Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Temporarily Waive Certain Port-Related Fees at Equity 7, Section 3, 61640-61642 [2022-22081]
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61640
Federal Register / Vol. 87, No. 196 / Wednesday, October 12, 2022 / Notices
Commission, 100 F Street NE,
Washington, DC 20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
All submissions should refer to File
Number SR–MEMX–2022–29. 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–MEMX–2022–29 and
should be submitted on or before
November 2, 2022.
[Release No. 34–95985; File No. SR–Phlx–
2022–37]
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–22082 Filed 10–11–22; 8:45 am]
BILLING CODE 8011–01–P
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Temporarily Waive
Certain Port-Related Fees at Equity 7,
Section 3
October 5, 2022.
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
September 22, 2022, Nasdaq PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) a 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 temporarily
waive certain port-related fees at Equity
7, Section 3, as described further below.
The text of the proposed rule change is
available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/phlx/rules, 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.
jspears on DSK121TN23PROD with NOTICES
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 Equity 7, Section 3
to provide a temporary fee waiver for
1 15
18 17
CFR 200.30–3(a)(12).
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18:37 Oct 11, 2022
2 17
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PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00082
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newly added OUCH order entry ports
(production and Testing Facility
environments) with the updated version
of the OUCH Order entry protocol,3
referred to as ‘‘OUCH 5.0.’’ The
Exchange has proposed 4 to introduce
this new upgraded version of the OUCH
Order entry protocol that will enable the
Exchange to make functional
enhancements and improvements to
specific Order Types 5 and Order
Attributes.6
First, the Exchange proposes to
amend Equity 7, Section 3 to provide a
30-day waiver of the OUCH production
port fee for up to five 7 newly added
OUCH ports with the updated version of
the OUCH Order entry protocol, OUCH
5.0. The fee waiver would be offered for
a three-month period, beginning on
October 10, 2022. At the end of the
three-month period, users would no
longer be eligible for the waiver. A user
may only receive the 30-day waiver
once per port (up to a maximum of five
ports) within the three-month window.
The Exchange proposes to offer this
temporary waiver to encourage new,
prospective customers to adopt and
returning customers to migrate to the
updated version of the OUCH Order
entry protocol.
Second, the Exchange proposes to
amend Equity 7, Section 3 to provide a
30-day waiver of the $300 Testing
Facility fee for up to five 8 newly added
OUCH Testing Facility ports with the
updated version of the OUCH Order
entry protocol, OUCH 5.0. This fee
waiver would be offered for a threemonth period, beginning on September
22, 2022. At the end of the three-month
period, users would no longer be
3 The OUCH Order entry protocol is a proprietary
protocol that allows subscribers to quickly enter
orders into the System and receive executions.
OUCH accepts limit Orders from members, and if
there are matching Orders, they will execute. Nonmatching Orders are added to the Limit Order Book,
a database of available limit Orders, where they are
matched in price-time priority. OUCH only
provides a method for members to send Orders and
receive status updates on those Orders. See https://
www.nasdaqtrader.com/Trader.aspx?id=OUCH.
4 See Securities Exchange Act Release No. 95769
(September 14, 2022), 87 FR 57527 (September 20,
2022).
5 An ‘‘Order Type’’ is a standardized set of
instructions associated with an Order that define
how it will behave with respect to pricing,
execution, and/or posting to the Exchange Book
when submitted to the Exchange. See Equity 1,
Section 1(e).
6 An ‘‘Order Attribute’’ is a further set of variable
instructions that may be associated with an Order
to further define how it will behave with respect to
pricing, execution, and/or posting to the Exchange
Book when submitted to the Exchange. See id.
7 The fee waiver is limited to a maximum of five
OUCH production ports per Web Central
Registration Depository (‘‘CRD’’) membership.
8 The fee waiver is limited to a maximum of five
OUCH Testing Facility ports per CRD membership.
E:\FR\FM\12OCN1.SGM
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Federal Register / Vol. 87, No. 196 / Wednesday, October 12, 2022 / Notices
eligible for the waiver. A user may only
receive the 30-day waiver once per port
(up to a maximum of five ports) within
the three-month window. The Testing
Facility provides subscribers with a
virtual System test environment that
closely approximates the production
environment on which they may test
their automated systems that integrate
with the Exchange. For example, the
Testing Facility provides subscribers a
virtual System environment for testing
upcoming releases and product
enhancements, as well as testing firm
software prior to implementation. The
Exchange proposes to offer this
temporary waiver to encourage
customers to test the updated version of
the OUCH Order entry protocol free of
charge.
jspears on DSK121TN23PROD with NOTICES
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,9 in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5)
of the Act,10 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’s proposed changes to
its fee schedule are reasonable in several
respects. As a threshold matter, the
Exchange is subject to significant
competitive forces in the market for
equity securities transaction services
that constrain its pricing determinations
in that market. The Commission and the
courts have repeatedly expressed their
preference for competition over
regulatory intervention in determining
prices, products, and services in the
securities markets. In Regulation NMS,
while adopting a series of steps to
improve the current market model, the
Commission highlighted the importance
of market forces in determining prices
and SRO revenues and, also, recognized
that current regulation of the market
system ‘‘has been remarkably successful
in promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 11
The Exchange believes that it is
reasonable to provide temporary fee
waivers for up to five newly added
OUCH order entry ports (production
and Testing Facility environments) with
the updated version of the OUCH Order
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
11 Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005)
(‘‘Regulation NMS Adopting Release’’).
10 15
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18:37 Oct 11, 2022
Jkt 259001
entry protocol, OUCH 5.0. The
Exchange believes it is important to
provide users an opportunity to test
OUCH 5.0 free of charge. The temporary
fee waivers would encourage users to
test and adopt the enhanced OUCH
Order entry protocol.
The Exchange believes that the
proposed temporary fee waivers are an
equitable allocation of reasonable dues,
fees and other charges and not unfairly
discriminatory because the Exchange
will apply the same temporary fee
waivers to all similarly situated
members. The waivers will reduce fees
for and benefit all users that add OUCH
5.0 order entry ports (production and
Testing Facility environments) within
the three-month window.
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.
Intramarket Competition
The Exchange does not believe that its
proposal will place any category of
Exchange participants at a competitive
disadvantage. The proposed change to
temporarily waive fees for newly added
OUCH 5.0 order entry ports (production
and Testing Facility environments) will
apply uniformly to all similarly situated
participants. The temporary fee waivers
are available to all users and would
enable users to test the OUCH
enhancements at no cost.
Intermarket Competition
The Exchange believes that the
proposed temporary fee waivers will not
impose a burden on competition
because the Exchange’s execution
services are completely voluntary and
subject to extensive competition both
from the other live exchanges and from
off-exchange venues, which include
alternative trading systems that trade
national market system stock.
The proposed fee waivers are
reflective of this competition because, as
a threshold issue, the Exchange is a
relatively small market so its ability to
burden intermarket competition is
limited. In this regard, even the largest
U.S. equities exchange by volume only
has 17–18% market share, which in
most markets could hardly be
categorized as having enough market
power to burden competition. The
proposed fee waivers would facilitate
adoption of enhancements to the
Exchange’s System and Order entry
protocols, which is pro-competitive
because the enhancements bolster the
PO 00000
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Fmt 4703
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61641
efficiency, functionality, and overall
attractiveness of the Exchange in an
absolute sense and relative to its peers.
Accordingly, the Exchange does not
believe that the proposed change will
impair the ability of members,
participants, or competing order
execution venues to maintain their
competitive standing in the financial
markets.
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,12 and Rule
19b–4(f)(2) 13 thereunder.
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–2022–37 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–2022–37. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
12 15
13 17
E:\FR\FM\12OCN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
12OCN1
61642
Federal Register / Vol. 87, No. 196 / Wednesday, October 12, 2022 / Notices
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–2022–37 and should
be submitted on or before November 2,
2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–22081 Filed 10–11–22; 8:45 am]
collection of information provided for in
Rule 18a–4 (17 CFR 240.18a–4), under
the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) (‘‘Exchange Act’’).
Rule 18a–4 establishes segregation
requirements for cleared and noncleared security-based swap
transactions, which applies to nonbroker-dealer security-based swap
dealers (‘‘SBSDs’’) (i.e., bank SBSDs and
nonbank stand-alone SBSDs), as well as
notification requirements for nonbroker-dealer SBSDs and major securitybased swap participants (‘‘MSBSPs’’).
The aggregate annual burden for all
respondents is estimated to be 7,647
hours. The aggregate annual cost burden
for all respondents is estimated to be
$2,667.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent by
November 14, 2022 to (i)
MBX.OMB.OIRA.SEC_desk_officer@
omb.eop.gov and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o John Pezzullo, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
Dated: October 5, 2022.
J. Matthew DeLesDernier,
Deputy Secretary.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[FR Doc. 2022–22096 Filed 10–11–22; 8:45 am]
BILLING CODE 8011–01–P
jspears on DSK121TN23PROD with NOTICES
[TM–270–650; OMB Control No. 3235–0700]
Submission for OMB Review;
Comment Request; Extension: Rule
18a–4
DEPARTMENT OF TRANSPORTATION
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
Notice of Opportunity for Public
Comment on Proposed Land Use
Changes of Surplus Property at
Everett-Stewart Regional Airport,
Union City, Tennessee
14 17
CFR 200.30–3(a)(12).
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18:37 Oct 11, 2022
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Federal Aviation Administration
Federal Aviation
Administration, DOT.
ACTION: Request for public comments.
AGENCY:
Notice is being given that the
FAA is considering a request from
Obion County, Tennessee to change
507.07± acres of airport property from
Aeronautical Use to Non-Aeronautical
Use for a Solar Facility at Everett-
SUMMARY:
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Stewart Regional Airport. The solar
facility is being constructed on Surplus
Property land not required for aviation
use. The land has been designed for
non-aeronautical use on the Airport
Layout Plan. The County will have a
land lease agreement with the solar
company that will generate nonaeronautical revenue to be deposited in
the airport operation and maintenance
account.
Comments must be received on
or before November 14, 2022.
ADDRESSES: The public may send
comments using the following methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov, and follow
the instructions on providing
comments.
• Fax: 901–322–8195.
• Mail: L. Bernard Green, Community
Planner, 2600 Thousand Oaks Blvd.,
Suite 2250 Memphis, TN 38118.
• Hand Delivery: Deliver to mail
address above between 8 a.m. and 5
p.m. Monday through Friday, excluding
Federal holidays.
In addition, one copy of any
comments submitted to the FAA must
be mailed or delivered to Obion County,
Tennessee, Attn: Mayor Benny McGuire,
Obion County, Tennessee 316 S. Third
Street Union City, TN 28281.
Interested persons may inspect the
request and supporting documents by
contacting the FAA at the address listed
under FOR FURTHER INFORMATION
CONTACT.
DATES:
L.
Bernard Green, 2600 Thousand Oaks
Blvd., Suite 2250 Memphis, TN 38118,
901–322–8187. The land release request
may be reviewed in person at this same
location.
FOR FURTHER INFORMATION CONTACT:
Issued in Memphis, Tennessee on October
3, 2022.
Tommy L. Dupree,
Manager, Memphis Airports District Office,
Southern Region.
[FR Doc. 2022–22125 Filed 10–11–22; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
FY 2022 and FY 2023 Competitive
Funding Opportunity: Competitive
Grants for Rail Vehicle Replacement
Program
Federal Transit Administration
(FTA), Department of Transportation
(DOT).
ACTION: Notice of Funding Opportunity
(NOFO).
AGENCY:
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]]>Agencies
[Federal Register Volume 87, Number 196 (Wednesday, October 12, 2022)]
[Notices]
[Pages 61640-61642]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-22081]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-95985; File No. SR-Phlx-2022-37]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Temporarily
Waive Certain Port-Related Fees at Equity 7, Section 3
October 5, 2022.
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 September 22, 2022, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') a 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 temporarily waive certain port-related
fees at Equity 7, Section 3, as described further below. The text of
the proposed rule change is available on the Exchange's website at
https://listingcenter.nasdaq.com/rulebook/phlx/rules, 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 Equity 7,
Section 3 to provide a temporary fee waiver for newly added OUCH order
entry ports (production and Testing Facility environments) with the
updated version of the OUCH Order entry protocol,\3\ referred to as
``OUCH 5.0.'' The Exchange has proposed \4\ to introduce this new
upgraded version of the OUCH Order entry protocol that will enable the
Exchange to make functional enhancements and improvements to specific
Order Types \5\ and Order Attributes.\6\
---------------------------------------------------------------------------
\3\ The OUCH Order entry protocol is a proprietary protocol that
allows subscribers to quickly enter orders into the System and
receive executions. OUCH accepts limit Orders from members, and if
there are matching Orders, they will execute. Non-matching Orders
are added to the Limit Order Book, a database of available limit
Orders, where they are matched in price-time priority. OUCH only
provides a method for members to send Orders and receive status
updates on those Orders. See https://www.nasdaqtrader.com/Trader.aspx?id=OUCH.
\4\ See Securities Exchange Act Release No. 95769 (September 14,
2022), 87 FR 57527 (September 20, 2022).
\5\ An ``Order Type'' is a standardized set of instructions
associated with an Order that define how it will behave with respect
to pricing, execution, and/or posting to the Exchange Book when
submitted to the Exchange. See Equity 1, Section 1(e).
\6\ An ``Order Attribute'' is a further set of variable
instructions that may be associated with an Order to further define
how it will behave with respect to pricing, execution, and/or
posting to the Exchange Book when submitted to the Exchange. See id.
---------------------------------------------------------------------------
First, the Exchange proposes to amend Equity 7, Section 3 to
provide a 30-day waiver of the OUCH production port fee for up to five
\7\ newly added OUCH ports with the updated version of the OUCH Order
entry protocol, OUCH 5.0. The fee waiver would be offered for a three-
month period, beginning on October 10, 2022. At the end of the three-
month period, users would no longer be eligible for the waiver. A user
may only receive the 30-day waiver once per port (up to a maximum of
five ports) within the three-month window. The Exchange proposes to
offer this temporary waiver to encourage new, prospective customers to
adopt and returning customers to migrate to the updated version of the
OUCH Order entry protocol.
---------------------------------------------------------------------------
\7\ The fee waiver is limited to a maximum of five OUCH
production ports per Web Central Registration Depository (``CRD'')
membership.
---------------------------------------------------------------------------
Second, the Exchange proposes to amend Equity 7, Section 3 to
provide a 30-day waiver of the $300 Testing Facility fee for up to five
\8\ newly added OUCH Testing Facility ports with the updated version of
the OUCH Order entry protocol, OUCH 5.0. This fee waiver would be
offered for a three-month period, beginning on September 22, 2022. At
the end of the three-month period, users would no longer be
[[Page 61641]]
eligible for the waiver. A user may only receive the 30-day waiver once
per port (up to a maximum of five ports) within the three-month window.
The Testing Facility provides subscribers with a virtual System test
environment that closely approximates the production environment on
which they may test their automated systems that integrate with the
Exchange. For example, the Testing Facility provides subscribers a
virtual System environment for testing upcoming releases and product
enhancements, as well as testing firm software prior to implementation.
The Exchange proposes to offer this temporary waiver to encourage
customers to test the updated version of the OUCH Order entry protocol
free of charge.
---------------------------------------------------------------------------
\8\ The fee waiver is limited to a maximum of five OUCH Testing
Facility ports per CRD membership.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\9\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\10\ 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange's proposed changes to its fee schedule are reasonable
in several respects. As a threshold matter, the Exchange is subject to
significant competitive forces in the market for equity securities
transaction services that constrain its pricing determinations in that
market. The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \11\
---------------------------------------------------------------------------
\11\ Securities Exchange Act Release No. 51808 (June 9, 2005),
70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
---------------------------------------------------------------------------
The Exchange believes that it is reasonable to provide temporary
fee waivers for up to five newly added OUCH order entry ports
(production and Testing Facility environments) with the updated version
of the OUCH Order entry protocol, OUCH 5.0. The Exchange believes it is
important to provide users an opportunity to test OUCH 5.0 free of
charge. The temporary fee waivers would encourage users to test and
adopt the enhanced OUCH Order entry protocol.
The Exchange believes that the proposed temporary fee waivers are
an equitable allocation of reasonable dues, fees and other charges and
not unfairly discriminatory because the Exchange will apply the same
temporary fee waivers to all similarly situated members. The waivers
will reduce fees for and benefit all users that add OUCH 5.0 order
entry ports (production and Testing Facility environments) within the
three-month window.
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.
Intramarket Competition
The Exchange does not believe that its proposal will place any
category of Exchange participants at a competitive disadvantage. The
proposed change to temporarily waive fees for newly added OUCH 5.0
order entry ports (production and Testing Facility environments) will
apply uniformly to all similarly situated participants. The temporary
fee waivers are available to all users and would enable users to test
the OUCH enhancements at no cost.
Intermarket Competition
The Exchange believes that the proposed temporary fee waivers will
not impose a burden on competition because the Exchange's execution
services are completely voluntary and subject to extensive competition
both from the other live exchanges and from off-exchange venues, which
include alternative trading systems that trade national market system
stock.
The proposed fee waivers are reflective of this competition
because, as a threshold issue, the Exchange is a relatively small
market so its ability to burden intermarket competition is limited. In
this regard, even the largest U.S. equities exchange by volume only has
17-18% market share, which in most markets could hardly be categorized
as having enough market power to burden competition. The proposed fee
waivers would facilitate adoption of enhancements to the Exchange's
System and Order entry protocols, which is pro-competitive because the
enhancements bolster the efficiency, functionality, and overall
attractiveness of the Exchange in an absolute sense and relative to its
peers. Accordingly, the Exchange does not believe that the proposed
change will impair the ability of members, participants, or competing
order execution venues to maintain their competitive standing in the
financial markets.
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,\12\ and Rule 19b-4(f)(2) \13\ thereunder.
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\12\ 15 U.S.C. 78s(b)(3)(A)(ii).
\13\ 17 CFR 240.19b-4(f)(2).
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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]. Please include
File Number SR-Phlx-2022-37 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-2022-37. This file
number should be included on the subject line if email is used. To help
the Commission process and review your
[[Page 61642]]
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-2022-37 and should be submitted on or before November 2, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-22081 Filed 10-11-22; 8:45 am]
BILLING CODE 8011-01-P
