Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 1014, “Obligations and Restrictions Applicable to Specialists and Registered Options Traders”, 72773-72775 [2015-29597]

Download as PDF Federal Register / Vol. 80, No. 224 / Friday, November 20, 2015 / Notices increased liquidity to 50the Exchange for the benefit of all Exchange participants. To the extent the purpose of the proposed MARS is achieved, all the Exchange’s market participants, including Professionals and BrokerDealers, should benefit from the improved market liquidity. The Exchange believes that preventing members from receiving any other revenue for the use of its routing system, specifically with respect to orders routed to Phlx, with the exception of PFOF, does not create undue burden on intra-market competition because the Exchange would continue to uniformly apply its MARS requirements to all Phlx members. 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 foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.42 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) 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 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.43 Robert W. Errett, Deputy Secretary. [FR Doc. 2015–29602 Filed 11–19–15; 8:45 am] 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 tkelley on DSK3SPTVN1PROD with NOTICES Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–Phlx–2015–89. 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– 2015–89, and should be submitted on or before December 11, 2015. BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–76441; File No. SR–Phlx– 2015–91] • 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–2015–89 on the subject line. Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 1014, ‘‘Obligations and Restrictions Applicable to Specialists and Registered Options Traders’’ Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange November 16, 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 November 2, 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 the Substance of the Proposed Rule Change The Exchange proposes to amend Phlx Rule 1014 entitled ‘‘Obligations and Restrictions Applicable to Specialists and Registered Options Traders’’ to remove the maximum option price change from the Rule. 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 proposes to amend Phlx Rule 1014, entitled ‘‘Obligations and Restrictions Applicable to Specialists and Registered Options Traders,’’ to eliminate the provision providing for bids (offers) to be no more than $1 lower (higher) than the last preceding transaction price for the particular option. Today, Phlx Rule 1014 specifies, ‘‘Bidding no more than $1 lower and/or offering no more than $1 higher than the last preceding transaction price for the particular option contract. However, 1 15 42 15 U.S.C. 78s(b)(3)(A)(ii). VerDate Sep<11>2014 17:39 Nov 19, 2015 43 17 Jkt 238001 PO 00000 CFR 200.30–3(a)(31). Frm 00094 Fmt 4703 Sfmt 4703 72773 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. E:\FR\FM\20NON1.SGM 20NON1 72774 Federal Register / Vol. 80, No. 224 / Friday, November 20, 2015 / Notices tkelley on DSK3SPTVN1PROD with NOTICES this standard shall not ordinarily apply if the price per share of the underlying stock or Exchange-Traded Fund Share has changed by more than $1 since the last preceding transaction for the particular option contract. Further, this standard shall not apply to U.S. dollarsettled foreign currency options. Phlx Rule 1014 is applicable to specialists 3 and Registered Options Traders 4 (collectively ‘‘Market Makers’’). Pursuant to Phlx Rule 1014(c)(i)(B), Market Makers are required not to bid more than $1 lower or offer more than $1 higher than the last preceding transaction price for the particular option contract (the ‘‘one point rule’’). The Exchange proposes to eliminate the one point rule which sets maximum bid and/or ask differentials that may be quoted by Market Makers because market changes have rendered the rule obsolete and unnecessary. The one point rule applies to options on equities (including Exchange-Traded Fund Shares), Index options and U.S. dollarsettled Foreign Currency Options, to the extent applicable within the rule.5 The Exchange initially adopted this standard as a guideline for Market Makers; however, today, this restriction is no longer necessary. For example, today Market-Makers may stream electronic quotes and are subject to various electronic quotation requirements, including bid/ask quote width requirements contained elsewhere in Rule 1014.6 In addition, the Exchange has rules in place regarding tradethrough and locked/crossed market requirements.7 The Exchange also has an obvious error rule that contains provisions on erroneous pricing errors and has in place certain price check parameters that will not permit the automatic execution of certain orders if the execution would take place outside an acceptable price range.8 At this time, the Exchange believes that the one point rule is not necessary and should be eliminated so as not to unreasonably constrain Market Makers when submitting quotes to the Exchange. 3 A specialist is an Exchange member who is registered as an options specialist pursuant to Rule 1020(a). 4 A Registered Options Trader (‘‘ROT’’) includes a Streaming Quote Trader (‘‘SQT’’), a Remote Streaming Quote Trader (‘‘RSQT’’) and a NonStreaming Quote Trader, which by definition is neither a SQT nor a RSQT. A Registered Option Trader is defined in Exchange Rule 1014(b) as a regular member of the Exchange located on the trading floor who has received permission from the Exchange to trade in options for his own account. See Exchange Rule 1014 (b)(i) and (ii). 5 The one point rule does not ordinarily apply if the price per share of the underlying stock or Exchange-Traded Fund Share has changed by more than $1 since the last preceding transaction for the particular option contract. Further, this standard does not apply to U.S. dollar-settled foreign currency options. See Phlx Rule 1014(c)(i)(B). 6 See Phlx Rule 1014(c)(A)(1). 7 See Phlx Rules 1083 and 1086. 8 See Phlx Rule 1092. B. Self-Regulatory Organization’s Statement on Burden on Competition VerDate Sep<11>2014 17:39 Nov 19, 2015 Jkt 238001 2. Statutory Basis The Exchange believes that its proposal is consistent with section 6(b) of the Act 9 in general, and furthers the objectives of section 6(b)(5) of the Act 10 in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest, by eliminating this outdated rule which unnecessarily restricts bids and offers that may be entered by Market Makers. The Exchange has other price protections in place today, such as bid/ ask quote requirements, locked and crossed market rules and obvious error rules which protect against certain price movements and constrain quoting.11 Also, the Chicago Board Options Exchange Incorporated (‘‘CBOE’’) had a similar rule in place, which was eliminated in 2009.12 The Exchange believes that this constraint on Market Makers may in fact prove harmful. In a volatile market, Market Makers may find it necessary to move their quotes beyond the one point rule restriction of $1 and would be unnecessarily constrained from moving quotes, while market makers on other options exchanges would not be subject to the same restriction on quoting. The Exchange believes that the one point rule does not serve a reasonable purpose in today’s market and should therefore be eliminated in order to remove impediments to and perfect the mechanism of a free and open market and a national market system. The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes that eliminating the one point rule does not impose an undue burden on inter-market competition because this constraint on quoting does not exist on other options 9 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 11 See Rule 1014 and supra notes 6 and 7. 12 See Securities Exchange Act Release No. 60295 (July 13, 2009), 74 FR 35215 (July 20, 2009) (SR– CBOE–2009–049). 10 15 PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 exchanges,13 where market participants may quote without such restriction. Further, the Exchange believes that this constraint on Market Makers may in fact prove harmful. In a volatile market, Market Makers may find it necessary to move their quotes beyond the one point rule restriction of $1 and would be unnecessarily constrained from moving quotes while market makers on other options exchanges would not be subject to the same restriction on quoting. The Exchange does not believe that this rule change imposes an undue burden on intra-market competition because there are other price protections in place today, such as bid/ask quote requirements, locked and crossed market rules and obvious error rules which protect against certain price movements and constrain quoting.14 C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to section 19(b)(3)(A)(iii) of the Act 15 and subparagraph (f)(6) of Rule 19b–4 thereunder.16 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) 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. 13 For example, CBOE, The NASDAQ Stock Market LLC, and NASDAQ OMX BX, Inc. do not have such constraints. 14 See Rule 1014 and supra notes 6 and 7. 15 15 U.S.C. 78s(b)(3)(A)(iii). 16 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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. E:\FR\FM\20NON1.SGM 20NON1 Federal Register / Vol. 80, No. 224 / Friday, November 20, 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–2015–91 on the subject line. Paper Comments tkelley on DSK3SPTVN1PROD with NOTICES • 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–2015–91. 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– 2015–91, and should be submitted on or before December 11, 2015. 17:39 Nov 19, 2015 [FR Doc. 2015–29597 Filed 11–19–15; 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.17 Robert W. Errett, Deputy Secretary. Jkt 238001 [Release No. 34–76444; File No. SR–FINRA– 2015–034] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Merge FINRA Dispute Resolution, Inc. Into and With FINRA Regulation, Inc. November 16, 2015. On September 29, 2015, the Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) 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 merge its dispute resolution subsidiary, FINRA Dispute Resolution, Inc. into and with its regulatory subsidiary, FINRA Regulation, Inc. In addition, the proposed rule change would amend the FINRA Regulation By-Laws to increase the total number of directors who could serve on the FINRA Regulation board. The proposed rule change was published for comment in the Federal Register on October 13, 2015.3 The Commission received five comment letters to the proposed rule change.4 Section 19(b)(2) of the Act 5 provides that within 45 days of the publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or as to which the self-regulatory organization consents, the Commission shall either approve the 17 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 76082 (October 6, 2015), 80 FR 61545. 4 See letters from Hugh D. Berkson, President, Public Investors Arbitration Bar Association, dated November 3, 2015; Ron A. Rhoades, dated November 3, 2015; Jill Gross, Director, Pace Investor Rights Clinic, Pace Law School, dated November 3, 2015; Larry A. Tawwater, President, American Association for Justice, dated November 3, 2015; and William A. Jacobson, Director, Cornell Securities Law Clinic, Cornell Law School, dated November 4, 2015. 5 15 U.S.C. 78s(b)(2). 1 15 PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 72775 proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved. The 45th day for this filing is November 27, 2015. The Commission is extending this 45-day time period. The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the comments received. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,6 designates January 11, 2016, as the date by which the Commission should either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change(File No. SR–FINRA–2015–034). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Robert W. Errett, Deputy Secretary. [FR Doc. 2015–29600 Filed 11–19–15; 8:45 am] BILLING CODE 8011–01–P SOCIAL SECURITY ADMINISTRATION [Docket No. SSA 2015–0044] Privacy Act of 1974, as Amended; Computer Matching Program (SSA/ Department of the Treasury, Internal Revenue Service (IRS))—Match Number 1016 AGENCY: Social Security Administration (SSA). Notice of a renewal of an existing computer matching program that will expire on December 31, 2015. ACTION: In accordance with the provisions of the Privacy Act, as amended, this notice announces a renewal of an existing computer matching program that we are currently conducting with IRS. DATES: We will file a report of the subject matching program with the Committee on Homeland Security and Governmental Affairs of the Senate; the Committee on Oversight and Government Reform of the House of Representatives; and the Office of Information and Regulatory Affairs, Office of Management and Budget (OMB). The matching program will be effective as indicated below. ADDRESSES: Interested parties may comment on this notice by either telefaxing to (410) 966–0869 or writing SUMMARY: 6 15 7 17 U.S.C. 78s(b)(2). CFR 200.30–3(a)(31). E:\FR\FM\20NON1.SGM 20NON1

Agencies

[Federal Register Volume 80, Number 224 (Friday, November 20, 2015)]
[Notices]
[Pages 72773-72775]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-29597]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76441; File No. SR-Phlx-2015-91]


Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Rule 1014, ``Obligations and Restrictions Applicable to Specialists and 
Registered Options Traders''

November 16, 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 November 2, 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 the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend Phlx Rule 1014 entitled 
``Obligations and Restrictions Applicable to Specialists and Registered 
Options Traders'' to remove the maximum option price change from the 
Rule.
    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 proposes to amend Phlx Rule 1014, entitled 
``Obligations and Restrictions Applicable to Specialists and Registered 
Options Traders,'' to eliminate the provision providing for bids 
(offers) to be no more than $1 lower (higher) than the last preceding 
transaction price for the particular option.
    Today, Phlx Rule 1014 specifies, ``Bidding no more than $1 lower 
and/or offering no more than $1 higher than the last preceding 
transaction price for the particular option contract. However,

[[Page 72774]]

this standard shall not ordinarily apply if the price per share of the 
underlying stock or Exchange-Traded Fund Share has changed by more than 
$1 since the last preceding transaction for the particular option 
contract. Further, this standard shall not apply to U.S. dollar-settled 
foreign currency options. Phlx Rule 1014 is applicable to specialists 
\3\ and Registered Options Traders \4\ (collectively ``Market 
Makers''). Pursuant to Phlx Rule 1014(c)(i)(B), Market Makers are 
required not to bid more than $1 lower or offer more than $1 higher 
than the last preceding transaction price for the particular option 
contract (the ``one point rule'').
---------------------------------------------------------------------------

    \3\ A specialist is an Exchange member who is registered as an 
options specialist pursuant to Rule 1020(a).
    \4\ A Registered Options Trader (``ROT'') includes a Streaming 
Quote Trader (``SQT''), a Remote Streaming Quote Trader (``RSQT'') 
and a Non-Streaming Quote Trader, which by definition is neither a 
SQT nor a RSQT. A Registered Option Trader is defined in Exchange 
Rule 1014(b) as a regular member of the Exchange located on the 
trading floor who has received permission from the Exchange to trade 
in options for his own account. See Exchange Rule 1014 (b)(i) and 
(ii).
---------------------------------------------------------------------------

    The Exchange proposes to eliminate the one point rule which sets 
maximum bid and/or ask differentials that may be quoted by Market 
Makers because market changes have rendered the rule obsolete and 
unnecessary. The one point rule applies to options on equities 
(including Exchange-Traded Fund Shares), Index options and U.S. dollar-
settled Foreign Currency Options, to the extent applicable within the 
rule.\5\ The Exchange initially adopted this standard as a guideline 
for Market Makers; however, today, this restriction is no longer 
necessary. For example, today Market-Makers may stream electronic 
quotes and are subject to various electronic quotation requirements, 
including bid/ask quote width requirements contained elsewhere in Rule 
1014.\6\ In addition, the Exchange has rules in place regarding trade-
through and locked/crossed market requirements.\7\ The Exchange also 
has an obvious error rule that contains provisions on erroneous pricing 
errors and has in place certain price check parameters that will not 
permit the automatic execution of certain orders if the execution would 
take place outside an acceptable price range.\8\
---------------------------------------------------------------------------

    \5\ The one point rule does not ordinarily apply if the price 
per share of the underlying stock or Exchange-Traded Fund Share has 
changed by more than $1 since the last preceding transaction for the 
particular option contract. Further, this standard does not apply to 
U.S. dollar-settled foreign currency options. See Phlx Rule 
1014(c)(i)(B).
    \6\ See Phlx Rule 1014(c)(A)(1).
    \7\ See Phlx Rules 1083 and 1086.
    \8\ See Phlx Rule 1092.
---------------------------------------------------------------------------

    At this time, the Exchange believes that the one point rule is not 
necessary and should be eliminated so as not to unreasonably constrain 
Market Makers when submitting quotes to the Exchange.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with section 
6(b) of the Act \9\ in general, and furthers the objectives of section 
6(b)(5) of the Act \10\ in particular, in that it is designed to 
promote just and equitable principles of trade, to remove impediments 
to and perfect the mechanism of a free and open market and a national 
market system, and, in general to protect investors and the public 
interest, by eliminating this outdated rule which unnecessarily 
restricts bids and offers that may be entered by Market Makers. The 
Exchange has other price protections in place today, such as bid/ask 
quote requirements, locked and crossed market rules and obvious error 
rules which protect against certain price movements and constrain 
quoting.\11\ Also, the Chicago Board Options Exchange Incorporated 
(``CBOE'') had a similar rule in place, which was eliminated in 
2009.\12\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ See Rule 1014 and supra notes 6 and 7.
    \12\ See Securities Exchange Act Release No. 60295 (July 13, 
2009), 74 FR 35215 (July 20, 2009) (SR-CBOE-2009-049).
---------------------------------------------------------------------------

    The Exchange believes that this constraint on Market Makers may in 
fact prove harmful. In a volatile market, Market Makers may find it 
necessary to move their quotes beyond the one point rule restriction of 
$1 and would be unnecessarily constrained from moving quotes, while 
market makers on other options exchanges would not be subject to the 
same restriction on quoting. The Exchange believes that the one point 
rule does not serve a reasonable purpose in today's market and should 
therefore be eliminated in order to remove impediments to and perfect 
the mechanism of a free and open market and a national market system.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange believes that 
eliminating the one point rule does not impose an undue burden on 
inter-market competition because this constraint on quoting does not 
exist on other options exchanges,\13\ where market participants may 
quote without such restriction. Further, the Exchange believes that 
this constraint on Market Makers may in fact prove harmful. In a 
volatile market, Market Makers may find it necessary to move their 
quotes beyond the one point rule restriction of $1 and would be 
unnecessarily constrained from moving quotes while market makers on 
other options exchanges would not be subject to the same restriction on 
quoting. The Exchange does not believe that this rule change imposes an 
undue burden on intra-market competition because there are other price 
protections in place today, such as bid/ask quote requirements, locked 
and crossed market rules and obvious error rules which protect against 
certain price movements and constrain quoting.\14\
---------------------------------------------------------------------------

    \13\ For example, CBOE, The NASDAQ Stock Market LLC, and NASDAQ 
OMX BX, Inc. do not have such constraints.
    \14\ See Rule 1014 and supra notes 6 and 7.
---------------------------------------------------------------------------

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

    No written comments were either solicited or received.

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to section 19(b)(3)(A)(iii) of the Act \15\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\16\
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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.
---------------------------------------------------------------------------

    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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) 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 72775]]

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-2015-91 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-2015-91. 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-2015-91, 
and should be submitted on or before December 11, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-29597 Filed 11-19-15; 8:45 am]
BILLING CODE 8011-01-P
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