Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Risk Protections, 25095-25097 [2018-11612]
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Federal Register / Vol. 83, No. 105 / Thursday, May 31, 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 solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change
does not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; or (iii) become
operative prior to 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) of the Act 12 and
Rule 19b–4(f)(6) thereunder.13
The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. Because the vote on the
Reorganization will occur before the end
of the operative delay, waiver of the
operative delay would allow the
Exchange to begin implementing the
two organizational and administrative
changes described above to immediately
upon shareholder approval of the
Reorganization. The Commission
believes that waiver of the 30-day
operative delay is consistent with the
protection of investors and the public
interest and hereby waives the 30-day
operative delay and designates the
proposed rule change to be operative
upon filing.14
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 necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its 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.
14 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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13 17
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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:
25095
For the Commission, by the Division
of Trading and Markets, pursuant to
delegated authority.15
Eduardo A. Aleman,
Assistant Secretary.
Electronic Comments
[FR Doc. 2018–11610 Filed 5–30–18; 8:45 am]
• 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–2018–35 on the subject line.
BILLING CODE 8011–01–P
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–NYSEArca–2018–35. 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
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–NYSEArca–2018–35 and
should be submitted on or before June
21, 2018.
PO 00000
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83322; File No. SR–Phlx–
2018–41]
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Related to Risk
Protections
May 24, 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 May 16,
2018, Nasdaq PHLX LLC (‘‘Phlx’’ 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 1095, entitled ‘‘Automated
Removal of Quotes’’ and Rule 1099,
entitled ‘‘Order Protections.’’
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
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 83, No. 105 / Thursday, May 31, 2018 / Notices
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 Rule 1099, entitled
‘‘Order Protections’’ and reorganize the
Rulebook. The Exchange proposes to
rename Rule 1099 ‘‘Risk Protections’’
and relocate all the risk protections into
a single rule. The Exchange also
proposes to categorize the risk
protections as order protections, order
and quote protections or Specialist 3 and
Registered Options Trader 4 protections.
The Exchange believes that reorganizing
the various risk protection rules into a
single rule and providing labels for the
different types of protections will
provide an easy reference for market
participants. The Exchange is not
amending the text of the existing rules,
rather the Exchange proposes to reletter
and renumber the rule as well to
provide a more organized structure. The
Exchange believes that categorizing the
various protections provides more
information to market participants as to
each of the risk protections.
Order Price Protection
The Exchange proposes to relocate
Order Price Protection from Rule
1099(c) to proposed Rule 1099(a)(1)
under the title of order protections.
Market Order Spread Protection
The Exchange proposes to relocate
Market Order Spread Protection from
Rule 1099(d) to proposed Rule
1099(a)(2) under the title of order
protections.
Acceptable Trade Range
The Exchange proposes to renumber
the Acceptable Trade Protection rule
text as Rule 1099(b)(1) under the title for
order and quote protections.
amozie on DSK3GDR082PROD with NOTICES1
Anti-Internalization
The Exchange proposes to renumber
the Anti-Internalization rule from Rule
Rule [sic] 1099(b) to 1099(c)(1) under
the title Specialist and Registered
Options Traders protections.
3 A Specialist is an Exchange member who is
registered as an options Specialist. See Phlx Rule
1020(a).
4 Rule 1014(b) defines a ROT as ‘‘a regular
member or a foreign currency options participant of
the Exchange located on the trading floor who has
received permission from the Exchange to trade in
options for his own account.’’ For purposes of Rule
1014, the term ‘‘ROT’’ shall include a Streaming
Quote Trader and a Remote Streaming Quote
Trader, as defined in Rule 1014.
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Automated Removal of Quotes and
Orders
The Exchange proposes to relocate the
Automated Removal of Quotes rule from
Rule 1095 to Rule 1099(c)(2) under the
title Specialist and Registered Options
Traders protections. The Exchange
proposes to reserve Rule 1095.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,5 in general, and furthers the
objectives of Section 6(b)(5) of the Act,6
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
grouping the various risk protections
into a single rule for ease of reference
and adding headers to the rule to make
clear whether the risk protection is an
order, quote or order protection or a
protection applicable to Specialists and
Registered Options Traders. The
Exchange believes the reorganization of
the existing rule and relocation of
various rules into Rule 1099 is a nonsubstantive rule change. The Exchange
believes that this rule change is
consistent with the protection of
investors and the public interest
because it will bring greater
transparency to the protections offered
on Phlx.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The proposal
does not impose an intra-market burden
on competition with respect to the
reorganization and relocation of the
various rules into Rule 1099 because the
various risk protections will continue to
apply uniformly to all market
participants.
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
5 15
6 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00131
Fmt 4703
Sfmt 4703
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) of the Act7 and Rule 19b–
4(f)(6) thereunder.8
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 9 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 10
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has
requested that the Commission waive
the 30-day operative delay so that the
proposed rule change may become
operative upon filing. Waiver of the
operative delay would allow the
Exchange to reorganize its rules without
delay to provide market participants
with a single point of reference for the
risk protections offered by the
Exchange. Therefore, the Commission
believes that waiver of the 30-day
operative delay is consistent with the
protection of investors and the public
interest. Accordingly, the Commission
hereby waives the operative delay and
designates the proposed rule change
operative upon filing.11
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 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
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,
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its 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.
9 17 CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii).
11 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
8 17
E:\FR\FM\31MYN1.SGM
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Federal Register / Vol. 83, No. 105 / Thursday, May 31, 2018 / Notices
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–2018–41 on the subject line.
amozie on DSK3GDR082PROD with NOTICES1
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–2018–41. 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
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–2018–41, and should
be submitted on or before June 21, 2018.
For the Commission, by the Division
of Trading and Markets, pursuant to
delegated authority.12
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–11612 Filed 5–30–18; 8:45 am]
BILLING CODE 8011–01–P
12 17
CFR 200.30–3(a)(12).
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17:46 May 30, 2018
Jkt 241001
SECURITIES AND EXCHANGE
COMMISSION
25097
change as modified by Amendment
No. 1.
II. Description of the Proposal 6
[Release No. 34–83319; File No. SR–
NYSEArca–2018–15]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Approving a
Proposed Rule Change, As Modified by
Amendment No. 1 Thereto, To
Continue Listing and Trading Shares
of the PGIM Ultra Short Bond ETF
Under NYSE Arca Rule 8.600–E
May 24, 2018.
I. Introduction
On March 6, 2018, NYSE Arca, Inc.
(‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 list and trade shares
(‘‘Shares’’) of the PGIM Ultra Short
Bond ETF (‘‘Fund’’), a series of PGIM
ETF Trust (‘‘Trust’’), under NYSE Arca
Rule 8.600–E. The proposed rule change
was published for comment in the
Federal Register on March 23, 2018.3
On April 25, 2018, the Exchange filed
Amendment No. 1 to the proposal,
which replaced and superseded the
proposed rule change in its entirety.4
On May 4, 2018, the Commission
extended the time the Commission
designated a longer period within which
to approve the proposed rule change,
disapprove the proposed rule change, or
institute proceedings to determine
whether to disapprove the proposed
rule change.5 The Commission has
received no comments on the proposal.
This order approves the proposed rule
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 82899
(Mar. 19, 2018), 83 FR 12824.
4 In Amendment No. 1, the Exchange: (1)
Provided additional information regarding certain
of the Fund’s permitted investments; (2) clarified
that the Fund may invest up to 25% of its total
assets in the Affiliated Short Term Bond Fund
Shares (defined below) and 10% of its total assets
in other non-exchange-traded open-end
management investment company securities; (3)
described the availability of price information for
certain of the Fund’s permitted investments; and (4)
made changes of a technical nature. Amendment
No. 1 is not subject to notice and comment because
it does not materially alter the substance of the
proposed rule change or raise unique or novel
regulatory issues. Amendment No. 1 is available at:
https://www.sec.gov/comments/sr-nysearca-201815/nysearca201815-3510337-162292.pdf.
5 See Exchange Act Release No. 83174, 83 FR
21794 (May 10, 2018). The Commission designated
June 21, 2018, as the date by which the Commission
shall approve or disapprove, or institute
proceedings to determine whether to disapprove,
the proposed rule change.
2 17
PO 00000
Frm 00132
Fmt 4703
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The Trust is registered under the 1940
Act.7 The Shares 8 are listed and traded
on the Exchange under Commentary .01
to NYSE Arca Rule 8.600–E,9 which
provides generic criteria applicable to
the listing and trading of Managed Fund
Shares.10 However, the Fund intends to
change its investment strategy such that
the Shares would no longer qualify for
generic listing on the Exchange.
Specifically, the Fund’s portfolio would
continue to satisfy all of the generic
listing requirements except that:
• Investments in non-agency, nongovernment sponsored entity and
privately issued mortgage-related and
other asset-backed securities (‘‘Private
ABS/MBS’’) may account for up to 20%
of the total assets of the Fund (rather
than 20% of the weight of the fixed
income portion of the portfolio, as
required under Commentary .01(b)(5));
• fixed income securities that do not
meet any of the criteria in Commentary
.01(b)(4) will not exceed 10% of the
total assets of the Fund (rather than
6 Additional information regarding, among other
things, the Shares, the Fund, its investment
objective, its permitted investments, its investment
strategies and methodology, its investment
restrictions, its investment adviser and subadviser,
its fees, its creation and redemption procedures,
availability of information, trading rules and halts,
and surveillance procedures can be found in
Amendment No. 1 and in the Registration
Statement. See Amendment No. 1, supra note 4,
and Registration Statement, infra note 7,
respectively.
7 On January 8, 2018, the Trust filed with the
Commission its registration statement on Form N–
1A under the Securities Act of 1933 (15 U.S.C. 77a),
and under the 1940 Act relating to the Fund (File
Nos. 333–222469 and 811–23324) (‘‘Registration
Statement’’). The Commission has issued an order
granting certain exemptive relief to the Trust under
the 1940 Act. See Investment Company Act Release
No. 31095 (Jun. 24, 2014) (File No. 812–14267).
8 The Exchange deems the Shares to be equity
securities, thus rendering trading in the Shares
subject to the Exchange’s existing rules governing
the trading of equity securities.
9 The Shares commenced trading on the Exchange
on April 10, 2018. See Amendment No. 1, supra
note 4, at 3, n.1.
10 A Managed Fund Share is a security that: (1)
Represents an interest in a registered investment
company (‘‘Investment Company’’) organized as an
open-end management investment company or
similar entity, that invests in a portfolio of
securities selected by the Investment Company’s
investment adviser consistent with the Investment
Company’s investment objectives and policies; (b)
is issued in a specified aggregate minimum number
in return for a deposit of a specified portfolio of
securities and/or a cash amount with a value equal
to the next determined net asset value; and (c) when
aggregated in the same specified minimum number,
may be redeemed at a holder’s request, which
holder will be paid a specified portfolio of
securities and/or cash with a value equal to the next
determined net asset value. See NYSE Arca Rule
8.600–E(c)(1).
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]]>Agencies
[Federal Register Volume 83, Number 105 (Thursday, May 31, 2018)]
[Notices]
[Pages 25095-25097]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-11612]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83322; File No. SR-Phlx-2018-41]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Related to Risk
Protections
May 24, 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 May 16, 2018, Nasdaq PHLX LLC (``Phlx'' 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.
---------------------------------------------------------------------------
\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 Rule 1095, entitled ``Automated
Removal of Quotes'' and Rule 1099, entitled ``Order Protections.''
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
[[Page 25096]]
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 Rule 1099,
entitled ``Order Protections'' and reorganize the Rulebook. The
Exchange proposes to rename Rule 1099 ``Risk Protections'' and relocate
all the risk protections into a single rule. The Exchange also proposes
to categorize the risk protections as order protections, order and
quote protections or Specialist \3\ and Registered Options Trader \4\
protections. The Exchange believes that reorganizing the various risk
protection rules into a single rule and providing labels for the
different types of protections will provide an easy reference for
market participants. The Exchange is not amending the text of the
existing rules, rather the Exchange proposes to reletter and renumber
the rule as well to provide a more organized structure. The Exchange
believes that categorizing the various protections provides more
information to market participants as to each of the risk protections.
---------------------------------------------------------------------------
\3\ A Specialist is an Exchange member who is registered as an
options Specialist. See Phlx Rule 1020(a).
\4\ Rule 1014(b) defines a ROT as ``a regular member or a
foreign currency options participant of the Exchange located on the
trading floor who has received permission from the Exchange to trade
in options for his own account.'' For purposes of Rule 1014, the
term ``ROT'' shall include a Streaming Quote Trader and a Remote
Streaming Quote Trader, as defined in Rule 1014.
---------------------------------------------------------------------------
Order Price Protection
The Exchange proposes to relocate Order Price Protection from Rule
1099(c) to proposed Rule 1099(a)(1) under the title of order
protections.
Market Order Spread Protection
The Exchange proposes to relocate Market Order Spread Protection
from Rule 1099(d) to proposed Rule 1099(a)(2) under the title of order
protections.
Acceptable Trade Range
The Exchange proposes to renumber the Acceptable Trade Protection
rule text as Rule 1099(b)(1) under the title for order and quote
protections.
Anti-Internalization
The Exchange proposes to renumber the Anti-Internalization rule
from Rule Rule [sic] 1099(b) to 1099(c)(1) under the title Specialist
and Registered Options Traders protections.
Automated Removal of Quotes and Orders
The Exchange proposes to relocate the Automated Removal of Quotes
rule from Rule 1095 to Rule 1099(c)(2) under the title Specialist and
Registered Options Traders protections. The Exchange proposes to
reserve Rule 1095.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\5\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\6\ 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 grouping the various risk protections into a single rule for ease of
reference and adding headers to the rule to make clear whether the risk
protection is an order, quote or order protection or a protection
applicable to Specialists and Registered Options Traders. The Exchange
believes the reorganization of the existing rule and relocation of
various rules into Rule 1099 is a non-substantive rule change. The
Exchange believes that this rule change is consistent with the
protection of investors and the public interest because it will bring
greater transparency to the protections offered on Phlx.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The proposal does not impose an
intra-market burden on competition with respect to the reorganization
and relocation of the various rules into Rule 1099 because the various
risk protections will continue to apply uniformly to all market
participants.
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) of the Act\7\ and Rule 19b-
4(f)(6) thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its 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.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \9\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \10\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay so
that the proposed rule change may become operative upon filing. Waiver
of the operative delay would allow the Exchange to reorganize its rules
without delay to provide market participants with a single point of
reference for the risk protections offered by the Exchange. Therefore,
the Commission believes that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest.
Accordingly, the Commission hereby waives the operative delay and
designates the proposed rule change operative upon filing.\11\
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\9\ 17 CFR 240.19b-4(f)(6).
\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 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 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,
[[Page 25097]]
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]. Please include
File Number SR-Phlx-2018-41 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-2018-41. 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 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-2018-41, and should be submitted on
or before June 21, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-11612 Filed 5-30-18; 8:45 am]
BILLING CODE 8011-01-P
