Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 3301(h), 18662-18664 [2015-07851]

Download as PDF 18662 Federal Register / Vol. 80, No. 66 / Tuesday, April 7, 2015 / Notices SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meeting Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Public Law 94–409, that the Securities and Exchange Commission will hold a Closed Meeting on Thursday, April 9, 2015 at 2 p.m. Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the Closed Meeting. Certain staff members who have an interest in the matters also may be present. The General Counsel of the Commission, or her designee, has certified that, in her opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) and 17 CFR 200.402(a)(3), (5), (7), 9(ii) and (10), permit consideration of the scheduled matter at the Closed Meeting. Commissioner Gallagher, as duty officer, voted to consider the items listed for the Closed Meeting in closed session, and determined that no earlier notice thereof was possible. The subject matter of the Closed Meeting will be: Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings; an adjudicatory matter; and Other matters relating to enforcement proceedings. At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact the Office of the Secretary at (202) 551–5400. Dated: April 2, 2015. Brent J. Fields, Secretary. [FR Doc. 2015–08021 Filed 4–3–15; 11:15 am] BILLING CODE CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION mstockstill on DSK4VPTVN1PROD with NOTICES [Release No. 34–74628; File No. SR–Phlx– 2015–32] Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 3301(h) April 1, 2015. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 VerDate Sep<11>2014 17:46 Apr 06, 2015 Jkt 235001 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on March 24, 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 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 Substance of the Proposed Rule Change The Exchange proposes to amend Rule 3301(h) to introduce the Market Hours Immediate or Cancel Time in Force for use on the NASDAQ OMX PSX System and to modify the processing of Good-til-market closedesignated orders. The text of the proposed rule change is available on the Exchange’s Web site at https://nasdaqomxphlx.cchwall street.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 Exchange is proposing to expand the number of Time in Force designations currently available for use in the PHLX NASDAQ OMX PSX System (‘‘PSX System’’ or ‘‘PSX’’) by adopting a Market Hours Immediate or Cancel (‘‘Market Hours IOC’’ or ‘‘MIOC’’) Time in Force. Time in Force is a characteristic of an order that limits the period of time that PSX System will hold an order for potential execution. Currently the Exchange offers the following six Times in Force for use in PSX: (1) System Hours Immediate or 1 15 2 17 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00077 Fmt 4703 Sfmt 4703 Cancel; (2) System Hours Day; (3) System Hours Good-till-Cancelled; (4) System Hours Expire Time; (5) Market Hours GTC; and (6) Good-til-market close.3 The Exchange is proposing to add the Market Hours IOC Time in Force, which will cause an order designated as such (or unexecuted portion thereof) to be canceled if, after entry into the PSX System, the order (or unexecuted portion thereof) becomes non-marketable during the period from 9:30 a.m. Eastern Time until 4:00 p.m. Eastern Time (‘‘Regular Market Hours’’). The new Time in Force is similar to the System Hours Immediate or Cancel (‘‘SIOC’’) Time in Force, which, as noted above, is currently available on the Exchange. Like the proposed MIOC Time in Force, an order with a Time in Force of SIOC will cause such an order (or a portion thereof) to be canceled and returned to the entering market participant if, after entry into the PSX System, the order (or unexecuted portion thereof) is not marketable. Unlike the System Hours Immediate or Cancel Time in Force, which is available for entry and potential execution from 8:00 a.m. until 5:00 p.m. Eastern Time (‘‘System Hours’’), the proposed MIOC Time in Force is only available for entry and potential execution during Regular Market Hours. As such, MIOC-designated orders will operate in the same manner as SIOCdesignated orders, but are limited to entry and potential execution only during Regular Market Hours. The Exchange notes that, because it is an immediate or cancel time in force,4 the Exchange believes that it is appropriate to limit MIOC order entry to Regular Market Hours. An order designated with a Time in Force of MIOC that is entered outside of Regular Market Hours will be returned to the entering member firm without attempting to execute. The Exchange notes that the NASDAQ Stock Market LLC (‘‘NASDAQ’’) currently has a MIOC Time in Force, which was adopted in 2006.5 The Exchange’s proposed MIOC Time in Force will operate identically, but will be available during a slightly different time period, which is attributable to NASDAQ’s Opening Cross process.6 3 See Rules 3301(h)(1)–(8). The Exchange notes that Rules 3301(h)(5) and (6) are currently held in reserve. 4 An order designated as ‘‘immediate or cancel’’ represents the entering member firm’s desire for the order to either execute immediately after the System determines whether the order is marketable or be canceled. 5 See Securities Exchange Act Release No. 54155 (July 16 [sic], 2006), 71 FR 41291 (July 20, 2006)(SR–NASDAQ–2006–001); see also NASDAQ Rule 4751(h)(5). 6 See NASDAQ Rule 4752. E:\FR\FM\07APN1.SGM 07APN1 Federal Register / Vol. 80, No. 66 / Tuesday, April 7, 2015 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES Specifically, the Exchange’s MIOC Time in Force will be available for entry and potential execution from 9:30 a.m. through 4:00 p.m. Eastern Time, whereas NASDAQ’s MIOC Time in Force is available for entry and potential execution beginning after the completion of the NASDAQ Opening Cross 7 through 4:00 p.m. Eastern Time.8 Unlike NASDAQ, PSX does not have an opening cross process, but rather opens for Regular Market Hours trading at 9:30 a.m. Eastern Time.9 Otherwise, the Exchange’s proposed MIOC Time in Force will operate identically to NASDAQ’s. The Exchange is also proposing to modify the processing of orders designated as Good-til-market close (‘‘GTMC’’).10 As noted above, the Exchange currently has a GTMC Time in Force, which allows an order designated as such to be executed from 8:00 a.m. to 4:00 p.m. Eastern Time. GTMCdesignated orders entered after 4:00 p.m. Eastern Time, however, are converted to a Time in Force of SIOC. In lieu of converting such orders, the Exchange is proposing to no longer accept GTMC orders for execution after 4:00 p.m. Eastern Time. As a consequence, the Exchange is adding rule text to the rule noting the GTMC orders entered after 4:00 p.m. Eastern Time will not be accepted and is deleting text concerning conversion of the order. The Exchange notes that NASDAQ recently made similar changes to its GTMC Time in Force, whereby it will no longer accept GTMC-designated orders after initiation of its Lockdown Period, the time at which no further orders for participation in the NASDAQ Closing Cross or the continuous market will be accepted, which begins at 4:00 p.m. Eastern Time.11 7 NASDAQ’s Opening Cross begins at 9:30 a.m. Eastern Time and market hours trading commences when the Opening Cross concludes. See NASDAQ Rule 4752(d). 8 The Exchange notes that NASDAQ recently provided the Commission notice of a proposed immediately effective filing to simplify handling of NASDAQ MIOC-designated orders by no longer accepting such orders prior to the completion of the NASDAQ Opening Cross. See SR–NASDAQ–2015– 11P. 9 The System is opened for order entry at 8:00 a.m. Eastern Time and begins to process each order in accordance with its characteristics immediately. All trades executed prior to 9:30 a.m. shall be automatically appended with the ‘‘.T’’ modifier. See Rule 3302. 10 See Rule 4751(h)(8). 11 See Securities Exchange Act Release No. 73943 (December 24, 2014), 80 FR 69 (January 2, 2015) (SR–NASDAQ–2014–123); see also Securities Exchange Act Release No. 74342 (February 20, 2015), 80 FR 10562 (February 26, 2015) (SR– NASDAQ–2015–014) (delaying implementation of the changes made by SR–NASDAQ–2014–123 until April 13, 2015). VerDate Sep<11>2014 17:46 Apr 06, 2015 Jkt 235001 2. Statutory Basis PHLX believes that the proposed rule changes are consistent with the provisions of Section 6 of the Act,12 in general, and with Section 6(b)(5) of the Act,13 in particular, in that the proposal is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest; and also in that it is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The Exchange believes that offering market participants with an additional Time in Force, which NASDAQ has had since 2006, is indicative of the Exchange’s maturation as an equities market. Allowing Exchange participants the ability to more precisely select when their order may be executed removes impediments and perfects the mechanism of the market because it benefits all market participants and ensures that PHLX is able to compete with other market venues by providing similar tools and functionality. This functionality is nearly identical to the MIOC Time in Force that has been available on NASDAQ since 2006 and is well known to its market participants. Lastly, offering MIOC to PSX market participants raises no issues concerning unfair discrimination as the new Time in Force is available to all PSX market participants. The proposed changes to the processing of GTMC-designated orders further these objectives because the changes simplify processing of such orders when entered after the close of Regular Market Hours. Rather than converting GTMC-designated orders to an order with a different time-in-force if entered after the market close, the Exchange will no longer accept them after 4:00 p.m. Eastern Time, which is consistent with a market participant’s intent to execute during the period from 8:00 a.m. and 4:00 p.m. To the extent a member firm would like to participate in post-market hours trading, it may enter a new order eligible to participate in post-market trading. Moreover, simplifying the processing of GTMCdesignated orders will remove 12 15 13 15 PO 00000 U.S.C. 78f. U.S.C. 78f(b)(4) [sic] and (5). Frm 00078 Fmt 4703 Sfmt 4703 18663 complication in the handling of such orders, thereby further improving the operation of the market. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Specifically, the Exchange believes that the proposal will enhance PHLX’s competitiveness by providing its market participants with an additional option to limit when their orders may be executed. As discussed above, the MIOC Time in Force is available on NASDAQ, and providing it on PSX will allow PHLX to compete with NASDAQ and any other market venue that provides similar Time in Force functionality. This may, in turn, increase the extent of liquidity available on PSX and increase its ability to compete with other execution venues to attract orders that are seeking immediate execution during Regular Market Hours. The Exchange further believes that the introduction of the MIOC Time in Force will not impair in any manner the ability of market participants or other execution venues to compete. The proposed changes to GTMC Time in Force are designed to promote consistency and stability in the closing process and in the handling of orders after Regular Market Hours has [sic] ended. Such changes do not place a burden on competition between market participants as the changes are applied consistently to all PSX market participants. Moreover, the proposed changes may foster competition among exchanges and other markets, to the extent they make PSX a more attractive venue to market participants. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 14 and Rule 19b–4(f)(6) thereunder.15 Because the 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 14 15 15 17 E:\FR\FM\07APN1.SGM U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 07APN1 18664 Federal Register / Vol. 80, No. 66 / Tuesday, April 7, 2015 / Notices for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 16 and Rule 19b–4(f)(6)(iii) thereunder.17 The Exchange represents that this proposed rule change will be implemented during the Second Quarter of 2015 subject to the issuance of an Equity Trader Alert that will provide at least 30 days of notice prior to the operative date for the respective amendments to Rule 4751(h). 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–2015–32 on the subject line. mstockstill on DSK4VPTVN1PROD with NOTICES Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–Phlx–2015–32. 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 16 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange’s 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, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 17 17 VerDate Sep<11>2014 17:46 Apr 06, 2015 Jkt 235001 Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal offices of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–Phlx– 2015–32, and should be submitted on or before May 7, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Brent J. Fields, Secretary. reserved for meetings of the Committee’s subcommittees), and inviting the public to submit written comments to the Committee. This Sunshine Act notice is being issued because a quorum of the Commission may attend the meeting. The agenda for the meeting includes: Remarks from Commissioners; nomination of candidates for officer positions and election of officers; a discussion of the Commodity Futures Trading Commission’s investor behavior survey results; a discussion of background checks as a means to address elder financial abuse (which may include a recommendation); a discussion of proxy access and staff review of Rule 14a–8(i)(9) under the Securities Exchange Act of 1934 (which may include a recommendation); an update on the SEC proxy voting roundtable; an update on the recommendations of the SEC Advisory Committee on Small and Emerging Companies; and nonpublic subcommittee meetings. For further information, please contact the Office of the Secretary at (202) 551–5400. Dated: April 2, 2015. Brent J. Fields, Secretary. [FR Doc. 2015–08020 Filed 4–3–15; 11:15 am] BILLING CODE CODE 8011–01–P [FR Doc. 2015–07851 Filed 4–6–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request Sunshine Act Meeting Upon Written Request Copies Available From: U.S. Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 20549–2736. Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Public Law 94–409, that the Securities and Exchange Commission Investor Advisory Committee will hold a meeting on Thursday, April 9, 2015, in MultiPurpose Room LL–006 at the Commission’s headquarters, 100 F Street NE., Washington, DC. The meeting will begin at 9:30 a.m. (ET) and will be open to the public. Seating will be on a first-come, first-served basis. Doors will open at 9 a.m. Visitors will be subject to security checks. The meeting will be webcast on the Commission’s Web site at www.sec.gov. On March 18, 2015, the Commission issued notice of the Committee meeting (Release No. 33–9739), indicating that the meeting is open to the public (except during portions of the meeting 18 17 PO 00000 CFR 200.30–3(a)(12). Frm 00079 Fmt 4703 Sfmt 4703 Extension: Rule 17f–2. SEC File No. 270–233, OMB Control No. 3235–0223. Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 350l et seq.), the Securities and Exchange Commission (the ‘‘Commission’’) is soliciting comments on the collection of information summarized below. The Commission plans to submit this existing collection of information to the Office of Management and Budget for extension and approval. Rule 17f–2 (17 CFR 270.17f–2), entitled ‘‘Custody of Investments by Registered Management Investment Company,’’ was adopted in 1940 under section 17(f) of the Investment Company Act of 1940 (15 U.S.C. 80a–17(f)) (the ‘‘Act’’), and was last amended E:\FR\FM\07APN1.SGM 07APN1

Agencies

[Federal Register Volume 80, Number 66 (Tuesday, April 7, 2015)]
[Notices]
[Pages 18662-18664]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-07851]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74628; File No. SR-Phlx-2015-32]


Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Rule 3301(h)

April 1, 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 March 24, 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 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rule 3301(h) to introduce the Market 
Hours Immediate or Cancel Time in Force for use on the NASDAQ OMX PSX 
System and to modify the processing of Good-til-market close-designated 
orders.
    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 Exchange is proposing to expand the number of Time in Force 
designations currently available for use in the PHLX NASDAQ OMX PSX 
System (``PSX System'' or ``PSX'') by adopting a Market Hours Immediate 
or Cancel (``Market Hours IOC'' or ``MIOC'') Time in Force. Time in 
Force is a characteristic of an order that limits the period of time 
that PSX System will hold an order for potential execution. Currently 
the Exchange offers the following six Times in Force for use in PSX: 
(1) System Hours Immediate or Cancel; (2) System Hours Day; (3) System 
Hours Good-till-Cancelled; (4) System Hours Expire Time; (5) Market 
Hours GTC; and (6) Good-til-market close.\3\ The Exchange is proposing 
to add the Market Hours IOC Time in Force, which will cause an order 
designated as such (or unexecuted portion thereof) to be canceled if, 
after entry into the PSX System, the order (or unexecuted portion 
thereof) becomes non-marketable during the period from 9:30 a.m. 
Eastern Time until 4:00 p.m. Eastern Time (``Regular Market Hours''). 
The new Time in Force is similar to the System Hours Immediate or 
Cancel (``SIOC'') Time in Force, which, as noted above, is currently 
available on the Exchange. Like the proposed MIOC Time in Force, an 
order with a Time in Force of SIOC will cause such an order (or a 
portion thereof) to be canceled and returned to the entering market 
participant if, after entry into the PSX System, the order (or 
unexecuted portion thereof) is not marketable. Unlike the System Hours 
Immediate or Cancel Time in Force, which is available for entry and 
potential execution from 8:00 a.m. until 5:00 p.m. Eastern Time 
(``System Hours''), the proposed MIOC Time in Force is only available 
for entry and potential execution during Regular Market Hours. As such, 
MIOC-designated orders will operate in the same manner as SIOC-
designated orders, but are limited to entry and potential execution 
only during Regular Market Hours. The Exchange notes that, because it 
is an immediate or cancel time in force,\4\ the Exchange believes that 
it is appropriate to limit MIOC order entry to Regular Market Hours. An 
order designated with a Time in Force of MIOC that is entered outside 
of Regular Market Hours will be returned to the entering member firm 
without attempting to execute.
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    \3\ See Rules 3301(h)(1)-(8). The Exchange notes that Rules 
3301(h)(5) and (6) are currently held in reserve.
    \4\ An order designated as ``immediate or cancel'' represents 
the entering member firm's desire for the order to either execute 
immediately after the System determines whether the order is 
marketable or be canceled.
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    The Exchange notes that the NASDAQ Stock Market LLC (``NASDAQ'') 
currently has a MIOC Time in Force, which was adopted in 2006.\5\ The 
Exchange's proposed MIOC Time in Force will operate identically, but 
will be available during a slightly different time period, which is 
attributable to NASDAQ's Opening Cross process.\6\

[[Page 18663]]

Specifically, the Exchange's MIOC Time in Force will be available for 
entry and potential execution from 9:30 a.m. through 4:00 p.m. Eastern 
Time, whereas NASDAQ's MIOC Time in Force is available for entry and 
potential execution beginning after the completion of the NASDAQ 
Opening Cross \7\ through 4:00 p.m. Eastern Time.\8\ Unlike NASDAQ, PSX 
does not have an opening cross process, but rather opens for Regular 
Market Hours trading at 9:30 a.m. Eastern Time.\9\ Otherwise, the 
Exchange's proposed MIOC Time in Force will operate identically to 
NASDAQ's.
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    \5\ See Securities Exchange Act Release No. 54155 (July 16 
[sic], 2006), 71 FR 41291 (July 20, 2006)(SR-NASDAQ-2006-001); see 
also NASDAQ Rule 4751(h)(5).
    \6\ See NASDAQ Rule 4752.
    \7\ NASDAQ's Opening Cross begins at 9:30 a.m. Eastern Time and 
market hours trading commences when the Opening Cross concludes. See 
NASDAQ Rule 4752(d).
    \8\ The Exchange notes that NASDAQ recently provided the 
Commission notice of a proposed immediately effective filing to 
simplify handling of NASDAQ MIOC-designated orders by no longer 
accepting such orders prior to the completion of the NASDAQ Opening 
Cross. See SR-NASDAQ-2015-11P.
    \9\ The System is opened for order entry at 8:00 a.m. Eastern 
Time and begins to process each order in accordance with its 
characteristics immediately. All trades executed prior to 9:30 a.m. 
shall be automatically appended with the ``.T'' modifier. See Rule 
3302.
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    The Exchange is also proposing to modify the processing of orders 
designated as Good-til-market close (``GTMC'').\10\ As noted above, the 
Exchange currently has a GTMC Time in Force, which allows an order 
designated as such to be executed from 8:00 a.m. to 4:00 p.m. Eastern 
Time. GTMC-designated orders entered after 4:00 p.m. Eastern Time, 
however, are converted to a Time in Force of SIOC. In lieu of 
converting such orders, the Exchange is proposing to no longer accept 
GTMC orders for execution after 4:00 p.m. Eastern Time. As a 
consequence, the Exchange is adding rule text to the rule noting the 
GTMC orders entered after 4:00 p.m. Eastern Time will not be accepted 
and is deleting text concerning conversion of the order. The Exchange 
notes that NASDAQ recently made similar changes to its GTMC Time in 
Force, whereby it will no longer accept GTMC-designated orders after 
initiation of its Lockdown Period, the time at which no further orders 
for participation in the NASDAQ Closing Cross or the continuous market 
will be accepted, which begins at 4:00 p.m. Eastern Time.\11\
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    \10\ See Rule 4751(h)(8).
    \11\ See Securities Exchange Act Release No. 73943 (December 24, 
2014), 80 FR 69 (January 2, 2015) (SR-NASDAQ-2014-123); see also 
Securities Exchange Act Release No. 74342 (February 20, 2015), 80 FR 
10562 (February 26, 2015) (SR-NASDAQ-2015-014) (delaying 
implementation of the changes made by SR-NASDAQ-2014-123 until April 
13, 2015).
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2. Statutory Basis
    PHLX believes that the proposed rule changes are consistent with 
the provisions of Section 6 of the Act,\12\ in general, and with 
Section 6(b)(5) of the Act,\13\ in particular, in that the proposal is 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitating 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest; and also in 
that it is not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers. The Exchange believes that 
offering market participants with an additional Time in Force, which 
NASDAQ has had since 2006, is indicative of the Exchange's maturation 
as an equities market. Allowing Exchange participants the ability to 
more precisely select when their order may be executed removes 
impediments and perfects the mechanism of the market because it 
benefits all market participants and ensures that PHLX is able to 
compete with other market venues by providing similar tools and 
functionality. This functionality is nearly identical to the MIOC Time 
in Force that has been available on NASDAQ since 2006 and is well known 
to its market participants. Lastly, offering MIOC to PSX market 
participants raises no issues concerning unfair discrimination as the 
new Time in Force is available to all PSX market participants.
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    \12\ 15 U.S.C. 78f.
    \13\ 15 U.S.C. 78f(b)(4) [sic] and (5).
---------------------------------------------------------------------------

    The proposed changes to the processing of GTMC-designated orders 
further these objectives because the changes simplify processing of 
such orders when entered after the close of Regular Market Hours. 
Rather than converting GTMC-designated orders to an order with a 
different time-in-force if entered after the market close, the Exchange 
will no longer accept them after 4:00 p.m. Eastern Time, which is 
consistent with a market participant's intent to execute during the 
period from 8:00 a.m. and 4:00 p.m. To the extent a member firm would 
like to participate in post-market hours trading, it may enter a new 
order eligible to participate in post-market trading. Moreover, 
simplifying the processing of GTMC-designated orders will remove 
complication in the handling of such orders, thereby further improving 
the operation of the market.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. Specifically, 
the Exchange believes that the proposal will enhance PHLX's 
competitiveness by providing its market participants with an additional 
option to limit when their orders may be executed. As discussed above, 
the MIOC Time in Force is available on NASDAQ, and providing it on PSX 
will allow PHLX to compete with NASDAQ and any other market venue that 
provides similar Time in Force functionality. This may, in turn, 
increase the extent of liquidity available on PSX and increase its 
ability to compete with other execution venues to attract orders that 
are seeking immediate execution during Regular Market Hours. The 
Exchange further believes that the introduction of the MIOC Time in 
Force will not impair in any manner the ability of market participants 
or other execution venues to compete. The proposed changes to GTMC Time 
in Force are designed to promote consistency and stability in the 
closing process and in the handling of orders after Regular Market 
Hours has [sic] ended. Such changes do not place a burden on 
competition between market participants as the changes are applied 
consistently to all PSX market participants. Moreover, the proposed 
changes may foster competition among exchanges and other markets, to 
the extent they make PSX a more attractive venue to market 
participants.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\ 
Because the 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

[[Page 18664]]

for 30 days from the date on which it was filed, or such shorter time 
as the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \16\ and Rule 19b-
4(f)(6)(iii) thereunder.\17\ The Exchange represents that this proposed 
rule change will be implemented during the Second Quarter of 2015 
subject to the issuance of an Equity Trader Alert that will provide at 
least 30 days of notice prior to the operative date for the respective 
amendments to Rule 4751(h).
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    \14\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's 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, or such shorter time as designated by the Commission. The 
Exchange has satisfied this requirement.
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is 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-2015-32 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2015-32. 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 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-2015-32, 
and should be submitted on or before May 7, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-07851 Filed 4-6-15; 8:45 am]
BILLING CODE 8011-01-P
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