Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Pricing Schedule Under Section VIII With Respect To Execution and Routing of Orders in Securities Priced at $1 or More Per Share, 6148-6150 [2015-02105]
Download as PDF
6148
Federal Register / Vol. 80, No. 23 / Wednesday, February 4, 2015 / Notices
the Exchange. Enhancing the audit trail
with respect to open outcry complex
order processing will further improve
the Exchange’s ability to better enforce
compliance by the Exchange’s TPHs
(and persons associated with its TPHs)
with the Act, the rules and regulations
thereunder and the rules of the
Exchange.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE 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. The
Exchange does not believe that the
proposed rule change will impose any
burden on intramarket or intermarket
competition because the order ticket
requirements will be applicable to all
TPHs executing complex orders in open
outcry and SPX Combo Orders.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the Exchange consents, the Commission
will:
A. By order approve or disapprove
such proposed rule change, or
B. institute proceedings to determine
whether the proposed rule change
should be disapproved.
The Exchange has requested
accelerated approval of the proposed
rule change. The Commission is
considering granting accelerated
approval of the proposed rule change at
the end of a 15-day comment period.
mstockstill on DSK4VPTVN1PROD with NOTICES
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
• Send an email to rulecomments@sec.gov. Please include File
Number SR–CBOE–2015–011 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CBOE–2015–011. 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–CBOE–
2015–011 and should be submitted on
or before February 19, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015–02104 Filed 2–3–15; 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
VerDate Sep<11>2014
18:18 Feb 03, 2015
Jkt 235001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74170; File No. SR–Phlx–
2015–08]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Exchange’s Pricing Schedule Under
Section VIII With Respect To Execution
and Routing of Orders in Securities
Priced at $1 or More Per Share
January 29, 2015.
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 January
16, 2015, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III, below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Exchange’s Pricing Schedule under
Section VIII, entitled ‘‘NASDAQ OMX
PSX FEES,’’ with respect to execution
and routing of orders in securities
priced at $1 or more per share.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxphlx.cchwallstreet.com/, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
1 15
21 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00110
Fmt 4703
Sfmt 4703
2 17
E:\FR\FM\04FEN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
04FEN1
Federal Register / Vol. 80, No. 23 / Wednesday, February 4, 2015 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
mstockstill on DSK4VPTVN1PROD with NOTICES
1. Purpose
The purpose of the proposed rule
change is to amend the certain fees and
rebates for order execution and routing
applicable to the use of the order
execution and routing services of the
NASDAQ OMX PSX System (‘‘PSX’’) by
member organizations for all securities
traded at $1 or more per share.
Currently, for non-displayed orders
the Exchange assesses a charge of
‘‘$0.0003 per share executed charge for
a midpoint pegged order (‘‘midpoint
order’’)’’. The Exchange proposes to
delete this so that the charge for orders
with midpoint pegging to access
liquidity will revert to the $0.0024 per
share executed charge currently
assessed on member organizations that
enter orders that execute in PSX.
Additionally, the Exchange proposes
to eliminate the $0.0003 per share
executed charge for orders that execute
against resting midpoint liquidity and
add a $0.0010 per share credit for orders
with midpoint pegging that provide
liquidity.
The current $0.0005 per share
executed credit for other non-displayed
orders that provide liquidity will remain
unchanged, but within the Pricing
Schedule it will follow the charge listed
in the paragraph immediately above for
purposes of clarity. This makes it clear
that the word ‘‘other’’ in ‘‘other nondisplayed orders that provide liquidity’’
refers to orders other than ‘‘orders with
midpoint pegging’’.
2. Statutory Basis
The Exchange believes that its
proposal to amend its Pricing Schedule
is consistent with Section 6(b) of the
Act 3 in general, and furthers the
objectives of Sections 6(b)(4) and (b)(5)
of the Act 4 in particular, in that it is an
equitable allocation of reasonable fees
and other charges among Exchange
members and other persons using its
facilities, and it does not unfairly
discriminate between customers,
issuers, brokers or dealers. The
proposed changes are reasonable
because they reflect the Exchange’s need
to adjust its credits and fees in response
to the costs and benefits provided.
Credits provided by the Exchange are
given in lieu of assessing normal fees,
and accordingly provide incentives to
market participants to enter such orders.
The proposed changes balance the
3 15
4 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
VerDate Sep<11>2014
18:18 Feb 03, 2015
Exchange’s desire to provide certain
incentives to market participants with
the costs the Exchange incurs in
providing such incentives.
Thus, the proposed change with
respect to the elimination of the $0.0003
per share executed charge for a
midpoint pegged order is reasonable
because by eliminating the charge
within this part of the Pricing Schedule,
the charge will become the already
existing current charge of $0.0024 per
share executed assessed on member
organizations that enter orders that
execute in PSX, regardless of the listing
venue of the security. The Exchange
also believes that the proposed change
is consistent with an equitable
allocation of fees and is not unfairly
discriminatory because it applies to all
member organizations that enter orders
that execute in PSX, regardless of the
listing venue of the security.
The Exchange believes that
eliminating the $0.0003 per share
executed charge for orders that execute
against resting midpoint liquidity is
reasonable for the reasons discussed
above regarding the Exchange’s need to
adjust its credits and fees. The Exchange
also believes that it is consistent with an
equitable allocation of fees and is not
unfairly discriminatory because it
applies to all market participants.
The Exchange believes that adding a
$0.0010 per share credit for orders with
midpoint pegging that provide liquidity
is reasonable for the reasons discussed
above regarding the Exchange’s need to
adjust its credits and fees. Specifically,
the Exchange believes that the $0.0010
per share credit for orders with
midpoint pegging will incentivize
market participants to add liquidity
using orders with midpoint pegging.
The Exchange also believes that the
$0.0010 per share credit for orders with
midpoint pegging is consistent with an
equitable allocation of fees and is not
unfairly discriminatory because it
applies to all market participants that
provide liquidity using orders with
midpoint pegging, regardless of the
listing venue of the security of the order.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.5
The Exchange notes that it operates in
a highly competitive market in which
market participants can readily favor
competing venues if they deem fee
levels at a particular venue to be
5 15
Jkt 235001
PO 00000
U.S.C. 78f(b)(8).
Frm 00111
Fmt 4703
excessive, or rebate opportunities
available at other venues to be more
favorable. In such an environment, the
Exchange must continually adjust its
fees to remain competitive with other
exchanges and with alternative trading
systems that have been exempted from
compliance with the statutory standards
applicable to exchanges. Because
competitors are free to modify their own
fees in response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited. In this instance, the changes to
the credits provided and charges
assessed are intended to reduce the
Exchange’s costs, while still continuing
to provide an incentive for members to
execute shares on PSX. Because there
are numerous competitive alternatives
to PSX, it is likely the Exchange will
lose market share as a result of the
changes if they are unattractive to
market participants. Accordingly, the
Exchange does not believe the proposed
changes will impair the ability of
members or competing order execution
venues to maintain their competitive
standing in the financial markets.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Pursuant to Section 19(b)(3)(A)(ii) of
the Act,6 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.
6 15
Sfmt 4703
6149
E:\FR\FM\04FEN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
04FEN1
6150
Federal Register / Vol. 80, No. 23 / Wednesday, February 4, 2015 / Notices
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
• 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–2015–08 on the subject line.
Paper Comments
mstockstill on DSK4VPTVN1PROD with NOTICES
• 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–2015–08. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–Phlx–
2015–08 and should be submitted on or
before February 25, 2015.
18:18 Feb 03, 2015
[FR Doc. 2015–02105 Filed 2–3–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
VerDate Sep<11>2014
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Jill M. Peterson,
Assistant Secretary.
Jkt 235001
[Release No. 34–74175; File No. SR–
NYSEArca–2015–01]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change Amending NYSE Arca
Equities Rule 5.2(j)(3), Commentary .02
Relating To Listing of Investment
Company Units Based on Municipal
Bond Indexes
January 29, 2015.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on January
16, 2015, NYSE Arca, Inc. (‘‘Exchange’’
or ‘‘NYSE Arca’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02 relating to listing of
Investment Company Units based on
municipal bond indexes. The text of the
proposed rule change is available on the
Exchange’s Web site at www.nyse.com,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NYSE Arca Equities Rule 5.2(j)(3)
permits the listing and trading,
including trading pursuant to unlisted
trading privileges (‘‘UTP’’), of
Investment Company Units (‘‘Units’’).4
NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02 provides for listing on
the Exchange pursuant to Rule 19b–
4(e) 5 under the Act of a series of Units
with an underlying index or portfolio of
Fixed Income Securities 6 meeting
specified criteria.7 These ‘‘generic’’
listing criteria permit listing and trading
on the Exchange of series of Units
meeting such criteria without
Commission approval of each
individual product pursuant to Section
19(b)(2) of the Act.8
NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02(a)(2) provides that, in
order to be listed and traded pursuant
to Rule 19b–4(e), components of an
index or portfolio that in aggregate
account for at least 75% of the weight
4 An Investment Company Unit is a security that
represents an interest in a registered investment
company that holds securities comprising, or
otherwise based on or representing an interest in,
an index or portfolio of securities (or holds
securities in another registered investment
company that holds securities comprising, or
otherwise based on or representing an interest in,
an index or portfolio of securities). See NYSE Arca
Equities Rule 5.2(j)(3)(A).
5 17 CFR 240.19b–4(e).
6 Fixed Income Securities are described in NYSE
Arca Equities Rule 5.2(j)(3), Commentary .02 as debt
securities that are notes, bonds, debentures or
evidence of indebtedness that include, but are not
limited to, U.S. Department of Treasury securities,
government-sponsored entity securities, municipal
securities, trust preferred securities, supranational
debt and debt of a foreign country or a subdivision
thereof.
7 The Commission approved NYSE Arca Equities
Rule 5.2(j)(3), Commentary .02 in Securities
Exchange Act Release No. 55783 (May 17, 2007), 72
FR 29194 (May 24, 2007) (SR–NYSEArca–2007–36)
(order approving generic listing standards for series
of Units based on Fixed Income Indexes and
Combination Indexes). The Commission also
approved generic listing standards for the American
Stock Exchange LLC (‘‘Amex’’) for Index Fund
Shares based on Fixed Income Indexes and
Combination Indexes in Securities Exchange Act
Release No. 55437 (March 9, 2007), 72 FR 12233
(March 15, 2007) (SR–Amex–2006–118). The
Commission has approved listing of exchangetraded funds based on a fixed income index or
portfolio. See, e.g., Securities Exchange Act Release
No. 48534 (September 24, 2003), 68 FR 56353
(September 30, 2003) (SR–Amex–2003–75) (order
approving listing on Amex of eight series of iShares
Lehman Bond Funds).
8 15 U.S.C. 78s(b)(2).
E:\FR\FM\04FEN1.SGM
04FEN1
Agencies
[Federal Register Volume 80, Number 23 (Wednesday, February 4, 2015)]
[Notices]
[Pages 6148-6150]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-02105]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74170; File No. SR-Phlx-2015-08]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Exchange's Pricing Schedule Under Section VIII With Respect To
Execution and Routing of Orders in Securities Priced at $1 or More Per
Share
January 29, 2015.
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 January 16, 2015, 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 amend the Exchange's Pricing Schedule
under Section VIII, entitled ``NASDAQ OMX PSX FEES,'' with respect to
execution and routing of orders in securities priced at $1 or more per
share.
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaqomxphlx.cchwallstreet.com/, at the principal
office of the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
[[Page 6149]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to amend the certain
fees and rebates for order execution and routing applicable to the use
of the order execution and routing services of the NASDAQ OMX PSX
System (``PSX'') by member organizations for all securities traded at
$1 or more per share.
Currently, for non-displayed orders the Exchange assesses a charge
of ``$0.0003 per share executed charge for a midpoint pegged order
(``midpoint order'')''. The Exchange proposes to delete this so that
the charge for orders with midpoint pegging to access liquidity will
revert to the $0.0024 per share executed charge currently assessed on
member organizations that enter orders that execute in PSX.
Additionally, the Exchange proposes to eliminate the $0.0003 per
share executed charge for orders that execute against resting midpoint
liquidity and add a $0.0010 per share credit for orders with midpoint
pegging that provide liquidity.
The current $0.0005 per share executed credit for other non-
displayed orders that provide liquidity will remain unchanged, but
within the Pricing Schedule it will follow the charge listed in the
paragraph immediately above for purposes of clarity. This makes it
clear that the word ``other'' in ``other non-displayed orders that
provide liquidity'' refers to orders other than ``orders with midpoint
pegging''.
2. Statutory Basis
The Exchange believes that its proposal to amend its Pricing
Schedule is consistent with Section 6(b) of the Act \3\ in general, and
furthers the objectives of Sections 6(b)(4) and (b)(5) of the Act \4\
in particular, in that it is an equitable allocation of reasonable fees
and other charges among Exchange members and other persons using its
facilities, and it does not unfairly discriminate between customers,
issuers, brokers or dealers. The proposed changes are reasonable
because they reflect the Exchange's need to adjust its credits and fees
in response to the costs and benefits provided. Credits provided by the
Exchange are given in lieu of assessing normal fees, and accordingly
provide incentives to market participants to enter such orders. The
proposed changes balance the Exchange's desire to provide certain
incentives to market participants with the costs the Exchange incurs in
providing such incentives.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
Thus, the proposed change with respect to the elimination of the
$0.0003 per share executed charge for a midpoint pegged order is
reasonable because by eliminating the charge within this part of the
Pricing Schedule, the charge will become the already existing current
charge of $0.0024 per share executed assessed on member organizations
that enter orders that execute in PSX, regardless of the listing venue
of the security. The Exchange also believes that the proposed change is
consistent with an equitable allocation of fees and is not unfairly
discriminatory because it applies to all member organizations that
enter orders that execute in PSX, regardless of the listing venue of
the security.
The Exchange believes that eliminating the $0.0003 per share
executed charge for orders that execute against resting midpoint
liquidity is reasonable for the reasons discussed above regarding the
Exchange's need to adjust its credits and fees. The Exchange also
believes that it is consistent with an equitable allocation of fees and
is not unfairly discriminatory because it applies to all market
participants.
The Exchange believes that adding a $0.0010 per share credit for
orders with midpoint pegging that provide liquidity is reasonable for
the reasons discussed above regarding the Exchange's need to adjust its
credits and fees. Specifically, the Exchange believes that the $0.0010
per share credit for orders with midpoint pegging will incentivize
market participants to add liquidity using orders with midpoint
pegging. The Exchange also believes that the $0.0010 per share credit
for orders with midpoint pegging is consistent with an equitable
allocation of fees and is not unfairly discriminatory because it
applies to all market participants that provide liquidity using orders
with midpoint pegging, regardless of the listing venue of the security
of the order.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act, as amended.\5\ The Exchange
notes that it operates in a highly competitive market in which market
participants can readily favor competing venues if they deem fee levels
at a particular venue to be excessive, or rebate opportunities
available at other venues to be more favorable. In such an environment,
the Exchange must continually adjust its fees to remain competitive
with other exchanges and with alternative trading systems that have
been exempted from compliance with the statutory standards applicable
to exchanges. Because competitors are free to modify their own fees in
response, and because market participants may readily adjust their
order routing practices, the Exchange believes that the degree to which
fee changes in this market may impose any burden on competition is
extremely limited. In this instance, the changes to the credits
provided and charges assessed are intended to reduce the Exchange's
costs, while still continuing to provide an incentive for members to
execute shares on PSX. Because there are numerous competitive
alternatives to PSX, it is likely the Exchange will lose market share
as a result of the changes if they are unattractive to market
participants. Accordingly, the Exchange does not believe the proposed
changes will impair the ability of members or competing order execution
venues to maintain their competitive standing in the financial markets.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b)(8).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Pursuant to Section 19(b)(3)(A)(ii) of the Act,\6\ 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.
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\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is 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.
[[Page 6150]]
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-2015-08 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-2015-08. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-2015-08 and should be
submitted on or before February 25, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-02105 Filed 2-3-15; 8:45 am]
BILLING CODE 8011-01-P