCMs and
requires TPHs to comply with the
amendments set forth in the CFTC
Rulemaking. The Exchange believes that
the proposed rule change is equitable
and not unfairly discriminatory because
all of the amended Rules would apply
equally to all TPHs that are subject to
the applicable requirements, and the
Amendment is expressly consistent
with the CFTC Rulemaking.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change will
become effective on April 28, 2014.
At any time within 60 days of the date
of effectiveness of the proposed rule
change, the Commission, after
consultation with the CFTC, may
summarily abrogate the proposed rule
change and require that the proposed
rule change be refiled in accordance
with the provisions of Section 19(b)(1)
of the Act.21
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
offices of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CFE–
2014–001, and should be submitted on
or before May 27, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–10171 Filed 5–2–14; 8:45 am]
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–
CFE–2014–001 on the subject line.
emcdonald on DSK67QTVN1PROD with NOTICES
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
Text Related to Acceptable Trade
Range in Chapter VI, Section 10 of the
BX Options Rules
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CFE–2014–001. 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
April 29, 2014.
21 15
U.S.C. 78s(b)(1).
VerDate Mar<15>2010
17:56 May 02, 2014
Jkt 232001
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72041; File No. SR–BX–
2014–022]
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 April 23,
2014, NASDAQ OMX BX, Inc. (‘‘BX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
22 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
25633
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 the Substance
of the Proposed Rule Change
The Exchange proposes to amend rule
text related to Acceptable Trade Range
in Chapter VI, Section 10 of the BX
Options rules. The text of the proposed
rule change is available on the
Exchange’s Web site at https://
nasdaqomxbx.cchwallstreet.com/, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to amend rule text in Chapter
VI, Section 10 entitled ‘‘Book
Processing’’ to add additional rule text
regarding Acceptable Trade Range. The
Acceptable Trade Range is a mechanism
to prevent the system 3 from
experiencing dramatic price swings by
creating a level of protection that
prevents the market from moving
beyond set thresholds. The thresholds
consist of a Reference Price plus (minus)
set dollar amounts based on the nature
of the option and the premium of the
option.
Currently, the rule provides that the
System will calculate an Acceptable
Trade Range to limit the range of prices
at which an order will be allowed to
execute. The Acceptable Trade Range is
calculated by taking the reference price,
plus or minus a value to be determined
by the Exchange, (i.e., the reference
price—(x) for sell orders and the
3 The term ‘‘System’’ means the automated system
for order execution and trade reporting owned and
operated by BX. See BX Rules at Chapter VI,
Section 1(a).
E:\FR\FM\05MYN1.SGM
05MYN1
25634
Federal Register / Vol. 79, No. 86 / Monday, May 5, 2014 / Notices
reference price + (x) for buy orders).4
Upon receipt of a new order, the
reference price is the National Best Bid
(NBB) for sell orders and the National
Best Offer (NBO) for buy orders or the
last price at which the order is posted
whichever is higher for a buy order or
lower for a sell order. If an order reaches
the outer limit of the Acceptable Trade
Range (the ‘‘Threshold Price’’) without
being fully executed, it will be posted at
the Threshold Price for a brief period,
not to exceed one second (‘‘Posting
Period’’), to allow more liquidity to be
collected. Upon posting, either the
current Threshold Price of the order or
an updated NBB for buy orders or the
NBO for sell orders (whichever is higher
for a buy order/lower for a sell order)
then becomes the reference price for
calculating a new Acceptable Trade
Range. If the order remains unexecuted,
a New Acceptable Trade Range will be
calculated and the order will execute,
route, or post up to the new Acceptable
Trade Range Threshold Price. Today,
this process will repeat until the order
is executed, cancelled, or posted at its
limit price.
The Exchange proposes to amend this
rule to provide that this process will
repeat until either (i) the order/quote is
executed, cancelled, or posted at its
limit price or (ii) the order has been
subject to a configurable number of
instances of the Acceptable Trade Range
as determined by the Exchange.5 Once
the maximum number of instances has
been reached, the order is returned. The
Exchange will establish a maximum
number of Acceptable Trade Range
iterations, until the order is cancelled.
The Exchange will update the Trading
System Settings page located on the
NASDAQTrader.com Web site to
display the maximum number of
Acceptable Trade Range iterations and
will provide updates to the table via an
Options Trader Alert, generally the prior
day, to its membership via Options
Trader Alerts. The Exchange will
provide sufficient advanced notice of
changes. This is the same process which
currently exists on the NASDAQ
Options Market (‘‘NOM’’) and NASDAQ
OMX PHLX LLC (‘‘Phlx’’).6
emcdonald on DSK67QTVN1PROD with NOTICES
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 7 in general, and furthers the
4 The
Acceptable Trade Range settings are tied to
the option premium.
5 BX Options Participants may elect to have their
orders cancelled by the System after the first
iteration.
6 See Phlx Rule 1080(p).
7 15 U.S.C. 78f(b).
VerDate Mar<15>2010
17:56 May 02, 2014
Jkt 232001
objectives of Section 6(b)(5) of the Act 8
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in 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.
The proposed rule change is
consistent with these requirements in
that it will continue to reduce the
negative impacts of sudden,
unanticipated volatility in individual
options, and serve to preserve an
orderly market in a transparent and
uniform manner, enhance the pricediscovery process, increase overall
market confidence, and promote fair
and orderly markets and the protection
of investors. This functionality should
continue to result in greater continuity
in prices as it is designed to prevent
immediate or rapid executions at far
away prices; thereby protecting
investors and the public interest. The
Exchange believes that the addition of
configurable number of iterations when
the Acceptable Trade Range would
apply will provide BX Participants with
more certainty as to the application of
the Rule. Overall the Acceptable Trade
Range Rule should reduce the negative
impacts of sudden, unanticipated
volatility in and enhance the pricediscovery process.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange believes this proposed
rule change would provide BX
Participants greater certainty when
transacting orders on the Exchange and
continue to reduce the negative impacts
of sudden, unanticipated volatility in
and enhance the price-discovery
process.
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.
8 15
PO 00000
U.S.C. 78f(b)(5).
Frm 00074
Fmt 4703
Sfmt 4703
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A)(ii) [sic] of the Act 9 and
subparagraph (f)(6) of Rule 19b–4
thereunder.10
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BX–2014–022 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BX–2014–022. 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/
9 15
U.S.C. 78s(b)(3)(a)(ii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
10 17
E:\FR\FM\05MYN1.SGM
05MYN1
Federal Register / Vol. 79, No. 86 / Monday, May 5, 2014 / Notices
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
offices of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–BX–
2014–022, and should be submitted on
or before May 27, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–10170 Filed 5–2–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72040; File No. SR–
NYSEMKT–2014–39]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Commentary
.01 to Rule 901 To Replace the
Reference to ‘‘GOOG’’ with ‘‘GOOGL’’
emcdonald on DSK67QTVN1PROD with NOTICES
April 29, 2014.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on April 23,
2014 NYSE MKT LLC (the ‘‘Exchange’’
or ‘‘NYSE MKT’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
17:56 May 02, 2014
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to amend
Commentary .01 to Rule 901 to replace
the reference to ‘‘GOOG’’ with
‘‘GOOGL’’. The text of the proposed rule
change is available on the Exchange’s
Web site at www.nyse.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Commentary .01 to Rule 901 (Option
Contracts to be Traded) to replace the
reference to ‘‘GOOG’’ with ‘‘GOOGL’’.
This filing is based on a proposal
recently submitted by the Chicago Board
Options Exchange, Incorporated
(‘‘CBOE’’).4
The Exchange is proposing to amend
Commentary .01 to Rule 901 to reflect
a change to the ticker symbol for Class
A shares of Google Inc. (‘‘Google’’). On
April 2, 2014, Google issued a new class
of shares (Class C) to its shareholders in
lieu of a cash dividend payment.
Additionally, this new Class C of shares
was given the former Google ticker
symbol, ‘‘GOOG’’. As a result, a new
ticker symbol, ‘‘GOOGL’’, was assigned
to the Class A shares. The Exchange
proposes to change the Google ticker
symbol referenced in Rule 901 from
‘‘GOOG’’ to ‘‘GOOGL’’. The purpose of
this change is to ensure that Exchange
rules properly reflect the intention and
practice of the Exchange to trade mini
4 See Securities Exchange Act Release No. 71848
(April 2, 2014) 79 FR 19405 (April 8, 2014) (Notice
of Filing and Immediate Effectiveness of SR–CBOE–
2014–030).
1 15
VerDate Mar<15>2010
solicit comments on the proposed rule
change from interested persons.
Jkt 232001
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
25635
options on only an exhaustive list of
underlying securities outlined in
Commentary .01 of Rule 901. This
change will make it clear that the
current list of underlying securities that
mini options can be traded on includes
the Google Class A shares, while at the
same time making it clear that Google
Class C shares are not part of that list.
The Exchange therefore believes that the
proposed rule change will help avoid
confusion regarding which Google
shares are eligible for mini options.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act,5
in general, and furthers the objectives of
Section 6(b)(5),6 in particular, in that it
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system.
In particular, the proposed rule
change to revise the Google Class A
ticker symbol to its new designation is
consistent with the Act because the
proposed change is merely updating the
corresponding ticker to properly reflect
the applicable ticker symbol for
Google’s Class A shares. This change
should provide clarity to market
participants when making investment
decisions regarding mini options
contracts overlying Google Class A
shares.
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 that is not
necessary or appropriate in furtherance
of the purposes of the Act. In this regard
and as indicated above, the Exchange
notes that the rule change being
proposed is substantially similar in all
material respects to a rule change
recently adopted by the CBOE.7 The
proposed change does not impose any
burden on intramarket competition
because it applies to all Participants.
There is no burden on intermarket
competition as the proposed change is
merely attempting to update the new
ticker for Google Class A shares. As a
result, there will be no substantive
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
7 Supra n.4.
6 15
E:\FR\FM\05MYN1.SGM
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Agencies
[Federal Register Volume 79, Number 86 (Monday, May 5, 2014)]
[Notices]
[Pages 25633-25635]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-10170]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72041; File No. SR-BX-2014-022]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule Text Related to Acceptable Trade Range in Chapter VI, Section 10
of the BX Options Rules
April 29, 2014.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 23, 2014, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``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 the
Substance of the Proposed Rule Change
The Exchange proposes to amend rule text related to Acceptable
Trade Range in Chapter VI, Section 10 of the BX Options rules. The text
of the proposed rule change is available on the Exchange's Web site at
https://nasdaqomxbx.cchwallstreet.com/, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to amend rule text in
Chapter VI, Section 10 entitled ``Book Processing'' to add additional
rule text regarding Acceptable Trade Range. The Acceptable Trade Range
is a mechanism to prevent the system \3\ from experiencing dramatic
price swings by creating a level of protection that prevents the market
from moving beyond set thresholds. The thresholds consist of a
Reference Price plus (minus) set dollar amounts based on the nature of
the option and the premium of the option.
---------------------------------------------------------------------------
\3\ The term ``System'' means the automated system for order
execution and trade reporting owned and operated by BX. See BX Rules
at Chapter VI, Section 1(a).
---------------------------------------------------------------------------
Currently, the rule provides that the System will calculate an
Acceptable Trade Range to limit the range of prices at which an order
will be allowed to execute. The Acceptable Trade Range is calculated by
taking the reference price, plus or minus a value to be determined by
the Exchange, (i.e., the reference price--(x) for sell orders and the
[[Page 25634]]
reference price + (x) for buy orders).\4\ Upon receipt of a new order,
the reference price is the National Best Bid (NBB) for sell orders and
the National Best Offer (NBO) for buy orders or the last price at which
the order is posted whichever is higher for a buy order or lower for a
sell order. If an order reaches the outer limit of the Acceptable Trade
Range (the ``Threshold Price'') without being fully executed, it will
be posted at the Threshold Price for a brief period, not to exceed one
second (``Posting Period''), to allow more liquidity to be collected.
Upon posting, either the current Threshold Price of the order or an
updated NBB for buy orders or the NBO for sell orders (whichever is
higher for a buy order/lower for a sell order) then becomes the
reference price for calculating a new Acceptable Trade Range. If the
order remains unexecuted, a New Acceptable Trade Range will be
calculated and the order will execute, route, or post up to the new
Acceptable Trade Range Threshold Price. Today, this process will repeat
until the order is executed, cancelled, or posted at its limit price.
---------------------------------------------------------------------------
\4\ The Acceptable Trade Range settings are tied to the option
premium.
---------------------------------------------------------------------------
The Exchange proposes to amend this rule to provide that this
process will repeat until either (i) the order/quote is executed,
cancelled, or posted at its limit price or (ii) the order has been
subject to a configurable number of instances of the Acceptable Trade
Range as determined by the Exchange.\5\ Once the maximum number of
instances has been reached, the order is returned. The Exchange will
establish a maximum number of Acceptable Trade Range iterations, until
the order is cancelled. The Exchange will update the Trading System
Settings page located on the NASDAQTrader.com Web site to display the
maximum number of Acceptable Trade Range iterations and will provide
updates to the table via an Options Trader Alert, generally the prior
day, to its membership via Options Trader Alerts. The Exchange will
provide sufficient advanced notice of changes. This is the same process
which currently exists on the NASDAQ Options Market (``NOM'') and
NASDAQ OMX PHLX LLC (``Phlx'').\6\
---------------------------------------------------------------------------
\5\ BX Options Participants may elect to have their orders
cancelled by the System after the first iteration.
\6\ See Phlx Rule 1080(p).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \7\ in general, and furthers the objectives of Section
6(b)(5) of the Act \8\ in particular, in that it is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The proposed rule change is consistent with these requirements in
that it will continue to reduce the negative impacts of sudden,
unanticipated volatility in individual options, and serve to preserve
an orderly market in a transparent and uniform manner, enhance the
price-discovery process, increase overall market confidence, and
promote fair and orderly markets and the protection of investors. This
functionality should continue to result in greater continuity in prices
as it is designed to prevent immediate or rapid executions at far away
prices; thereby protecting investors and the public interest. The
Exchange believes that the addition of configurable number of
iterations when the Acceptable Trade Range would apply will provide BX
Participants with more certainty as to the application of the Rule.
Overall the Acceptable Trade Range Rule should reduce the negative
impacts of sudden, unanticipated volatility in and enhance the price-
discovery process.
B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act. The Exchange believes this proposed rule change would provide
BX Participants greater certainty when transacting orders on the
Exchange and continue to reduce the negative impacts of sudden,
unanticipated volatility in and enhance the price-discovery process.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(ii) [sic] of the Act \9\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(a)(ii).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BX-2014-022 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-BX-2014-022. 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/
[[Page 25635]]
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Room, 100 F
Street NE., Washington, DC 20549, on official business days between the
hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be
available for inspection and copying at the principal offices of the
Exchange. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-BX-
2014-022, and should be submitted on or before May 27, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Kevin M. O'Neill,
Deputy Secretary.
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\11\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2014-10170 Filed 5-2-14; 8:45 am]
BILLING CODE 8011-01-P