Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Add an Exception to Phlx Rule 1000(f)(iii) for Certain Floor Broker Transactions and Adopt Rule 1063(e)(v) To Add the Snapshot Functionality to the Options Floor Broker Management System, 43432-43433 [2017-19581]
Download as PDF
43432
Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Notices
months, the Exchange believes the
proposed rule change would not impact
intramarket competition as given that
the Exchange would provide all ETP
Holders the ability to connect to the
Exchange through ports that are
activated before August 21, 2017 and
through ports that are activated after
August 18, 2017.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 14 of the Act and
subparagraph (f)(2) of Rule 19b–4 15
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 16 of the Act to
determine whether the proposed rule
change 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:
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
All submissions should refer to File
Number SR–NYSEARCA–2017–97. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC, 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEARCA–2017–97 and should be
submitted on or before October 6, 2017.
[Release No. 34–81567; File No. SR–Phlx–
2017–34]
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–19586 Filed 9–14–17; 8:45 am]
BILLING CODE 8011–01–P
mstockstill on DSK30JT082PROD with NOTICES
On July 18, 2017, NASDAQ PHLX
LLC (‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
add an exception to Phlx Rule
1000(f)(iii) 3 to permit Floor Brokers to
execute (1) multi-leg orders,4 and (2)
simple orders in options on Exchange
Trade Funds (‘‘ETFs’’) that are included
in the Penny Pilot, in the trading crowd
using ‘‘Snapshot,’’ a new functionality
Phlx is proposing for its Floor Broker
Management System (‘‘FBMS’’).5 The
proposed rule change was published for
comment in the Federal Register on
August 1, 2017.6 The Commission has
received no comment letters on the
proposed rule change.
Section 19(b)(2) of the Act 7 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
proposed rule change, disapprove the
proposed rule change, or institute
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Phlx Rule 1000(f) requires that all Exchange
options transactions be executed in one of the
following three ways: (i) [a]utomatically by the
[Exchange’s Trading System] pursuant to Phlx Rule
1080 and other applicable options rules, (ii) by and
among members in the Exchange’s options trading
crowd none of whom is a floor broker; or (iii)
through the Options Floor Broker Management
System for trades involving a least one Floor
Broker. Phlx rules currently permit four exceptions
to Phlx Rule 1000(f)(iii). See Rule Rule
1000(f)(iii)(A)–(D).
4 See Phlx Rule 1066(f) (defining multi-leg
orders).
5 The Snapshot functionality would be codified in
a new proposed rule, Phlx Rule 1063(e)(v).
6 See Securities Exchange Act Release No. 81230
(July 27, 2017), 82 FR 35858.
7 15 U.S.C. 78s(b)(2).
2 17
• 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–
NYSEARCA–2017–97 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
14 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
16 15 U.S.C. 78s(b)(2)(B).
15 17
18:16 Sep 14, 2017
September 11, 2017.
1 15
Electronic Comments
VerDate Sep<11>2014
Self-Regulatory Organizations;
NASDAQ PHLX LLC; Notice of
Designation of a Longer Period for
Commission Action on a Proposed
Rule Change To Add an Exception to
Phlx Rule 1000(f)(iii) for Certain Floor
Broker Transactions and Adopt Rule
1063(e)(v) To Add the Snapshot
Functionality to the Options Floor
Broker Management System
17 17
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CFR 200.30–3(a)(12).
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Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Notices
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day for this filing
is September 15, 2017.
The Commission is extending the 45day time period for Commission action
on the proposed rule change. The
Commission finds that it is appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider and take action on the
Exchange’s proposed rule change.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the Act,8
designates October 30, 2017, 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 Number SR–Phlx–2017–34).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–19581 Filed 9–14–17; 8:45 am]
BILLING CODE 8011–01–P
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Modify the NYSE
American Options Fee Schedule
mstockstill on DSK30JT082PROD with NOTICES
September 11, 2017.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
September 1, 2017, NYSE American
LLC (the ‘‘Exchange’’ or ‘‘NYSE
American’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
17:07 Sep 14, 2017
Jkt 241001
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
self-regulatory organization 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 those 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 parts of such
statements.
1. Purpose
[Release No. 34–81569; File No. SR–
NYSEAMER–2017–13]
9 17
The Exchange proposes to modify the
NYSE American Options Fee Schedule
(‘‘Fee Schedule’’). The Exchange
proposes to implement the fee change
effective September 1, 2017. The
proposed change is available on the
Exchange’s Web site at www.nyse.com,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
8 Id.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of this filing is to modify
the Fee Schedule, effective September 1,
2017. Specifically, the Exchange
proposes to amend the American
Customer Engagement (‘‘ACE’’) Program
to modify various credits offered and to
establish certain credits provided
depending on the type of Electronic
transactions (e.g., whether it is a simple
or complex execution). The Exchange
also proposes to add ‘‘Simple Order’’ to
the glossary of defined terms in the Fee
Schedule.
Section I.E. of the Fee Schedule
describes the Exchange’s ACE Program.
The ACE Program features a base tier
and five higher tiers expressed as a
percentage of TCADV 4 and provides
two alternative methods by which Order
Flow Providers (each an ‘‘OFP’’) may
receive per contract credits for
Electronic Customer volume that the
4 See Fee Schedule, Section I.E., available here,
https://www.nyse.com/publicdocs/nyse/markets/
american-options/NYSE_American_Options_Fee_
Schedule.pdf. See also Fee Schedule, Key Terms
and Definitions (defining TCADV as ‘‘Total Industry
Customer equity and ETF option average daily
volume. TCADV includes OCC calculated Customer
volume of all types, including Complex Order
transactions and QCC transactions, in equity and
ETF options’’).
PO 00000
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43433
OFP, as agent, submits to the Exchange.5
The Exchange proposes to modify the
qualifications for certain of the tiers.
Currently, an OFP that achieves
0.75% or less of Customer Electronic
ADV (‘‘CADV’’) as a percent of TCADV
falls within the Base Tier and is not
eligible to receive ACE Credits. To
qualify for Tier 1 or 2, an OFP may
achieve a level of CADV that is equal to
or greater than certain percentages of the
OFP’s October 2015 volume
(collectively, the ‘‘Step Up’’
qualifications):
• For Tier 1, an OFP qualifies by
achieving CADV that exceeds October
2015 volume by at least 0.20% to be
eligible for a $0.14 per contract credit;
• For Tier 2, the OFP may qualify by
achieving CADV that exceeds October
2015 volume by at least 0.35% to be
eligible for a $0.18 per contract credit.6
An OFP that achieves Tier 2 is also
eligible to receive a more favorable
$0.19 per contract credit on Electronic
Customer Complex Orders.7
The Exchange proposes to eliminate
Step Up qualifications and to instead
provide that OFPs may qualify for ACE
credits based solely on percentages of
monthly TCADV. The Exchange
believes this proposed change would
provide the opportunity to all Exchange
participants to meet the same
reasonable, yet meaningful standard to
qualify for the ACE Program credits.
Thus, as proposed, an OFP that achieves
monthly CADV of at least 0.40% would
qualify for Tier 1; and an OFP that
achieves monthly CADV of greater than
0.75% would qualify for Tier 2.8
Consistent with the change, the
Exchange proposes to modify the Fee
Schedule to reflect that an OFP that
achieves monthly CADV of less than
0.40% falls within the Base Tier and, as
is the case today, would therefore be
ineligible for ACE credits.9
5 The volume thresholds are based on an OFP’s
Customer volume transacted Electronically as a
percentage of total industry Customer equity and
ETF options volumes as reported by the Options
Clearing Corporation (the ‘‘OCC’’). See OCC
Monthly Statistics Reports, available here, https://
www.theocc.com/webapps/monthly-volume-reports.
6 As an alternative to the Step Up qualification
basis, an OFP may qualify for Tier 2 (and receive
the same $0.18 per contract credit) by achieving
greater than 0.75 CADV.
7 See Fee Schedule, Section I.E., n. 1 (providing
that the credit for Customer Complex Orders is
provided regardless of whether the Complex Order
trades against interest in the Complex Order Book
or with individual orders and quotes in the
Consolidated Book).
8 See proposed Fee Schedule, Section I.E.
9 The Enhanced Credits are only available to
those OFPs who have an Affiliated NYSE American
Options Market Making firm or an Appointed MM
that has committed to the 1 Year Prepayment
Program, Balance of the Year Program, or the 3 Year
E:\FR\FM\15SEN1.SGM
Continued
15SEN1
Agencies
[Federal Register Volume 82, Number 178 (Friday, September 15, 2017)]
[Notices]
[Pages 43432-43433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-19581]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81567; File No. SR-Phlx-2017-34]
Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of
Designation of a Longer Period for Commission Action on a Proposed Rule
Change To Add an Exception to Phlx Rule 1000(f)(iii) for Certain Floor
Broker Transactions and Adopt Rule 1063(e)(v) To Add the Snapshot
Functionality to the Options Floor Broker Management System
September 11, 2017.
On July 18, 2017, NASDAQ PHLX LLC (``Exchange'') filed with the
Securities and Exchange Commission (``Commission''), pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\
and Rule 19b-4 thereunder,\2\ a proposed rule change to add an
exception to Phlx Rule 1000(f)(iii) \3\ to permit Floor Brokers to
execute (1) multi-leg orders,\4\ and (2) simple orders in options on
Exchange Trade Funds (``ETFs'') that are included in the Penny Pilot,
in the trading crowd using ``Snapshot,'' a new functionality Phlx is
proposing for its Floor Broker Management System (``FBMS'').\5\ The
proposed rule change was published for comment in the Federal Register
on August 1, 2017.\6\ The Commission has received no comment letters on
the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Phlx Rule 1000(f) requires that all Exchange options
transactions be executed in one of the following three ways: (i)
[a]utomatically by the [Exchange's Trading System] pursuant to Phlx
Rule 1080 and other applicable options rules, (ii) by and among
members in the Exchange's options trading crowd none of whom is a
floor broker; or (iii) through the Options Floor Broker Management
System for trades involving a least one Floor Broker. Phlx rules
currently permit four exceptions to Phlx Rule 1000(f)(iii). See Rule
Rule 1000(f)(iii)(A)-(D).
\4\ See Phlx Rule 1066(f) (defining multi-leg orders).
\5\ The Snapshot functionality would be codified in a new
proposed rule, Phlx Rule 1063(e)(v).
\6\ See Securities Exchange Act Release No. 81230 (July 27,
2017), 82 FR 35858.
---------------------------------------------------------------------------
Section 19(b)(2) of the Act \7\ 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 proposed rule change,
disapprove the proposed rule change, or institute
[[Page 43433]]
proceedings to determine whether the proposed rule change should be
disapproved. The 45th day for this filing is September 15, 2017.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
The Commission is extending the 45-day time period for Commission
action on the proposed rule change. The Commission finds that it is
appropriate to designate a longer period within which to take action on
the proposed rule change so that it has sufficient time to consider and
take action on the Exchange's proposed rule change.
Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act,\8\ designates October 30, 2017, 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 Number SR-Phlx-2017-34).
---------------------------------------------------------------------------
\8\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(31).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-19581 Filed 9-14-17; 8:45 am]
BILLING CODE 8011-01-P