Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Pricing Schedule at Section II To Clarify Fees Applicable To Correcting “As/of” or “Reversal” Trades, 18360-18362 [2018-08729]
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18360
Federal Register / Vol. 83, No. 81 / Thursday, April 26, 2018 / Notices
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 11 and
subparagraph (f)(6) of Rule 19b–4
thereunder.12
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–2018–30 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–2018–30. This file
amozie on DSK30RV082PROD with NOTICES
11 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and text of 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.
12 17
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16:58 Apr 25, 2018
Jkt 244001
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 website (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 website 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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–Phlx–2018–30 and should
be submitted on or before May 17, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–08727 Filed 4–25–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83080; File No. SR–18–31]
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the
Exchange’s Pricing Schedule at
Section II To Clarify Fees Applicable
To Correcting ‘‘As/of’’ or ‘‘Reversal’’
Trades
April 20, 2018.
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 April 17,
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
2018, Nasdaq PHLX LLC (‘‘Phlx’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘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 Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Exchange’s Pricing Schedule at Section
II to clarify fees applicable to correcting
‘‘as/of’’ or ‘‘reversal’’ trades, as
described below. The text of the
proposed rule change is available on the
Exchange’s website at https://
nasdaqphlx.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 purpose of the proposed rule
change is to amend Section II of the
Exchange’s Pricing Schedule to clarify
that when the Exchange processes an
‘‘as/of’’ or ‘‘reversal’’ trade at the request
of a member to correct clearing, the new
trade will incur the ‘‘Floor’’ category of
Options Transaction Charges for the
correction, even if the underlying trade
that the Exchange is correcting was
electronic, because the Exchange must
process all corrections manually and in
accordance with procedures applicable
to Floor trades.
Pursuant to its Policy for Amended
Billing Information, which is set forth in
the introduction to the Pricing
Schedule, the Exchange entertains
written requests (with supporting
documentation) that its members submit
E:\FR\FM\26APN1.SGM
26APN1
Federal Register / Vol. 83, No. 81 / Thursday, April 26, 2018 / Notices
to correct or reverse erroneous trades
after the date when such trades clear.
The corrections that the Exchange
makes in response to such requests are
to errors that the requesting member or
other members associated with the trade
have made with respect to executed
orders. These errors are not Exchange
errors.
Provided that the Exchange
determines that the correction or
reversal request is valid, the Exchange
must process the correction or reversal
manually, using a paper trade ticket,
even if the underlying trade that the
Exchange is correcting or reversing was
electronic in nature. The Exchange
presently does not possess a means of
electronically correcting or reversing a
trade after settlement date of the trade.
Accordingly, even if the Exchange
originally charged a member the
‘‘Electronic’’ rate for the Options
Transaction Charge that applied to the
underlying trade, the Exchange will
charge the member the ‘‘Floor’’ rate to
correct or reverse the trade. Although
this is the existing practice of the
Exchange, the Exchange now proposes
to make this practice explicit in its
Pricing Schedule. Specifically, the
Exchange proposes adding a footnote 8
to Section II of the Pricing Schedule
stating that ‘‘Floor transaction fees will
apply to any ‘as of’ or ‘reversal’
adjustments for manually processed
trades originally submitted
electronically or through FBMS.’’ 3
amozie on DSK30RV082PROD with NOTICES
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,4 in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5)
of the Act,5 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among members and issuers and other
persons using any facility, and is not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Exchange believes that it is
reasonable to charge members an
Options Transactions Charge to correct
or reverse erroneous trades because
processing such corrections and
reversals requires the Exchange to
execute additional options transactions.
Moreover, the trade corrections and
reversals at issue occur at the request of
3 For the avoidance of doubt, the Exchange notes
that the transaction fee that the Exchange charges
to reverse or correct a trade is in addition to, rather
than in lieu of, the transaction fee charged to
execute the underlying trade that is subject to
reversal or correction.
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(4) and (5).
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16:58 Apr 25, 2018
Jkt 244001
members and pursuant to errors for
which members, rather than the
Exchange, are responsible. Additionally,
it is reasonable for the Exchange to
charge members the ‘‘Floor’’ rate to
correct or reverse trades—including to
correct or reverse both Floor-based and
electronic trades—because the Exchange
must process all such requests
manually, using trade tickets, and in
accordance with its Floor-based
procedures.
The Exchange believes that its
proposal is an equitable allocation and
is not unfairly discriminatory because
the ‘‘Floor’’ rate that the Exchange
charges for corrections or reversals is
reflective of the Exchange’s manual
process of correcting or reversing a trade
rather than the nature of the underlying
trade that the Exchange is correcting or
reversing. Moreover, the Exchange notes
that it will assess the same fee to all
similarly situated members that request
corrections or reversals.
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. In terms of
inter-market competition, the Exchange
notes that it operates in a highly
competitive market in which market
participants can readily favor competing
venues if they deem fee levels at a
particular venue to be excessive. In such
an environment, the Exchange must
continually adjust its fees to remain
competitive with other exchanges and
with alternative trading systems that
have been exempted from compliance
with the statutory standards applicable
to exchanges. Because competitors are
free to modify their own fees in
response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited.
In this instance, the proposed changes
to the Pricing Schedule compensate the
Exchange for effecting transactions,
using a manual process, that are
necessary to correct or reverse trades at
a member’s request. The proposals also
clarify and render more transparent the
existing practices of the Exchange with
respect to its fees for processing member
requests for corrections and reversals.
The Exchange does not intend or expect
that the proposals will have any impact
on inter-market or intra-market
competition.
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
18361
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.6
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–2018–31 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–2018–31. 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 website (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
6 15
E:\FR\FM\26APN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
26APN1
18362
Federal Register / Vol. 83, No. 81 / Thursday, April 26, 2018 / Notices
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website 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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–Phlx–2018–31 and should
be submitted on or before May 17, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–08729 Filed 4–25–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.
amozie on DSK30RV082PROD with NOTICES
Extension:
Form 1–Z, SEC File No. 270–659, OMB
Control No. 3235–0723.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Form 1–Z (17 CFR 239.94) is used to
report terminated or completed offerings
or to suspend the duty to file ongoing
reports under Regulation A, an
exemption from registration under the
Securities Act of 1933 (15 U.S.C 77a et
seq.). The purpose of the Form 1–Z is
to collect empirical data for the
Commission on offerings conducted
under Regulation A that have
terminated or completed, to indicate to
7 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
16:58 Apr 25, 2018
Jkt 244001
the Commission that issuers that have
conducted Tier 2 offering are
suspending their duty to file reports
under Regulation A and to provide such
information to the investing public. We
estimate that approximately 12 issuers
file Form 1–Z annually. We estimate
that Form 1–Z takes approximately 1.5
hours to prepare. We estimate that
100% of the 1.5 hours per response is
prepared by the company for a total
annual burden of 18 hours (1.5 hours
per response × 12 responses).
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden imposed by the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
Please direct your written comments
to Pamela Dyson, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE, Washington,
DC 220549; or send an email to: PRA_
Mailbox@sec.gov.
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 10,
2018, Nasdaq ISE, LLC (‘‘ISE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
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.
Dated: April 23, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–08820 Filed 4–25–18; 8:45 am]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83079; File No. SR–ISE–
2018–35]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Incorporate by
Reference The Nasdaq Stock Market
LLC’s Consolidated Audit Trail Rules
Into the Rules of Nasdaq ISE
April 20, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to incorporate
by reference The Nasdaq Stock Market
LLC’s (‘‘Nasdaq’’) rule at General 7,
entitled ‘‘Consolidated Audit Trail
Compliance’’ into ISE’s General 7.
The text of the proposed rule change
is available on the Exchange’s website at
https://ise.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.
The Exchange proposes to incorporate
by reference Nasdaq’s rule at General 7,
entitled ‘‘Consolidated Audit Trail
Compliance’’ into ISE’s General 7. The
rule sets are identical.3 ISE proposes to
remove the current rule text from
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release Nos. 82601
(January 30, 2018), 83 FR 4949 (February 2, 2018)
(SR–Phlx–2018–11); 82604 (January 30, 2018), 83
FR 5154 (February 5, 2018) (SR–NASDAQ–2018–
007); 82597 (January 30, 2018), 83 FR 4942
(February 2, 2018) (SR–BX–2018–007); 82599
(January 30, 2017), 83 FR 4947 (February 2, 2018)
(SR–ISE–2018–09); 82598 (January 30, 2018), 83 FR
4936 (February 2, 2018) (SR–GEMX–2018–02); and
82600 (January 30, 2018), 83 FR 4934 (February 2,
2018) (SR–MRX–2018–03).
2 17
E:\FR\FM\26APN1.SGM
26APN1
]]>Agencies
[Federal Register Volume 83, Number 81 (Thursday, April 26, 2018)]
[Notices]
[Pages 18360-18362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08729]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83080; File No. SR-18-31]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the
Exchange's Pricing Schedule at Section II To Clarify Fees Applicable To
Correcting ``As/of'' or ``Reversal'' Trades
April 20, 2018.
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 April 17, 2018, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed
with the Securities and Exchange Commission (``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 Substance
of the Proposed Rule Change
The Exchange proposes to amend the Exchange's Pricing Schedule at
Section II to clarify fees applicable to correcting ``as/of'' or
``reversal'' trades, as described below. The text of the proposed rule
change is available on the Exchange's website at https://nasdaqphlx.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 purpose of the proposed rule change is to amend Section II of
the Exchange's Pricing Schedule to clarify that when the Exchange
processes an ``as/of'' or ``reversal'' trade at the request of a member
to correct clearing, the new trade will incur the ``Floor'' category of
Options Transaction Charges for the correction, even if the underlying
trade that the Exchange is correcting was electronic, because the
Exchange must process all corrections manually and in accordance with
procedures applicable to Floor trades.
Pursuant to its Policy for Amended Billing Information, which is
set forth in the introduction to the Pricing Schedule, the Exchange
entertains written requests (with supporting documentation) that its
members submit
[[Page 18361]]
to correct or reverse erroneous trades after the date when such trades
clear. The corrections that the Exchange makes in response to such
requests are to errors that the requesting member or other members
associated with the trade have made with respect to executed orders.
These errors are not Exchange errors.
Provided that the Exchange determines that the correction or
reversal request is valid, the Exchange must process the correction or
reversal manually, using a paper trade ticket, even if the underlying
trade that the Exchange is correcting or reversing was electronic in
nature. The Exchange presently does not possess a means of
electronically correcting or reversing a trade after settlement date of
the trade. Accordingly, even if the Exchange originally charged a
member the ``Electronic'' rate for the Options Transaction Charge that
applied to the underlying trade, the Exchange will charge the member
the ``Floor'' rate to correct or reverse the trade. Although this is
the existing practice of the Exchange, the Exchange now proposes to
make this practice explicit in its Pricing Schedule. Specifically, the
Exchange proposes adding a footnote 8 to Section II of the Pricing
Schedule stating that ``Floor transaction fees will apply to any `as
of' or `reversal' adjustments for manually processed trades originally
submitted electronically or through FBMS.'' \3\
---------------------------------------------------------------------------
\3\ For the avoidance of doubt, the Exchange notes that the
transaction fee that the Exchange charges to reverse or correct a
trade is in addition to, rather than in lieu of, the transaction fee
charged to execute the underlying trade that is subject to reversal
or correction.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\4\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\5\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using any facility, and is
not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that it is reasonable to charge members an
Options Transactions Charge to correct or reverse erroneous trades
because processing such corrections and reversals requires the Exchange
to execute additional options transactions. Moreover, the trade
corrections and reversals at issue occur at the request of members and
pursuant to errors for which members, rather than the Exchange, are
responsible. Additionally, it is reasonable for the Exchange to charge
members the ``Floor'' rate to correct or reverse trades--including to
correct or reverse both Floor-based and electronic trades--because the
Exchange must process all such requests manually, using trade tickets,
and in accordance with its Floor-based procedures.
The Exchange believes that its proposal is an equitable allocation
and is not unfairly discriminatory because the ``Floor'' rate that the
Exchange charges for corrections or reversals is reflective of the
Exchange's manual process of correcting or reversing a trade rather
than the nature of the underlying trade that the Exchange is correcting
or reversing. Moreover, the Exchange notes that it will assess the same
fee to all similarly situated members that request corrections or
reversals.
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. In terms of inter-market
competition, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues if they deem fee levels at a particular venue to be
excessive. In such an environment, the Exchange must continually adjust
its fees to remain competitive with other exchanges and with
alternative trading systems that have been exempted from compliance
with the statutory standards applicable to exchanges. Because
competitors are free to modify their own fees in response, and because
market participants may readily adjust their order routing practices,
the Exchange believes that the degree to which fee changes in this
market may impose any burden on competition is extremely limited.
In this instance, the proposed changes to the Pricing Schedule
compensate the Exchange for effecting transactions, using a manual
process, that are necessary to correct or reverse trades at a member's
request. The proposals also clarify and render more transparent the
existing practices of the Exchange with respect to its fees for
processing member requests for corrections and reversals. The Exchange
does not intend or expect that the proposals will have any impact on
inter-market or intra-market competition.
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.\6\
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\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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 [email protected]v. Please include
File Number SR-Phlx-2018-31 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-2018-31. 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 website (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
[[Page 18362]]
those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website 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. Persons submitting
comments are cautioned that we do not redact or edit personal
identifying information from comment submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-2018-31 and should be
submitted on or before May 17, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-08729 Filed 4-25-18; 8:45 am]
BILLING CODE 8011-01-P
