Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Routing Fees, 67504-67507 [2014-26840]
Download as PDF
67504
Federal Register / Vol. 79, No. 219 / Thursday, November 13, 2014 / Notices
written notice of its intent to file the
proposed rule change, along with a brief
description and text of the proposed
rule change, at least five business days
prior to the date of filing of the
proposed rule change.
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
submitted on or before December 4,
2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–26807 Filed 11–12–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73548; File No. SR–Phlx–
2014–68]
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NASDAQ–2014–099 on the subject line.
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Routing Fees
Paper Comments
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
30, 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.
tkelley on DSK3SPTVN1PROD with NOTICES
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549.
All submissions should refer to File
Number SR–NASDAQ–2014–099. 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 NASDAQ. 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–
NASDAQ–2014–099 and should be
VerDate Sep<11>2014
17:16 Nov 12, 2014
Jkt 235001
November 6, 2014.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify
Section V entitled ‘‘Routing Fees’’ of the
NASDAQ OMX Phlx LLC Pricing
Schedule (‘‘Pricing Schedule’’).
Specifically, the Exchange proposes to
modify Section V entitled ‘‘Routing
Fees’’ of the Phlx Pricing Schedule
(‘‘Pricing Schedule’’). Specifically, the
Exchange proposes to amend its Routing
Fees, and to allow aggregation of
Customer 3 volume for calculating
discount thresholds and receiving
discounted routing fees.
While the changes proposed herein
are effective upon filing, the Exchange
has designated that the amendments be
operative on November 3, 2014.
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 The term ‘‘Customer’’ applies to any transaction
that is identified by a Participant for clearing in the
Customer range at The Options Clearing
Corporation (‘‘OCC’’) which is not for the account
of broker or dealer or for the account of a
‘‘Professional’’ (as that term is defined in Rule
1000(b)(14)). Section V of Pricing Schedule.
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
the Routing Fees in Section V of the
Pricing Schedule in order to recoup
costs incurred by the Exchange to route
orders to away markets, and to allow
members and member organizations to
aggregate their Customer volume for
calculating discount thresholds and
receiving discounted routing fees.
Today, the Exchange assesses a NonCustomer a $0.97 per contract Routing
Fee to any options exchange for routing
an order. The Customer Routing Fee for
option orders routed to The NASDAQ
Options Market, LLC (‘‘NOM’’) is a
$0.12 per contract Fixed Fee (‘‘Fixed
Fee’’) in addition to the actual
transaction fee assessed. The Customer
Routing Fee for option orders routed to
NASDAQ OMX BX, Inc. (‘‘BX Options’’)
is $0.12 per contract. The Customer
Routing Fee for option orders routed to
all other options exchanges 4 (excluding
NOM and BX Options) is a fixed fee of
$0.22 per contract in addition to the
actual transaction fee assessed. If the
away market pays a rebate, the Routing
Fee is $0.12 per contract.
With respect to the fixed costs, the
Exchange incurs a fee when it utilizes
13 17
1 15
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
4 This includes BATS Exchange, Inc. (‘‘BATS’’),
BOX Options Exchange LLC (‘‘BOX’’), the Chicago
Board Options Exchange, Incorporated (‘‘CBOE’’),
C2 Options Exchange, Incorporated (‘‘C2’’),
International Securities Exchange, LLC (‘‘ISE’’), the
Miami International Securities Exchange, LLC
(‘‘MIAX’’), NYSE Arca, Inc. (‘‘NYSE Arca’’), NYSE
MKT LLC (‘‘NYSE Amex’’) and ISE Gemini, LLC
(‘‘Gemini’’).
E:\FR\FM\13NON1.SGM
13NON1
tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 219 / Thursday, November 13, 2014 / Notices
NASDAQ Execution Services LLC
(‘‘NES’’), a member of the Exchange and
the Exchange’s affiliated broker-dealer
exclusive order router.5 Each time NES
routes an order to an away market, NES
is charged a clearing fee 6 and, in the
case of certain exchanges, a transaction
fee is also charged in certain symbols,
which fees are passed through to the
Exchange. The Exchange currently
recoups clearing and transaction charges
incurred by the Exchange as well as
certain other costs incurred by the
Exchange when routing to away
markets, such as administrative and
technical costs associated with
operating NES, membership fees at
away markets, Options Regulatory Fees
(‘‘ORFs’’), staffing and technical costs
associated with routing options. The
Exchange assesses the actual away
market fee at the time that the order was
entered into the Exchange’s trading
system. This transaction fee is
calculated on an order-by-order basis
since different away markets charge
different amounts.
The Exchange is proposing to increase
its Non-Customer Routing Fees from
$0.97 to $0.99 per contract to any
options exchange. The Exchange is
proposing to increase its Customer
Routing Fixed Fees to NOM from $0.12
to $0.13 per contract, in addition to the
actual transaction fee assessed to recoup
an additional portion of the costs
incurred by the Exchange for routing
these orders. The Exchange is proposing
to increase its Customer Routing Fixed
Fees to BX Options from $0.12 to $0.13
per contract. The Exchange is proposing
to increase its Customer Routing Fixed
Fees to all other options exchanges
(excluding NOM and BX Options) from
$0.22 to $0.23 per contract, in addition
to actual transaction fees assessed. The
Exchange would also increase the
Customer Routing Fee to all other
options exchanges if the away market
pays a rebate from a fee of $0.12 to $0.13
per contract, because the Exchange
would continue to retain the rebate to
offset the cost to route orders to offset
the cost to route orders to these away
markets. The Exchange desires to
recoup additional costs at this time.
Today, a member organization that:
(1) Qualifies for a Tier 2, 3, 4 or 5 rebate
in the Customer Rebate Program in
Section B of the Pricing Schedule; and
(2) routes away more than 5,000
Customer contracts per day in a given
5 See Securities Exchange Act Release No. 71416
(January 28, 2014), 79 FR 6244 (February 3, 2014)
(SR–Phlx–2014–05) (notice of filing and immediate
effectiveness regarding utilization of NES for
outbound order routing from Phlx).
6 The Options Clearing Corporation (‘‘OCC’’)
assesses $0.01 per contract side.
VerDate Sep<11>2014
17:16 Nov 12, 2014
Jkt 235001
month to an away market (together the
‘‘Customer Rebate requirements’’) 7 is
entitled to receive a credit equal to the
applicable Fixed Fee plus $0.05 per
contract, unless the away market
transaction fee is $0.00 or the away
market pays a rebate, in which case the
member organization is entitled to
receive a credit equal to the applicable
Fixed Fee. Customer rebates are paid on
Customer Rebate Tiers in Section B of
the Pricing Schedule according to
applicable categories (A or B). The
Customer Rebate Tiers are calculated by
totaling Customer volume in Multiply
Listed Options (including SPY) that are
electronically-delivered and executed,
except volume associated with
electronic Qualified Contingent Cross
(‘‘QCC’’) Orders, as defined in Rule
1080(o), in a month.
The Exchange is proposing to add
language to Section V stating that
members and member organizations
under Common Ownership 8 may
aggregate their Customer volume routed
away for purposes of calculating
discount thresholds 9 and receiving
discounted routing fees. The Customer
Rebate requirements regarding Tier and
volume remain in place. However, with
the added language if members and
member organizations are under
Common Ownership they will be able to
aggregate their Customer volume for the
purpose of calculating discount
thresholds and receiving discounted
routing fees.
The proposal allows the Exchange to
continue attracting liquidity to Phlx
while recouping costs incurred by the
Exchange to route orders to away
markets.
2. Statutory Basis
The Exchange believes that its
proposal to amend the Pricing Schedule
is consistent with Section 6(b) of the
Act 10 in general, and furthers the
objectives of Section 6(b)(4) and (b)(5) of
the Act 11 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
7 When the Exchange recently added the 5,000
Customer contracts criterion, it did so to provide a
credit to member organizations that qualify for a
Customer rebate and route away a certain amount
of volume. See Securities Exchange Act Release No.
71258 (January 8, 2014), 79 FR 2948 (January 14,
2014) (SR-Phlx-2013–125) (notice of filing and
immediate effectiveness).
8 The term ‘‘Common Ownership’’ shall mean
members or member organizations under 75%
common ownership or control. Section V of Pricing
Schedule.
9 A member or member organization may, for
example, route away more than 5,000 Customer
contracts per day in a given month to an away
market.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(4), (5).
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
67505
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.
The Exchange believes that amending
the Non-Customer Routing Fee for
orders routed to any options exchange
from a fee of $0.97 to $0.99 per contract,
is reasonable because the Exchange
desires to recoup an additional portion
of the cost it incurs when routing NonCustomer orders. The Exchange is
proposing to increase the Fixed Fee to
recoup additional costs that are incurred
by the Exchange in connection with
routing these orders on behalf of its
members.
The Exchange believes that amending
the Customer Routing Fee for orders
routed to NOM from a Fixed Fee of
$0.12 to $0.13 per contract, in addition
to the actual transaction fee, is
reasonable because the Exchange desires
to recoup an additional portion of the
cost it incurs when routing Customer
orders to NOM. Today, the Exchange
assesses orders routed to NOM a lower
Fixed Fee for routing Customer orders
as compared to the Fixed Fee assessed
to other options exchanges. The
Exchange is proposing to increase the
Fixed Fee to recoup additional costs
that are incurred by the Exchange in
connection with routing these orders on
behalf of its members.
The Exchange believes that amending
the Customer Routing Fee for orders
routed to BX Options from a Fixed Fee
of $0.12 to $0.13 per contract is
reasonable because the Exchange desires
to recoup an additional portion of the
cost it incurs when routing Customer
orders to BX Options, similar to the
amount of Fixed Fee it proposes to
assess for orders routed to NOM. The
Exchange is proposing to assess a Fixed
Fee to recoup additional costs that are
incurred by the Exchange in connection
with routing these orders on behalf of its
members. While the Exchange would
continue to retain any rebate paid by BX
Options,12 the Exchange does not assess
the actual transaction fee that is charged
by BX Options for Customer orders.
The Exchange believes that
continuing to assess lower Fixed Fees to
route Customer orders to NOM and BX
Options, as compared to other options
exchanges, is reasonable as the
Exchange is able to leverage certain
infrastructure to offer those markets
12 BX Options pays a Customer Rebate to Remove
Liquidity as follows: Customers are paid $0.35 per
contract in All Other Penny Pilot Options
(excluding BAC, IWM, QQQ, SPY and VXX) and
$0.70 per contract in Non-Penny Pilot Options. See
BX Options Rules at Chapter XV, Section 2(1).
E:\FR\FM\13NON1.SGM
13NON1
tkelley on DSK3SPTVN1PROD with NOTICES
67506
Federal Register / Vol. 79, No. 219 / Thursday, November 13, 2014 / Notices
lower fees as explained further below.
Similarly, the Exchange believes that
amending the Customer Routing Fee to
other away markets, other than NOM
and BX Options, in the instance the
away market does not pay a rebate from
a Fixed Fee of $0.22 to $0.23 per
contract is reasonable because the
Exchange desires to recoup an
additional portion of the cost it incurs
when routing orders to these away
markets. While the Exchange would
continue to retain any rebate paid by
these [sic] away markets, the Exchange
does not assess the actual transaction
fee that is charged by the away market
for Customer orders. The Fixed Fee for
Customer orders is an approximation of
the costs the Exchange will be charged
for routing orders to away markets. As
a general matter, the Exchange believes
that the proposed fees for Customer
orders routed to markets which pay a
rebate, such as BX Options and other
away markets, would allow it to recoup
and cover a portion of the costs of
providing optional routing services for
Customer orders because it better
approximates the costs incurred by the
Exchange for routing such orders. While
each destination market’s transaction
charge varies and there is a cost
incurred by the Exchange when routing
orders to away markets, including, OCC
clearing costs, administrative and
technical costs associated with
operating NES, membership fees at
away markets, ORFs and technical costs
associated with routing options, the
Exchange believes that the proposed
Routing Fees will enable it to recover
the costs it incurs to route Customer
orders to away markets.
Moreover, the Exchange believes that
amending the Customer Routing Fee to
other away markets, other than NOM
and BX Options, if the away market
pays a rebate, from $0.12 to $0.13 per
contract is reasonable because the
Exchange desires to recoup an
additional portion of the cost it incurs
when routing Customer orders to away
markets, similar to the amount of Fixed
Fee it proposes to assess for orders
routed to NOM and BX Options. The
Exchange is proposing to assess a Fixed
Fee to recoup additional costs that are
incurred by the Exchange in connection
with routing these orders on behalf of its
members. While the Exchange would
continue to retain any rebate paid by
away markets, the Exchange does not
assess the actual transaction fee that is
charged by away markets for Customer
orders.
The Exchange believes that amending
the Non-Customer Routing Fee for
orders routed to any options exchange
from a fee of $0.97 to $0.99 per contract,
VerDate Sep<11>2014
17:16 Nov 12, 2014
Jkt 235001
is equitable and not unfairly
discriminatory because the Exchange
would assess the same $0.99 per
contract fee to all market participants
utilizing routing for Non-Customer
orders.
The Exchange believes that amending
the Customer Routing Fee for orders
routed to NOM from a Fixed Fee of
$0.12 to $0.13 per contract, in addition
to the actual transaction fee, is equitable
and not unfairly discriminatory because
the Exchange would assess the same
Fixed Fee to all orders routed to NOM
in addition to the transaction fee
assessed by that market.
The Exchange believes that increasing
the Customer Routing Fee for orders
routed to BX Options from a Fixed Fee
from $0.12 to $0.13 per contract is
equitable and not unfairly
discriminatory because the Exchange
would uniformly increase the Fixed Fee,
similar to NOM, for all orders routed to
BX Options and would continue to
uniformly not assess the actual
transaction fee, as is the case today.
The Exchange would uniformly assess
a $0.13 per contract Fixed Fee to orders
routed to NASDAQ OMX exchanges
because the Exchange is passing along
the saving realized by leveraging
NASDAQ OMX’s infrastructure and
scale to market participants when those
orders are routed to NOM or BX Options
and is providing those saving to all
market participants. Furthermore, it is
important to note that when orders are
routed to an away market they are
routed based on price first.13 The
Exchange believes that it is equitable
and not unfairly discriminatory to
assess a fixed cost of $0.13 per contract
to route orders to NOM and BX Options
because the cost, in terms of actual cash
outlays, to the Exchange to route to
those markets is lower. For example,
costs related to routing to NOM and BX
Options are lower as compared to other
away markets because NES is utilized
by all three exchanges to route orders.14
NES and the three NASDAQ OMX
options markets have a common data
center and staff that are responsible for
the day-to-day operations of NES.
Because the three exchanges are in a
common data center, Routing Fees are
reduced because costly expenses related
to, for example, telecommunication
lines to obtain connectivity are avoided
when routing orders in this instance.
The costs related to connectivity to
route orders to other NASDAQ OMX
exchanges are lower than the costs to
route to a non-NASDAQ OMX
13 See
Rule 1080(m).
Phlx Rule 1080(m)(iii)(A). See also Chapter
VI, Section 11 of BX Options Rules and NOM Rules.
14 See
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
exchange. When routing orders to nonNASDAQ OMX exchanges, the
Exchange incurs costly connectivity
charges related to telecommunication
lines, membership and access fees, and
other related costs when routing orders.
The Exchange believes that amending
the Customer Routing Fee to other away
markets, other than NOM and BX
Options, in the instance the away
market does not pay a rebate from a
Fixed Fee of $0.22 to $0.23 per contract
is equitable and not unfairly
discriminatory because the Exchange
would assess the same Fixed Fee to all
orders routed to away markets other
than NOM and BX Options in addition
to the transaction fee. The Exchange’s
proposal to increase the Customer
Routing Fee to all other options
exchanges that pay a rebate, other than
NOM and BX Options, from $0.12 to
$0.13 per contract is equitable and not
unfairly discriminatory because the
Exchange would assess the same Fixed
Fee that is proposed when routing
Customer orders to a NASDAQ OMX
exchange. All market participants that
route an order to an away market, other
than NOM or BX Options, would be
assessed a uniform fee of $0.13 per
contract if the away market (nonNASDAQ OMX exchange) pays a rebate.
These proposals would apply uniformly
to all market participants when routing
to an away market that pays a rebate,
other than NOM and BX Options.
In addition, market participants may
submit orders to the Exchange as
ineligible for routing or ‘‘DNR’’ to avoid
Routing Fees.15 Also, orders are routed
to an away market based on price first.16
Finally, the Exchange believes that
the added aggregation language
regarding members and member
organizations under Common
Ownership is reasonable because the
Exchange desires to attract liquidity.
The added language is equitable and not
unfairly discriminatory because it
would apply to all members and
member organizations uniformly. The
Customer Rebate requirements regarding
Tier and volume remain in place.
However, all members and member
organizations that are under Common
Ownership will have the ability to
aggregate their Customer volume for the
purpose of calculating discount
thresholds and receiving discounted
routing fees. The Exchange will apply
the aggregation language to all members
and member organizations in a uniform
manner.
15 See
Rule 1080(m)(iv).
Rule 1080(m). See also Chapter VI, Section
11 of the BX Options Rules and NOM Rules.
16 See
E:\FR\FM\13NON1.SGM
13NON1
Federal Register / Vol. 79, No. 219 / Thursday, November 13, 2014 / Notices
The proposal allows the Exchange to
continue attracting liquidity to Phlx
while recouping costs incurred by the
Exchange to route orders to away
markets.
tkelley on DSK3SPTVN1PROD with NOTICES
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 does not believe that the
proposal creates a burden on intramarket competition because the
Exchange is applying the same Routing
Fees to all market participants in the
same manner dependent on the routing
venue, with the exception of Customers.
The Exchange will continue to assess
separate Customer Routing Fees.
Customers will continue to receive the
lowest fees as compared to nonCustomers when routing orders, as is
the case today. Other options exchanges
also assess lower Routing Fees for
customer orders as compared to noncustomer orders.17
The Exchange’s proposal would allow
the Exchange to continue to recoup its
costs when routing Customer orders to
NOM or BX Options as well as away
markets that pay a rebate when such
orders are designated as available for
routing by the market participant. The
Exchange continues to pass along
savings realized by leveraging NASDAQ
OMX’s infrastructure and scale to
market participants when Customer
orders are routed to NOM and BX
Options and is providing those savings
to all market participants. Today, other
options exchanges also assess fixed
routing fees to recoup costs incurred by
the exchange to route orders to away
markets.18 Market participants may
submit orders to the Exchange as
ineligible for routing or ‘‘DNR’’ to avoid
Routing Fees. It is important to note that
when orders are routed to an away
market they are routed based on price
first. Today, other options exchanges
also assess similar fees to recoup costs
incurred when routing orders to away
markets.
The Exchange is seeking to encourage
market participants to transact a greater
number of Customer orders on Phlx,
which liquidity benefits all market
participants. Customer liquidity benefits
17 BATS assesses lower customer routing fees as
compared to non-customer routing fees per the
away market. For example BATS assesses ISE
customer routing fees of $0.52 per contract and an
ISE non-customer routing fee of $ 0.65 per contract.
See BATS BZX Exchange Fee Schedule.
18 See CBOE’s Fees Schedule and ISE’s Fee
Schedule.
VerDate Sep<11>2014
17:16 Nov 12, 2014
Jkt 235001
all market participants by providing
more trading opportunities, which
attracts specialists and other market
makers. An increase in the activity of
these market participants in turn
facilitates tighter spreads, which may
cause an additional corresponding
increase in order flow from other market
participants. In addition, the credit
toward Customer Routing Fees is in
addition to the Customer rebate received
for the qualifying Customer Rebate Tier.
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
Pursuant to Section 19(b)(3)(A)(ii) of
the Act,19 the Exchange has designated
this proposal as establishing or changing
a due, fee, or other charge imposed by
the self-regulatory organization on any
person, whether or not the person is a
member of the self-regulatory
organization, which renders the
proposed rule change effective upon
filing.
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:
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–Phlx–2014–68. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–Phlx–
2014–68 and should be submitted on or
before December 4, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–26840 Filed 11–12–14; 8:45 am]
BILLING CODE 8011–01–P
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–2014–68 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
19 15
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
Frm 00096
Fmt 4703
Sfmt 9990
67507
20 17
E:\FR\FM\13NON1.SGM
CFR 200.30–3(a)(12).
13NON1
Agencies
[Federal Register Volume 79, Number 219 (Thursday, November 13, 2014)]
[Notices]
[Pages 67504-67507]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-26840]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73548; File No. SR-Phlx-2014-68]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Routing Fees
November 6, 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 October 30, 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 Substance
of the Proposed Rule Change
The Exchange proposes to modify Section V entitled ``Routing Fees''
of the NASDAQ OMX Phlx LLC Pricing Schedule (``Pricing Schedule'').
Specifically, the Exchange proposes to modify Section V entitled
``Routing Fees'' of the Phlx Pricing Schedule (``Pricing Schedule'').
Specifically, the Exchange proposes to amend its Routing Fees, and to
allow aggregation of Customer \3\ volume for calculating discount
thresholds and receiving discounted routing fees.
---------------------------------------------------------------------------
\3\ The term ``Customer'' applies to any transaction that is
identified by a Participant for clearing in the Customer range at
The Options Clearing Corporation (``OCC'') which is not for the
account of broker or dealer or for the account of a ``Professional''
(as that term is defined in Rule 1000(b)(14)). Section V of Pricing
Schedule.
---------------------------------------------------------------------------
While the changes proposed herein are effective upon filing, the
Exchange has designated that the amendments be operative on November 3,
2014.
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 the Routing Fees in Section
V of the Pricing Schedule in order to recoup costs incurred by the
Exchange to route orders to away markets, and to allow members and
member organizations to aggregate their Customer volume for calculating
discount thresholds and receiving discounted routing fees.
Today, the Exchange assesses a Non-Customer a $0.97 per contract
Routing Fee to any options exchange for routing an order. The Customer
Routing Fee for option orders routed to The NASDAQ Options Market, LLC
(``NOM'') is a $0.12 per contract Fixed Fee (``Fixed Fee'') in addition
to the actual transaction fee assessed. The Customer Routing Fee for
option orders routed to NASDAQ OMX BX, Inc. (``BX Options'') is $0.12
per contract. The Customer Routing Fee for option orders routed to all
other options exchanges \4\ (excluding NOM and BX Options) is a fixed
fee of $0.22 per contract in addition to the actual transaction fee
assessed. If the away market pays a rebate, the Routing Fee is $0.12
per contract.
---------------------------------------------------------------------------
\4\ This includes BATS Exchange, Inc. (``BATS''), BOX Options
Exchange LLC (``BOX''), the Chicago Board Options Exchange,
Incorporated (``CBOE''), C2 Options Exchange, Incorporated (``C2''),
International Securities Exchange, LLC (``ISE''), the Miami
International Securities Exchange, LLC (``MIAX''), NYSE Arca, Inc.
(``NYSE Arca''), NYSE MKT LLC (``NYSE Amex'') and ISE Gemini, LLC
(``Gemini'').
---------------------------------------------------------------------------
With respect to the fixed costs, the Exchange incurs a fee when it
utilizes
[[Page 67505]]
NASDAQ Execution Services LLC (``NES''), a member of the Exchange and
the Exchange's affiliated broker-dealer exclusive order router.\5\ Each
time NES routes an order to an away market, NES is charged a clearing
fee \6\ and, in the case of certain exchanges, a transaction fee is
also charged in certain symbols, which fees are passed through to the
Exchange. The Exchange currently recoups clearing and transaction
charges incurred by the Exchange as well as certain other costs
incurred by the Exchange when routing to away markets, such as
administrative and technical costs associated with operating NES,
membership fees at away markets, Options Regulatory Fees (``ORFs''),
staffing and technical costs associated with routing options. The
Exchange assesses the actual away market fee at the time that the order
was entered into the Exchange's trading system. This transaction fee is
calculated on an order-by-order basis since different away markets
charge different amounts.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 71416 (January 28,
2014), 79 FR 6244 (February 3, 2014) (SR-Phlx-2014-05) (notice of
filing and immediate effectiveness regarding utilization of NES for
outbound order routing from Phlx).
\6\ The Options Clearing Corporation (``OCC'') assesses $0.01
per contract side.
---------------------------------------------------------------------------
The Exchange is proposing to increase its Non-Customer Routing Fees
from $0.97 to $0.99 per contract to any options exchange. The Exchange
is proposing to increase its Customer Routing Fixed Fees to NOM from
$0.12 to $0.13 per contract, in addition to the actual transaction fee
assessed to recoup an additional portion of the costs incurred by the
Exchange for routing these orders. The Exchange is proposing to
increase its Customer Routing Fixed Fees to BX Options from $0.12 to
$0.13 per contract. The Exchange is proposing to increase its Customer
Routing Fixed Fees to all other options exchanges (excluding NOM and BX
Options) from $0.22 to $0.23 per contract, in addition to actual
transaction fees assessed. The Exchange would also increase the
Customer Routing Fee to all other options exchanges if the away market
pays a rebate from a fee of $0.12 to $0.13 per contract, because the
Exchange would continue to retain the rebate to offset the cost to
route orders to offset the cost to route orders to these away markets.
The Exchange desires to recoup additional costs at this time.
Today, a member organization that: (1) Qualifies for a Tier 2, 3, 4
or 5 rebate in the Customer Rebate Program in Section B of the Pricing
Schedule; and (2) routes away more than 5,000 Customer contracts per
day in a given month to an away market (together the ``Customer Rebate
requirements'') \7\ is entitled to receive a credit equal to the
applicable Fixed Fee plus $0.05 per contract, unless the away market
transaction fee is $0.00 or the away market pays a rebate, in which
case the member organization is entitled to receive a credit equal to
the applicable Fixed Fee. Customer rebates are paid on Customer Rebate
Tiers in Section B of the Pricing Schedule according to applicable
categories (A or B). The Customer Rebate Tiers are calculated by
totaling Customer volume in Multiply Listed Options (including SPY)
that are electronically-delivered and executed, except volume
associated with electronic Qualified Contingent Cross (``QCC'') Orders,
as defined in Rule 1080(o), in a month.
---------------------------------------------------------------------------
\7\ When the Exchange recently added the 5,000 Customer
contracts criterion, it did so to provide a credit to member
organizations that qualify for a Customer rebate and route away a
certain amount of volume. See Securities Exchange Act Release No.
71258 (January 8, 2014), 79 FR 2948 (January 14, 2014) (SR-Phlx-
2013-125) (notice of filing and immediate effectiveness).
---------------------------------------------------------------------------
The Exchange is proposing to add language to Section V stating that
members and member organizations under Common Ownership \8\ may
aggregate their Customer volume routed away for purposes of calculating
discount thresholds \9\ and receiving discounted routing fees. The
Customer Rebate requirements regarding Tier and volume remain in place.
However, with the added language if members and member organizations
are under Common Ownership they will be able to aggregate their
Customer volume for the purpose of calculating discount thresholds and
receiving discounted routing fees.
---------------------------------------------------------------------------
\8\ The term ``Common Ownership'' shall mean members or member
organizations under 75% common ownership or control. Section V of
Pricing Schedule.
\9\ A member or member organization may, for example, route away
more than 5,000 Customer contracts per day in a given month to an
away market.
---------------------------------------------------------------------------
The proposal allows the Exchange to continue attracting liquidity
to Phlx while recouping costs incurred by the Exchange to route orders
to away markets.
2. Statutory Basis
The Exchange believes that its proposal to amend the Pricing
Schedule is consistent with Section 6(b) of the Act \10\ in general,
and furthers the objectives of Section 6(b)(4) and (b)(5) of the Act
\11\ 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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4), (5).
---------------------------------------------------------------------------
The Exchange believes that amending the Non-Customer Routing Fee
for orders routed to any options exchange from a fee of $0.97 to $0.99
per contract, is reasonable because the Exchange desires to recoup an
additional portion of the cost it incurs when routing Non-Customer
orders. The Exchange is proposing to increase the Fixed Fee to recoup
additional costs that are incurred by the Exchange in connection with
routing these orders on behalf of its members.
The Exchange believes that amending the Customer Routing Fee for
orders routed to NOM from a Fixed Fee of $0.12 to $0.13 per contract,
in addition to the actual transaction fee, is reasonable because the
Exchange desires to recoup an additional portion of the cost it incurs
when routing Customer orders to NOM. Today, the Exchange assesses
orders routed to NOM a lower Fixed Fee for routing Customer orders as
compared to the Fixed Fee assessed to other options exchanges. The
Exchange is proposing to increase the Fixed Fee to recoup additional
costs that are incurred by the Exchange in connection with routing
these orders on behalf of its members.
The Exchange believes that amending the Customer Routing Fee for
orders routed to BX Options from a Fixed Fee of $0.12 to $0.13 per
contract is reasonable because the Exchange desires to recoup an
additional portion of the cost it incurs when routing Customer orders
to BX Options, similar to the amount of Fixed Fee it proposes to assess
for orders routed to NOM. The Exchange is proposing to assess a Fixed
Fee to recoup additional costs that are incurred by the Exchange in
connection with routing these orders on behalf of its members. While
the Exchange would continue to retain any rebate paid by BX
Options,\12\ the Exchange does not assess the actual transaction fee
that is charged by BX Options for Customer orders.
---------------------------------------------------------------------------
\12\ BX Options pays a Customer Rebate to Remove Liquidity as
follows: Customers are paid $0.35 per contract in All Other Penny
Pilot Options (excluding BAC, IWM, QQQ, SPY and VXX) and $0.70 per
contract in Non-Penny Pilot Options. See BX Options Rules at Chapter
XV, Section 2(1).
---------------------------------------------------------------------------
The Exchange believes that continuing to assess lower Fixed Fees to
route Customer orders to NOM and BX Options, as compared to other
options exchanges, is reasonable as the Exchange is able to leverage
certain infrastructure to offer those markets
[[Page 67506]]
lower fees as explained further below. Similarly, the Exchange believes
that amending the Customer Routing Fee to other away markets, other
than NOM and BX Options, in the instance the away market does not pay a
rebate from a Fixed Fee of $0.22 to $0.23 per contract is reasonable
because the Exchange desires to recoup an additional portion of the
cost it incurs when routing orders to these away markets. While the
Exchange would continue to retain any rebate paid by these [sic] away
markets, the Exchange does not assess the actual transaction fee that
is charged by the away market for Customer orders. The Fixed Fee for
Customer orders is an approximation of the costs the Exchange will be
charged for routing orders to away markets. As a general matter, the
Exchange believes that the proposed fees for Customer orders routed to
markets which pay a rebate, such as BX Options and other away markets,
would allow it to recoup and cover a portion of the costs of providing
optional routing services for Customer orders because it better
approximates the costs incurred by the Exchange for routing such
orders. While each destination market's transaction charge varies and
there is a cost incurred by the Exchange when routing orders to away
markets, including, OCC clearing costs, administrative and technical
costs associated with operating NES, membership fees at away markets,
ORFs and technical costs associated with routing options, the Exchange
believes that the proposed Routing Fees will enable it to recover the
costs it incurs to route Customer orders to away markets.
Moreover, the Exchange believes that amending the Customer Routing
Fee to other away markets, other than NOM and BX Options, if the away
market pays a rebate, from $0.12 to $0.13 per contract is reasonable
because the Exchange desires to recoup an additional portion of the
cost it incurs when routing Customer orders to away markets, similar to
the amount of Fixed Fee it proposes to assess for orders routed to NOM
and BX Options. The Exchange is proposing to assess a Fixed Fee to
recoup additional costs that are incurred by the Exchange in connection
with routing these orders on behalf of its members. While the Exchange
would continue to retain any rebate paid by away markets, the Exchange
does not assess the actual transaction fee that is charged by away
markets for Customer orders.
The Exchange believes that amending the Non-Customer Routing Fee
for orders routed to any options exchange from a fee of $0.97 to $0.99
per contract, is equitable and not unfairly discriminatory because the
Exchange would assess the same $0.99 per contract fee to all market
participants utilizing routing for Non-Customer orders.
The Exchange believes that amending the Customer Routing Fee for
orders routed to NOM from a Fixed Fee of $0.12 to $0.13 per contract,
in addition to the actual transaction fee, is equitable and not
unfairly discriminatory because the Exchange would assess the same
Fixed Fee to all orders routed to NOM in addition to the transaction
fee assessed by that market.
The Exchange believes that increasing the Customer Routing Fee for
orders routed to BX Options from a Fixed Fee from $0.12 to $0.13 per
contract is equitable and not unfairly discriminatory because the
Exchange would uniformly increase the Fixed Fee, similar to NOM, for
all orders routed to BX Options and would continue to uniformly not
assess the actual transaction fee, as is the case today.
The Exchange would uniformly assess a $0.13 per contract Fixed Fee
to orders routed to NASDAQ OMX exchanges because the Exchange is
passing along the saving realized by leveraging NASDAQ OMX's
infrastructure and scale to market participants when those orders are
routed to NOM or BX Options and is providing those saving to all market
participants. Furthermore, it is important to note that when orders are
routed to an away market they are routed based on price first.\13\ The
Exchange believes that it is equitable and not unfairly discriminatory
to assess a fixed cost of $0.13 per contract to route orders to NOM and
BX Options because the cost, in terms of actual cash outlays, to the
Exchange to route to those markets is lower. For example, costs related
to routing to NOM and BX Options are lower as compared to other away
markets because NES is utilized by all three exchanges to route
orders.\14\ NES and the three NASDAQ OMX options markets have a common
data center and staff that are responsible for the day-to-day
operations of NES. Because the three exchanges are in a common data
center, Routing Fees are reduced because costly expenses related to,
for example, telecommunication lines to obtain connectivity are avoided
when routing orders in this instance. The costs related to connectivity
to route orders to other NASDAQ OMX exchanges are lower than the costs
to route to a non-NASDAQ OMX exchange. When routing orders to non-
NASDAQ OMX exchanges, the Exchange incurs costly connectivity charges
related to telecommunication lines, membership and access fees, and
other related costs when routing orders.
---------------------------------------------------------------------------
\13\ See Rule 1080(m).
\14\ See Phlx Rule 1080(m)(iii)(A). See also Chapter VI, Section
11 of BX Options Rules and NOM Rules.
---------------------------------------------------------------------------
The Exchange believes that amending the Customer Routing Fee to
other away markets, other than NOM and BX Options, in the instance the
away market does not pay a rebate from a Fixed Fee of $0.22 to $0.23
per contract is equitable and not unfairly discriminatory because the
Exchange would assess the same Fixed Fee to all orders routed to away
markets other than NOM and BX Options in addition to the transaction
fee. The Exchange's proposal to increase the Customer Routing Fee to
all other options exchanges that pay a rebate, other than NOM and BX
Options, from $0.12 to $0.13 per contract is equitable and not unfairly
discriminatory because the Exchange would assess the same Fixed Fee
that is proposed when routing Customer orders to a NASDAQ OMX exchange.
All market participants that route an order to an away market, other
than NOM or BX Options, would be assessed a uniform fee of $0.13 per
contract if the away market (non-NASDAQ OMX exchange) pays a rebate.
These proposals would apply uniformly to all market participants when
routing to an away market that pays a rebate, other than NOM and BX
Options.
In addition, market participants may submit orders to the Exchange
as ineligible for routing or ``DNR'' to avoid Routing Fees.\15\ Also,
orders are routed to an away market based on price first.\16\
---------------------------------------------------------------------------
\15\ See Rule 1080(m)(iv).
\16\ See Rule 1080(m). See also Chapter VI, Section 11 of the BX
Options Rules and NOM Rules.
---------------------------------------------------------------------------
Finally, the Exchange believes that the added aggregation language
regarding members and member organizations under Common Ownership is
reasonable because the Exchange desires to attract liquidity. The added
language is equitable and not unfairly discriminatory because it would
apply to all members and member organizations uniformly. The Customer
Rebate requirements regarding Tier and volume remain in place. However,
all members and member organizations that are under Common Ownership
will have the ability to aggregate their Customer volume for the
purpose of calculating discount thresholds and receiving discounted
routing fees. The Exchange will apply the aggregation language to all
members and member organizations in a uniform manner.
[[Page 67507]]
The proposal allows the Exchange to continue attracting liquidity
to Phlx while recouping costs incurred by the Exchange to route orders
to away markets.
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 does not believe
that the proposal creates a burden on intra-market competition because
the Exchange is applying the same Routing Fees to all market
participants in the same manner dependent on the routing venue, with
the exception of Customers. The Exchange will continue to assess
separate Customer Routing Fees. Customers will continue to receive the
lowest fees as compared to non-Customers when routing orders, as is the
case today. Other options exchanges also assess lower Routing Fees for
customer orders as compared to non-customer orders.\17\
---------------------------------------------------------------------------
\17\ BATS assesses lower customer routing fees as compared to
non-customer routing fees per the away market. For example BATS
assesses ISE customer routing fees of $0.52 per contract and an ISE
non-customer routing fee of $ 0.65 per contract. See BATS BZX
Exchange Fee Schedule.
---------------------------------------------------------------------------
The Exchange's proposal would allow the Exchange to continue to
recoup its costs when routing Customer orders to NOM or BX Options as
well as away markets that pay a rebate when such orders are designated
as available for routing by the market participant. The Exchange
continues to pass along savings realized by leveraging NASDAQ OMX's
infrastructure and scale to market participants when Customer orders
are routed to NOM and BX Options and is providing those savings to all
market participants. Today, other options exchanges also assess fixed
routing fees to recoup costs incurred by the exchange to route orders
to away markets.\18\ Market participants may submit orders to the
Exchange as ineligible for routing or ``DNR'' to avoid Routing Fees. It
is important to note that when orders are routed to an away market they
are routed based on price first. Today, other options exchanges also
assess similar fees to recoup costs incurred when routing orders to
away markets.
---------------------------------------------------------------------------
\18\ See CBOE's Fees Schedule and ISE's Fee Schedule.
---------------------------------------------------------------------------
The Exchange is seeking to encourage market participants to
transact a greater number of Customer orders on Phlx, which liquidity
benefits all market participants. Customer liquidity benefits all
market participants by providing more trading opportunities, which
attracts specialists and other market makers. An increase in the
activity of these market participants in turn facilitates tighter
spreads, which may cause an additional corresponding increase in order
flow from other market participants. In addition, the credit toward
Customer Routing Fees is in addition to the Customer rebate received
for the qualifying Customer Rebate Tier.
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
Pursuant to Section 19(b)(3)(A)(ii) of the Act,\19\ the Exchange
has designated this proposal as establishing or changing a due, fee, or
other charge imposed by the self-regulatory organization on any person,
whether or not the person is a member of the self-regulatory
organization, which renders the proposed rule change effective upon
filing.
---------------------------------------------------------------------------
\19\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------
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:
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-2014-68 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-2014-68. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-2014-68 and should be
submitted on or before December 4, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
---------------------------------------------------------------------------
\20\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-26840 Filed 11-12-14; 8:45 am]
BILLING CODE 8011-01-P