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]
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<![CDATA[
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 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
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
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U.S.C. 78f(b).
U.S.C. 78f(b)(5).
25JAN1
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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 (https://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 (https://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
https://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
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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 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
[[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\
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\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.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (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 (https://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 (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-2016-03, and should be
submitted on or before February 16, 2016.
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\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
