Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Singly Listed Options, 48269-48274 [2014-19333]
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Federal Register / Vol. 79, No. 158 / Friday, August 15, 2014 / Notices
emcdonald on DSK67QTVN1PROD with NOTICES
recommending transactions in the
Shares to customers; (c) how and by
whom information regarding the
Intraday Indicative Value and Disclosed
Portfolio is disseminated; (d) the risks
involved in trading the Shares during
the Pre-Market and Post-Market
Sessions when an updated Intraday
Indicative Value will not be calculated
or publicly disseminated; (e) the
requirement that members deliver a
prospectus to investors purchasing
newly issued Shares prior to or
concurrently with the confirmation of a
transaction; and (f) trading information.
(6) For initial and continued listing,
the Funds will be in compliance with
Rule 10A–3 under the Act.39
(7) Each Fund may hold up to an
aggregate amount of 15% of its net
assets in illiquid assets (calculated at
the time of investment). Each Fund will
monitor its portfolio liquidity on an
ongoing basis to determine whether, in
light of current circumstances, an
adequate level of liquidity is being
maintained, and will consider taking
appropriate steps in order to maintain
adequate liquidity if, through a change
in values, net assets, or other
circumstances, more than 15% of a
Fund’s net assets are held in illiquid
assets.
(8) The Funds will not invest in
options or swaps.
(9) Each Fund’s investments and each
Subsidiary’s investments will be
consistent with its (or its applicable
Fund’s) respective investment objective
and, although certain derivative
investments will have a leveraging effect
on the Funds and Subsidiaries, the
Funds and Subsidiaries will not seek
leveraged returns (e.g., 2X or ¥3X).
(10) A minimum of 100,000 Shares of
each Fund will be outstanding at the
commencement of trading on the
Exchange.
This approval order is based on all of
the Exchange’s representations,
including those set forth above and in
the Notice, and the Exchange’s
description of the Fund.
For the foregoing reasons, the
Commission finds that the proposed
rule change, as modified by Amendment
No. 1 thereto, is consistent with Section
6(b)(5) of the Act 40 and the rules and
regulations thereunder applicable to a
national securities exchange.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,41 that the
proposed rule change (SR–NASDAQ–
39 See
17 CFR 240.10A–3.
U.S.C. 78f(b)(5).
41 15 U.S.C. 78s(b)(2).
40 15
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2014–063), as modified by Amendment
No. 1 thereto, be, and it hereby is,
approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.42
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–19335 Filed 8–14–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72806; File No. SR–Phlx–
2014–51]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Singly Listed Options
August 11, 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 August 1,
2014, 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, 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 the Substance
of the Proposed Rule Change
The Exchange proposes to amend
Section III of the Pricing Schedule
which pertains to Singly Listed Options
fees.3
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
42 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Singly Listed Options fees includes options
overlying currencies, equities, ETFs, ETNs treasury
securities and indexes not listed on another
exchange.
1 15
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48269
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 this filing is to amend
Section III of the Exchange’s Pricing
Schedule entitled ‘‘Singly Listed
Options’’ to: (1) Amend Options
Transaction Charges; (ii) delete
NASDAQ OMX Alpha Indexes(TM)
(‘‘Alpha Indexes’’),4 MSCI Index
Options,5 and Treasury Securities 6
4 Alpha Indexes measure relative total returns of
one stock and one exchange-traded fund share
(‘‘ETF’’) underlying options which are also traded
on the Exchange (each such combination of two
components is referred to as an ‘‘Alpha Pair’’). The
first component identified in an Alpha Pair (the
‘‘Target Component’’) is measured against the
second component identified in the Alpha Pair (the
‘‘Benchmark Component’’). Alpha Index Options
contracts will be exercised European-style and
settled in U.S. dollars. See Securities Exchange Act
Release No. 63860 (February 7, 2011), 76 FR 7888
(February 11, 2001) (SR–Phlx–2010–176).
5 The Exchange filed to list options on the MSCI
EM Index. The MSCI EM Index is a free floatadjusted market capitalization index consisting of
large and midcap component securities from
countries classified by MSCI as ‘‘emerging
markets,’’ and is designed to measure equity market
performance of emerging markets. The index
consists of component securities from the following
21 emerging market countries: Brazil, Chile, China,
Colombia, Czech Republic, Egypt, Hungary, India,
Indonesia, Korea, Malaysia, Mexico, Morocco, Peru,
Philippines, Poland, Russia, South Africa, Taiwan,
Thailand, and Turkey. See Securities Exchange Act
Release No. 66420 (February 17, 2012), 77 FR 11177
(February 24, 2012) (SR–Phlx–2011–179) (an order
granting approval of the proposal to list and trade
options on the MSCI EM Index). The Exchange also
filed to list options on the MSCI EAFE Index. The
MSCI EAFE Index is a free float-adjusted market
capitalization index that is designed to measure the
equity market performance of developed markets,
excluding the U.S. and Canada. The MSCI EAFE
Index consists of component securities from the
following twenty-two (22) developed market
countries: Australia, Austria, Belgium, Denmark,
Finland, France, Germany, Greece, Hong Kong,
Ireland, Israel, Italy, Japan, the Netherlands, New
Zealand, Norway, Portugal, Singapore, Spain,
Sweden, Switzerland, and the United Kingdom. See
Securities Exchange Act Release No. 66569 (March
9, 2012), 77 FR 15409 (March 15, 2014) (SR–Phlx–
2012–28).
6 Subsection (a)(1) of Phlx Rule 1001D states that
the term ‘‘Treasury securities’’ (also known as
Treasury debt securities) means a bond or note or
other evidence of indebtedness that is a direct
obligation of, or an obligation guaranteed as to
principal or interest by, the United States or a
corporation in which the United States has a direct
or indirect interest (except debt securities
guaranteed as to timely payment of principal and
interest by the Government National Mortgage
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to $0.70 per contract for Singly Listed
Options. The increase aligns these fees
with electronic Non-Penny Pilot fees in
Section II of the Pricing Schedule.17
Despite the fee increase, the proposal
will allow the Exchange to incentivize
market participants to transact Singly
Listed Options.
The Exchange proposes to delete
pricing related to Alpha Indexes, MSCI
Index Options and Treasury Securities
because the Exchange no longer lists
options on Alpha Indexes, MSCI Index
Options or Treasury Securities. The
separate pricing related to these
products is not relevant to any product
currently listed on Phlx. The Exchange
proposes to remove the words ‘‘treasury
securities’’ from the title of Section III.
The Exchange proposes to adopt new
pricing for FX Options (currently
referred to as currencies in the Pricing
Schedule in Section III and including
pricing; (iii) adopt new pricing for FX
Options 7 (currencies); and (iv) make
other technical amendments to the
Pricing Schedule to clarify text and
remove outdated text.
Today, the Exchange assesses an
Options Transaction Charge for
Customers of $0.40 per contract, for
Professionals,8 Firms 9 and BrokerDealers 10 of $0.60 per contract and for
Specialists 11 and Market Makers 12 of
$0.40 per contract. These fees apply to
options overlying currencies,13 equities,
exchange-traded notes (‘‘ETNs’’),14
exchange-traded fund (‘‘ETF’’) 15 and
indexes.16 Today, these fees do not
apply to Alpha Index Options, MSCI
Index Options or Treasury Securities,
which have separate pricing listed in
Section III of the Pricing Schedule. The
Exchange proposes to increase the
Professional, Broker-Dealer and Firm
Options Transaction Charges from $0.60
Customer
Rebate for Adding Liquidity .....................
Fee for Removing Liquidity ......................
$0.00
0.40
The Exchange would add the above
pricing to Section III as Part A. The
Exchange also proposes to assess the
Specialist
Market maker
$0.20
0.40
Fee for Adding Liquidity ...........................
Fee for Removing Liquidity ......................
$0.40
0.40
Specialist
Firm
$0.20
0.40
following per contract Fees for Adding
and Removing Liquidity in Singly
Customer
XDB, XDE, XDN, XDS, XDA, XDM,
XEH, XEV, XDZ, XDC and XDV). Today,
as noted above, the Exchange assesses
an Options Transaction Charge for
Customer of $0.40 per contract, for
Professional, Firm and Broker-Dealer of
$0.60 per contract and for Specialist and
Market Maker of $0.40 per contract and
these fees apply to options overlying FX
Options. The Exchange is proposing to
adopt new pricing for FX Options to
incentivize market participants to
transact a greater number of FX Options.
The Exchange also proposes to refer to
‘‘currencies’’ as ‘‘FX Options’’ in the
Pricing Schedule.
Specifically, the Exchange proposes to
pay the following Rebates for Adding
Liquidity and assess the following per
contract Fees for Removing Liquidity in
Singly Listed FX Options for Simple
Orders:
Market maker
$0.40
0.40
Broker-dealer
$0.00
0.40
Professional
$0.00
0.40
$0.00
0.40
Listed FX Options for Complex
Orders:18
Firm
$0.40
0.40
Broker-Dealer
$0.40
0.40
$0.40
0.40
Professional
$0.40
0.40
emcdonald on DSK67QTVN1PROD with NOTICES
Simple Singly Listed FX Options
Orders that are executed against the
individual components of Complex
Singly Listed FX Options Orders will be
assessed the fees and paid the rebates in
Part A. However, the individual
components of Complex Singly Listed
FX Options Orders will be assessed the
fees in Part B. Transactions in Singly
Listed FX Options originating on the
Exchange floor will be subject to the Fee
for Removing Liquidity. However, if one
side of the transaction originates on the
Exchange floor and any other side of the
trade was the result of an electronically
submitted order or a quote, then the
Fees for Removing Liquidity will apply
to the transactions which originated on
Association). Securities issued or guaranteed by
individual departments or agencies of the United
States are sometimes referred to by the title of the
department or agency involved (e.g., a ‘‘Treasury
security’’ is a debt instrument that is issued by the
United States Treasury).
7 For purposes of pricing of Singly Listed FX
Options, this includes the following U.S. dollarsettled foreign currency options: XDB, XDE, XDN,
XDS, XDA, XDM, XEH, XEV, XDZ, XDC and XDV.
8 The term ‘‘professional’’ means any person or
entity that (i) is not a broker or dealer in securities,
and (ii) places more than 390 orders in listed
options per day on average during a calendar month
for its own beneficial account(s). See Rule
1000(b)(14).
9 The term ‘‘Firm’’ applies to any transaction that
is identified by a member or member organization
for clearing in the Firm range at The Options
Clearing Corporation.
10 The term ‘‘Broker-Dealer’’ applies to any
transaction which is not subject to any of the other
transaction fees applicable within a particular
category.
11 A Specialist is an Exchange member who is
registered as an options specialist pursuant to Rule
1020(a).
12 A ‘‘Market Maker’’ includes Registered Options
Traders (Rule 1014(b)(i) and (ii)), which includes
Streaming Quote Traders (see Rule 1014(b)(ii)(A))
and Remote Streaming Quote Traders (see Rule
1014(b)(ii)(B)).
13 U.S. dollar-settled foreign currency options
include XDB, XDE, XDN, XDS, XDA, XDM, XEH,
XEV, XDZ, XDC and XDV.
14 ETNs are also known as ‘‘Index-Linked
Securities,’’ which are designed for investors who
desire to participate in a specific market segment
by providing exposure to one or more identifiable
underlying securities, commodities, currencies,
derivative instruments or market indexes of the
foregoing. Index-Linked Securities are the nonconvertible debt of an issuer that have a term of at
least one (1) year but not greater than thirty (30)
years. Despite the fact that Index-Linked Securities
are linked to an underlying index, each trade as a
single, exchange-listed security. Accordingly, rules
pertaining to the listing and trading of standard
equity options apply to Index-Linked Securities.
15 An ETF is an open-ended registered investment
company under the Investment Company Act of
1940 that has received certain exemptive relief from
the Commission to allow secondary market trading
in the ETF shares. ETFs are generally index-based
products, in that each ETF holds a portfolio of
securities that is intended to provide investment
results that, before fees and expenses, generally
correspond to the price and yield performance of
the underlying benchmark index.
16 The following index symbols will be assessed
the Options Transaction Charges in Section III for
Singly Listed Options: SOX, HGX and OSX.
17 Professionals, Broker-Dealers and Firms are
assessed a $0.70 per contract electronic Options
Transaction Charge in Multiply Listed Options.
18 A Complex Order is any order involving the
simultaneous purchase and/or sale of two or more
different options series in the same underlying
security, priced at a net debit or credit based on the
relative prices of the individual components, for the
same account, for the purpose of executing a
particular investment strategy. Furthermore, a
Complex Order can also be a stock-option order,
which is an order to buy or sell a stated number
of units of an underlying stock or exchange-traded
fund (‘‘ETF’’) coupled with the purchase or sale of
options contract(s). See Exchange Rule 1080,
Commentary .08(a)(i).
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Federal Register / Vol. 79, No. 158 / Friday, August 15, 2014 / Notices
the Exchange floor and the contracts
that are executed electronically will be
subject to the rebates and fees, as
applicable, for Simple and Complex
Orders. The fees for FX Options
executions in all electronic auctions
including, but not limited to, the Quote
Exhaust auction,19 the opening process
and Complex electronic auction,
including the Complex Order Live
Auction (‘‘COLA’’),20 will be $0.40 per
contract for Customer, Professional,
Firm, Broker-Dealer, Specialist and
Market Maker. PIXL 21 Executions in FX
Options will be as follows: Initiating
Order: 22 $0.20 per contract and all other
participants: $0.40 per contract. The
Exchange believes the proposed
competitive pricing will incentivize
market participants to transact Singly
Listed FX Options orders on Phlx.
Finally, the Exchange proposes to
remove certain notes in the Pricing
Schedule. The Exchange proposes to
remove the note applying to Treasury
Securities, ‘‘The Options Transaction
Charges and Rebates for Treasury
Securities will be effective as of March
1, 2013,’’ because this note is outdated.
The Exchange also proposes to delete
the note 11 in the Pricing Schedule that
was applicable to MSCI Index Options
and states, ‘‘Non-Customer executions
in MSCI Index Options will be assessed
a surcharge of $0.05 per contract,’’
because the Exchange no longer lists
MSCI Index Options. The Exchange
proposes to delete note 12 in the Pricing
Schedule, ‘‘Options Transaction
Charge—Floor will apply to the first 500
contract only. Each additional contract
will be assessed an options transaction
charge—floor of $0.00.’’ Note 12 is
associated with Treasury Securities,
which are not currently listed on Phlx.
emcdonald on DSK67QTVN1PROD with NOTICES
2. Statutory Basis
The Exchange believes that its
proposal to amend its Pricing Schedule
19 A Quote Exhaust occurs when the market at a
particular price level on the Exchange includes a
quote, and such market is exhausted by an inbound
contra-side quote or order (‘‘initiating quote or
order’’), and following such exhaustion, contracts
remain to be executed from the initiating quote or
order. See Exchange Rule 1082(a)(ii)(B)(3).
20 The Complex Order Live Auction (‘‘COLA’’) is
the auction for eligible Complex Orders. See Phlx
Rule 1080, Commentary .08.
21 PIXL is the Exchange’s price improvement
mechanism known as Price Improvement XL or
(PIXLSM). See Phlx Rule 1080(n).
22 A member may electronically submit for
execution an order it represents as agent on behalf
of a public customer, broker-dealer, or any other
entity (‘‘PIXL Order’’) against principal interest or
against any other order (except as provided in Rule
1080(n)(i)(E)) it represents as agent (‘‘Initiating
Order’’) provided it submits the PIXL order for
electronic execution into the PIXL Auction
(‘‘Auction’’) pursuant to Rule 1080. See Exchange
Rule 1080(n).
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is consistent with Section 6(b) of the
Act 23 in general, and furthers the
objectives of Section 6(b)(4) and (b)(5) of
the Act 24 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among members and issuers and other
persons using any facility or system
which Phlx operates or controls, and is
not designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
Singly Listed Options Transaction
Charge
The Exchange believes that increasing
the Professional, Firm and BrokerDealer Options Transaction Charges is
reasonable because the Exchange is
seeking to conform fees to electronic
Non-Penny Pilot Options 25 pricing for
Multiply Listed Options 26 in order to
recoup the operational costs 27 for
Singly Listed Options. Also, the
Exchange believes the fees are
reasonable because the proposed fees
are within the range of similar fees
assessed at other exchanges.28
The Exchange believes that increasing
the Professional, Firm and BrokerDealer Options Transaction Charges is
equitable and not unfairly
discriminatory because the pricing will
be comparable among similar categories
of market participants, as is the case
today. Professionals, Firms and BrokerDealers will be assessed the same rates
($0.70 per contract) and Customers,
Specialists and Market Makers will
continue to be assessed lower rates as
compared to other market participants.
Customer order flow is assessed the
23 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4), (5).
25 All Singly Listed Options are Non-Penny Pilot
Options.
26 See Section II of the Pricing Schedule.
27 By way of example, in analyzing an obvious
error, the Exchange would have additional data
points available in establishing a theoretical price
for a Multiply Listed Option as compared to a
Singly Listed Option, which requires additional
analysis and administrative time to comply with
Exchange rules to resolve an obvious error.
28 The Chicago Board Options Exchange,
Incorporated (‘‘CBOE’’) assesses an $0.80 per
contract fee to Customers, Broker-Dealers, NonTrading Permit Holder Market Makers and
Professional, Voluntary Professional and Joint BackOffice market participants for SPX Range Options
(SRO) transactions, a proprietary index, in addition
to a surcharge fee. SPX refers to options on the
Standard & Poor’s 500 Index. See CBOE’s Fees
Schedule. In addition, NASDAQ Options Market
LLC (‘‘NOM’’) assesses Non-Penny Pilot Fees for
Removing Liquidity ranging from $0.85 to $0.89 per
contract depending on the market participant. See
Chapter XV, Section 2 of NOM’s Rules. The
Exchange also assesses a Professional, BrokerDealer and Firm an electronic options transaction
charge (Non-Penny Pilot Options) of $0.70 per
contract for transactions in Multiply Listed Options.
See Section II of the Exchange’s Pricing Schedule.
24 15
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48271
lowest fee because incentivizing
members to continue to offer Customer
trading opportunities in Singly Listed
Options benefits all market participants
through increased liquidity. The
Exchange notes that Specialists and
Market Makers are assessed lower
options transaction charges as compared
to other market participants, except
Customers, because they have
burdensome quoting obligations29 to the
market which do not apply to
Customers, Professionals, Firms and
Broker-Dealers. The proposed
differentiation as between Customers,
Specialists and Market Makers as
compared to Professionals, Firms and
Broker-Dealers recognizes the differing
contributions made to the liquidity and
trading environment on the Exchange by
these market participants.
Alpha Indexes, MSCI Index Options and
Treasury Securities
The Exchange’s proposal to delete
pricing related to Alpha Indexes, MSCI
Index Options and Treasury Securities
is reasonable because the Exchange no
longer lists options on Alpha Indexes,
MSCI Index Options or Treasury
Securities. The Exchange’s proposal to
delete pricing related to Alpha Indexes,
MSCI Index Options and Treasury
Securities is equitable and not unfairly
discriminatory because the pricing will
not apply to any market participant.
FX Options
The Exchange’s proposal to adopt
new pricing for Singly Listed FX
Options is reasonable, equitable, and
not unfairly discriminatory because
pricing by symbol is a common practice
on many U.S. options exchanges as a
means to incentivize order flow to be
sent to an exchange for execution in
particular products. Other options
exchanges price by symbol.30
The Exchange’s proposed new Simple
and Complex Order pricing in Singly
Listed FX Options is reasonable because
the Exchange desires to incentivize
market participants to transact a greater
number of Singly Listed FX Options on
Phlx. The Exchange is offering pricing
specific to Singly Listed FX Options
because the Exchange believes that
incentivizing Specialists and Market
Makers to add increased liquidity in
Singly Listed FX Options by offering
Simple Order rebates to these
participants will benefit all market
participants through tighter markets and
29 See Rule 1014 titled ‘‘Obligations and
Restrictions Applicable to Specialists and
Registered Options Traders.’’
30 See CBOE’s Fees Schedule and the
International Securities Exchange LLC’s Fee
Schedule.
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order interaction. Also, providing
Specialists and Market Makers an
opportunity to earn a rebate will
incentivize Specialists and Market
Makers to interact with a greater number
of Simple Orders in Singly Listed FX
Options on the Exchange. The Exchange
believes it is reasonable to assess lower
fees to transact Singly Listed FX
Options, as compared to other Singly
Listed products, because the Exchange
seeks to incentivize these market
participants to transact a greater number
of FX Options.
With respect to Simple Orders, the
Exchange would only pay a Rebate for
Adding Liquidity to Specialists and
Marker Makers to encourage order
interaction in Singly Listed FX Options.
All market participants would be
assessed a $0.40 per contract Fee for
Removing Liquidity in Singly Listed FX
Options. The Exchange believes that the
Simple Order Singly Listed FX Options
Fees are equitable and not unfairly
discriminatory because all market
participants would be assessed the same
Fees for Removing Liquidity. Also,
offering only Specialists and Market
Makers a Rebate for Adding Liquidity
when transacting FX Options is
equitable and not unreasonably
discriminatory because Specialists and
Market Makers have obligations to the
market and regulatory requirements, 31
which normally do not apply to other
market participants. They have
obligations to make continuous markets,
engage in a course of dealings
reasonably calculated to contribute to
the maintenance of a fair and orderly
market, and not make bids or offers or
enter into transactions that are
inconsistent with a course of dealings.
With respect to Complex Orders, the
Exchange would assess all market
participants a $0.40 per contract Fee for
Adding and Removing Liquidity in
Singly Listed FX Options. The Exchange
believes that the Complex Order Singly
Listed FX Options Fees are equitable
and not unfairly discriminatory because
all market participants would be
assessed the same Fees for Adding and
Removing Liquidity.
The Exchange’s proposal to assess the
fees and pay the rebates in Part A for
Simple FX Options Orders that are
executed against the individual
components of Complex FX Options
Orders and assess the fees in Part B to
the individual components of Complex
FX Options Orders is reasonable,
equitable and not unfairly
discriminatory because the Exchange is
seeking to assess fees and pay rebates
for Singly Listed Options in a manner
31 See
note 29.
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comparable to the current Pricing
Schedule.32 For example, today, the
Exchange assesses fees and pays rebates
for Simple and Complex Orders for SPY
transactions in a similar manner as
proposed herein. Additionally, all
market participants would be assessed
fees and paid rebates for Singly Listed
Options in a uniform manner.
The Exchange’s proposal to assess
transactions in Singly Listed FX Options
originating on the Exchange floor the
proposed FX Options Fees for Removing
Liquidity in Section III, unless one side
of the transaction originates on the
Exchange floor and any other side of the
trade was the result of an electronically
submitted order or a quote, then the FX
Options Fees for Removing Liquidity
would apply to transactions which
originated on the Exchange floor and
electronically executed contracts would
be subject to the rebates and fees, as
applicable, for Simple and Complex
Orders is reasonable, equitable and not
unfairly discriminatory for the reasons
which follow. The Exchange proposes to
assess fees and pay rebates for Singly
Listed FX Options in a manner
comparable to the current Pricing
Schedule.33 For example, today, the
Exchange assesses fees and pays rebates
for SPY transactions for transaction
originating on the Exchange floor and
electronically submitted transactions in
a similar manner as proposed herein.
The Exchange intends to uniformly
apply its fees in the manner described
herein to all market participants. The
Exchange believes that the addition of
this rule text in the Pricing Schedule
will add clarity to the manner in which
the Exchange will impose fees.
The Exchange’s proposal to treat FX
Options executions in Singly Listed
Options which occur as part of an
electronic auction, including, but not
limited to, the Quote Exhaust Auction,
opening process and Complex electronic
auction, including COLA, in the same
manner by assessing $0.40 per contract
for all market participants is reasonable,
equitable and not unfairly
discriminatory because the Exchange is
proposing to assess the same fee 34 for
these auctions as other transactions and
is proposing to uniformly assess these
fees to all market participants.
The Exchange’s proposal to assess
PIXL pricing for Singly Listed FX
Options of $0.20 per contract for the
Initiating Order and $0.40 per contract
for all market participants for all PIXL
32 See
Section I of the Pricing Schedule.
transactions is reasonable because the
fees should encourage market
participants to transact a greater number
of PIXL Orders for the purpose of
obtaining price improvement with
respect to their orders. The $0.40 per
contract fee is comparable to the FX
Options Fees for Removing Liquidity in
Simple and Complex Options. The
Exchange’s proposal to assess $0.20 per
contract for the Initiating Order is
discounted by half to encourage market
participants to submit Initiating PIXL
Orders. The Exchange similarly lowered
the fee for the Initiating Order for
options in SPY in order to encourage
market participants to submit a greater
number of Initiating Orders.35 The
Exchange believes that an Initiating
Order of $0.20 per contract is reasonable
given the $0.40 per contract rate for all
other orders in PIXL and the differential
between the Initiating Order and all
other orders is within the range of
differentials existing on the Exchange’s
Pricing Schedule ($0.05 vs. $0.38 for
SPY and $0.05 or $0.07 per contract vs.
$0.30 for all other PIXL Orders).36
The Exchange’s proposal to assess
PIXL pricing for Singly Listed FX
Options of $0.20 per contract for the
Initiating Order and $0.40 per contract
for all market participants for all PIXL
transactions is equitable and not
unfairly discriminatory because the
Exchange proposes to assess all market
participants transacting Singly Listed
FX Options in PIXL these rates. Under
the proposal, all market participants
would be treated in a uniform manner
with respect to FX Options Singly
Listed PIXL orders.
The Exchange’s proposal to delete
various notes from the Pricing Schedule
is reasonable, equitable and not unfairly
discriminatory because the notes are
outdated or apply to products no longer
listed on Phlx. By removing outdated
rule text which is no longer applicable,
the Pricing Schedule will be less
confusing and refer to only current
pricing in Section III.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes that increasing the
Professional, Firm and Broker-Dealer
Options Transaction Charges does not
create an undue burden on competition
because the Exchange incurs higher
33 Id.
34 The proposed Singly Listed FX Options Fees
for Removing Liquidity in Simple and Complex
Options is $0.40 per contract.
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35 See
Section I of the Pricing Schedule.
Section I and Section IV, Part A of the
Pricing Schedule.
36 See
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emcdonald on DSK67QTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 158 / Friday, August 15, 2014 / Notices
costs to list Singly Listed Options as
compared to Multiply Listed Options
and the Exchange proposes to recoup
these operational costs by assessing
uniform fees for all market participants
except Customers, Specialists and
Market Makers. Customer order flow is
assessed the lowest fee because
incentivizing members to continue to
offer Customer trading opportunities in
Singly Listed Options benefits all
market participants through increased
liquidity. Specialists and Market Makers
are assessed lower options transaction
charges as compared to other market
participants, except Customers, because
they have burdensome quoting
obligations 37 to the market which do
not apply to Customers, Professionals,
Firms and Broker-Dealers. The proposed
differentiation as between Customers,
Specialists and Market Makers as
compared to Professionals, Firms and
Broker-Dealers recognizes the differing
contributions made to the liquidity and
trading environment on the Exchange by
these market participants.
The Exchange’s proposal to delete
pricing related to Alpha Indexes, MSCI
Index Options and Treasury Securities
does not create an undue burden on
competition because the Exchange no
longer lists options on Alpha Indexes,
MSCI Index Options or Treasury
Securities and the pricing will not apply
to any market participant.
The Exchange’s proposal to adopt
new pricing for Singly Listed FX
Options does not create an undue
burden on competition because pricing
by symbol is a common practice on
many U.S. options exchanges as a
means to incentivize order flow to be
sent to an exchange for execution in
particular products.38 Further,
incentivizing Specialists and Market
Makers to add increased liquidity in
Singly Listed FX Options by offering
Simple Order rebates to these
participants will benefit all market
participants through tighter markets and
order interaction. Also, by providing
Specialists and Market Makers an
opportunity to earn a rebate will
incentivize Specialists and Market
Makers to interact with a greater number
of Simple Orders in Singly Listed FX
Options on the Exchange. The Exchange
believes it is reasonable to assess lower
fees to transact Singly Listed FX
Options, as compared to other Singly
Listed products, because the Exchange
seeks to incentivize these market
participants to transact a greater number
of FX Options. Specialists and Market
Makers have obligations to the market
39 See
40 See
note 29.
Section I of the Pricing Schedule.
41 Id.
42 The proposed Singly Listed FX Options Fees
for Removing Liquidity in Simple and Complex
Options is $0.40 per contract.
37 See
note 29.
38 See note 30.
VerDate Mar<15>2010
and regulatory requirements,39 which
normally do not apply to other market
participants. With respect to Complex
Orders, the Exchange would similarly
assess all market participants a $0.40
per contract Fee for Adding and
Removing Liquidity in Singly Listed FX
Options.
The Exchange’s proposal to assess the
fees and pay the rebates in Part A for
Simple FX Options Orders that are
executed against the individual
components of Complex FX Options
Orders and assess the fees in Part B to
the individual components of Complex
FX Options Orders is comparable to the
manner in which pricing is currently
applied today for SPY pricing 40 and
does not create an undue burden on
competition because the Exchange
uniformly applies this treatment to all
market participants. Similarly, the
Exchange’s proposal to assess
transactions in Singly Listed FX Options
originating on the Exchange floor the
proposed FX Options Fees for Removing
Liquidity in Section III, unless one side
of the transaction originates on the
Exchange floor and any other side of the
trade was the result of an electronically
submitted order or a quote, then the
Fees for Removing Liquidity will apply
to the transactions which originated on
the Exchange floor and the contracts
that are executed electronically will be
subject to the rebates and fees, as
applicable, for Simple and Complex
Orders, does not create an undue
burden on competition because this
treatment is comparable to the manner
in which pricing is currently applied
today for SPY pricing 41 and does not
create an undue burden on competition
because the Exchange uniformly applies
this treatment to all market participants.
The Exchange’s proposal to treat FX
Options executions in Singly Listed
Options which occur as part of an
electronic auction, including, but not
limited to, the Quote Exhaust Auction,
opening process and Complex electronic
auction, including COLA, in the same
manner by assessing $0.40 per contract
for all market participants does not
create an undue burden on competition
because the Exchange is proposing to
assess the same fee 42 for these auctions
as other transactions and is proposing to
uniformly assess these fees to all market
participants.
The Exchange’s proposal to assess
PIXL pricing for Singly Listed FX
17:31 Aug 14, 2014
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48273
Options of $0.20 per contract for the
Initiating Order and $0.40 per contract
for all market participants for all PIXL
transactions does not create an undue
burden on competition because the
Exchange proposes to assess all market
participants transacting Singly Listed
FX Options in PIXL these rates. Under
the proposal, all market participants
would be treated in a uniform manner
with respect to FX Options Singly
Listed PIXL orders.
The Exchange operates in a highly
competitive market, comprised of
twelve options exchanges, in which
market participants can easily and
readily direct order flow to competing
venues if they deem fee levels at a
particular venue to be excessive or
rebates to be inadequate. Accordingly,
the fees that are described in the above
proposal are influenced by these robust
market forces and therefore must remain
competitive with fees charged by other
venues and therefore must continue to
be reasonable and equitably allocated to
those members that opt to direct orders
to the Exchange rather than competing
venues.
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)(ii) of the Act.43 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:
43 15
E:\FR\FM\15AUN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
15AUN1
48274
Federal Register / Vol. 79, No. 158 / Friday, August 15, 2014 / Notices
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–2014–51 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.
emcdonald on DSK67QTVN1PROD with NOTICES
All submissions should refer to File
Number SR-Phlx-2014–51. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–Phlx–
2014–51, and should besubmitted on or
before September 5, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.44
Kevin M. O’Neill,
Deputy Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72805; File No. SR–NYSE–
2014–42]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Its
Price List To Modify the Tier 2 Adding
Credit
August 11, 2014.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on July 28,
2014, New York Stock Exchange LLC
(‘‘NYSE’’ 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 self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Price List to modify the Tier 2 Adding
Credit. The proposed credit will be
operative on August 1, 2014. 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.
[FR Doc. 2014–19333 Filed 8–14–14; 8:45 am]
BILLING CODE 8011–01–P
1 15
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
44 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
17:31 Aug 14, 2014
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
Price List to modify the Tier 2 Adding
Credit. The proposed credit will be
operative on August 1, 2014.
Under the current Tier 2 Adding
Credit,4 the Exchange provides an
equity per share credit per transaction of
$0.0020 ($0.0010 if a Non-Displayed
Reserve Order or $0.0015 if a Midpoint
Passive Liquidity Order) when adding
liquidity to the NYSE by one of the
following three methods:
(1) The member organization has
Customer Electronic Adding ADV 5 that
is at least 1.1% of NYSE consolidated
ADV (‘‘CADV’’) and executes market-onclose (‘‘MOC’’) and limit-on-close
(‘‘LOC’’) orders of at least 0.375% of
NYSE CADV;
(2) The member organization has
Adding ADV 6 that is at least 0.8% of
NYSE CADV, executes MOC and LOC
orders of at least 0.12% of NYSE CADV,
and adds liquidity to the NYSE as an
SLP for all assigned SLP securities in
the aggregate (including shares of both
an SLP proprietary trading unit (‘‘SLPProp’’) and an SLP market maker
(‘‘SLMM’’) of the same member
organization) of more than 0.15% of
NYSE CADV; or
(3) The member organization has
Customer Electronic Adding ADV
during the billing month that is at least
0.5% of NYSE CADV, executes MOC
and LOC orders of at least 0.12% of
NYSE CADV, and has Customer
Electronic Adding ADV during the
billing month that, taken as a percentage
of NYSE CADV, is at least equal to the
member organization’s Customer
Electronic Adding ADV during
September 2012 as a percentage of
consolidated average daily volume in
NYSE-listed securities during
September 2012 plus 15%.
The Exchange proposes to amend the
second method so that a member
organization will be required either to
execute MOC and LOC orders of at least
0.12% of NYSE CADV or alternatively
4 The credit applies to transactions in stocks with
a per share stock price of $1.00 or more.
5 Customer Electronic Adding ADV is average
daily trading volume (‘‘ADV’’) that adds liquidity in
customer electronic orders to the NYSE, but
excludes any liquidity added by a Floor broker,
Designated Market Maker (‘‘DMM’’), or
Supplemental Liquidity Provider (‘‘SLP’’). For
purposes of transactions fees and SLP credits, ADV
calculations exclude early closing days.
6 Adding ADV adds liquidity to the NYSE during
the billing month but excludes any liquidity added
by a DMM.
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]]>Agencies
[Federal Register Volume 79, Number 158 (Friday, August 15, 2014)]
[Notices]
[Pages 48269-48274]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-19333]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72806; File No. SR-Phlx-2014-51]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Singly Listed Options
August 11, 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 August 1, 2014, 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, 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 Section III of the Pricing Schedule
which pertains to Singly Listed Options fees.\3\
---------------------------------------------------------------------------
\3\ Singly Listed Options fees includes options overlying
currencies, equities, ETFs, ETNs treasury securities and indexes not
listed on another exchange.
---------------------------------------------------------------------------
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 this filing is to amend Section III of the
Exchange's Pricing Schedule entitled ``Singly Listed Options'' to: (1)
Amend Options Transaction Charges; (ii) delete NASDAQ OMX Alpha
Indexes\(TM)\ (``Alpha Indexes''),\4\ MSCI Index Options,\5\ and
Treasury Securities \6\
[[Page 48270]]
pricing; (iii) adopt new pricing for FX Options \7\ (currencies); and
(iv) make other technical amendments to the Pricing Schedule to clarify
text and remove outdated text.
---------------------------------------------------------------------------
\4\ Alpha Indexes measure relative total returns of one stock
and one exchange-traded fund share (``ETF'') underlying options
which are also traded on the Exchange (each such combination of two
components is referred to as an ``Alpha Pair''). The first component
identified in an Alpha Pair (the ``Target Component'') is measured
against the second component identified in the Alpha Pair (the
``Benchmark Component''). Alpha Index Options contracts will be
exercised European-style and settled in U.S. dollars. See Securities
Exchange Act Release No. 63860 (February 7, 2011), 76 FR 7888
(February 11, 2001) (SR-Phlx-2010-176).
\5\ The Exchange filed to list options on the MSCI EM Index. The
MSCI EM Index is a free float-adjusted market capitalization index
consisting of large and midcap component securities from countries
classified by MSCI as ``emerging markets,'' and is designed to
measure equity market performance of emerging markets. The index
consists of component securities from the following 21 emerging
market countries: Brazil, Chile, China, Colombia, Czech Republic,
Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco,
Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand,
and Turkey. See Securities Exchange Act Release No. 66420 (February
17, 2012), 77 FR 11177 (February 24, 2012) (SR-Phlx-2011-179) (an
order granting approval of the proposal to list and trade options on
the MSCI EM Index). The Exchange also filed to list options on the
MSCI EAFE Index. The MSCI EAFE Index is a free float-adjusted market
capitalization index that is designed to measure the equity market
performance of developed markets, excluding the U.S. and Canada. The
MSCI EAFE Index consists of component securities from the following
twenty-two (22) developed market countries: Australia, Austria,
Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong,
Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway,
Portugal, Singapore, Spain, Sweden, Switzerland, and the United
Kingdom. See Securities Exchange Act Release No. 66569 (March 9,
2012), 77 FR 15409 (March 15, 2014) (SR-Phlx-2012-28).
\6\ Subsection (a)(1) of Phlx Rule 1001D states that the term
``Treasury securities'' (also known as Treasury debt securities)
means a bond or note or other evidence of indebtedness that is a
direct obligation of, or an obligation guaranteed as to principal or
interest by, the United States or a corporation in which the United
States has a direct or indirect interest (except debt securities
guaranteed as to timely payment of principal and interest by the
Government National Mortgage Association). Securities issued or
guaranteed by individual departments or agencies of the United
States are sometimes referred to by the title of the department or
agency involved (e.g., a ``Treasury security'' is a debt instrument
that is issued by the United States Treasury).
\7\ For purposes of pricing of Singly Listed FX Options, this
includes the following U.S. dollar-settled foreign currency options:
XDB, XDE, XDN, XDS, XDA, XDM, XEH, XEV, XDZ, XDC and XDV.
---------------------------------------------------------------------------
Today, the Exchange assesses an Options Transaction Charge for
Customers of $0.40 per contract, for Professionals,\8\ Firms \9\ and
Broker-Dealers \10\ of $0.60 per contract and for Specialists \11\ and
Market Makers \12\ of $0.40 per contract. These fees apply to options
overlying currencies,\13\ equities, exchange-traded notes
(``ETNs''),\14\ exchange-traded fund (``ETF'') \15\ and indexes.\16\
Today, these fees do not apply to Alpha Index Options, MSCI Index
Options or Treasury Securities, which have separate pricing listed in
Section III of the Pricing Schedule. The Exchange proposes to increase
the Professional, Broker-Dealer and Firm Options Transaction Charges
from $0.60 to $0.70 per contract for Singly Listed Options. The
increase aligns these fees with electronic Non-Penny Pilot fees in
Section II of the Pricing Schedule.\17\ Despite the fee increase, the
proposal will allow the Exchange to incentivize market participants to
transact Singly Listed Options.
---------------------------------------------------------------------------
\8\ The term ``professional'' means any person or entity that
(i) is not a broker or dealer in securities, and (ii) places more
than 390 orders in listed options per day on average during a
calendar month for its own beneficial account(s). See Rule
1000(b)(14).
\9\ The term ``Firm'' applies to any transaction that is
identified by a member or member organization for clearing in the
Firm range at The Options Clearing Corporation.
\10\ The term ``Broker-Dealer'' applies to any transaction which
is not subject to any of the other transaction fees applicable
within a particular category.
\11\ A Specialist is an Exchange member who is registered as an
options specialist pursuant to Rule 1020(a).
\12\ A ``Market Maker'' includes Registered Options Traders
(Rule 1014(b)(i) and (ii)), which includes Streaming Quote Traders
(see Rule 1014(b)(ii)(A)) and Remote Streaming Quote Traders (see
Rule 1014(b)(ii)(B)).
\13\ U.S. dollar-settled foreign currency options include XDB,
XDE, XDN, XDS, XDA, XDM, XEH, XEV, XDZ, XDC and XDV.
\14\ ETNs are also known as ``Index-Linked Securities,'' which
are designed for investors who desire to participate in a specific
market segment by providing exposure to one or more identifiable
underlying securities, commodities, currencies, derivative
instruments or market indexes of the foregoing. Index-Linked
Securities are the non-convertible debt of an issuer that have a
term of at least one (1) year but not greater than thirty (30)
years. Despite the fact that Index-Linked Securities are linked to
an underlying index, each trade as a single, exchange-listed
security. Accordingly, rules pertaining to the listing and trading
of standard equity options apply to Index-Linked Securities.
\15\ An ETF is an open-ended registered investment company under
the Investment Company Act of 1940 that has received certain
exemptive relief from the Commission to allow secondary market
trading in the ETF shares. ETFs are generally index-based products,
in that each ETF holds a portfolio of securities that is intended to
provide investment results that, before fees and expenses, generally
correspond to the price and yield performance of the underlying
benchmark index.
\16\ The following index symbols will be assessed the Options
Transaction Charges in Section III for Singly Listed Options: SOX,
HGX and OSX.
\17\ Professionals, Broker-Dealers and Firms are assessed a
$0.70 per contract electronic Options Transaction Charge in Multiply
Listed Options.
---------------------------------------------------------------------------
The Exchange proposes to delete pricing related to Alpha Indexes,
MSCI Index Options and Treasury Securities because the Exchange no
longer lists options on Alpha Indexes, MSCI Index Options or Treasury
Securities. The separate pricing related to these products is not
relevant to any product currently listed on Phlx. The Exchange proposes
to remove the words ``treasury securities'' from the title of Section
III.
The Exchange proposes to adopt new pricing for FX Options
(currently referred to as currencies in the Pricing Schedule in Section
III and including XDB, XDE, XDN, XDS, XDA, XDM, XEH, XEV, XDZ, XDC and
XDV). Today, as noted above, the Exchange assesses an Options
Transaction Charge for Customer of $0.40 per contract, for
Professional, Firm and Broker-Dealer of $0.60 per contract and for
Specialist and Market Maker of $0.40 per contract and these fees apply
to options overlying FX Options. The Exchange is proposing to adopt new
pricing for FX Options to incentivize market participants to transact a
greater number of FX Options. The Exchange also proposes to refer to
``currencies'' as ``FX Options'' in the Pricing Schedule.
Specifically, the Exchange proposes to pay the following Rebates
for Adding Liquidity and assess the following per contract Fees for
Removing Liquidity in Singly Listed FX Options for Simple Orders:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Customer Specialist Market maker Firm Broker-dealer Professional
--------------------------------------------------------------------------------------------------------------------------------------------------------
Rebate for Adding Liquidity............................. $0.00 $0.20 $0.20 $0.00 $0.00 $0.00
Fee for Removing Liquidity.............................. 0.40 0.40 0.40 0.40 0.40 0.40
--------------------------------------------------------------------------------------------------------------------------------------------------------
The Exchange would add the above pricing to Section III as Part A.
The Exchange also proposes to assess the following per contract Fees
for Adding and Removing Liquidity in Singly Listed FX Options for
Complex Orders:\18\
---------------------------------------------------------------------------
\18\ A Complex Order is any order involving the simultaneous
purchase and/or sale of two or more different options series in the
same underlying security, priced at a net debit or credit based on
the relative prices of the individual components, for the same
account, for the purpose of executing a particular investment
strategy. Furthermore, a Complex Order can also be a stock-option
order, which is an order to buy or sell a stated number of units of
an underlying stock or exchange-traded fund (``ETF'') coupled with
the purchase or sale of options contract(s). See Exchange Rule 1080,
Commentary .08(a)(i).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Customer Specialist Market maker Firm Broker-Dealer Professional
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fee for Adding Liquidity................................ $0.40 $0.40 $0.40 $0.40 $0.40 $0.40
Fee for Removing Liquidity.............................. 0.40 0.40 0.40 0.40 0.40 0.40
--------------------------------------------------------------------------------------------------------------------------------------------------------
Simple Singly Listed FX Options Orders that are executed against
the individual components of Complex Singly Listed FX Options Orders
will be assessed the fees and paid the rebates in Part A. However, the
individual components of Complex Singly Listed FX Options Orders will
be assessed the fees in Part B. Transactions in Singly Listed FX
Options originating on the Exchange floor will be subject to the Fee
for Removing Liquidity. However, if one side of the transaction
originates on the Exchange floor and any other side of the trade was
the result of an electronically submitted order or a quote, then the
Fees for Removing Liquidity will apply to the transactions which
originated on
[[Page 48271]]
the Exchange floor and the contracts that are executed electronically
will be subject to the rebates and fees, as applicable, for Simple and
Complex Orders. The fees for FX Options executions in all electronic
auctions including, but not limited to, the Quote Exhaust auction,\19\
the opening process and Complex electronic auction, including the
Complex Order Live Auction (``COLA''),\20\ will be $0.40 per contract
for Customer, Professional, Firm, Broker-Dealer, Specialist and Market
Maker. PIXL \21\ Executions in FX Options will be as follows:
Initiating Order: \22\ $0.20 per contract and all other participants:
$0.40 per contract. The Exchange believes the proposed competitive
pricing will incentivize market participants to transact Singly Listed
FX Options orders on Phlx.
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\19\ A Quote Exhaust occurs when the market at a particular
price level on the Exchange includes a quote, and such market is
exhausted by an inbound contra-side quote or order (``initiating
quote or order''), and following such exhaustion, contracts remain
to be executed from the initiating quote or order. See Exchange Rule
1082(a)(ii)(B)(3).
\20\ The Complex Order Live Auction (``COLA'') is the auction
for eligible Complex Orders. See Phlx Rule 1080, Commentary .08.
\21\ PIXL is the Exchange's price improvement mechanism known as
Price Improvement XL or (PIXL\SM\). See Phlx Rule 1080(n).
\22\ A member may electronically submit for execution an order
it represents as agent on behalf of a public customer, broker-
dealer, or any other entity (``PIXL Order'') against principal
interest or against any other order (except as provided in Rule
1080(n)(i)(E)) it represents as agent (``Initiating Order'')
provided it submits the PIXL order for electronic execution into the
PIXL Auction (``Auction'') pursuant to Rule 1080. See Exchange Rule
1080(n).
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Finally, the Exchange proposes to remove certain notes in the
Pricing Schedule. The Exchange proposes to remove the note applying to
Treasury Securities, ``The Options Transaction Charges and Rebates for
Treasury Securities will be effective as of March 1, 2013,'' because
this note is outdated. The Exchange also proposes to delete the note 11
in the Pricing Schedule that was applicable to MSCI Index Options and
states, ``Non-Customer executions in MSCI Index Options will be
assessed a surcharge of $0.05 per contract,'' because the Exchange no
longer lists MSCI Index Options. The Exchange proposes to delete note
12 in the Pricing Schedule, ``Options Transaction Charge--Floor will
apply to the first 500 contract only. Each additional contract will be
assessed an options transaction charge--floor of $0.00.'' Note 12 is
associated with Treasury Securities, which are not currently listed on
Phlx.
2. Statutory Basis
The Exchange believes that its proposal to amend its Pricing
Schedule is consistent with Section 6(b) of the Act \23\ in general,
and furthers the objectives of Section 6(b)(4) and (b)(5) of the Act
\24\ in particular, in that it provides for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system which Phlx operates or
controls, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\23\ 15 U.S.C. 78f(b).
\24\ 15 U.S.C. 78f(b)(4), (5).
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Singly Listed Options Transaction Charge
The Exchange believes that increasing the Professional, Firm and
Broker-Dealer Options Transaction Charges is reasonable because the
Exchange is seeking to conform fees to electronic Non-Penny Pilot
Options \25\ pricing for Multiply Listed Options \26\ in order to
recoup the operational costs \27\ for Singly Listed Options. Also, the
Exchange believes the fees are reasonable because the proposed fees are
within the range of similar fees assessed at other exchanges.\28\
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\25\ All Singly Listed Options are Non-Penny Pilot Options.
\26\ See Section II of the Pricing Schedule.
\27\ By way of example, in analyzing an obvious error, the
Exchange would have additional data points available in establishing
a theoretical price for a Multiply Listed Option as compared to a
Singly Listed Option, which requires additional analysis and
administrative time to comply with Exchange rules to resolve an
obvious error.
\28\ The Chicago Board Options Exchange, Incorporated (``CBOE'')
assesses an $0.80 per contract fee to Customers, Broker-Dealers,
Non-Trading Permit Holder Market Makers and Professional, Voluntary
Professional and Joint Back-Office market participants for SPX Range
Options (SRO) transactions, a proprietary index, in addition to a
surcharge fee. SPX refers to options on the Standard & Poor's 500
Index. See CBOE's Fees Schedule. In addition, NASDAQ Options Market
LLC (``NOM'') assesses Non-Penny Pilot Fees for Removing Liquidity
ranging from $0.85 to $0.89 per contract depending on the market
participant. See Chapter XV, Section 2 of NOM's Rules. The Exchange
also assesses a Professional, Broker-Dealer and Firm an electronic
options transaction charge (Non-Penny Pilot Options) of $0.70 per
contract for transactions in Multiply Listed Options. See Section II
of the Exchange's Pricing Schedule.
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The Exchange believes that increasing the Professional, Firm and
Broker-Dealer Options Transaction Charges is equitable and not unfairly
discriminatory because the pricing will be comparable among similar
categories of market participants, as is the case today. Professionals,
Firms and Broker-Dealers will be assessed the same rates ($0.70 per
contract) and Customers, Specialists and Market Makers will continue to
be assessed lower rates as compared to other market participants.
Customer order flow is assessed the lowest fee because incentivizing
members to continue to offer Customer trading opportunities in Singly
Listed Options benefits all market participants through increased
liquidity. The Exchange notes that Specialists and Market Makers are
assessed lower options transaction charges as compared to other market
participants, except Customers, because they have burdensome quoting
obligations\29\ to the market which do not apply to Customers,
Professionals, Firms and Broker-Dealers. The proposed differentiation
as between Customers, Specialists and Market Makers as compared to
Professionals, Firms and Broker-Dealers recognizes the differing
contributions made to the liquidity and trading environment on the
Exchange by these market participants.
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\29\ See Rule 1014 titled ``Obligations and Restrictions
Applicable to Specialists and Registered Options Traders.''
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Alpha Indexes, MSCI Index Options and Treasury Securities
The Exchange's proposal to delete pricing related to Alpha Indexes,
MSCI Index Options and Treasury Securities is reasonable because the
Exchange no longer lists options on Alpha Indexes, MSCI Index Options
or Treasury Securities. The Exchange's proposal to delete pricing
related to Alpha Indexes, MSCI Index Options and Treasury Securities is
equitable and not unfairly discriminatory because the pricing will not
apply to any market participant.
FX Options
The Exchange's proposal to adopt new pricing for Singly Listed FX
Options is reasonable, equitable, and not unfairly discriminatory
because pricing by symbol is a common practice on many U.S. options
exchanges as a means to incentivize order flow to be sent to an
exchange for execution in particular products. Other options exchanges
price by symbol.\30\
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\30\ See CBOE's Fees Schedule and the International Securities
Exchange LLC's Fee Schedule.
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The Exchange's proposed new Simple and Complex Order pricing in
Singly Listed FX Options is reasonable because the Exchange desires to
incentivize market participants to transact a greater number of Singly
Listed FX Options on Phlx. The Exchange is offering pricing specific to
Singly Listed FX Options because the Exchange believes that
incentivizing Specialists and Market Makers to add increased liquidity
in Singly Listed FX Options by offering Simple Order rebates to these
participants will benefit all market participants through tighter
markets and
[[Page 48272]]
order interaction. Also, providing Specialists and Market Makers an
opportunity to earn a rebate will incentivize Specialists and Market
Makers to interact with a greater number of Simple Orders in Singly
Listed FX Options on the Exchange. The Exchange believes it is
reasonable to assess lower fees to transact Singly Listed FX Options,
as compared to other Singly Listed products, because the Exchange seeks
to incentivize these market participants to transact a greater number
of FX Options.
With respect to Simple Orders, the Exchange would only pay a Rebate
for Adding Liquidity to Specialists and Marker Makers to encourage
order interaction in Singly Listed FX Options. All market participants
would be assessed a $0.40 per contract Fee for Removing Liquidity in
Singly Listed FX Options. The Exchange believes that the Simple Order
Singly Listed FX Options Fees are equitable and not unfairly
discriminatory because all market participants would be assessed the
same Fees for Removing Liquidity. Also, offering only Specialists and
Market Makers a Rebate for Adding Liquidity when transacting FX Options
is equitable and not unreasonably discriminatory because Specialists
and Market Makers have obligations to the market and regulatory
requirements, \31\ which normally do not apply to other market
participants. They have obligations to make continuous markets, engage
in a course of dealings reasonably calculated to contribute to the
maintenance of a fair and orderly market, and not make bids or offers
or enter into transactions that are inconsistent with a course of
dealings. With respect to Complex Orders, the Exchange would assess all
market participants a $0.40 per contract Fee for Adding and Removing
Liquidity in Singly Listed FX Options. The Exchange believes that the
Complex Order Singly Listed FX Options Fees are equitable and not
unfairly discriminatory because all market participants would be
assessed the same Fees for Adding and Removing Liquidity.
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\31\ See note 29.
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The Exchange's proposal to assess the fees and pay the rebates in
Part A for Simple FX Options Orders that are executed against the
individual components of Complex FX Options Orders and assess the fees
in Part B to the individual components of Complex FX Options Orders is
reasonable, equitable and not unfairly discriminatory because the
Exchange is seeking to assess fees and pay rebates for Singly Listed
Options in a manner comparable to the current Pricing Schedule.\32\ For
example, today, the Exchange assesses fees and pays rebates for Simple
and Complex Orders for SPY transactions in a similar manner as proposed
herein. Additionally, all market participants would be assessed fees
and paid rebates for Singly Listed Options in a uniform manner.
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\32\ See Section I of the Pricing Schedule.
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The Exchange's proposal to assess transactions in Singly Listed FX
Options originating on the Exchange floor the proposed FX Options Fees
for Removing Liquidity in Section III, unless one side of the
transaction originates on the Exchange floor and any other side of the
trade was the result of an electronically submitted order or a quote,
then the FX Options Fees for Removing Liquidity would apply to
transactions which originated on the Exchange floor and electronically
executed contracts would be subject to the rebates and fees, as
applicable, for Simple and Complex Orders is reasonable, equitable and
not unfairly discriminatory for the reasons which follow. The Exchange
proposes to assess fees and pay rebates for Singly Listed FX Options in
a manner comparable to the current Pricing Schedule.\33\ For example,
today, the Exchange assesses fees and pays rebates for SPY transactions
for transaction originating on the Exchange floor and electronically
submitted transactions in a similar manner as proposed herein. The
Exchange intends to uniformly apply its fees in the manner described
herein to all market participants. The Exchange believes that the
addition of this rule text in the Pricing Schedule will add clarity to
the manner in which the Exchange will impose fees.
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\33\ Id.
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The Exchange's proposal to treat FX Options executions in Singly
Listed Options which occur as part of an electronic auction, including,
but not limited to, the Quote Exhaust Auction, opening process and
Complex electronic auction, including COLA, in the same manner by
assessing $0.40 per contract for all market participants is reasonable,
equitable and not unfairly discriminatory because the Exchange is
proposing to assess the same fee \34\ for these auctions as other
transactions and is proposing to uniformly assess these fees to all
market participants.
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\34\ The proposed Singly Listed FX Options Fees for Removing
Liquidity in Simple and Complex Options is $0.40 per contract.
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The Exchange's proposal to assess PIXL pricing for Singly Listed FX
Options of $0.20 per contract for the Initiating Order and $0.40 per
contract for all market participants for all PIXL transactions is
reasonable because the fees should encourage market participants to
transact a greater number of PIXL Orders for the purpose of obtaining
price improvement with respect to their orders. The $0.40 per contract
fee is comparable to the FX Options Fees for Removing Liquidity in
Simple and Complex Options. The Exchange's proposal to assess $0.20 per
contract for the Initiating Order is discounted by half to encourage
market participants to submit Initiating PIXL Orders. The Exchange
similarly lowered the fee for the Initiating Order for options in SPY
in order to encourage market participants to submit a greater number of
Initiating Orders.\35\ The Exchange believes that an Initiating Order
of $0.20 per contract is reasonable given the $0.40 per contract rate
for all other orders in PIXL and the differential between the
Initiating Order and all other orders is within the range of
differentials existing on the Exchange's Pricing Schedule ($0.05 vs.
$0.38 for SPY and $0.05 or $0.07 per contract vs. $0.30 for all other
PIXL Orders).\36\
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\35\ See Section I of the Pricing Schedule.
\36\ See Section I and Section IV, Part A of the Pricing
Schedule.
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The Exchange's proposal to assess PIXL pricing for Singly Listed FX
Options of $0.20 per contract for the Initiating Order and $0.40 per
contract for all market participants for all PIXL transactions is
equitable and not unfairly discriminatory because the Exchange proposes
to assess all market participants transacting Singly Listed FX Options
in PIXL these rates. Under the proposal, all market participants would
be treated in a uniform manner with respect to FX Options Singly Listed
PIXL orders.
The Exchange's proposal to delete various notes from the Pricing
Schedule is reasonable, equitable and not unfairly discriminatory
because the notes are outdated or apply to products no longer listed on
Phlx. By removing outdated rule text which is no longer applicable, the
Pricing Schedule will be less confusing and refer to only current
pricing in Section III.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange believes that
increasing the Professional, Firm and Broker-Dealer Options Transaction
Charges does not create an undue burden on competition because the
Exchange incurs higher
[[Page 48273]]
costs to list Singly Listed Options as compared to Multiply Listed
Options and the Exchange proposes to recoup these operational costs by
assessing uniform fees for all market participants except Customers,
Specialists and Market Makers. Customer order flow is assessed the
lowest fee because incentivizing members to continue to offer Customer
trading opportunities in Singly Listed Options benefits all market
participants through increased liquidity. Specialists and Market Makers
are assessed lower options transaction charges as compared to other
market participants, except Customers, because they have burdensome
quoting obligations \37\ to the market which do not apply to Customers,
Professionals, Firms and Broker-Dealers. The proposed differentiation
as between Customers, Specialists and Market Makers as compared to
Professionals, Firms and Broker-Dealers recognizes the differing
contributions made to the liquidity and trading environment on the
Exchange by these market participants.
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\37\ See note 29.
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The Exchange's proposal to delete pricing related to Alpha Indexes,
MSCI Index Options and Treasury Securities does not create an undue
burden on competition because the Exchange no longer lists options on
Alpha Indexes, MSCI Index Options or Treasury Securities and the
pricing will not apply to any market participant.
The Exchange's proposal to adopt new pricing for Singly Listed FX
Options does not create an undue burden on competition because pricing
by symbol is a common practice on many U.S. options exchanges as a
means to incentivize order flow to be sent to an exchange for execution
in particular products.\38\ Further, incentivizing Specialists and
Market Makers to add increased liquidity in Singly Listed FX Options by
offering Simple Order rebates to these participants will benefit all
market participants through tighter markets and order interaction.
Also, by providing Specialists and Market Makers an opportunity to earn
a rebate will incentivize Specialists and Market Makers to interact
with a greater number of Simple Orders in Singly Listed FX Options on
the Exchange. The Exchange believes it is reasonable to assess lower
fees to transact Singly Listed FX Options, as compared to other Singly
Listed products, because the Exchange seeks to incentivize these market
participants to transact a greater number of FX Options. Specialists
and Market Makers have obligations to the market and regulatory
requirements,\39\ which normally do not apply to other market
participants. With respect to Complex Orders, the Exchange would
similarly assess all market participants a $0.40 per contract Fee for
Adding and Removing Liquidity in Singly Listed FX Options.
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\38\ See note 30.
\39\ See note 29.
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The Exchange's proposal to assess the fees and pay the rebates in
Part A for Simple FX Options Orders that are executed against the
individual components of Complex FX Options Orders and assess the fees
in Part B to the individual components of Complex FX Options Orders is
comparable to the manner in which pricing is currently applied today
for SPY pricing \40\ and does not create an undue burden on competition
because the Exchange uniformly applies this treatment to all market
participants. Similarly, the Exchange's proposal to assess transactions
in Singly Listed FX Options originating on the Exchange floor the
proposed FX Options Fees for Removing Liquidity in Section III, unless
one side of the transaction originates on the Exchange floor and any
other side of the trade was the result of an electronically submitted
order or a quote, then the Fees for Removing Liquidity will apply to
the transactions which originated on the Exchange floor and the
contracts that are executed electronically will be subject to the
rebates and fees, as applicable, for Simple and Complex Orders, does
not create an undue burden on competition because this treatment is
comparable to the manner in which pricing is currently applied today
for SPY pricing \41\ and does not create an undue burden on competition
because the Exchange uniformly applies this treatment to all market
participants. The Exchange's proposal to treat FX Options executions in
Singly Listed Options which occur as part of an electronic auction,
including, but not limited to, the Quote Exhaust Auction, opening
process and Complex electronic auction, including COLA, in the same
manner by assessing $0.40 per contract for all market participants does
not create an undue burden on competition because the Exchange is
proposing to assess the same fee \42\ for these auctions as other
transactions and is proposing to uniformly assess these fees to all
market participants.
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\40\ See Section I of the Pricing Schedule.
\41\ Id.
\42\ The proposed Singly Listed FX Options Fees for Removing
Liquidity in Simple and Complex Options is $0.40 per contract.
---------------------------------------------------------------------------
The Exchange's proposal to assess PIXL pricing for Singly Listed FX
Options of $0.20 per contract for the Initiating Order and $0.40 per
contract for all market participants for all PIXL transactions does not
create an undue burden on competition because the Exchange proposes to
assess all market participants transacting Singly Listed FX Options in
PIXL these rates. Under the proposal, all market participants would be
treated in a uniform manner with respect to FX Options Singly Listed
PIXL orders.
The Exchange operates in a highly competitive market, comprised of
twelve options exchanges, in which market participants can easily and
readily direct order flow to competing venues if they deem fee levels
at a particular venue to be excessive or rebates to be inadequate.
Accordingly, the fees that are described in the above proposal are
influenced by these robust market forces and therefore must remain
competitive with fees charged by other venues and therefore must
continue to be reasonable and equitably allocated to those members that
opt to direct orders to the Exchange rather than competing venues.
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)(ii) of the Act.\43\ 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.
---------------------------------------------------------------------------
\43\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------
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:
[[Page 48274]]
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-2014-51 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-Phlx-2014-51. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-2014-51, and should be
submitted on or before September 5, 2014.
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\44\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\44\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-19333 Filed 8-14-14; 8:45 am]
BILLING CODE 8011-01-P
