Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Rule 60, 60883-60887 [2014-23979]
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Federal Register / Vol. 79, No. 195 / Wednesday, October 8, 2014 / Notices
asabaliauskas on DSK5VPTVN1PROD with NOTICES
furthers the objectives of Sections
6(b)(4) and (5) of the Act,11 in particular,
because it provides for the equitable
allocation of reasonable dues, fees, and
other charges among its members,
issuers and other persons using its
facilities and does not unfairly
discriminate between customers,
issuers, brokers or dealers.
The Exchange believes that the
proposed changes to routing fees are
reasonable because the Exchange’s fees
for routing orders to the NYSE are
closely related to the NYSE’s fees for its
members for taking liquidity, and the
fee increases are consistent with the
NYSE’s recent increase for its fees for
taking liquidity. The proposed changes
will result in maintaining the existing
relationship between the two sets of
fees. In addition, the Exchange believes
that the proposed rule change is
reasonable, equitable, and not unfairly
discriminatory because it would result
in an increase in the per share fee for
orders, Primary Sweep Orders, and PO+
Orders routed to the NYSE, thereby
aligning the rate that the Exchange
charges to ETP Holders with the rate
that the Exchange is charged by the
NYSE. Accordingly, the Exchange is
proposing this increase so that the rate
it charges to ETP Holders reflects the
rate that the Exchange is charged by the
NYSE. In addition, the proposed
changes are equitable and not unfairly
discriminatory because the fee increases
apply uniformly across pricing tiers and
all similarly situated ETP Holders
would be subject to the same fee
structure.
Finally, the Exchange believes that it
is subject to significant competitive
forces, as described below in the
Exchange’s statement regarding the
burden on competition. For these
reasons, the Exchange believes that the
proposal is consistent with the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,12 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 particular, the proposed routing fee
changes would not place a burden on
competition because the Exchange is
seeking to align its fees with the fees
charged by the NYSE.13
The Exchange notes that it operates in
a highly competitive market in which
market participants can readily favor
U.S.C. 78f(b)(4) and (5).
U.S.C. 78f(b)(8).
13 See supra note 5 [sic].
competing venues. In such an
environment, the Exchange must
continually review, and consider
adjusting, its fees and credits to remain
competitive with other exchanges. For
the reasons described above, the
Exchange believes that the proposed
rule change promotes a competitive
environment.
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 foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 14 of the Act and
subparagraph (f)(2) of Rule 19b–4 15
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange.
At any time within 60 days of the
filing of such 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
under Section 19(b)(2)(B) 16 of the Act to
determine whether the proposed rule
change 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–
NYSEArca–2014–109 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
11 15
14 15
12 15
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2014–109. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549–1090, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
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–
NYSEArca–2014–109, and should be
submitted on or before October 29,
2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–23981 Filed 10–7–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73286; File No. SR–PHLX–
2014–63]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Rule 60
October 2, 2014.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
15 17
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
16 15 U.S.C. 78s(b)(2)(B).
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Federal Register / Vol. 79, No. 195 / Wednesday, October 8, 2014 / Notices
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 19, 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 and II, below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange [sic] to correct an
inconsistency in the Exchange’s
Rulebook related to Rule 60 entitled
‘‘Sanctions for Breach of Regulations.’’
A notice of the proposed rule change
for publication in the Federal Register
is attached hereto as Exhibit 1 [sic]. The
text of the proposed rule change is set
forth below. Proposed new language is
italicized; deleted text is in brackets.
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NASDAQ OMX PHLX Rules
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Rule 60. Sanctions for Breach of Regulations
(a)(i) An Options Exchange Official may
impose on members, member organizations,
participants, participant organizations and
their associated persons, fines for breaches of
regulations that relate to administration of
order, decorum, health, safety and welfare on
the Exchange or an Options Exchange
Official may refer the matter to the Business
Conduct Committee where it shall proceed in
accordance with Rules 960.1–960.12.
(ii) Exchange Staff may impose on
members, member organizations,
participants, participant organizations and
their associated persons, fines for breaches of
regulations that relate to administration of
order, decorum, health, safety and welfare on
the Exchange or Exchange Staff may refer the
matter to the Business Conduct Committee
where it shall proceed in accordance with
Rules 960.1–960.12.
(b)(i) An Options Exchange Official and an
officer of the Exchange may exclude a
member, participant, and any associated
person of member organizations and
participant organizations (‘‘member’’) from
the trading floor for breaches of regulations
that relate to administration of order,
decorum, health, safety and welfare on the
Exchange that occurred on the trading floor
or on the premises immediately adjacent to
the trading floor. Specifically, members shall
be excluded if they pose an immediate threat
to the safety of persons or property, are
seriously disrupting Exchange operations, or
are in possession of a firearm. Members so
excluded [are excluded for the remainder of
the trading day.] may be excluded for a
period of up to five business days.
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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(c) If a member shall be excluded for a
period exceeding forty-eight hours, an
expedited hearing (‘‘Expedited Hearing’’) will
be held before the Chair of the Business
Conduct Committee or a member of the
Committee designated by the Chair
(‘‘Expedited Hearing Officer’’) within fortyeight business hours after the members’
exclusion from the trading floor. Written
notice will be provided to the member of the
date, time and place of the hearing. The
member may be represented by counsel. The
Expedited Hearing Officer or his or her
designee shall conduct an Expedited
Hearing. The Expedited Hearing Officer shall
allow both the member or his or her
representative and Exchange staff to present
arguments. The Expedited Hearing Officer
shall make a determination of whether to
continue the member’s exclusion from the
trading floor for a period of up to five
business days. The determination shall be
based on the severity of the threat posed to
persons on the trading floor, the
disruptiveness caused by the actor and the
safety and welfare of persons on the trading
floor. The Expedited Hearing Officer shall
make a ruling at the time of the hearing and
a written decision will be provided to the
member following the hearing. Members shall
not be excluded from electronic trading, but
will be not be permitted to be physically
present on the trading floor for the duration
of any exclusion.
(ii) For purposes of this Rule, an ‘‘officer
of the Exchange’’ shall refer to an officer who
is a vice president or higher.
(iii) For purposes of this Rule and the
Regulations promulgated thereunder, the
‘‘premises immediately adjacent to the
trading floor’’ shall include the following: (1)
All premises other than the trading floor that
are under Exchange control, and (2) premises
in the building where the Exchange
maintains its principal office and place of
business, namely 1900 Market Street,
Philadelphia, Pennsylvania.
(iv) Exclusion from the floor may not be
the exclusive sanction for breaches of this
Rule and the regulations thereunder. In
addition to exclusion, a member may also be
subject to a fine or the matter may be referred
to the Business Conduct Committee where it
shall proceed in accordance with Rules
960.1–960.12.
• • • Commentary (a)—
The procedure to be followed in cases
where a pre-set fine of up to $[5]10,000.00 is
summarily assessed is as follows:
.01 Notice of Fine. Notice of fine for
breach of such regulations shall be given by
the issuance of a written citation. Exchange
Staff shall serve the written citations that are
issued by the Options Exchange Official. The
cited party may accept or contest the written
citation.
.02 Time and Place of Hearing. If the
written citation is contested, the Exchange
shall fix a mutually convenient time and
place of hearing, notice of which must be
given in advance and may be given orally.
.03 Record. An appropriate record shall
be kept. The costs of the making of such a
transcript, including, but not limited to, the
costs for the court reporter, reproduction of
the transcript and producing copies thereof,
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shall be equally borne by the Exchange and
by the cited party.
.04 Procedure. The hearing shall be
conducted by a Hearing Director appointed
by the Chair of the Business Conduct
Committee, and will be conducted in
whatever manner will permit full
presentation of the evidence.
.05 Finding. The finding of the Hearing
Director shall be rendered at the close of the
hearing. The Hearing Director may decide
that: (i) the citation should be overturned; (ii)
the citation is valid as issued; or (iii) the
citation as issued should be modified to
specify either a higher or lower fine than the
one on the notice as issued.
.06 Forum Fee. If a person contests a
citation imposed under Rule 60 and the
citation is upheld by the reviewing body, the
reviewing body will impose a forum fee
against the person in the amount of $100.
.0[6]7 No Right of Appeal. The finding of
the Hearing Director shall be final. There
shall be no appeal from such finding.
.0[7]8 Report to Securities and Exchange
Commission (SEC). A report in appropriate
form shall be made to the SEC. However, no
report shall be made in the case of citations
for breaches of regulations relating to order,
decorum, health, safety and welfare or
administration of the Exchange if a citation
is not contested and the fine is $1,000 or less,
or if the Hearing Director finds in favor of the
appellant.
• • • Commentary (b)—
The procedure to be followed when a
member is to be excluded from the trading
floor is as follows:
[.01 Ruling. After an Options Exchange
Official and an officer of the Exchange
determine that a member shall be excluded,
a member of the Exchange’s security staff
shall escort the member off the trading floor.
The member shall remain off the trading floor
for the remainder of the trading day.
Exchange staff shall thereafter memorialize
the exclusion in the form of a written
citation.]
.0[2]1 No Further Right of Appeal. The
determination that a member shall be
excluded is final. There shall be no appeal
from such determination.
.0[3]2 Report to the SEC. A report in
appropriate form shall be made to the SEC.
However, no report shall be made in a case
where a clerical employee is excluded for a
breach of regulations relating to order,
decorum, health, safety and welfare or
administration of the Exchange.
RULE 60—REGULATION AND FINE
SCHEDULE
(ORDER AND DECORUM CODE)
In most cases, the PHLX will enforce
compliance with Order and Decorum Code
pursuant to Rule 60. While ordinarily a
finding of a violation will result in the
appropriate pre-set fine and/or sanction, an
Options Exchange Official or Exchange Staff
may refer the matter to the Business Conduct
Committee where it shall proceed in
accordance with Rules 960.1–960.12. In the
case of repeat violations of a regulation by
the same individual, the amount of the fine
is determined by the number of such
violations which have occurred within the
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year immediately preceding the current
violation.
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OPTION FLOOR PROCEDURE ADVICES
AND ORDER & DECORUM REGULATIONS
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asabaliauskas on DSK5VPTVN1PROD with NOTICES
H. REGULATIONS Pursuant to Rule 60
[Rule 60. Sanctions for Breach of
Regulations
(a)(i) An Options Exchange Official may
impose on members, member organizations
and their associated persons, fines for
breaches of regulations that relate to
administration of order, decorum, health,
safety and welfare on the Exchange or an
Options Exchange Official may refer the
matter to the Business Conduct Committee
where it shall proceed in accordance with
Rules 960.1–960.12.
(ii) Exchange Staff may impose on
members, member organizations and their
associated persons, fines for breaches of
regulations that relate to administration of
order, decorum, health, safety and welfare on
the Exchange, or Exchange Staff may refer the
matter to the Business Conduct Committee
where it shall proceed in accordance with
Rules 960.1–960.12.
(b)(i) An Options Exchange Official and an
officer of the Exchange may exclude a
member, and any associated person of
member organizations (‘‘member’’) from the
trading floor for breaches of regulations that
relate to administration of order, decorum,
health, safety and welfare on the Exchange
that occurred on the trading floor or on the
premises immediately adjacent to the trading
floor. Specifically, members shall be
excluded if they pose an immediate threat to
the safety of persons or property, are
seriously disrupting Exchange operations, or
are in possession of a firearm. Members so
excluded may be excluded for a period of up
to five (5) business days.
(c) If a member shall be excluded for a
period exceeding forty-eight hours, an
expedited hearing (‘‘Expedited Hearing’’) will
be held before the Chair of the Business
Conduct Committee or a member of the
Committee designated by the Chair
(‘‘Expedited Hearing Officer’’) within fortyeight (48) business hours after the members’
exclusion from the trading floor. Written
notice will be provided to the member of the
date, time and place of the hearing. The
member may be represented by counsel. The
Expedited Hearing Officer or his or her
designee shall conduct an Expedited Hearing.
The Expedited Hearing Officer shall allow
both the member or his or her representative
and Exchange staff to present arguments. The
Expedited Hearing Officer shall make a
determination of whether to continue the
member’s exclusion from the trading floor for
a period of up to five (5) business days. The
determination shall be based on the severity
of the threat posed to persons on the trading
floor, the disruptiveness caused by the actor
and the safety and welfare of persons on the
trading floor. The Expedited Hearing Officer
shall make a ruling at the time of the hearing
and a written decision will be provided to
the member following the hearing. Members
shall not be excluded from electronic trading,
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but will not be permitted to be physically
present on the trading floor for the duration
of any exclusion
(ii) For purposes of this Rule, an ‘‘officer
of the Exchange’’ shall refer to an officer who
is a vice president or higher.
(iii) For purposes of this Rule and the
Regulations promulgated thereunder, the
‘‘premises immediately adjacent to the
trading floor’’ shall include the following: (1)
all premises other than the trading floor that
are under Exchange control, and (2) premises
in the building where the Exchange
maintains its principal office and place of
business, namely 1900 Market Street,
Philadelphia, Pennsylvania.
(iv) Exclusion from the floor may not be
the exclusive sanction for breaches of this
Rule and the regulations thereunder. In
addition to exclusion, a member may also be
subject to a fine or the matter may be referred
to the Business Conduct Committee where it
shall proceed in accordance with Rules
960.1–960.12.
• • • Commentary (a)—
The procedure to be followed in cases
where a pre-set fine of up to $10,000.00 is
summarily assessed is as follows:
.01 Notice of Fine. Notice of fine for
breach of such regulations shall be given by
the issuance of a written citation. Exchange
Staff shall serve the written citations that are
issued by the Options Exchange Official. The
cited party may accept or contest the written
citation.
.02 Time and Place of Hearing. If the
written citation is contested, the Exchange
shall fix a mutually convenient time and
place of hearing, notice of which must be
given in advance and may be given orally.
.03 Record. An appropriate record shall
be kept. The costs of the making of such a
transcript, including, but not limited to, the
costs for the court reporter, reproduction of
the transcript and producing copies thereof,
shall be equally borne by the Exchange and
by the cited party.
.04 Procedure. The hearing shall be
conducted by a Hearing Director appointed
by the Chair of the Business Conduct
Committee, and will be conducted in
whatever manner will permit full
presentation of the evidence.
.05 Finding. The finding of the Hearing
Director shall be rendered at the close of the
hearing. The Hearing Director may decide
that: (i) the citation should be overturned; (ii)
the citation is valid as issued; or (iii) the
citation as issued should be modified to
specify either a higher or lower fine than the
one on the notice as issued.
.06 Forum Fee. If a person contests a
citation imposed under Rule 60 and the
citation is upheld by the reviewing body, the
reviewing body will impose a forum fee
against the person in the amount of $100.
.07 No Right of Appeal. The finding of
the Hearing Director shall be final. There
shall be no appeal from such finding.
.08 Report to Securities and Exchange
Commission (SEC). A report in appropriate
form shall be made to the SEC. However, no
report shall be made in the case of citations
for breaches of regulations relating to order,
decorum, health, safety and welfare or
administration of the Exchange if a citation
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is not contested and the fine is $1,000 or less,
or if the Hearing Director finds in favor of the
appellant.
• • • Commentary (b)—
The procedure to be followed when a
member is to be excluded from the trading
floor is as follows:
.01 No Further Right of Appeal. The
determination that a member shall be
excluded is final. There shall be no appeal
from such determination.
.02 Report to the SEC. A report in
appropriate form shall be made to the SEC.
However, no report shall be made in a case
where a clerical employee is excluded for a
breach of regulations relating to order,
decorum, health, safety and welfare or
administration of the Exchange.
RULE 60—REGULATION AND FINE
SCHEDULE
(ORDER AND DECORUM CODE)
In most cases, the Exchange will enforce
compliance with Order and Decorum Code
pursuant to Rule 60. While ordinarily a
finding of a violation will result in the
appropriate pre-set fine and/or sanction, an
Options Exchange Official or Exchange Staff
may refer the matter to the Business Conduct
Committee where it shall proceed in
accordance with Rules 960.1–960.12.
In the case of repeat violations of a
regulation by the same individual, the
amount of the fine is determined by the
number of such violations which have
occurred within the year immediately
preceding the current violation.]
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II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange’s Rulebook contains
Rule 60, Sanctions for Breach of
Regulations, in the Rules of the
Exchange. This rule is also repeated in
the section of the Rulebook entitled
‘‘Regulations’’ which appears prior to
the listing of the various regulations.
The Exchange repeated the rule in this
section for ease of reference as the
regulations were adopted pursuant to
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Rule 60. In 2009, the Exchange filed a
rule proposal which, among other
things, amended Rule 60.3 The rule text
specifically amended Rule 60 in the
section of the Rulebook entitled
Regulations, as evidenced from the text
in Exhibit 5 of that filing. At that time,
the Exchange did not also amend the
rule text of Rule 60 in the main rules.
The rule text was updated in both
places in the Rulebook in 2009 because
the error in not amending both rules
was not realized at the time the filing
was approved. The rule text is currently
identical in both Rule 60 versions at this
time. There is no inconsistency as
between the two versions of Rule 60 as
displayed in the Rulebook.
The Exchange is seeking to properly
amend Rule 60 in the main Rules at this
time by restating the amendments that
were requested in 2009 in this filing.
The Exchange also proposes to delete
the duplicate version of Rule 60 in the
Regulations section to avoid further
confusion in the future. In order that
members and member organizations
may understand that the Regulations are
adopted pursuant to Rule 60, the
Exchange proposes to amend the title of
the Regulations section to state,
‘‘Regulations Pursuant to Rule 60.’’
asabaliauskas on DSK5VPTVN1PROD with NOTICES
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 4 in general, and furthers the
objectives of Section 6(b)(5) of the Act 5
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest, in that
the proposal will correct an error in the
Exchange’s Rulebook with respect to the
text of Rule 60. The Exchange is seeking
to correct the error so that Rule 60, as
reflected in the main rules, is properly
amended. An accurate and up-to-date
Rulebook will avoid confusion for
market participants. The proposals are
not substantive, rather, the proposals
seek to update the rules to reflect the
current operation of the Exchange.
Also, to avoid future confusion among
its marker participants, the Exchange
proposes to eliminate the Rule 60
version of the rule text which appears
in the Regulations section. The
Regulations govern conduct on the
Exchange’s trading floor. The Exchange
3 See Securities Exchange Act Release No. 61207
(December 18, 2009), 74 FR 69185 (December 30,
2009) (SR–Phlx–2009–84).
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
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believes that noting that the Regulations
are pursuant to Rule 60 will avoid
confusion to members and member
organizations subject to these rules
because the cross-reference to Rule 60
will be apparent without the need to
restate the rule within the Regulations.
The Exchange believes this rule change
will bring accuracy and clarity to the
Rulebook.
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 is merely seeking to correct an
inadvertent error in the Rule text and
proposes other changes to avoid
confusion in the future and prevent the
possibility of this error occurring again.
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) of the Act 6 and
subparagraph (f)(6) of Rule 19b–4
thereunder.7
A proposed rule change filed under
Rule 19b–4(f)(6) 8 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),9 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. The proposed rule
change amends Rule 60 in the
Exchange’s Rulebook so that the Rule
6 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
8 17 CFR 240.19b–4(f)(6).
9 17 CFR 240.19b–4(f)(6)(iii).
7 17
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Sfmt 4703
properly reflects changes made in SR–
Phlx–2009–84, and removes duplicate
language from another section of the
Exchange’s Rulebook. The proposed
rule change ensures that Rule 60 is
accurate, and is intended to eliminate
confusion that was caused by having a
duplicate version of Rule 60 in another
section of the Rulebook. The
Commission believes it is in the interest
of investors to implement these
amendments immediately. Therefore,
the Commission hereby waives the 30day operative delay and designates the
proposal operative upon filing.10
At any time within 60 days of the
filing of such 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
under Section 19(b)(2)(B) 11 of the Act to
determine whether the proposed rule
change 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–
PHLX–2014–63 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–PHLX–2014–63. 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
10 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
11 15 U.S.C. 78s(b)(2)(B).
E:\FR\FM\08OCN1.SGM
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Federal Register / Vol. 79, No. 195 / Wednesday, October 8, 2014 / Notices
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–PHLX–
2014–63, and should be submitted on or
before October 29, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–23979 Filed 10–7–14; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF TRANSPORTATION
Office of the Secretary of
Transportation
Requirements for the Recognizing
Aviation and Aerospace Innovation in
Science and Engineering Awards;
Deadline Extension
Office of the Secretary of
Transportation, U.S. Department of
Transportation.
ACTION: Notice.
AGENCY:
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Eligibility
Pursuant to a
recommendation by the Future of
Aviation Advisory Committee, the
Secretary of Transportation is
announcing the third-annual
competition to recognize students with
the ability to demonstrate unique,
innovative thinking in aerospace
science and engineering. In its third
year, the Secretary has decided to create
two divisions within the award: A high
school division and a university
division (both undergraduate and
graduate). The Secretary of
Transportation intends to use the
SUMMARY:
12 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:27 Oct 07, 2014
Jkt 235001
awards to incentivize students at high
schools and universities to think
creatively in developing innovative
solutions to aviation and aerospace
issues, and to share those innovations
with the broader community. This
notice extends the deadline for
submitting proposals for the RAISE
Award and makes other small changes
to the prior notices issued in April (79
FR 19167) and May (79 FR 29476) 2014.
The Department of Transportation has
decided that interested students could
benefit from more time to develop
proposals for the 2014 competition.
Thus, we are extending the dates for
submitting expressions of interest to
November 14, 2014, and for submitting
final packages to 3:00 p.m. Eastern
Standard Time on December 30, 2014.
DATES: Effective on April 01, 2014 to
December 30, 2014.
FOR FURTHER INFORMATION CONTACT:
Patricia Watts, Ph.D., Federal Aviation
Administration, (609) 485–5043,
patricia.watts@faa.gov, or James Brough,
Federal Aviation Administration, (781)
238–7027, james.brough@faa.gov.
SUPPLEMENTARY INFORMATION:
Subject of Challenge Competition:
The Secretary’s RAISE (Recognizing
Aviation & Aerospace Innovation in
Science and Engineering) Award will
recognize innovative scientific and
engineering achievements that will have
a significant impact on the future of
aerospace or aviation. Following an
open solicitation by the United States
Department of Transportation (‘‘the
Department’’), the Secretary of
Transportation (‘‘the Secretary’’) will
designate an Award Review Board
Chair, who will submit nominations to
the Secretary for final consideration.
The rules for this competition are
available at https://www.challenge.gov.
Award Approving Official: Anthony
Foxx, Secretary of Transportation.
To be eligible to participate in the
Secretary’s RAISE Award competition,
students must be U.S. citizens or
permanent residents. For the high
school division, the students must have
been enrolled in at least one semester
(or quarterly equivalent) at a U.S. high
school (or equivalent approved home
school program) in 2014. For the
University division, the student must
have been enrolled in a U.S.-based
college or university for at least one
semester (or quarterly equivalent) in
2014. Students may participate and be
recognized as individuals or in teams.
Each member of a team must meet the
eligibility criteria. An individual may
PO 00000
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Fmt 4703
Sfmt 4703
60887
join more than one team. There is no
charge to enter the competition.
The following additional rules apply:
1. Candidates shall submit a project in
the competition under the rules
promulgated by the Department;
2. Candidates shall agree to execute
indemnifications and waivers of claims
against the Federal government as
provided in this Notice;
3. Candidates may not be a Federal
entity or Federal employee acting
within the scope of employment;
4. Candidates may not be an employee
of the Department, including but not
limited to the Federal Aviation
Administration, or the Research and
Innovative Technology Administration;
5. Candidates shall not be deemed
ineligible because an individual used
Federal facilities or consulted with
Federal employees during a
competition, if the facilities and
employees are made available to all
individuals participating in the
competition on an equitable basis;
6. The competition is subject to all
applicable Federal laws and regulations.
Participation constitutes the Candidates’
full and unconditional agreement to
these rules and to the Secretary’s
decisions, which are final and binding
in all matters related to this
competition;
7. Submissions which in the
Secretary’s sole discretion are
determined to be substantially similar to
a prior submitted entry may be
disqualified;
8. Submissions must be original, be
the work of the Candidates, and must
not violate the rights of other parties.
All submissions remain the property of
the applicants. Each Candidate
represents and warrants that he, she, or
the team, is the sole author and owner
of the submission, that the submission
is wholly original, that it does not
infringe any copyright or any other
rights of any third party of which the
Candidate is aware, and, if submitted in
electronic form, is free of malware;
9. By submitting an entry in this
contest, contestants and entrants agree
to assume any and all risks and waive
any claims against the Federal
Government and its related entities
(except in the case of willful
misconduct) for any injury, death,
damage, or loss of property, revenue or
profits, whether direct, indirect, or
consequential, arising from their
participation in this contest, whether
the injury, death, damage, or loss arises
through negligence of otherwise.
Provided, however, that by registering
or submitting an entry, contestants and
entrants do not waive claims against the
Department arising out of the
E:\FR\FM\08OCN1.SGM
08OCN1
]]>Agencies
[Federal Register Volume 79, Number 195 (Wednesday, October 8, 2014)]
[Notices]
[Pages 60883-60887]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-23979]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73286; File No. SR-PHLX-2014-63]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Rule 60
October 2, 2014.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 60884]]
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on September 19, 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 and
II, below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\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 [sic] to correct an inconsistency in the Exchange's
Rulebook related to Rule 60 entitled ``Sanctions for Breach of
Regulations.''
A notice of the proposed rule change for publication in the Federal
Register is attached hereto as Exhibit 1 [sic]. The text of the
proposed rule change is set forth below. Proposed new language is
italicized; deleted text is in brackets.
* * * * *
NASDAQ OMX PHLX Rules
* * * * *
Rule 60. Sanctions for Breach of Regulations
(a)(i) An Options Exchange Official may impose on members,
member organizations, participants, participant organizations and
their associated persons, fines for breaches of regulations that
relate to administration of order, decorum, health, safety and
welfare on the Exchange or an Options Exchange Official may refer
the matter to the Business Conduct Committee where it shall proceed
in accordance with Rules 960.1-960.12.
(ii) Exchange Staff may impose on members, member organizations,
participants, participant organizations and their associated
persons, fines for breaches of regulations that relate to
administration of order, decorum, health, safety and welfare on the
Exchange or Exchange Staff may refer the matter to the Business
Conduct Committee where it shall proceed in accordance with Rules
960.1-960.12.
(b)(i) An Options Exchange Official and an officer of the
Exchange may exclude a member, participant, and any associated
person of member organizations and participant organizations
(``member'') from the trading floor for breaches of regulations that
relate to administration of order, decorum, health, safety and
welfare on the Exchange that occurred on the trading floor or on the
premises immediately adjacent to the trading floor. Specifically,
members shall be excluded if they pose an immediate threat to the
safety of persons or property, are seriously disrupting Exchange
operations, or are in possession of a firearm. Members so excluded
[are excluded for the remainder of the trading day.] may be excluded
for a period of up to five business days.
(c) If a member shall be excluded for a period exceeding forty-
eight hours, an expedited hearing (``Expedited Hearing'') will be
held before the Chair of the Business Conduct Committee or a member
of the Committee designated by the Chair (``Expedited Hearing
Officer'') within forty-eight business hours after the members'
exclusion from the trading floor. Written notice will be provided to
the member of the date, time and place of the hearing. The member
may be represented by counsel. The Expedited Hearing Officer or his
or her designee shall conduct an Expedited Hearing. The Expedited
Hearing Officer shall allow both the member or his or her
representative and Exchange staff to present arguments. The
Expedited Hearing Officer shall make a determination of whether to
continue the member's exclusion from the trading floor for a period
of up to five business days. The determination shall be based on the
severity of the threat posed to persons on the trading floor, the
disruptiveness caused by the actor and the safety and welfare of
persons on the trading floor. The Expedited Hearing Officer shall
make a ruling at the time of the hearing and a written decision will
be provided to the member following the hearing. Members shall not
be excluded from electronic trading, but will be not be permitted to
be physically present on the trading floor for the duration of any
exclusion.
(ii) For purposes of this Rule, an ``officer of the Exchange''
shall refer to an officer who is a vice president or higher.
(iii) For purposes of this Rule and the Regulations promulgated
thereunder, the ``premises immediately adjacent to the trading
floor'' shall include the following: (1) All premises other than the
trading floor that are under Exchange control, and (2) premises in
the building where the Exchange maintains its principal office and
place of business, namely 1900 Market Street, Philadelphia,
Pennsylvania.
(iv) Exclusion from the floor may not be the exclusive sanction
for breaches of this Rule and the regulations thereunder. In
addition to exclusion, a member may also be subject to a fine or the
matter may be referred to the Business Conduct Committee where it
shall proceed in accordance with Rules 960.1-960.12.
Commentary (a)--
The procedure to be followed in cases where a pre-set fine of up
to $[5]10,000.00 is summarily assessed is as follows:
.01 Notice of Fine. Notice of fine for breach of such
regulations shall be given by the issuance of a written citation.
Exchange Staff shall serve the written citations that are issued by
the Options Exchange Official. The cited party may accept or contest
the written citation.
.02 Time and Place of Hearing. If the written citation is
contested, the Exchange shall fix a mutually convenient time and
place of hearing, notice of which must be given in advance and may
be given orally.
.03 Record. An appropriate record shall be kept. The costs of
the making of such a transcript, including, but not limited to, the
costs for the court reporter, reproduction of the transcript and
producing copies thereof, shall be equally borne by the Exchange and
by the cited party.
.04 Procedure. The hearing shall be conducted by a Hearing
Director appointed by the Chair of the Business Conduct Committee,
and will be conducted in whatever manner will permit full
presentation of the evidence.
.05 Finding. The finding of the Hearing Director shall be
rendered at the close of the hearing. The Hearing Director may
decide that: (i) the citation should be overturned; (ii) the
citation is valid as issued; or (iii) the citation as issued should
be modified to specify either a higher or lower fine than the one on
the notice as issued.
.06 Forum Fee. If a person contests a citation imposed under
Rule 60 and the citation is upheld by the reviewing body, the
reviewing body will impose a forum fee against the person in the
amount of $100.
.0[6]7 No Right of Appeal. The finding of the Hearing Director
shall be final. There shall be no appeal from such finding.
.0[7]8 Report to Securities and Exchange Commission (SEC). A
report in appropriate form shall be made to the SEC. However, no
report shall be made in the case of citations for breaches of
regulations relating to order, decorum, health, safety and welfare
or administration of the Exchange if a citation is not contested and
the fine is $1,000 or less, or if the Hearing Director finds in
favor of the appellant.
Commentary (b)--
The procedure to be followed when a member is to be excluded
from the trading floor is as follows:
[.01 Ruling. After an Options Exchange Official and an officer
of the Exchange determine that a member shall be excluded, a member
of the Exchange's security staff shall escort the member off the
trading floor. The member shall remain off the trading floor for the
remainder of the trading day. Exchange staff shall thereafter
memorialize the exclusion in the form of a written citation.]
.0[2]1 No Further Right of Appeal. The determination that a
member shall be excluded is final. There shall be no appeal from
such determination.
.0[3]2 Report to the SEC. A report in appropriate form shall be
made to the SEC. However, no report shall be made in a case where a
clerical employee is excluded for a breach of regulations relating
to order, decorum, health, safety and welfare or administration of
the Exchange.
RULE 60--REGULATION AND FINE SCHEDULE
(ORDER AND DECORUM CODE)
In most cases, the PHLX will enforce compliance with Order and
Decorum Code pursuant to Rule 60. While ordinarily a finding of a
violation will result in the appropriate pre-set fine and/or
sanction, an Options Exchange Official or Exchange Staff may refer
the matter to the Business Conduct Committee where it shall proceed
in accordance with Rules 960.1-960.12. In the case of repeat
violations of a regulation by the same individual, the amount of the
fine is determined by the number of such violations which have
occurred within the
[[Page 60885]]
year immediately preceding the current violation.
* * * * *
OPTION FLOOR PROCEDURE ADVICES AND ORDER & DECORUM REGULATIONS
* * * * *
H. REGULATIONS Pursuant to Rule 60
[Rule 60. Sanctions for Breach of Regulations
(a)(i) An Options Exchange Official may impose on members,
member organizations and their associated persons, fines for
breaches of regulations that relate to administration of order,
decorum, health, safety and welfare on the Exchange or an Options
Exchange Official may refer the matter to the Business Conduct
Committee where it shall proceed in accordance with Rules 960.1-
960.12.
(ii) Exchange Staff may impose on members, member organizations
and their associated persons, fines for breaches of regulations that
relate to administration of order, decorum, health, safety and
welfare on the Exchange, or Exchange Staff may refer the matter to
the Business Conduct Committee where it shall proceed in accordance
with Rules 960.1-960.12.
(b)(i) An Options Exchange Official and an officer of the
Exchange may exclude a member, and any associated person of member
organizations (``member'') from the trading floor for breaches of
regulations that relate to administration of order, decorum, health,
safety and welfare on the Exchange that occurred on the trading
floor or on the premises immediately adjacent to the trading floor.
Specifically, members shall be excluded if they pose an immediate
threat to the safety of persons or property, are seriously
disrupting Exchange operations, or are in possession of a firearm.
Members so excluded may be excluded for a period of up to five (5)
business days.
(c) If a member shall be excluded for a period exceeding forty-
eight hours, an expedited hearing (``Expedited Hearing'') will be
held before the Chair of the Business Conduct Committee or a member
of the Committee designated by the Chair (``Expedited Hearing
Officer'') within forty-eight (48) business hours after the members'
exclusion from the trading floor. Written notice will be provided to
the member of the date, time and place of the hearing. The member
may be represented by counsel. The Expedited Hearing Officer or his
or her designee shall conduct an Expedited Hearing. The Expedited
Hearing Officer shall allow both the member or his or her
representative and Exchange staff to present arguments. The
Expedited Hearing Officer shall make a determination of whether to
continue the member's exclusion from the trading floor for a period
of up to five (5) business days. The determination shall be based on
the severity of the threat posed to persons on the trading floor,
the disruptiveness caused by the actor and the safety and welfare of
persons on the trading floor. The Expedited Hearing Officer shall
make a ruling at the time of the hearing and a written decision will
be provided to the member following the hearing. Members shall not
be excluded from electronic trading, but will not be permitted to be
physically present on the trading floor for the duration of any
exclusion
(ii) For purposes of this Rule, an ``officer of the Exchange''
shall refer to an officer who is a vice president or higher.
(iii) For purposes of this Rule and the Regulations promulgated
thereunder, the ``premises immediately adjacent to the trading
floor'' shall include the following: (1) all premises other than the
trading floor that are under Exchange control, and (2) premises in
the building where the Exchange maintains its principal office and
place of business, namely 1900 Market Street, Philadelphia,
Pennsylvania.
(iv) Exclusion from the floor may not be the exclusive sanction
for breaches of this Rule and the regulations thereunder. In
addition to exclusion, a member may also be subject to a fine or the
matter may be referred to the Business Conduct Committee where it
shall proceed in accordance with Rules 960.1-960.12.
Commentary (a)--
The procedure to be followed in cases where a pre-set fine of up
to $10,000.00 is summarily assessed is as follows:
.01 Notice of Fine. Notice of fine for breach of such
regulations shall be given by the issuance of a written citation.
Exchange Staff shall serve the written citations that are issued by
the Options Exchange Official. The cited party may accept or contest
the written citation.
.02 Time and Place of Hearing. If the written citation is
contested, the Exchange shall fix a mutually convenient time and
place of hearing, notice of which must be given in advance and may
be given orally.
.03 Record. An appropriate record shall be kept. The costs of
the making of such a transcript, including, but not limited to, the
costs for the court reporter, reproduction of the transcript and
producing copies thereof, shall be equally borne by the Exchange and
by the cited party.
.04 Procedure. The hearing shall be conducted by a Hearing
Director appointed by the Chair of the Business Conduct Committee,
and will be conducted in whatever manner will permit full
presentation of the evidence.
.05 Finding. The finding of the Hearing Director shall be
rendered at the close of the hearing. The Hearing Director may
decide that: (i) the citation should be overturned; (ii) the
citation is valid as issued; or (iii) the citation as issued should
be modified to specify either a higher or lower fine than the one on
the notice as issued.
.06 Forum Fee. If a person contests a citation imposed under
Rule 60 and the citation is upheld by the reviewing body, the
reviewing body will impose a forum fee against the person in the
amount of $100.
.07 No Right of Appeal. The finding of the Hearing Director
shall be final. There shall be no appeal from such finding.
.08 Report to Securities and Exchange Commission (SEC). A report
in appropriate form shall be made to the SEC. However, no report
shall be made in the case of citations for breaches of regulations
relating to order, decorum, health, safety and welfare or
administration of the Exchange if a citation is not contested and
the fine is $1,000 or less, or if the Hearing Director finds in
favor of the appellant.
Commentary (b)--
The procedure to be followed when a member is to be excluded
from the trading floor is as follows:
.01 No Further Right of Appeal. The determination that a member
shall be excluded is final. There shall be no appeal from such
determination.
.02 Report to the SEC. A report in appropriate form shall be
made to the SEC. However, no report shall be made in a case where a
clerical employee is excluded for a breach of regulations relating
to order, decorum, health, safety and welfare or administration of
the Exchange.
RULE 60--REGULATION AND FINE SCHEDULE
(ORDER AND DECORUM CODE)
In most cases, the Exchange will enforce compliance with Order
and Decorum Code pursuant to Rule 60. While ordinarily a finding of
a violation will result in the appropriate pre-set fine and/or
sanction, an Options Exchange Official or Exchange Staff may refer
the matter to the Business Conduct Committee where it shall proceed
in accordance with Rules 960.1-960.12.
In the case of repeat violations of a regulation by the same
individual, the amount of the fine is determined by the number of
such violations which have occurred within the year immediately
preceding the current violation.]
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange's Rulebook contains Rule 60, Sanctions for Breach of
Regulations, in the Rules of the Exchange. This rule is also repeated
in the section of the Rulebook entitled ``Regulations'' which appears
prior to the listing of the various regulations. The Exchange repeated
the rule in this section for ease of reference as the regulations were
adopted pursuant to
[[Page 60886]]
Rule 60. In 2009, the Exchange filed a rule proposal which, among other
things, amended Rule 60.\3\ The rule text specifically amended Rule 60
in the section of the Rulebook entitled Regulations, as evidenced from
the text in Exhibit 5 of that filing. At that time, the Exchange did
not also amend the rule text of Rule 60 in the main rules. The rule
text was updated in both places in the Rulebook in 2009 because the
error in not amending both rules was not realized at the time the
filing was approved. The rule text is currently identical in both Rule
60 versions at this time. There is no inconsistency as between the two
versions of Rule 60 as displayed in the Rulebook.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 61207 (December 18,
2009), 74 FR 69185 (December 30, 2009) (SR-Phlx-2009-84).
---------------------------------------------------------------------------
The Exchange is seeking to properly amend Rule 60 in the main Rules
at this time by restating the amendments that were requested in 2009 in
this filing. The Exchange also proposes to delete the duplicate version
of Rule 60 in the Regulations section to avoid further confusion in the
future. In order that members and member organizations may understand
that the Regulations are adopted pursuant to Rule 60, the Exchange
proposes to amend the title of the Regulations section to state,
``Regulations Pursuant to Rule 60.''
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \4\ in general, and furthers the objectives of Section
6(b)(5) of the Act \5\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest,
in that the proposal will correct an error in the Exchange's Rulebook
with respect to the text of Rule 60. The Exchange is seeking to correct
the error so that Rule 60, as reflected in the main rules, is properly
amended. An accurate and up-to-date Rulebook will avoid confusion for
market participants. The proposals are not substantive, rather, the
proposals seek to update the rules to reflect the current operation of
the Exchange.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Also, to avoid future confusion among its marker participants, the
Exchange proposes to eliminate the Rule 60 version of the rule text
which appears in the Regulations section. The Regulations govern
conduct on the Exchange's trading floor. The Exchange believes that
noting that the Regulations are pursuant to Rule 60 will avoid
confusion to members and member organizations subject to these rules
because the cross-reference to Rule 60 will be apparent without the
need to restate the rule within the Regulations. The Exchange believes
this rule change will bring accuracy and clarity to the Rulebook.
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 is merely seeking
to correct an inadvertent error in the Rule text and proposes other
changes to avoid confusion in the future and prevent the possibility of
this error occurring again.
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) of the Act \6\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\7\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \8\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\9\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest. The proposed rule
change amends Rule 60 in the Exchange's Rulebook so that the Rule
properly reflects changes made in SR-Phlx-2009-84, and removes
duplicate language from another section of the Exchange's Rulebook. The
proposed rule change ensures that Rule 60 is accurate, and is intended
to eliminate confusion that was caused by having a duplicate version of
Rule 60 in another section of the Rulebook. The Commission believes it
is in the interest of investors to implement these amendments
immediately. Therefore, the Commission hereby waives the 30-day
operative delay and designates the proposal operative upon filing.\10\
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\8\ 17 CFR 240.19b-4(f)(6).
\9\ 17 CFR 240.19b-4(f)(6)(iii).
\10\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of such 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 under
Section 19(b)(2)(B) \11\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\11\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-PHLX-2014-63 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-PHLX-2014-63. 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
[[Page 60887]]
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-PHLX-2014-63, and should be submitted on or before
October 29, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-23979 Filed 10-7-14; 8:45 am]
BILLING CODE 8011-01-P
