Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Nonsubstantive, Clarifying Amendments to Several Rules Relating to the Clearing of Exchange Options Transactions, 4074-4076 [2016-01307]

Download as PDF 4074 Federal Register / Vol. 81, No. 15 / Monday, January 25, 2016 / Notices TABLE 1—REVISED PRA BURDEN UNDER THE AMENDMENT PERMITTING EMERGING GROWTH COMPANIES TO OMIT FINANCIAL INFORMATION FOR CERTAIN HISTORICAL PERIODS—Continued Number of responses Total incremental burden hours 25% company 75% professional Professional costs (A) Total ......................................................... Incremental burden hours 6/form (B) (C) = (A) * (B) (D) = (C) * 0.25 E = (C) * 0.75 (F) = (E) * $400 ........................ ........................ ........................ $(20,506,400) 2. Forward Incorporation by Reference on Form S–1 by Smaller Reporting Companies For purposes of the PRA, we estimate that all smaller reporting companies will take advantage of the election to forward incorporate by reference. We estimate that the amendments to permit smaller reporting companies to incorporate by reference into the prospectus contained in the registration statement on Form S–1 all documents subsequently filed by the issuer with the Commission after the effective date of (68,355) (17,089) reduce the paperwork burden in Form S–1 for smaller reporting companies by 212,500 hours on the assumption that the burden to complete a Form S–1 that incorporates by reference would be the same as the burden currently imposed by Form S–3 (472 hours). Therefore, the amount of time eliminated for each Form S–1 that incorporates by reference would be 500 hours (972 hours for a Form S–1 that does not incorporate information by reference minus 472 hours for a Form S–1 that does incorporate information by reference). the registration statement would reduce incrementally the annual paperwork burden by approximately 53,125 hours of issuer personnel time and by a cost of approximately $63,750,000 for the services of outside professionals. The estimate reflects the decrease in disclosure preparation time by eliminating the need to file certain posteffective amendments when that information is disclosed in Exchange Act filings after the effectiveness of the Form S–1. We estimate that forward incorporation by reference would TABLE 2—REVISED PRA BURDEN UNDER THE AMENDMENT PERMITTING SMALLER REPORTING COMPANIES TO FORWARD INCORPORATE BY REFERENCE ON FORM S–1 Number of responses 7 Incremental burden hours/ Form Total incremental burden hours 25% company 75% professional Professional costs (A) (B) (C) = (A) * (B) (D) = (C)* 0.25 E = (C) * 0.75 (F) = (E) * $400 (212,500) (53,125) (159,375) Form S–1 ................................................. 425 Title of Collection: Simplification of Disclosure Requirements for Emerging Growth Companies and Forward Incorporation by Reference on Form S– 1 for Smaller Reporting Companies. OMB Control Numbers: 3235–0065 (Form S–1) and 3235–0258 (Form F–1). Type of Review: Emergency. Requested Duration of Authorization: 6 Months. Dated: January 19, 2016. Robert W. Errett, Deputy Secretary. asabaliauskas on DSK5VPTVN1PROD with NOTICES BILLING CODE 8011–01–P 7 The number of responses equals the average number of Forms S–1 filed by smaller reporting companies (SRCs) during a three-year period. In 2012, SRCs filed 394 Forms S–1; in 2013, SRCs filed 432 Forms S–1; and in 2014, SRCs filed 448 Forms S–1. 13:09 Jan 22, 2016 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–76929; File No. SR–Phlx– 2016–03] Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Nonsubstantive, Clarifying Amendments to Several Rules Relating to the Clearing of Exchange Options Transactions January 19, 2016. [FR Doc. 2016–01304 Filed 1–22–16; 8:45 am] VerDate Sep<11>2014 (500) Jkt 238001 Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on January 5, 2016, 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 1 15 2 17 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00059 Fmt 4703 Sfmt 4703 $(63,750,000) 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 make nonsubstantive, clarifying amendments to several rules relating to clearing of Exchange options transactions. The text of the proposed rule change is available on the Exchange’s Web site at http:// 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 E:\FR\FM\25JAN1.SGM 25JAN1 Federal Register / Vol. 81, No. 15 / Monday, January 25, 2016 / Notices 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 asabaliauskas on DSK5VPTVN1PROD with NOTICES 1. Purpose The Exchange proposes to make minor nonsubstantive amendments to four rules relating to options clearing responsibilities of members. The changes are intended to correct minor drafting errors, and to update and improve readability of the rules. The Exchange is also proposing to extend applicability of a rule concerning violations of The Options Clearing Corporation (‘‘OCC’’) rules to off-floor transactions as well as to on-floor transactions. Phlx Rule 1046, Clearing Arrangements, currently provides that a member or member organization conducting an options business must either be: (i) A clearing member of OCC; or (ii) have a clearing arrangement with an Exchange member organization that is a clearing member of OCC. The Exchange is revising the rule to simply state that a member or member organization conducting an options business must be a Clearing Member or have a clearing arrangement with a Clearing Member. The revision simply makes use of the existing defined term ‘‘Clearing Member’’ 3 to improve readability. No change in meaning is intended. Phlx Rule 1050, Violation Of By-Laws And Rules Of Options Clearing Corporation, currently provides for Exchange penalties in the event a member, member organization or director of a member organization that is a corporation ‘‘shall be adjudged guilty in a proceeding under Article XVIII of the by-laws of a violation of any provision of the rules of the Options Clearing Corporation with respect to the reporting, clearance or settlement of any transaction on the options trading floor of this Corporation. . . . ’’ The Exchange is deleting the reference to a proceeding under Article XVIII of the by-laws, which the Exchange deleted in 3 Exchange Rule 1000(b)(3) defines ‘‘Clearing Member’’ as ‘‘a member organization which has been admitted to membership in the Options Clearing Corporation pursuant to the provisions of the rules of the Options Clearing Corporation.’’ VerDate Sep<11>2014 13:09 Jan 22, 2016 Jkt 238001 2011,4 and is replacing it with a more general and accurate reference to ‘‘an Exchange disciplinary proceeding.’’ The Exchange is also replacing the reference to ‘‘any transaction on the options trading floor of this Corporation’’ with a reference to ‘‘any Exchange options transaction’’ in view of today’s electronic options trading which is not limited to the trading floor and the fact that the Exchange is not otherwise referred to in the rulebook as ‘‘this Corporation.’’ The Exchange did not amend Rule 1050 when it introduced off-floor trading, but is doing so now because whether a transaction takes place on-floor or off-floor has no bearing on the significance of any violation of the OCC rules. The Exchange has determined that there is no reason for off-floor transactions to be excluded from a requirement that transactions must be conducted in accordance with OCC rules. The new rule should ensure that off-floor transactions as well as onfloor transactions are conducted in a manner consistent with OCC rules. Phlx Rule 1052, Responsibility Of Clearing Options Members For Exchange Options Transactions, currently provides for the clearing of transactions of non-Clearing Members by a ‘‘member organization which is a clearing member of the Options Clearing Corporation. . . .’’ The Exchange again is replacing this quoted language with the more succinct defined term ‘‘Clearing Member.’’ 5 The word ‘‘Options’’ is deleted from the rule’s title as superfluous. Finally, Rule 1054, Verification Of Trades And Reconciliation Of Uncompared Trades, imposes certain trade verification and reconciliation obligations on any ‘‘member organization which is a clearing member of the Options Clearing Corporation.’’ Once again the Exchange is replacing the cumbersome language in quotation marks with the succinct, defined term ‘‘Clearing Member.’’ The change is made simply to improve readability. 4 See Securities Exchange Act Release No. 63981 (February 25, 2011), 76 FR 12180 (March 4, 2011) (SR–Phlx–2011–13) (a rule proposal to, among other things, amend the Limited Liability Company Agreement and By-Laws to substantially conform to The NASDAQ Stock Market’s Second Amended Limited Liability Company Agreement and ByLaws). 5 Rule 1052 currently provides that every member organization which is a clearing member of the Options Clearing Corporation shall be responsible for the clearance of the Exchange options transactions of such member organization and of each member or member organization who gives up the name of such clearing member in an Exchange options transaction, provided the clearing member has authorized such member or member organization to give up its name with respect to Exchange options transactions. PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 4075 2. Statutory Basis The Exchange believes that its proposal is consistent with section 6(b) of the Act 6 in general, and furthers the objectives of section 6(b)(5) of the Act 7 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 improving the accuracy and readability of the amended rules. With respect to Rules 1046, 1052 and 1054, employing the defined term ‘‘Clearing Member’’ rather than ‘‘a clearing member of the Options Clearing Corporation’’ shortens the rule and makes it more readable. With respect to Rule 1050, deletion of a reference to a nonexistent provision of the Exchange’s bylaws and replacing it with a general reference to the Exchange’s disciplinary proceedings should make the rule more understandable. Additionally with respect to Rule 1050, extending the applicability of the rule to off-floor transactions as well as to on-floor transactions should incentivize those who engage in off-floor transactions to comply with OCC rules, which is in the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the clarifying amendments proposed herein will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act inasmuch as they simply improve the accuracy and readability of the rules. Additionally, Rule 1050, as amended, will apply to members transacting off the trading floor as well as those transacting on the trading floor, which should reduce a burden on competition on members who transact primarily on the trading floor and also on members of other markets whose rules require compliance with OCC rules in connection with transactions not occurring on a trading floor. 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. 6 15 7 15 E:\FR\FM\25JAN1.SGM U.S.C. 78f(b). U.S.C. 78f(b)(5). 25JAN1 4076 Federal Register / Vol. 81, No. 15 / Monday, January 25, 2016 / Notices 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 8 and subparagraph (f)(6) of Rule 19b–4 thereunder.9 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 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: asabaliauskas on DSK5VPTVN1PROD with NOTICES Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– Phlx–2016–03 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–2016–03. 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 (http://www.sec.gov/ 8 15 U.S.C. 78s(b)(3)(A)(iii). 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. 9 17 VerDate Sep<11>2014 13:09 Jan 22, 2016 Jkt 238001 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– 2016–03, and should be submitted on or before February 16, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Robert W. Errett, Deputy Secretary. [FR Doc. 2016–01307 Filed 1–22–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–76931; File No. SR–FINRA– 2016–002] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Alternative Trading System Volume and Trading Information January 19, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on January 8, 2016, Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) 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 FINRA. FINRA has designated the proposed rule change as 10 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. constituting a ‘‘non-controversial’’ rule change under paragraph (f)(6) of Rule 19b–4 under the Act,3 which renders the proposal effective upon receipt of this filing by the Commission. 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 FINRA is proposing to (i) delete from the FINRA rulebook Rule 4552, which requires each alternative trading system (‘‘ATS’’) that has filed a Form ATS with the SEC to report to FINRA weekly volume information and number of trades regarding equity securities transactions within the ATS; (ii) amend Rules 6110 and 6610 to add provisions regarding FINRA’s publication of ATS volume and trade count information for equity securities, including information similar to what is currently reported by ATSs pursuant to Rule 4552 as well as information regarding ATS block transactions; and (iii) amend Rules 6183 and 6625 to require ATSs seeking an exemption from FINRA trade reporting rules to provide FINRA with a link to a publicly-available Web site that displays their weekly equity volume information in a format substantially similar to that used by FINRA. The text of the proposed rule change is available on FINRA’s Web site at http://www.finra.org, at the principal office of FINRA 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, FINRA 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. FINRA 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 (i) Background On January 17, 2014, the SEC approved a proposed rule change to (i) adopt Rule 4552 (Alternative Trading 1 15 PO 00000 Frm 00061 Fmt 4703 Sfmt 4703 3 17 E:\FR\FM\25JAN1.SGM CFR 240.19b–4(f)(6). 25JAN1

Agencies

[Federal Register Volume 81, Number 15 (Monday, January 25, 2016)]
[Notices]
[Pages 4074-4076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-01307]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76929; File No. SR-Phlx-2016-03]


Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Make 
Nonsubstantive, Clarifying Amendments to Several Rules Relating to the 
Clearing of Exchange Options Transactions

January 19, 2016.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on January 5, 2016, 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 make nonsubstantive, clarifying amendments 
to several rules relating to clearing of Exchange options transactions.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://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

[[Page 4075]]

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 make minor nonsubstantive amendments to 
four rules relating to options clearing responsibilities of members. 
The changes are intended to correct minor drafting errors, and to 
update and improve readability of the rules. The Exchange is also 
proposing to extend applicability of a rule concerning violations of 
The Options Clearing Corporation (``OCC'') rules to off-floor 
transactions as well as to on-floor transactions.
    Phlx Rule 1046, Clearing Arrangements, currently provides that a 
member or member organization conducting an options business must 
either be: (i) A clearing member of OCC; or (ii) have a clearing 
arrangement with an Exchange member organization that is a clearing 
member of OCC. The Exchange is revising the rule to simply state that a 
member or member organization conducting an options business must be a 
Clearing Member or have a clearing arrangement with a Clearing Member. 
The revision simply makes use of the existing defined term ``Clearing 
Member'' \3\ to improve readability. No change in meaning is intended.
---------------------------------------------------------------------------

    \3\ Exchange Rule 1000(b)(3) defines ``Clearing Member'' as ``a 
member organization which has been admitted to membership in the 
Options Clearing Corporation pursuant to the provisions of the rules 
of the Options Clearing Corporation.''
---------------------------------------------------------------------------

    Phlx Rule 1050, Violation Of By-Laws And Rules Of Options Clearing 
Corporation, currently provides for Exchange penalties in the event a 
member, member organization or director of a member organization that 
is a corporation ``shall be adjudged guilty in a proceeding under 
Article XVIII of the by-laws of a violation of any provision of the 
rules of the Options Clearing Corporation with respect to the 
reporting, clearance or settlement of any transaction on the options 
trading floor of this Corporation. . . . '' The Exchange is deleting 
the reference to a proceeding under Article XVIII of the by-laws, which 
the Exchange deleted in 2011,\4\ and is replacing it with a more 
general and accurate reference to ``an Exchange disciplinary 
proceeding.'' The Exchange is also replacing the reference to ``any 
transaction on the options trading floor of this Corporation'' with a 
reference to ``any Exchange options transaction'' in view of today's 
electronic options trading which is not limited to the trading floor 
and the fact that the Exchange is not otherwise referred to in the 
rulebook as ``this Corporation.'' The Exchange did not amend Rule 1050 
when it introduced off-floor trading, but is doing so now because 
whether a transaction takes place on-floor or off-floor has no bearing 
on the significance of any violation of the OCC rules. The Exchange has 
determined that there is no reason for off-floor transactions to be 
excluded from a requirement that transactions must be conducted in 
accordance with OCC rules. The new rule should ensure that off-floor 
transactions as well as on-floor transactions are conducted in a manner 
consistent with OCC rules.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 63981 (February 25, 
2011), 76 FR 12180 (March 4, 2011) (SR-Phlx-2011-13) (a rule 
proposal to, among other things, amend the Limited Liability Company 
Agreement and By-Laws to substantially conform to The NASDAQ Stock 
Market's Second Amended Limited Liability Company Agreement and By-
Laws).
---------------------------------------------------------------------------

    Phlx Rule 1052, Responsibility Of Clearing Options Members For 
Exchange Options Transactions, currently provides for the clearing of 
transactions of non-Clearing Members by a ``member organization which 
is a clearing member of the Options Clearing Corporation. . . .'' The 
Exchange again is replacing this quoted language with the more succinct 
defined term ``Clearing Member.'' \5\ The word ``Options'' is deleted 
from the rule's title as superfluous.
---------------------------------------------------------------------------

    \5\ Rule 1052 currently provides that every member organization 
which is a clearing member of the Options Clearing Corporation shall 
be responsible for the clearance of the Exchange options 
transactions of such member organization and of each member or 
member organization who gives up the name of such clearing member in 
an Exchange options transaction, provided the clearing member has 
authorized such member or member organization to give up its name 
with respect to Exchange options transactions.
---------------------------------------------------------------------------

    Finally, Rule 1054, Verification Of Trades And Reconciliation Of 
Uncompared Trades, imposes certain trade verification and 
reconciliation obligations on any ``member organization which is a 
clearing member of the Options Clearing Corporation.'' Once again the 
Exchange is replacing the cumbersome language in quotation marks with 
the succinct, defined term ``Clearing Member.'' The change is made 
simply to improve readability.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with section 
6(b) of the Act \6\ in general, and furthers the objectives of section 
6(b)(5) of the Act \7\ 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 improving the accuracy and readability of the amended rules.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    With respect to Rules 1046, 1052 and 1054, employing the defined 
term ``Clearing Member'' rather than ``a clearing member of the Options 
Clearing Corporation'' shortens the rule and makes it more readable. 
With respect to Rule 1050, deletion of a reference to a nonexistent 
provision of the Exchange's bylaws and replacing it with a general 
reference to the Exchange's disciplinary proceedings should make the 
rule more understandable. Additionally with respect to Rule 1050, 
extending the applicability of the rule to off-floor transactions as 
well as to on-floor transactions should incentivize those who engage in 
off-floor transactions to comply with OCC rules, which is in the public 
interest.

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

    The Exchange does not believe that the clarifying amendments 
proposed herein will impose any burden on competition not necessary or 
appropriate in furtherance of the purposes of the Act inasmuch as they 
simply improve the accuracy and readability of the rules. Additionally, 
Rule 1050, as amended, will apply to members transacting off the 
trading floor as well as those transacting on the trading floor, which 
should reduce a burden on competition on members who transact primarily 
on the trading floor and also on members of other markets whose rules 
require compliance with OCC rules in connection with transactions not 
occurring on a trading floor.

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.

[[Page 4076]]

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 \8\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\9\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 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.

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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-Phlx-2016-03 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-2016-03. 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 (http://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-2016-03, and should be 
submitted on or before February 16, 2016.
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-01307 Filed 1-22-16; 8:45 am]
BILLING CODE 8011-01-P