Self-Regulatory Organizations; NASDAQ OMX Phlx LLC; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of Proposed Rule Change, as Modified by Amendment No. 1, To Amend and Restate Certain Rules That Govern the NASDAQ OMX PSX, 37327-37329 [2015-15974]
Download as PDF
Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Notices
trading in the securities of the abovelisted companies is suspended for the
period from 9:30 a.m. EDT on June 26,
2015, through 11:59 p.m. EDT on July
10, 2015.
SECURITIES AND EXCHANGE
COMMISSION
By the Commission.
Jill M. Peterson,
Assistant Secretary.
Self-Regulatory Organizations;
NASDAQ OMX Phlx LLC; Notice of
Filing of Amendment No. 1 and Order
Granting Accelerated Approval of
Proposed Rule Change, as Modified by
Amendment No. 1, To Amend and
Restate Certain Rules That Govern the
NASDAQ OMX PSX
[FR Doc. 2015–16148 Filed 6–26–15; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
June 24, 2015.
I. Introduction
asabaliauskas on DSK5VPTVN1PROD with NOTICES
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, July 2, 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 Aguilar, as duty
officer, voted to consider the items
listed for the Closed Meeting in closed
session.
The subject matter of the Closed
Meeting will be:
Institution and settlement of
injunctive actions;
Institution and settlement of
administrative proceedings;
Adjudicatory matters; 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: June 25, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015–16095 Filed 6–26–15; 11:15 am]
BILLING CODE 8011–01–P
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17:34 Jun 29, 2015
[Release No. 34–75293; File No. SR–Phlx–
2015–29]
Jkt 235001
On March 20, 2015, NASDAQ OMX
PHLX LLC (‘‘Phlx’’ or the ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to amend and restate certain
Phlx rules that govern NASDAQ OMX
PSX (‘‘PSX’’) in order to provide a
clearer and more detailed description of
certain aspects of its functionality. The
proposed rule change was published for
comment in the Federal Register on
April 6, 2015.3 The Commission
received no comment letters regarding
the proposed rule change. On May 13,
2015, the Commission extended to July
5, 2015, the time period in which to
approve the proposed rule change,
disapprove the proposed rule change, or
institute proceedings to determine
whether the proposed rule change
should be disapproved.4 On June 22,
2015, the Exchange filed Amendment
No. 1 to the proposed rule change.5 This
order approves the proposed rule
change, as amended, on an accelerated
basis.
II. Description of the Amended
Proposal
The Exchange proposes to amend and
restate certain Phlx rules that govern
PSX in order to provide additional
detail and clarity regarding its order
type functionality.6 This proposed rule
change is a response to Chair White’s
request that each equities exchange
conduct a comprehensive review of the
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 74618
(March 31, 2015), 80 FR 18452 (‘‘Notice’’).
4 See Securities Exchange Act Release No. 74954,
80 FR 28739 (May 19, 2015).
5 In Amendment No. 1, the Exchange proposed to
correct typographical errors in the original filing,
further improve the clarity of certain rule language,
and include additional explanation with regard to
the purpose of the proposed rule change.
6 See Notice, 80 FR at 18452–53.
2 17
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Frm 00109
Fmt 4703
Sfmt 4703
37327
operation of each of the order types that
it offers to members.7
While the Exchange believes that its
current rules and other public
disclosures provide a comprehensive
description of the operation of PSX and
are sufficient for members and the
investing public to have an accurate
understanding of its market structure, it
also acknowledges that a restatement of
certain rules will further clarify the
operation of its system.8 For instance,
Phlx believes that adding examples of
order type operation to its rules will
promote greater understanding of the
Exchange’s market structure.9 In
addition, Phlx asserts that certain
functionality previously described as an
‘‘order type’’ is more precisely
characterized as an attribute that may be
added to a particular order.10
Accordingly, this proposed rule change
distinguishes between ‘‘Order Types’’
and ‘‘Order Attributes,’’ and provides
descriptions of the Order Attributes that
may be attached to particular Order
Types.11
Currently, Phlx Rule 3301
(Definitions) sets forth most of the rules
governing Order Types and Order
Attributes, as well as other defined
terms that pertain to trading securities
on PSX.12 Phlx proposes to amend Rule
3301. Phlx also proposes to amend the
definitions pertaining to Order Types
and Order Attributes and to relocate
them from Rule 3301 to new Rules
3301A (Order Types) and 3301B (Order
Attributes), respectively.13 In addition,
Phlx proposes to delete Rule 3305 as the
information contained therein is
superseded by proposed Rules 3301A
and 3301B.14 Lastly, Phlx proposes
certain conforming and technical
changes to Rule 3306.15
Phlx represents that, except where
specifically stated otherwise, all
proposed rules are restatements of
existing rules and are not intended to
reflect substantive changes to rule text
or the operation of PSX.16 Proposed
Rule 3301A related to Order Types
7 See id. at 18453; see also Mary Jo White, Chair,
Commission, Speech at the Sandler O’Neill &
Partners, L.P. Global Exchange and Brokerage
Conference (June 5, 2014), available at https://
www.sec.gov/News/Speech/Detail/Speech/
1370542004312.
8 See Notice, 80 FR at 18453.
9 Id.
10 Id.
11 Id.
12 See Rule 3301.
13 See proposed Rules 3301A and 3301B.
14 See Rule 3305.
15 Phlx states that, in subsequent proposed rule
changes, it plans to restate the remainder of its
Rules numbered 3302 through 3316 so that they
appear sequentially following Rule 3301B.
16 See Notice, 80 FR at 18453.
E:\FR\FM\30JNN1.SGM
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37328
Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Notices
contains definitions and descriptions of
Price to Comply Orders, Price to Display
Orders (referred to as ‘‘Price to Comply
Post Orders’’ in current Rule 3301),17
Non-Displayed Orders, Post-Only
Orders, and Market Maker Peg Orders.
Proposed Rule 3301B related to Order
Attributes contains definitions and
descriptions of time-in-force (‘‘TIF’’)
modifiers, order size, order price,
pegging, minimum quantity, routing,
discretion, reserve size, attribution,
intermarket sweep order designation,
and display.18
In Amendment No. 1, the Exchange
proposes to add language further
explaining the operation of the
following order types: Post-Only Orders,
orders with a TIF of IOC, including
Routable Orders and Post-Only Orders;
Market Maker Peg Orders; orders with
Midpoint Pegging, Primary Pegging or
Market Pegging; and orders designated
with both Pegging and Routing
attributes.19 For example, the Exchange
states that for Order Types that list both
Pegging and Routing as possible Order
Attributes, the two Order Attributes may
be combined since Pegging serves to
establish the price of the order, while
Routing establishes the market center(s)
to which the system’s routing
functionality may direct a routed order
if liquidity is available at that price.20
The Exchange also proposes to add
further specification regarding the
availability of certain order types only
through certain communication
protocols by stating that a Post-Only
Order with a TIF of IOC may not be
entered through the RASH or FIX
protocols.21 In addition, the Exchange
proposes to add language stating that
one or more Order Attributes may be
assigned to a single order, but if the use
of multiple Order Attributes would
result in contradictory instructions, the
system will reject the order or remove
non-conforming Order Attributes.22
III. Discussion and Commission
Findings
asabaliauskas on DSK5VPTVN1PROD with NOTICES
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.23 In particular, the
17 See
Notice, 80 FR at 18456 n.29.
Notice contains additional details related
to proposed Rules 3301A and 3301B. See Notice, 80
FR at 18452–70.
19 See Amendment No. 1.
20 Id.
21 Id.
22 Id.
23 In approving this proposed rule change, the
Commission has considered the proposed rule’s
18 The
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17:34 Jun 29, 2015
Jkt 235001
Commission finds that the proposed
rule change is consistent with section
6(b)(5) of the Act,24 which requires,
among other things, that the rules of a
national securities exchange be
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
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 are not designed to
permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Commission notes that the
Exchange believes that the proposal is
consistent with section 6(b)(5) of the Act
because the reorganized and enhanced
descriptions of its Order Types, Order
Attributes, and related System
functionality should promote just and
equitable principles of trade and perfect
the mechanisms of a free and open
market and the national market system
by providing greater clarity concerning
certain aspects of the System’s
operations.25 In addition, the
Commission notes that Phlx believes
that the proposed rule change should
contribute to the protection of investors
and the public interest by making Phlx’s
rules easier to understand.26 Further,
Phlx believes that additional specificity
in its rules will promote a better
understanding of the Exchange’s
operation, thereby facilitating fair
competition among brokers and dealers
and among markets.27
The Commission notes that, according
to the Exchange, the proposal does not
add any new functionality but instead
re-organizes the Exchange’s order type
rules and provides additional detail
regarding the order type functionality
currently offered by the Exchange.
Based on the Exchange’s representation,
the Commission believes that the
proposed rule change does not raise any
novel regulatory considerations and
should provide greater specificity,
clarity and transparency with respect to
the order type functionality available on
the Exchange. In addition, the
Commission notes that the Exchange’s
proposed rule changes provide
additional detail related to functionality
for certain order types and the handling
of orders during initial entry and after
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
24 15 U.S.C. 78f(b)(5).
25 See Notice, 80 FR at 18467.
26 Id.
27 Id.
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
posting to the PSX Book. Accordingly,
the Commission believes that this
proposed rule change should provide
greater transparency with respect to the
Exchange’s order type functionality. For
these reasons, the Commission believes
that the proposal should help to prevent
fraudulent and manipulative acts and
practices, promote just and equitable
principles of trade, remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, protect investors and the public
interest.
The Commission finds good cause to
approve the filing, as amended by
Amendment No. 1 to the proposed rule
change, prior to the thirtieth day after
the date of publication of notice of filing
thereof in the Federal Register. The
proposed amendments should further
increase the Exchange’s transparency
with respect to the operation of various
order types and modifiers, and serve to
enhance investors’ understanding of the
tools available with respect to the
handling of their orders. Accelerated
approval would allow the Exchange to
update its rule text immediately, thus
providing users with greater clarity with
respect to the use and potential use of
functionality offered by the Exchange.
In addition, the initial proposal was
open for comment for twenty-one days
after publication and generated no
comment. Accordingly, the Commission
believes that good cause exists,
consistent with sections 6(b)(5) and
19(b) of the Act,28 to approve the filing,
as amended by Amendment No. 1 to the
proposed rule change, on an accelerated
basis.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, 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–2015–029 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.
28 15
E:\FR\FM\30JNN1.SGM
U.S.C. 78f(b)(5); 15 U.S.C. 78s(b).
30JNN1
Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Notices
All submissions should refer to File
Number SR–Phlx–2015–029. 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–
2015–029 and should be submitted on
or before July 21, 2015.
V. Conclusion
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,29 that the
proposed rule change (SR–Phlx–2015–
29) be, and it hereby is, approved on an
accelerated basis, as amended.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–15974 Filed 6–29–15; 8:45 am]
asabaliauskas on DSK5VPTVN1PROD with NOTICES
BILLING CODE 8011–01–P
29 15
30 17
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:34 Jun 29, 2015
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
In the Matter of Accres Holding, Inc.,
FirstBank Financial Services, Inc.,
MicroSmart Devices, Inc., Polymedix,
Inc., RegenoCELL Therapeutics, Inc.,
and The Sagemark Companies Ltd.;
Order of Suspension of Trading
June 26, 2015.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Accres
Holding, Inc. (CIK No. 1158201)
(‘‘ACCE’’ 1), a void Delaware corporation
with its principal place of business in
Shelton, Connecticut, with stock quoted
on OTC Link (previously, ‘‘Pink
Sheets’’) operated by OTC Markets
Group Inc. (‘‘OTC Link’’) because it has
not filed any periodic reports since the
period ended September 30, 2010. On
June 27, 2013, the Division of
Corporation Finance (‘‘Corporation
Finance’’) sent a delinquency letter to
ACCE requesting compliance with its
periodic reporting obligations at the
address shown in its then-most recent
filing with the Commission, but ACCE
did not receive the delinquency letter
due to its failure to maintain a valid
address on file with the Commission as
required by Commission rules (Rule 301
of Regulation S–T, 17 CFR 232.301 and
Section 5.4 of the EDGAR Filer Manual).
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of FirstBank
Financial Services, Inc. (CIK No.
1316410) (‘‘FBFS’’), a non-compliant
Georgia corporation with its principal
place of business in McDonough,
Georgia, with stock quoted on OTC
Link, because it has not filed any
periodic reports since the period ended
June 30, 2008. On November 22, 2011,
Corporation Finance sent a delinquency
letter to FBFS requesting compliance
with its periodic reporting obligations at
the address shown in its then-most
recent filing with the Commission, but
FBFS did not receive the delinquency
letter due to its failure to maintain a
valid address on file with the
Commission as required by Commission
rules (Rule 301 of Regulation S–T, 17
CFR 232.301 and Section 5.4 of the
EDGAR Filer Manual).
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of MicroSmart
1 The short form of each issuer’s name is also its
ticker symbol.
Jkt 235001
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
37329
Devices, Inc. (CIK No. 1339225)
(‘‘MCMV’’), a Nevada corporation with
its principal place of business in
Litchfield, Connecticut, with stock
quoted on OTC Link, because it has not
filed any periodic reports since the
period ended September 30, 2012. On
June 6, 2014, Corporation Finance sent
a delinquency letter to MCMV
requesting compliance with its periodic
reporting obligations at the address
shown in its then-most recent filing
with the Commission, but MCMV did
not receive the delinquency letter due to
its failure to maintain a valid address on
file with the Commission as required by
Commission rules (Rule 301 of
Regulation S–T, 17 CFR 232.301 and
Section 5.4 of the EDGAR Filer Manual).
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Polymedix,
Inc. (CIK No. 1341843) (‘‘PYMXQ’’), a
void Delaware corporation with its
principal place of business in Radnor,
Pennsylvania, with stock quoted on
OTC Link, because it has not filed any
periodic reports since the period ended
September 30, 2012. On May 7, 2015,
Corporation Finance sent a delinquency
letter to PYMXQ requesting compliance
with its periodic reporting obligations at
the address shown in its then-most
recent filing with the Commission, but
PYMXQ did not receive the delinquency
letter due to its failure to maintain a
valid address on file with the
Commission as required by Commission
rules (Rule 301 of Regulation S–T, 17
CFR 232.301 and Section 5.4 of the
EDGAR Filer Manual).
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of
RegenoCELL Therapeutics, Inc. (CIK No.
1221749) (‘‘RCLL’’), a Florida
corporation with its principal place of
business in Natick, Massachusetts, with
stock quoted on OTC Link because it
has not filed any periodic reports since
the period ended December 31, 2011.
On September 16, 2014, Corporation
Finance sent a delinquency letter to
RCLL requesting compliance with its
periodic reporting obligations at the
address shown in its then-most recent
filing with the Commission, but RCLL
did not receive the delinquency letter
due to its failure to maintain a valid
address on file with the Commission as
required by Commission rules (Rule 301
of Regulation S–T, 17 CFR 232.301 and
Section 5.4 of the EDGAR Filer Manual).
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of The
E:\FR\FM\30JNN1.SGM
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Agencies
[Federal Register Volume 80, Number 125 (Tuesday, June 30, 2015)]
[Notices]
[Pages 37327-37329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15974]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75293; File No. SR-Phlx-2015-29]
Self-Regulatory Organizations; NASDAQ OMX Phlx LLC; Notice of
Filing of Amendment No. 1 and Order Granting Accelerated Approval of
Proposed Rule Change, as Modified by Amendment No. 1, To Amend and
Restate Certain Rules That Govern the NASDAQ OMX PSX
June 24, 2015.
I. Introduction
On March 20, 2015, NASDAQ OMX PHLX LLC (``Phlx'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend and restate certain Phlx rules that
govern NASDAQ OMX PSX (``PSX'') in order to provide a clearer and more
detailed description of certain aspects of its functionality. The
proposed rule change was published for comment in the Federal Register
on April 6, 2015.\3\ The Commission received no comment letters
regarding the proposed rule change. On May 13, 2015, the Commission
extended to July 5, 2015, the time period in which to approve the
proposed rule change, disapprove the proposed rule change, or institute
proceedings to determine whether the proposed rule change should be
disapproved.\4\ On June 22, 2015, the Exchange filed Amendment No. 1 to
the proposed rule change.\5\ This order approves the proposed rule
change, as amended, on an accelerated basis.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 74618 (March 31,
2015), 80 FR 18452 (``Notice'').
\4\ See Securities Exchange Act Release No. 74954, 80 FR 28739
(May 19, 2015).
\5\ In Amendment No. 1, the Exchange proposed to correct
typographical errors in the original filing, further improve the
clarity of certain rule language, and include additional explanation
with regard to the purpose of the proposed rule change.
---------------------------------------------------------------------------
II. Description of the Amended Proposal
The Exchange proposes to amend and restate certain Phlx rules that
govern PSX in order to provide additional detail and clarity regarding
its order type functionality.\6\ This proposed rule change is a
response to Chair White's request that each equities exchange conduct a
comprehensive review of the operation of each of the order types that
it offers to members.\7\
---------------------------------------------------------------------------
\6\ See Notice, 80 FR at 18452-53.
\7\ See id. at 18453; see also Mary Jo White, Chair, Commission,
Speech at the Sandler O'Neill & Partners, L.P. Global Exchange and
Brokerage Conference (June 5, 2014), available at https://www.sec.gov/News/Speech/Detail/Speech/1370542004312.
---------------------------------------------------------------------------
While the Exchange believes that its current rules and other public
disclosures provide a comprehensive description of the operation of PSX
and are sufficient for members and the investing public to have an
accurate understanding of its market structure, it also acknowledges
that a restatement of certain rules will further clarify the operation
of its system.\8\ For instance, Phlx believes that adding examples of
order type operation to its rules will promote greater understanding of
the Exchange's market structure.\9\ In addition, Phlx asserts that
certain functionality previously described as an ``order type'' is more
precisely characterized as an attribute that may be added to a
particular order.\10\ Accordingly, this proposed rule change
distinguishes between ``Order Types'' and ``Order Attributes,'' and
provides descriptions of the Order Attributes that may be attached to
particular Order Types.\11\
---------------------------------------------------------------------------
\8\ See Notice, 80 FR at 18453.
\9\ Id.
\10\ Id.
\11\ Id.
---------------------------------------------------------------------------
Currently, Phlx Rule 3301 (Definitions) sets forth most of the
rules governing Order Types and Order Attributes, as well as other
defined terms that pertain to trading securities on PSX.\12\ Phlx
proposes to amend Rule 3301. Phlx also proposes to amend the
definitions pertaining to Order Types and Order Attributes and to
relocate them from Rule 3301 to new Rules 3301A (Order Types) and 3301B
(Order Attributes), respectively.\13\ In addition, Phlx proposes to
delete Rule 3305 as the information contained therein is superseded by
proposed Rules 3301A and 3301B.\14\ Lastly, Phlx proposes certain
conforming and technical changes to Rule 3306.\15\
---------------------------------------------------------------------------
\12\ See Rule 3301.
\13\ See proposed Rules 3301A and 3301B.
\14\ See Rule 3305.
\15\ Phlx states that, in subsequent proposed rule changes, it
plans to restate the remainder of its Rules numbered 3302 through
3316 so that they appear sequentially following Rule 3301B.
---------------------------------------------------------------------------
Phlx represents that, except where specifically stated otherwise,
all proposed rules are restatements of existing rules and are not
intended to reflect substantive changes to rule text or the operation
of PSX.\16\ Proposed Rule 3301A related to Order Types
[[Page 37328]]
contains definitions and descriptions of Price to Comply Orders, Price
to Display Orders (referred to as ``Price to Comply Post Orders'' in
current Rule 3301),\17\ Non-Displayed Orders, Post-Only Orders, and
Market Maker Peg Orders. Proposed Rule 3301B related to Order
Attributes contains definitions and descriptions of time-in-force
(``TIF'') modifiers, order size, order price, pegging, minimum
quantity, routing, discretion, reserve size, attribution, intermarket
sweep order designation, and display.\18\
---------------------------------------------------------------------------
\16\ See Notice, 80 FR at 18453.
\17\ See Notice, 80 FR at 18456 n.29.
\18\ The Notice contains additional details related to proposed
Rules 3301A and 3301B. See Notice, 80 FR at 18452-70.
---------------------------------------------------------------------------
In Amendment No. 1, the Exchange proposes to add language further
explaining the operation of the following order types: Post-Only
Orders, orders with a TIF of IOC, including Routable Orders and Post-
Only Orders; Market Maker Peg Orders; orders with Midpoint Pegging,
Primary Pegging or Market Pegging; and orders designated with both
Pegging and Routing attributes.\19\ For example, the Exchange states
that for Order Types that list both Pegging and Routing as possible
Order Attributes, the two Order Attributes may be combined since
Pegging serves to establish the price of the order, while Routing
establishes the market center(s) to which the system's routing
functionality may direct a routed order if liquidity is available at
that price.\20\ The Exchange also proposes to add further specification
regarding the availability of certain order types only through certain
communication protocols by stating that a Post-Only Order with a TIF of
IOC may not be entered through the RASH or FIX protocols.\21\ In
addition, the Exchange proposes to add language stating that one or
more Order Attributes may be assigned to a single order, but if the use
of multiple Order Attributes would result in contradictory
instructions, the system will reject the order or remove non-conforming
Order Attributes.\22\
---------------------------------------------------------------------------
\19\ See Amendment No. 1.
\20\ Id.
\21\ Id.
\22\ Id.
---------------------------------------------------------------------------
III. Discussion and Commission Findings
After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities
exchange.\23\ In particular, the Commission finds that the proposed
rule change is consistent with section 6(b)(5) of the Act,\24\ which
requires, among other things, that the rules of a national securities
exchange be 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 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 are not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\23\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\24\ 15 U.S.C. 78f(b)(5).
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The Commission notes that the Exchange believes that the proposal
is consistent with section 6(b)(5) of the Act because the reorganized
and enhanced descriptions of its Order Types, Order Attributes, and
related System functionality should promote just and equitable
principles of trade and perfect the mechanisms of a free and open
market and the national market system by providing greater clarity
concerning certain aspects of the System's operations.\25\ In addition,
the Commission notes that Phlx believes that the proposed rule change
should contribute to the protection of investors and the public
interest by making Phlx's rules easier to understand.\26\ Further, Phlx
believes that additional specificity in its rules will promote a better
understanding of the Exchange's operation, thereby facilitating fair
competition among brokers and dealers and among markets.\27\
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\25\ See Notice, 80 FR at 18467.
\26\ Id.
\27\ Id.
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The Commission notes that, according to the Exchange, the proposal
does not add any new functionality but instead re-organizes the
Exchange's order type rules and provides additional detail regarding
the order type functionality currently offered by the Exchange. Based
on the Exchange's representation, the Commission believes that the
proposed rule change does not raise any novel regulatory considerations
and should provide greater specificity, clarity and transparency with
respect to the order type functionality available on the Exchange. In
addition, the Commission notes that the Exchange's proposed rule
changes provide additional detail related to functionality for certain
order types and the handling of orders during initial entry and after
posting to the PSX Book. Accordingly, the Commission believes that this
proposed rule change should provide greater transparency with respect
to the Exchange's order type functionality. For these reasons, the
Commission believes that the proposal should help to prevent fraudulent
and manipulative acts and practices, promote just and equitable
principles of trade, remove impediments to and perfect the mechanism of
a free and open market and a national market system, and, in general,
protect investors and the public interest.
The Commission finds good cause to approve the filing, as amended
by Amendment No. 1 to the proposed rule change, prior to the thirtieth
day after the date of publication of notice of filing thereof in the
Federal Register. The proposed amendments should further increase the
Exchange's transparency with respect to the operation of various order
types and modifiers, and serve to enhance investors' understanding of
the tools available with respect to the handling of their orders.
Accelerated approval would allow the Exchange to update its rule text
immediately, thus providing users with greater clarity with respect to
the use and potential use of functionality offered by the Exchange. In
addition, the initial proposal was open for comment for twenty-one days
after publication and generated no comment. Accordingly, the Commission
believes that good cause exists, consistent with sections 6(b)(5) and
19(b) of the Act,\28\ to approve the filing, as amended by Amendment
No. 1 to the proposed rule change, on an accelerated basis.
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\28\ 15 U.S.C. 78f(b)(5); 15 U.S.C. 78s(b).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, 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-2015-029 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.
[[Page 37329]]
All submissions should refer to File Number SR-Phlx-2015-029. 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-2015-029 and should be
submitted on or before July 21, 2015.
V. Conclusion
It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\29\ that the proposed rule change (SR-Phlx-2015-29) be, and it
hereby is, approved on an accelerated basis, as amended.
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\29\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
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\30\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-15974 Filed 6-29-15; 8:45 am]
BILLING CODE 8011-01-P