Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Options 8 Rules, 60521-60525 [2023-18895]

Download as PDF Federal Register / Vol. 88, No. 169 / Friday, September 1, 2023 / Notices 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 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR–CboeBZX–2023–062 and should be submitted on or before September 22, 2023. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Sherry R. Haywood, Assistant Secretary. [FR Doc. 2023–18896 Filed 8–31–23; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–087, OMB Control No. 3235–0078] lotter on DSK11XQN23PROD with NOTICES1 Submission for OMB Review; Comment Request; Extension: Rule 15c3–3 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 collection of information provided for in Rule 15c3–3 (17 CFR 240.15c3–3), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). Furthermore, notice is given regarding new collections of information that were previously proposed in Rule 18a–4 (OMB No. 3235–0700) and that were moved to this Rule 15c3–3 (OMB No. 3235–0078) based on comments received during the rulemaking process. With respect to the extension of the previously approved collection of information, Rule 15c3–3 requires that a 18 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 17:24 Aug 31, 2023 Jkt 259001 broker-dealer that holds customer securities obtain and maintain possession and control of fully paid and excess margin securities they hold for customers. In addition, the Rule requires that a broker-dealer that holds customer funds make either a weekly or monthly computation to determine whether certain customer funds need to be segregated in a special reserve bank account for the exclusive benefit of the firm’s customers. It also requires that a broker-dealer maintain a written notification from each bank where a Special Reserve Bank Account is held acknowledging that all assets in the account are for the exclusive benefit of the broker-dealer’s customers, and to provide written notification to the Commission (and its designated examining authority) under certain, specified circumstances. Finally, brokerdealers that sell securities futures products (‘‘SFP’’) to customers must provide certain notifications to customers and make a record of any changes of account type. A broker-dealer required to maintain the Special Reserve Bank Account prescribed by Rule 15c3–3 must obtain and retain a written notification from each bank in which it has a Special Reserve Bank Account to evidence the bank’s acknowledgement that assets deposited in the Account are being held by the bank for the exclusive benefit of the broker-dealer’s customers. In addition, a broker-dealer must immediately notify the Commission and its designated examining authority if it fails to make a required deposit to its Special Reserve Bank Account. Finally, a broker-dealer that effects transactions in SFPs for customers will also have paperwork burdens to make a record of each change in account type. The Commission staff estimates a total annual time burden of approximately 1,109,518 hours and a total annual cost burden of approximately $3,516,241 to comply with the existing information collection requirements of the rule. In 2019, the Commission adopted amendments to establish segregation and notice requirements for brokerdealers with respect to their securitybased swap activity. The Commission staff estimates a total annual time burden of approximately 19,487 hours and a total annual cost burden of approximately $13,860 to comply with the information collection requirements of the 2019 amendments to the rule. The Commission staff thus estimates that the aggregate annual information collection burden associated with Rule 15c3–3 is approximately 1,129,005 hours and $3,530,101. PO 00000 Frm 00092 Fmt 4703 Sfmt 4703 60521 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 October 2, 2023 to (i) www.reginfo.gov/ public/do/PRAMain 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: August 29, 2023. Sherry R. Haywood, Assistant Secretary. [FR Doc. 2023–18968 Filed 8–31–23; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–98228; File No. SR–Phlx– 2023–38] Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Options 8 Rules August 28, 2023. 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 August 14, 2023, 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 its Rules at Options 8 concerning Floor Trading. The text of the proposed rule change is available on the Exchange’s website at 1 15 2 17 E:\FR\FM\01SEN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 01SEN1 60522 Federal Register / Vol. 88, No. 169 / Friday, September 1, 2023 / Notices 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 lotter on DSK11XQN23PROD with NOTICES1 1. Purpose Phlx proposes to amend Options 8, Section 11, Floor Market Maker and Lead Market Maker Appointment, and reserve current Options 8, Section 16, Trading for Joint Account. Each change will be described below. Options 8, Section 11 The Exchange is proposing to amend Options 8, Section 11, Floor Market Maker and Lead Market Maker Appointment. Specifically, the Exchange proposes to remove the current burdensome process within Options 8, Section 11(b) regarding Floor Market Maker 3 options assignments. Today, pursuant to Options 8, Section 11(b), a Floor Market Maker shall notify the Exchange of each option, on an issue-by-issue basis, in which such Floor Market Maker intends to be assigned to make markets. Exchange options transactions initiated by such Market Maker on the Trading Floor for any account in which he had an interest shall to the extent prescribed by the Exchange be in such assigned classes. Such notification shall be in writing on a form prescribed by the Exchange (‘‘Floor Market Maker Assignment Form’’). Any change to such Floor Market Maker Assignment Form shall be made in writing by the Floor Market Maker prior to the end of the next business day in which such change is to take place. Receipt of the properly completed Floor Market Maker 3 The term ‘‘Floor Market Maker’’ is a Market Maker who is neither an SQT or an RSQT. A Floor Market Maker may provide a quote in open outcry. See Phlx Options 8, Section 1(a)(4). VerDate Sep<11>2014 17:24 Aug 31, 2023 Jkt 259001 Assignment Form by a duly qualified Floor Market Maker applicant constitutes acceptance by the Exchange of such Floor Market Maker’s assignment in, or termination of assignment in (as indicated on the Floor Market Maker Assignment Form), the options listed on such Floor Market Maker Assignment Form. All such assignments shall not be effective, and shall be terminated, in the event that such Floor Market Maker applicant fails to qualify as a Floor Market Maker on the Exchange. The Exchange is proposing to remove the rule text related to notifying the Exchange of each options class in which such Floor Market Maker intends to be assigned and, instead, provide that a Floor Market Maker has an assignment to trade open outcry in all options classes traded on the Exchange.4 This proposed rule text is similar to Cboe Exchange, Inc. (‘‘Cboe’’) Rule 5.50(e).5 Today, a Floor Market Maker may only quote in open outcry on the Exchange’s Trading Floor and may not enter electronic quotations into the electronic System.6 Today, Floor Market Makers may be called upon by an Options Exchange Official to make a market in a trading crowd.7 Further, Phlx requires that at least one Floor Market Maker is present at the trading post prior to representing an order for execution.8 By assigning a Floor Marker Maker in all options classes traded on the Exchange, similar to Cboe, Phlx believes it will attract additional liquidity to its trading floor by allowing Floor Market Makers to quote in all options classes traded on Phlx without an administrative barrier.9 An approved Floor Market Maker is permitted to quote 10 in all options classes provided 4 The Exchange also proposes to remove the rule text prescribing that such notification should be in writing, how to make changes to the Floor Market Maker Assignment Form, and acceptance of the form by the Exchange. 5 Cboe Rule 5.50(e) provide that, ‘‘During Regular Trading Hours, a Market-Maker has an appointment to trade open outcry in all classes traded on the Exchange. A TPH organization that is registered as a Market-Maker may only trade in open outcry through one of its nominees. A Market-Maker must be physically present in the trading crowd to trade in open outcry.’’ 6 The Options 8 rules govern trading on Phlx’s trading floor. A Floor Market Maker may not stream quotes. See supra note 3. 7 See Options 8, Section 27(c) and (d). 8 See Options 8, Section 28(a). 9 Today, a Floor Market Maker that fails to notify the Exchange in a timely manner would not be permitted to quote in certain options in which they have not been assigned. 10 Floor Market Makers are not subject to continuous quoting requirements pursuant to Options 8, Section 27(a). Further, Floor Market Makers are required to trade either (a) 1,000 contracts and 300 transactions, or (b) 10,000 PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 the Floor Market Maker is properly registered 11 and remains in good standing.12 The process described in Options 8, Section 11(b) is a notification process, not an approval process. This proposed method of assignment will remove the burdensome manual process of completing a Floor Market Maker Assignment Form for the benefit of both Phlx members who must file the form and Exchange staff who must track assignments. As provided in Options 8, Section 11(a), the Exchange, in its discretion, may require a unit to obtain additional staff depending upon the number of assigned options classes and associated order flow. The Exchange proposes to amend Options 3, Section 11(a) to specify that ‘‘The Exchange, in its discretion, may require a unit to obtain additional staff depending upon the number of assigned options classes that is being quoted and associated order flow.’’ This change is being made as a Floor Market Maker will be assigned in all options classes pursuant to this proposal and the Exchange would monitor the amount of quoting activity in utilizing its discretion. Options 8, Section 16 The Exchange proposes to reserve Options 8, Section 16, Trading for a Joint Account, which requires the disclosure of accounts held jointly with other members. This rule was put in place to address conflicts of interest among members. Options 8, Section 16 is unnecessary because, today, there is no trading conducted in joint accounts on the trading floor. Also, Options 8, Section 16 is unnecessary because General 9, Section 67, Participation in Joint Accounts, requires, among other information, disclosure of other ownership and financial information.13 contracts and 100 transactions, on the Exchange each quarter. Transactions executed in the trading crowd where the contra-side is an ROT are not included. See Options 8, Section 27(f). In meeting the trading requirements, Floor Market Makers are not required to quote in all assigned options series. 11 See Options 8, Section 8. 12 Pursuant to Options 8, Section 11(b), ‘‘All such assignments shall not be effective, and shall be terminated, in the event that such Floor Market Maker applicant fails to qualify as a Floor Market Maker on the Exchange.’’ Of note, the Exchange is not amending the process of assignment and approval to become the Floor Lead Market Maker. The term ‘‘Floor Lead Market Maker’’ is a member who is registered as an options Lead Market Maker pursuant to Options 2, Section 12(a) and has a physical presence on the Exchange’s trading floor. See Options 8, Section 1(a)(3). 13 General 9, Section 67 requires a joint account to be reported to the Exchange by any member, member organization, or partner or stockholder therein, participating in such joint account before any transactions are effected on the Exchange for such joint account and shall include in substance E:\FR\FM\01SEN1.SGM 01SEN1 Federal Register / Vol. 88, No. 169 / Friday, September 1, 2023 / Notices Today, all members (electronic and floor) are currently subject to General 9, Section 67, Participation in Joint Accounts, however only Phlx floor members are also subject to Options 8, Section 16. While Options 8, Section 16 requires prior approval of a joint account 14 to initiate the purchase or sale on the Exchange of any security for any account in which he, his member organization or a participant therein, is directly or indirectly interested with any person other than such member organization or participant therein, General 9, Section 67, requires the reporting of joint accounts and permits Phlx staff to disapprove any joint account. Further, General 9, Section 67 requires a Phlx member to report participation in such joint account before any transactions are effected on the Exchange for such joint account. 2. Statutory Basis The Exchange believes that its proposal is consistent with section 6(b) of the Act,15 in general, and furthers the objectives of section 6(b)(5) of the Act,16 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. Options 8, Section 11 lotter on DSK11XQN23PROD with NOTICES1 The Exchange’s proposal to amend Options 8, Section 11, Floor Market Maker and Lead Market Maker Appointment, is consistent with the Act and the protection of investors and the general public because assigning a Floor Marker Maker in all options classes traded on the Exchange will enable Phlx to attract additional liquidity to its trading floor by allowing Floor Market Makers to quote in all options classes traded on Phlx without any burdensome administrative barriers. Furthermore, the proposal will remove impediments to and perfect the mechanism of a free and open market by removing the manual process of completing a Floor Market Maker Assignment Form for the benefit of both Phlx members who must file the form and Exchange staff who must track assignments. the following: (1) Names of persons participating in such account and their respective interest therein; (2) Purpose of such account; (3) Amount of commitments in such account; and (4) A copy of any written agreement or instrument in writing relating to such account. See General 9, Section 67(b). 14 The Exchange notes that the approval is not on a transaction basis, rather it is on an account basis. 15 15 U.S.C. 78f(b). 16 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 17:24 Aug 31, 2023 Jkt 259001 60523 With respect to protecting investors and the general public, Phlx continues to have rules in place to maintain orderly markets on its trading floor. Today, a Floor Market Maker may only quote in open outcry on the Exchange’s Trading Floor and may not enter electronic quotations into the electronic System. Floor Market Makers may be called upon by an Options Exchange Official to make a market in a trading crowd.17 Further, Phlx requires that at least one Floor Market Maker is present at the trading post prior to representing an order for execution.18 An assigned Floor Market Maker is permitted to quote 19 in all options classes provided the Floor Market Maker is properly registered 20 and remains in good standing.21 This proposed rule text is similar to Cboe Rule 5.50(e).22 Amending Options 3, Section 11(a) to specify that ‘‘The Exchange, in its discretion, may require a unit to obtain additional staff depending upon the number of assigned options classes that is being quoted and associated order flow’’ is consistent with the Act and the protection of investors because the Exchange would monitor the amount of quoting activity in utilizing its discretion going forward. conducted in joint accounts on the trading floor. Also, Options 8, Section 16 is unnecessary because General 9, Section 67, Participation in Joint Accounts, requires, among other information, disclosure of other ownership and financial information.23 While Options 8, Section 16 requires prior approval of a joint account 24 to initiate the purchase or sale on the Exchange of any security for any account in which he, his member organization or a participant therein, is directly or indirectly interested with any person other than such member organization or participant therein, General 9, Section 67, requires the reporting of joint accounts and permits Phlx staff to disapprove any joint account. Further, General 9, Section 67 requires a Phlx member to report participation in such joint account before any transactions are effected on the Exchange for such joint account. Options 8, Section 16 The Exchange’s proposal to reserve Options 8, Section 16, Trading for a Joint Account, is consistent with the Act and the protection of investors and the general public because the rule is unnecessary. Today, there is no trading Options 8, Section 11 The Exchange’s proposal to amend Options 8, Section 11, Floor Market Maker and Lead Market Maker Appointment, does not impose an intramarket burden on competition because all Floor Marker Makers will be assigned in all options classes traded on the Exchange, provided the Floor Market Maker continues to qualify as a Floor Market Maker on the Exchange. The proposal will not require Floor Market Makers to quote in additional options series to meet their trading requirements 25 unless they elect to do so. 17 See Options 8, Section 27(c) and (d). Options 8, Section 28(a). 19 Floor Market Makers are not subject to continuous quoting requirements pursuant to Options 8, Section 27(a). Further, Floor Market Makers are required to trade either (a) 1,000 contracts and 300 transactions, or (b) 10,000 contracts and 100 transactions, on the Exchange each quarter. Transactions executed in the trading crowd where the contra-side is an ROT are not included. See Options 8, Section 27(f). In meeting the trading requirements, Floor Market Makers are not required to quote in all assigned options series. 20 See Options 8, Section 8. 21 Pursuant to Options 8, Section 11(b), ‘‘All such assignments shall not be effective, and shall be terminated, in the event that such Floor Market Maker applicant fails to qualify as a Floor Market Maker on the Exchange.’’ Of note, the Exchange is not amending the process of assignment and approval to become the Floor Lead Market Maker. The term ‘‘Floor Lead Market Maker’’ is a member who is registered as an options Lead Market Maker pursuant to Options 2, Section 12(a) and has a physical presence on the Exchange’s trading floor. See Options 8, Section 1(a)(3). 22 Cboe Rule 5.50(e) provide that, ‘‘During Regular Trading Hours, a Market-Maker has an appointment to trade open outcry in all classes traded on the Exchange. A TPH organization that is registered as a Market-Maker may only trade in open outcry through one of its nominees. A MarketMaker must be physically present in the trading crowd to trade in open outcry.’’ 18 See PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 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. 23 General 9, Section 67 requires a joint account to be reported to the Exchange by any member, member organization, or partner or stockholder therein, participating in such joint account before any transactions are effected on the Exchange for such joint account and shall include in substance the following: (1) Names of persons participating in such account and their respective interest therein; (2) Purpose of such account; (3) Amount of commitments in such account; and (4) A copy of any written agreement or instrument in writing relating to such account. See General 9, Section 67(b). 24 The Exchange notes that the approval is not on a transaction basis, rather it is on an account basis. 25 Floor Market Makers are not subject to continuous quoting requirements pursuant to Options 8, Section 27(a). Further, Floor Market Makers are required to trade either (a) 1,000 contracts and 300 transactions, or (b) 10,000 contracts and 100 transactions, on the Exchange each quarter. Transactions executed in the trading E:\FR\FM\01SEN1.SGM Continued 01SEN1 60524 Federal Register / Vol. 88, No. 169 / Friday, September 1, 2023 / Notices The Exchange’s proposal to amend Options 8, Section 11, Floor Market Maker and Lead Market Maker Appointment, does not impose an intermarket burden on competition because Cboe 26 also appoints its Market-Maker to trade open outcry in all classes traded on Cboe. Additionally, other options trading floors may elect to adopt a similar rule. Amending Options 3, Section 11(a) to specify that ‘‘The Exchange, in its discretion, may require a unit to obtain additional staff depending upon the number of assigned options classes that is being quoted and associated order flow’’ does not impose an undue burden on intra-market competition because the Exchange would continue to apply this discretion in a fair manner by treating all similarly-situated Floor Market Makers in the same manner. Amending Options 3, Section 11(a) to specify that ‘‘The Exchange, in its discretion, may require a unit to obtain additional staff depending upon the number of assigned options classes that is being quoted and associated order flow’’ does not impose an undue burden on inter-market competition because other options trading floors markets may adopt a similar discretion. Options 8, Section 16 The Exchange’s proposal to reserve Options 8, Section 16, Trading for a Joint Account, does not impose an intramarket burden on competition as no Phlx member on the trading floor would be subject to the rule. Additionally, all Phlx members and member organizations would be required to comply with General 9, Section 67. The Exchange’s proposal to reserve Options 8, Section 16, Trading for a Joint Account, does not impose an intermarket burden on competition because other options trading floors may adopt similar rules. lotter on DSK11XQN23PROD with NOTICES1 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. 27 15 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 crowd where the contra-side is an ROT are not included. See Options 8, Section 27(f). In meeting the trading requirements, Floor Market Makers are not required to quote in all assigned options series. 26 See Cboe Rule 5.50(e). VerDate Sep<11>2014 17:24 Aug 31, 2023 Jkt 259001 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 27 and Rule 19b– 4(f)(6) thereunder.28 A proposed rule change filed under Rule 19b–4(f)(6) 29 normally does not become operative prior to 30 days after the date of the filing. However, Rule 19b–4(f)(6)(iii) 30 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 asked the Commission to waive the 30-day operative delay so that the Exchange may implement the proposed change and alleviate an administrative burden. The Exchange states that assigning Floor Market Makers in all options classes traded on the Exchange will enable Phlx to attract additional liquidity to its trading floor allowing Floor Market Makers to quote in all options classes traded on Phlx, without any burdensome administrative barrier, and that the proposal will also remove the manual process of completing a Floor Market Maker Assignment Form for the benefit of both Phlx members and Exchange staff. The Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest because the proposed rule change does not raise any new or novel issues. Accordingly, the Commission hereby waives the 30-day operative delay and designates the proposed rule change as operative upon filing.31 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 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. 29 17 CFR 240.19b–4(f)(6). 30 17 CFR 240.19b–4(f)(6)(iii). 31 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). 28 17 PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 change should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: 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–2023–38 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–2023–38. 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 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR–Phlx–2023–38 and should be submitted on or before September 22, 2023. E:\FR\FM\01SEN1.SGM 01SEN1 Federal Register / Vol. 88, No. 169 / Friday, September 1, 2023 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.32 Sherry R. Haywood, Assistant Secretary. [FR Doc. 2023–18895 Filed 8–31–23; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–98232; File No. SR–Phlx– 2023–07] Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Designation of a Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 1, To Make Permanent Certain P.M.-Settled Pilots August 28, 2023. On February 23, 2023, Nasdaq PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to make permanent the pilot program to permit the listing and trading of options based on 1/100 the value of the Nasdaq-100 Index and the Exchange’s nonstandard expirations pilot program. The proposed rule change was published for comment in the Federal Register on March 2, 2023.3 On April 7, 2023, pursuant to section 19(b)(2) of the Act,4 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 On May 11, 2023, the Exchange submitted Amendment No. 1 to the proposed rule change (‘‘Amendment No. 1’’).6 On May 31, 2023, the Commission instituted proceedings to determine whether to approve or disapprove the proposed rule change and published Amendment No. 1 for notice and comment.7 Section 19(b)(2) of the Exchange Act 8 provides that, after initiating proceedings, the Commission shall issue an order approving or disapproving the proposed rule change not later than 180 days after the date of publication of notice of filing of the proposed rule change. The Commission may extend the period for issuing an order approving or disapproving the proposed rule change, however, by not more than 60 days if the Commission determines that a longer period is appropriate and publishes reasons for such determination. The proposed rule change was published for notice and comment in the Federal Register on March 2, 2023.9 The 180th day after publication of the proposed rule change is August 29, 2023. The Commission is extending the time period for approving or disapproving the proposed rule change for an additional 60 days. The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein. Accordingly, the Commission, pursuant to section 19(b)(2) of the Exchange Act,10 designates October 28, 2023, as the date by which the Commission shall either approve or disapprove the proposed rule change (File No. SR–Phlx–2023– 07). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 lotter on DSK11XQN23PROD with NOTICES1 32 17 CFR 200.30–3(a)(12), (59). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 96980 (February 24, 2023), 88 FR 13161. 4 15 U.S.C. 78s(b)(2). 5 See Securities Exchange Act Release No. 97260, 88 FR 22498 (April 13, 2023). 6 Amendment No. 1 is available at: https:// www.sec.gov/comments/sr-phlx-2023-07/ srphlx202307.htm. 7 See Securities Exchange Act Release No. 97624, 88 FR 37107 (June 6, 2023). VerDate Sep<11>2014 17:24 Aug 31, 2023 Jkt 259001 Incident Period: 04/24/2023 through 05/13/2023. Issued on 08/25/2023. Physical Loan Application Deadline Date: 10/24/2023. Economic Injury (EIDL) Loan Application Deadline Date: 05/28/2024. DATES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. ADDRESSES: A. Escobar, Office of Disaster Recovery & Resilience, U.S. Small Business Administration, 409 3rd Street SW, Suite 6050, Washington, DC 20416, (202) 205–6734. FOR FURTHER INFORMATION CONTACT: Notice is hereby given that as a result of the President’s major disaster declaration on 08/25/2023, Private Non-Profit organizations that provide essential services of a governmental nature may file disaster loan applications at the address listed above or other locally announced locations. The following areas have been determined to be adversely affected by the disaster: SUPPLEMENTARY INFORMATION: Primary Counties: Allamakee, Clayton, Des Moines, Dubuque, Jackson, Lee, Scott. The Interest Rates are: Percent Sherry R. Haywood, Assistant Secretary. [FR Doc. 2023–18897 Filed 8–31–23; 8:45 am] BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #18112 and #18113; IOWA Disaster Number IA–00131] Presidential Declaration of a Major Disaster for Public Assistance Only for the State of Iowa Small Business Administration. Notice. AGENCY: ACTION: This is a Notice of the Presidential declaration of a major disaster for Public Assistance Only for the State of Iowa (FEMA–4732–DR), dated 08/25/2023. Incident: Flooding. SUMMARY: For Physical Damage: Non-Profit Organizations with Credit Available Elsewhere ... Non-Profit Organizations without Credit Available Elsewhere ..................................... For Economic Injury: Non-Profit Organizations without Credit Available Elsewhere ..................................... Fmt 4703 Sfmt 9990 2.375 2.375 (Catalog of Federal Domestic Assistance Number 59008) Francisco Sa´nchez, Jr., Associate Administrator, Office of Disaster Recovery & Resilience. [FR Doc. 2023–18892 Filed 8–31–23; 8:45 am] BILLING CODE 8026–09–P U.S.C. 78s(b)(2). 9 See supra note 3 and accompanying text. 10 15 U.S.C. 78s(b)(2). 11 17 CFR 200.30–3(a)(57). Frm 00096 2.375 The number assigned to this disaster for physical damage is 18112 6 and for economic injury is 18113 0. 8 15 PO 00000 60525 E:\FR\FM\01SEN1.SGM 01SEN1

Agencies

[Federal Register Volume 88, Number 169 (Friday, September 1, 2023)]
[Notices]
[Pages 60521-60525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-18895]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-98228; File No. SR-Phlx-2023-38]


Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Options 8 
Rules

August 28, 2023.
    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 August 14, 2023, 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 its Rules at Options 8 concerning 
Floor Trading.
    The text of the proposed rule change is available on the Exchange's 
website at

[[Page 60522]]

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
    Phlx proposes to amend Options 8, Section 11, Floor Market Maker 
and Lead Market Maker Appointment, and reserve current Options 8, 
Section 16, Trading for Joint Account. Each change will be described 
below.
Options 8, Section 11
    The Exchange is proposing to amend Options 8, Section 11, Floor 
Market Maker and Lead Market Maker Appointment. Specifically, the 
Exchange proposes to remove the current burdensome process within 
Options 8, Section 11(b) regarding Floor Market Maker \3\ options 
assignments.
---------------------------------------------------------------------------

    \3\ The term ``Floor Market Maker'' is a Market Maker who is 
neither an SQT or an RSQT. A Floor Market Maker may provide a quote 
in open outcry. See Phlx Options 8, Section 1(a)(4).
---------------------------------------------------------------------------

    Today, pursuant to Options 8, Section 11(b), a Floor Market Maker 
shall notify the Exchange of each option, on an issue-by-issue basis, 
in which such Floor Market Maker intends to be assigned to make 
markets. Exchange options transactions initiated by such Market Maker 
on the Trading Floor for any account in which he had an interest shall 
to the extent prescribed by the Exchange be in such assigned classes. 
Such notification shall be in writing on a form prescribed by the 
Exchange (``Floor Market Maker Assignment Form''). Any change to such 
Floor Market Maker Assignment Form shall be made in writing by the 
Floor Market Maker prior to the end of the next business day in which 
such change is to take place. Receipt of the properly completed Floor 
Market Maker Assignment Form by a duly qualified Floor Market Maker 
applicant constitutes acceptance by the Exchange of such Floor Market 
Maker's assignment in, or termination of assignment in (as indicated on 
the Floor Market Maker Assignment Form), the options listed on such 
Floor Market Maker Assignment Form. All such assignments shall not be 
effective, and shall be terminated, in the event that such Floor Market 
Maker applicant fails to qualify as a Floor Market Maker on the 
Exchange.
    The Exchange is proposing to remove the rule text related to 
notifying the Exchange of each options class in which such Floor Market 
Maker intends to be assigned and, instead, provide that a Floor Market 
Maker has an assignment to trade open outcry in all options classes 
traded on the Exchange.\4\ This proposed rule text is similar to Cboe 
Exchange, Inc. (``Cboe'') Rule 5.50(e).\5\
---------------------------------------------------------------------------

    \4\ The Exchange also proposes to remove the rule text 
prescribing that such notification should be in writing, how to make 
changes to the Floor Market Maker Assignment Form, and acceptance of 
the form by the Exchange.
    \5\ Cboe Rule 5.50(e) provide that, ``During Regular Trading 
Hours, a Market-Maker has an appointment to trade open outcry in all 
classes traded on the Exchange. A TPH organization that is 
registered as a Market-Maker may only trade in open outcry through 
one of its nominees. A Market-Maker must be physically present in 
the trading crowd to trade in open outcry.''
---------------------------------------------------------------------------

    Today, a Floor Market Maker may only quote in open outcry on the 
Exchange's Trading Floor and may not enter electronic quotations into 
the electronic System.\6\ Today, Floor Market Makers may be called upon 
by an Options Exchange Official to make a market in a trading crowd.\7\ 
Further, Phlx requires that at least one Floor Market Maker is present 
at the trading post prior to representing an order for execution.\8\ By 
assigning a Floor Marker Maker in all options classes traded on the 
Exchange, similar to Cboe, Phlx believes it will attract additional 
liquidity to its trading floor by allowing Floor Market Makers to quote 
in all options classes traded on Phlx without an administrative 
barrier.\9\ An approved Floor Market Maker is permitted to quote \10\ 
in all options classes provided the Floor Market Maker is properly 
registered \11\ and remains in good standing.\12\ The process described 
in Options 8, Section 11(b) is a notification process, not an approval 
process. This proposed method of assignment will remove the burdensome 
manual process of completing a Floor Market Maker Assignment Form for 
the benefit of both Phlx members who must file the form and Exchange 
staff who must track assignments.
---------------------------------------------------------------------------

    \6\ The Options 8 rules govern trading on Phlx's trading floor. 
A Floor Market Maker may not stream quotes. See supra note 3.
    \7\ See Options 8, Section 27(c) and (d).
    \8\ See Options 8, Section 28(a).
    \9\ Today, a Floor Market Maker that fails to notify the 
Exchange in a timely manner would not be permitted to quote in 
certain options in which they have not been assigned.
    \10\ Floor Market Makers are not subject to continuous quoting 
requirements pursuant to Options 8, Section 27(a). Further, Floor 
Market Makers are required to trade either (a) 1,000 contracts and 
300 transactions, or (b) 10,000 contracts and 100 transactions, on 
the Exchange each quarter. Transactions executed in the trading 
crowd where the contra-side is an ROT are not included. See Options 
8, Section 27(f). In meeting the trading requirements, Floor Market 
Makers are not required to quote in all assigned options series.
    \11\ See Options 8, Section 8.
    \12\ Pursuant to Options 8, Section 11(b), ``All such 
assignments shall not be effective, and shall be terminated, in the 
event that such Floor Market Maker applicant fails to qualify as a 
Floor Market Maker on the Exchange.'' Of note, the Exchange is not 
amending the process of assignment and approval to become the Floor 
Lead Market Maker. The term ``Floor Lead Market Maker'' is a member 
who is registered as an options Lead Market Maker pursuant to 
Options 2, Section 12(a) and has a physical presence on the 
Exchange's trading floor. See Options 8, Section 1(a)(3).
---------------------------------------------------------------------------

    As provided in Options 8, Section 11(a), the Exchange, in its 
discretion, may require a unit to obtain additional staff depending 
upon the number of assigned options classes and associated order flow. 
The Exchange proposes to amend Options 3, Section 11(a) to specify that 
``The Exchange, in its discretion, may require a unit to obtain 
additional staff depending upon the number of assigned options classes 
that is being quoted and associated order flow.'' This change is being 
made as a Floor Market Maker will be assigned in all options classes 
pursuant to this proposal and the Exchange would monitor the amount of 
quoting activity in utilizing its discretion.
Options 8, Section 16
    The Exchange proposes to reserve Options 8, Section 16, Trading for 
a Joint Account, which requires the disclosure of accounts held jointly 
with other members. This rule was put in place to address conflicts of 
interest among members. Options 8, Section 16 is unnecessary because, 
today, there is no trading conducted in joint accounts on the trading 
floor. Also, Options 8, Section 16 is unnecessary because General 9, 
Section 67, Participation in Joint Accounts, requires, among other 
information, disclosure of other ownership and financial 
information.\13\
---------------------------------------------------------------------------

    \13\ General 9, Section 67 requires a joint account to be 
reported to the Exchange by any member, member organization, or 
partner or stockholder therein, participating in such joint account 
before any transactions are effected on the Exchange for such joint 
account and shall include in substance the following: (1) Names of 
persons participating in such account and their respective interest 
therein; (2) Purpose of such account; (3) Amount of commitments in 
such account; and (4) A copy of any written agreement or instrument 
in writing relating to such account. See General 9, Section 67(b).

---------------------------------------------------------------------------

[[Page 60523]]

    Today, all members (electronic and floor) are currently subject to 
General 9, Section 67, Participation in Joint Accounts, however only 
Phlx floor members are also subject to Options 8, Section 16. While 
Options 8, Section 16 requires prior approval of a joint account \14\ 
to initiate the purchase or sale on the Exchange of any security for 
any account in which he, his member organization or a participant 
therein, is directly or indirectly interested with any person other 
than such member organization or participant therein, General 9, 
Section 67, requires the reporting of joint accounts and permits Phlx 
staff to disapprove any joint account. Further, General 9, Section 67 
requires a Phlx member to report participation in such joint account 
before any transactions are effected on the Exchange for such joint 
account.
---------------------------------------------------------------------------

    \14\ The Exchange notes that the approval is not on a 
transaction basis, rather it is on an account basis.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with section 
6(b) of the Act,\15\ in general, and furthers the objectives of section 
6(b)(5) of the Act,\16\ 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.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

Options 8, Section 11
    The Exchange's proposal to amend Options 8, Section 11, Floor 
Market Maker and Lead Market Maker Appointment, is consistent with the 
Act and the protection of investors and the general public because 
assigning a Floor Marker Maker in all options classes traded on the 
Exchange will enable Phlx to attract additional liquidity to its 
trading floor by allowing Floor Market Makers to quote in all options 
classes traded on Phlx without any burdensome administrative barriers. 
Furthermore, the proposal will remove impediments to and perfect the 
mechanism of a free and open market by removing the manual process of 
completing a Floor Market Maker Assignment Form for the benefit of both 
Phlx members who must file the form and Exchange staff who must track 
assignments.
    With respect to protecting investors and the general public, Phlx 
continues to have rules in place to maintain orderly markets on its 
trading floor. Today, a Floor Market Maker may only quote in open 
outcry on the Exchange's Trading Floor and may not enter electronic 
quotations into the electronic System. Floor Market Makers may be 
called upon by an Options Exchange Official to make a market in a 
trading crowd.\17\ Further, Phlx requires that at least one Floor 
Market Maker is present at the trading post prior to representing an 
order for execution.\18\ An assigned Floor Market Maker is permitted to 
quote \19\ in all options classes provided the Floor Market Maker is 
properly registered \20\ and remains in good standing.\21\ This 
proposed rule text is similar to Cboe Rule 5.50(e).\22\
---------------------------------------------------------------------------

    \17\ See Options 8, Section 27(c) and (d).
    \18\ See Options 8, Section 28(a).
    \19\ Floor Market Makers are not subject to continuous quoting 
requirements pursuant to Options 8, Section 27(a). Further, Floor 
Market Makers are required to trade either (a) 1,000 contracts and 
300 transactions, or (b) 10,000 contracts and 100 transactions, on 
the Exchange each quarter. Transactions executed in the trading 
crowd where the contra-side is an ROT are not included. See Options 
8, Section 27(f). In meeting the trading requirements, Floor Market 
Makers are not required to quote in all assigned options series.
    \20\ See Options 8, Section 8.
    \21\ Pursuant to Options 8, Section 11(b), ``All such 
assignments shall not be effective, and shall be terminated, in the 
event that such Floor Market Maker applicant fails to qualify as a 
Floor Market Maker on the Exchange.'' Of note, the Exchange is not 
amending the process of assignment and approval to become the Floor 
Lead Market Maker. The term ``Floor Lead Market Maker'' is a member 
who is registered as an options Lead Market Maker pursuant to 
Options 2, Section 12(a) and has a physical presence on the 
Exchange's trading floor. See Options 8, Section 1(a)(3).
    \22\ Cboe Rule 5.50(e) provide that, ``During Regular Trading 
Hours, a Market-Maker has an appointment to trade open outcry in all 
classes traded on the Exchange. A TPH organization that is 
registered as a Market-Maker may only trade in open outcry through 
one of its nominees. A Market-Maker must be physically present in 
the trading crowd to trade in open outcry.''
---------------------------------------------------------------------------

    Amending Options 3, Section 11(a) to specify that ``The Exchange, 
in its discretion, may require a unit to obtain additional staff 
depending upon the number of assigned options classes that is being 
quoted and associated order flow'' is consistent with the Act and the 
protection of investors because the Exchange would monitor the amount 
of quoting activity in utilizing its discretion going forward.
Options 8, Section 16
    The Exchange's proposal to reserve Options 8, Section 16, Trading 
for a Joint Account, is consistent with the Act and the protection of 
investors and the general public because the rule is unnecessary. 
Today, there is no trading conducted in joint accounts on the trading 
floor. Also, Options 8, Section 16 is unnecessary because General 9, 
Section 67, Participation in Joint Accounts, requires, among other 
information, disclosure of other ownership and financial 
information.\23\ While Options 8, Section 16 requires prior approval of 
a joint account \24\ to initiate the purchase or sale on the Exchange 
of any security for any account in which he, his member organization or 
a participant therein, is directly or indirectly interested with any 
person other than such member organization or participant therein, 
General 9, Section 67, requires the reporting of joint accounts and 
permits Phlx staff to disapprove any joint account. Further, General 9, 
Section 67 requires a Phlx member to report participation in such joint 
account before any transactions are effected on the Exchange for such 
joint account.
---------------------------------------------------------------------------

    \23\ General 9, Section 67 requires a joint account to be 
reported to the Exchange by any member, member organization, or 
partner or stockholder therein, participating in such joint account 
before any transactions are effected on the Exchange for such joint 
account and shall include in substance the following: (1) Names of 
persons participating in such account and their respective interest 
therein; (2) Purpose of such account; (3) Amount of commitments in 
such account; and (4) A copy of any written agreement or instrument 
in writing relating to such account. See General 9, Section 67(b).
    \24\ The Exchange notes that the approval is not on a 
transaction basis, rather it is on an account basis.
---------------------------------------------------------------------------

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.
Options 8, Section 11
    The Exchange's proposal to amend Options 8, Section 11, Floor 
Market Maker and Lead Market Maker Appointment, does not impose an 
intra-market burden on competition because all Floor Marker Makers will 
be assigned in all options classes traded on the Exchange, provided the 
Floor Market Maker continues to qualify as a Floor Market Maker on the 
Exchange. The proposal will not require Floor Market Makers to quote in 
additional options series to meet their trading requirements \25\ 
unless they elect to do so.
---------------------------------------------------------------------------

    \25\ Floor Market Makers are not subject to continuous quoting 
requirements pursuant to Options 8, Section 27(a). Further, Floor 
Market Makers are required to trade either (a) 1,000 contracts and 
300 transactions, or (b) 10,000 contracts and 100 transactions, on 
the Exchange each quarter. Transactions executed in the trading 
crowd where the contra-side is an ROT are not included. See Options 
8, Section 27(f). In meeting the trading requirements, Floor Market 
Makers are not required to quote in all assigned options series.

---------------------------------------------------------------------------

[[Page 60524]]

    The Exchange's proposal to amend Options 8, Section 11, Floor 
Market Maker and Lead Market Maker Appointment, does not impose an 
inter-market burden on competition because Cboe \26\ also appoints its 
Market-Maker to trade open outcry in all classes traded on Cboe. 
Additionally, other options trading floors may elect to adopt a similar 
rule.
---------------------------------------------------------------------------

    \26\ See Cboe Rule 5.50(e).
---------------------------------------------------------------------------

    Amending Options 3, Section 11(a) to specify that ``The Exchange, 
in its discretion, may require a unit to obtain additional staff 
depending upon the number of assigned options classes that is being 
quoted and associated order flow'' does not impose an undue burden on 
intra-market competition because the Exchange would continue to apply 
this discretion in a fair manner by treating all similarly-situated 
Floor Market Makers in the same manner.
    Amending Options 3, Section 11(a) to specify that ``The Exchange, 
in its discretion, may require a unit to obtain additional staff 
depending upon the number of assigned options classes that is being 
quoted and associated order flow'' does not impose an undue burden on 
inter-market competition because other options trading floors markets 
may adopt a similar discretion.
Options 8, Section 16
    The Exchange's proposal to reserve Options 8, Section 16, Trading 
for a Joint Account, does not impose an intra-market burden on 
competition as no Phlx member on the trading floor would be subject to 
the rule. Additionally, all Phlx members and member organizations would 
be required to comply with General 9, Section 67.
    The Exchange's proposal to reserve Options 8, Section 16, Trading 
for a Joint Account, does not impose an inter-market burden on 
competition because other options trading floors may adopt similar 
rules.

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 \27\ and Rule 19b-
4(f)(6) thereunder.\28\
---------------------------------------------------------------------------

    \27\ 15 U.S.C. 78s(b)(3)(A).
    \28\ 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.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \29\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, Rule 19b-4(f)(6)(iii) \30\ 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 asked 
the Commission to waive the 30-day operative delay so that the Exchange 
may implement the proposed change and alleviate an administrative 
burden. The Exchange states that assigning Floor Market Makers in all 
options classes traded on the Exchange will enable Phlx to attract 
additional liquidity to its trading floor allowing Floor Market Makers 
to quote in all options classes traded on Phlx, without any burdensome 
administrative barrier, and that the proposal will also remove the 
manual process of completing a Floor Market Maker Assignment Form for 
the benefit of both Phlx members and Exchange staff. The Commission 
believes that waiver of the 30-day operative delay is consistent with 
the protection of investors and the public interest because the 
proposed rule change does not raise any new or novel issues. 
Accordingly, the Commission hereby waives the 30-day operative delay 
and designates the proposed rule change as operative upon filing.\31\
---------------------------------------------------------------------------

    \29\ 17 CFR 240.19b-4(f)(6).
    \30\ 17 CFR 240.19b-4(f)(6)(iii).
    \31\ 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).
---------------------------------------------------------------------------

    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, 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-2023-38 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-2023-38. 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 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of the Exchange. Do not 
include personal identifiable information in submissions; you should 
submit only information that you wish to make available publicly. We 
may redact in part or withhold entirely from publication submitted 
material that is obscene or subject to copyright protection.
    All submissions should refer to file number SR-Phlx-2023-38 and 
should be submitted on or before September 22, 2023.


[[Page 60525]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\32\
---------------------------------------------------------------------------

    \32\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-18895 Filed 8-31-23; 8:45 am]
BILLING CODE 8011-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.