Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Delay Implementation of Certain Exchange Options 8 Rules and Amend Options 8, Section 34(b), 51580-51582 [2024-13316]
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51580
Federal Register / Vol. 89, No. 118 / Tuesday, June 18, 2024 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
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 23 and Rule
19b–4(f)(2) 24 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 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:
lotter on DSK11XQN23PROD with NOTICES1
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–
MEMX–2024–24 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–MEMX–2024–24. 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–MEMX–2024–24 and should be
submitted on or before July 9, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.25
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–13319 Filed 6–17–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100321; File No. SR–Phlx–
2024–24]
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Delay Implementation
of Certain Exchange Options 8 Rules
and Amend Options 8, Section 34(b)
June 12, 2024.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 30,
2024, 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.
25 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
23 15
U.S.C. 78s(b)(3)(A)(ii).
24 17 CFR 240.19b–4(f)(2).
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to delay the
implementation of SR–Phlx–2023–22 3
and amend Options 8, Section 34(b),
FLEX Trading (order types), which is
also being delayed.
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 Exchange proposes to delay the
implementation of SR–Phlx–2023–22
and amend Options 8, Section 34(b),
FLEX Trading (order types), which is
also being delayed. These rules are
currently effective, but not operative.
Each change is described below.
Delay of Implementation
As noted herein, Phlx filed SR–Phlx–
2023–22 to amend several Phlx Options
8 rules related to Phlx’s trading floor
and stated that the rule change would be
implemented on or before March 29,
2024.4 Thereafter, the Exchange delayed
the implementation of SR–Phlx–2023–
22 to permit the Exchange additional
3 See Securities Exchange Act Release No. 97658
(June 7, 2023), 88 FR 38562 (June 13, 2023) (SR–
Phlx–2023–22) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change To Amend
Various Options 8 Rules). See also Securities
Exchange Act Release No. 98919 (November 13,
2024), 88 FR 80363 (November 17, 2023) (SR–Phlx–
2023–48) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change To Delay the
Implementation of the FLEX and Cabinet
Automation) (‘‘SR–Phlx–2023–22’’).
4 See Securities Exchange Act Release No. 97658
(June 7, 2023), 88 FR 38562 (June 13, 2023) (SR–
Phlx–2023–22) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change To Amend
Various Options 8 Rules) (‘‘SR–Phlx–2023–22’’).
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Federal Register / Vol. 89, No. 118 / Tuesday, June 18, 2024 / Notices
time to code and test the functionality.5
These rules are currently effective, but
not operative.
By way of background, with respect to
FLEX Orders, SR–Phlx–2023–22
amended FLEX Orders in 3 ways. First,
the Exchange amended the rules to
require FLEX Orders to be reported into
Phlx’s Options Floor Based Management
System or ‘‘FBMS,’’ thereby further
automating the execution and reporting
of FLEX Options. All executed FLEX
contracts will be reported to OPRA and
sent to the OCC for clearing, similar to
all other equity, equity index and U.S.
dollar-settled foreign currency options
orders executed on the Exchange’s
trading floor. Second, the Exchange
removed its RFQ process including the
BBO Improvement Interval Process,
with the rule change. Third, the
Exchange reorganized Options 8,
Section 34 to restructure the rule to
include additional information which
describes current FLEX trading on Phlx.
With respect to Cabinet Orders, SR–
Phlx–2023–22 amended Options 8,
Section 33 to require Cabinet Orders to
be reported into FBMS. With this
change, members and member
organizations will be required to record
all Cabinet Orders represented in the
trading crowd into FBMS. All executed
contracts will be reported to OPRA and
sent to OCC for clearing similar to all
other equity, equity index and U.S.
dollar-settled foreign currency options
orders executed on the Exchange’s
trading floor.
At this time, the Exchange proposes to
delay the implementation of SR–Phlx–
2023–22 so that it may also implement
the other rule changes proposed herein
at the same time and complete an OCC
industry rule change prior to
implementation as well as a Phlx
technology migration. The Exchange
proposes to implement SR–Phlx–2023–
22 and the proposed changes noted in
this proposal prior to the end of Q4
2025. The Exchange would issue an
Options Trader Alert announcing the
exact implementation date to members
and member organizations at least thirty
days prior to implementation.
Options 8, Section 34(b)(3)
lotter on DSK11XQN23PROD with NOTICES1
Phlx proposes to correct a drafting
error in Options 8, Section 34(b)(3) to
remove one clause.6 Options 8, Section
5 See Securities Exchange Act Release No. 98919
(November 13, 2024), 88 FR 80363 (November 17,
2023) (SR–Phlx–2023–48) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
To Delay the Implementation of the FLEX and
Cabinet Automation).
6 This rule text was copied from Cboe Exchange
Inc.’s Rule 5.70(b). The copied rule text included
a clause related to Asian-settled or Cliquet-settled
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Jkt 262001
34(b)(3) currently states, ‘‘. . . for a
FLEX Index Option, may have a
different settlement type (a.m.-settled or
p.m.- settled), except each leg must have
the same settlement type.’’ At this time,
Phlx proposes to delete the clause ‘‘. . .
except each leg must have the same
settlement type’’ in Options 8, Section
34(b)(3) to correct a drafting error. The
rule text does not apply as Phlx does not
support Asian-settled or Cliquet-settled
options.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,7 in general, and furthers the
objectives of Section 6(b)(5) of the Act,8
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.
51581
as well as a Phlx technology migration
prior to implementation.
Options 8, Section 34(b)(3)
Phlx’s proposal to amend rule text at
Options 8, Section 34(b)(3) that was
adopted in SR–Phlx–2023–22 does not
impose an undue burden on
competition because it merely corrects a
drafting error.
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 proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 9 and Rule
19b–4(f)(6) thereunder.10 Because the
foregoing proposed rule change does
not: (i) significantly affect the protection
of investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
for 30 days from the date on which it
was filed, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A)(iii) of the Act 11 and
subparagraph (f)(6) of Rule 19b–4
thereunder.12
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is 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
should be approved or disapproved.
Delay of Implementation
IV. Solicitation of Comments
Delay of Implementation
The Exchange’s proposal to delay the
implementation of SR–Phlx–2023 prior
to the end of Q4 2025 is consistent with
the Act because it will allow Phlx time
to implement the other rule changes
proposed herein at the same time and
complete an OCC industry rule change
as well as a Phlx technology migration
prior to implementation.
Options 8, Section 34(b)(3)
Phlx’s proposal to amend rule text at
Options 8, Section 34(b)(3) that was
adopted in SR–Phlx–2023–22 is
consistent with the Act because it
merely corrects a drafting error.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange’s proposal to delay the
implementation of SR–Phlx–2023 prior
to the end of Q4 2025 does not impose
an undue burden on competition
because it will allow Phlx time to
implement the other rule changes
proposed herein at the same time and
complete an OCC industry rule change
options. This clause is not applicable to Phlx which
does not utilize these settlement styles. However,
part of the clause related to the Asian-settled or
Cliquet-settled options was inadvertently copied
with respect to its application to complex orders.
This clause is being removed as it is inapplicable
to Phlx.
7 15 U.S.C. 78f(b)
8 15 U.S.C. 78f(b)(5).
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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.
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
11 15 U.S.C. 78s(b)(3)(A)(iii).
12 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.
10 17
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51582
Federal Register / Vol. 89, No. 118 / Tuesday, June 18, 2024 / Notices
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. PA–62; File No. S7–2024–04]
• 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–2024–24 on the subject line.
Privacy Act of 1974; System of
Records
Paper Comments
lotter on DSK11XQN23PROD with NOTICES1
All submissions should refer to file
number SR–Phlx–2024–24. 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–2024–24 and should be
submitted on or before July 9, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–13316 Filed 6–17–24; 8:45 am]
BILLING CODE 8011–01–P
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:57 Jun 17, 2024
The Securities and Exchange
Commission (SEC) proposes to modify
system of records SEC–36, Harassment
Prevention and Response Program
Records, under the Privacy Act of 1974.
The system of records is being modified
to reflect non-substantive changes to the
system title and system manager. Minor
updates to the text of the notice have
been made throughout to be consistent
with changes to the title and system
manager. Nothing in the modified SORN
changes the category of individuals from
whom the records are collected, the
collection of records from the
individuals, the authorities, the purpose
for collection, or the routine uses. The
changes do not impact any individual’s
rights to access or to amend their
records pursuant to the Privacy Act.
DATES: The notice will become effective
upon publication, unless the
Commission receives comments that
would warrant further action.
ADDRESSES: Comments may be
submitted by any of the following
methods:
SUMMARY:
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
13 17
Securities and Exchange
Commission.
ACTION: Notice of a modified system of
records.
AGENCY:
Jkt 262001
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/other.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number S7–
2024–04 on the subject line.
Paper Comments
• Send paper comments to Vanessa
A. Countryman, Secretary, U.S.
Securities and Exchange Commission,
100 F Street NE, Washington, DC
20549–1090.
All submissions should refer to File
Number S7–2024–04. 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 of submission. The
Commission will post all comments on
the Commission’s website (https://
www.sec.gov/rules/other.shtml).
Comments are also available for website
viewing and printing in the
Commission’s Public Reference Room,
100 F Street NE, Washington, DC 20549,
PO 00000
Frm 00091
Fmt 4703
Sfmt 4703
on official business days between the
hours of 10 a.m. and 3 p.m. Operating
conditions may limit access to the
Commission’s Public Reference Room.
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.
FOR FURTHER INFORMATION CONTACT:
Ronnette McDaniel, Privacy and
Information Assurance Branch, Chief,
202–551–7200 or privacyhelp@sec.gov.
SUPPLEMENTARY INFORMATION: On
October 31, 2023, the SEC published
system of records SEC–36, Harassment
Prevention and Response Program
Records. Subsequently, the program’s
oversight and responsibilities were
moved from the Office of Equal
Employment Opportunity (OEEO) to the
Office of Human Resources (OHR). As a
result, OHR made updates to (a) change
the title of the records from SEC–36,
Harassment Prevention and Response
Program to SEC–36, Anti-Harassment
Program and (b) change the system
manager from Director, Office of Equal
Employment Opportunity, to Chief
Human Capital Officer, Office of
Human Resources.
SYSTEM NAME AND NUMBER
SEC–36 Anti-Harassment Program
Records.
SECURITY CLASSIFICATION:
Non-classified.
SYSTEM LOCATION:
U.S. Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
SYSTEM MANAGER(S):
Chief Human Capital Officer, Office of
Human Resources, 100 F Street NE,
Washington, DC 20549.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
Records Management by Federal
Agencies, 44 U.S.C. 3101 et seq.; Civil
Service Reform Act of 1978, 5 U.S.C.
2302(b), Prohibited Personnel Practices;
Exec. Order No. 11478, 34 FR 12985 (as
amended by Exec. Orders 13087, 13145
and 13152); Title VII of the Civil Rights
Act of 1964, 42 U.S.C. 2000e-16 et seq.;
Age Discrimination in Employment Act
of 1967, 29 U.S.C. 621 et seq.; Section
501 of the Rehabilitation Act of 1973, 29
U.S.C. 791; Titles I and V of the
Americans with Disabilities Act of 1990
(ADA), 42 U.S.C. 12101 et seq., as
amended by ADA the Amendments Act
of 2008; Notification and Federal
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]]>Agencies
[Federal Register Volume 89, Number 118 (Tuesday, June 18, 2024)]
[Notices]
[Pages 51580-51582]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-13316]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100321; File No. SR-Phlx-2024-24]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Delay
Implementation of Certain Exchange Options 8 Rules and Amend Options 8,
Section 34(b)
June 12, 2024.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 30, 2024, 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to delay the implementation of SR-Phlx-2023-
22 \3\ and amend Options 8, Section 34(b), FLEX Trading (order types),
which is also being delayed.
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\3\ See Securities Exchange Act Release No. 97658 (June 7,
2023), 88 FR 38562 (June 13, 2023) (SR-Phlx-2023-22) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Various Options 8 Rules). See also Securities Exchange Act Release
No. 98919 (November 13, 2024), 88 FR 80363 (November 17, 2023) (SR-
Phlx-2023-48) (Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Delay the Implementation of the FLEX and
Cabinet Automation) (``SR-Phlx-2023-22'').
---------------------------------------------------------------------------
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 Exchange proposes to delay the implementation of SR-Phlx-2023-
22 and amend Options 8, Section 34(b), FLEX Trading (order types),
which is also being delayed. These rules are currently effective, but
not operative. Each change is described below.
Delay of Implementation
As noted herein, Phlx filed SR-Phlx-2023-22 to amend several Phlx
Options 8 rules related to Phlx's trading floor and stated that the
rule change would be implemented on or before March 29, 2024.\4\
Thereafter, the Exchange delayed the implementation of SR-Phlx-2023-22
to permit the Exchange additional
[[Page 51581]]
time to code and test the functionality.\5\ These rules are currently
effective, but not operative.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 97658 (June 7,
2023), 88 FR 38562 (June 13, 2023) (SR-Phlx-2023-22) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Various Options 8 Rules) (``SR-Phlx-2023-22'').
\5\ See Securities Exchange Act Release No. 98919 (November 13,
2024), 88 FR 80363 (November 17, 2023) (SR-Phlx-2023-48) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Delay
the Implementation of the FLEX and Cabinet Automation).
---------------------------------------------------------------------------
By way of background, with respect to FLEX Orders, SR-Phlx-2023-22
amended FLEX Orders in 3 ways. First, the Exchange amended the rules to
require FLEX Orders to be reported into Phlx's Options Floor Based
Management System or ``FBMS,'' thereby further automating the execution
and reporting of FLEX Options. All executed FLEX contracts will be
reported to OPRA and sent to the OCC for clearing, similar to all other
equity, equity index and U.S. dollar-settled foreign currency options
orders executed on the Exchange's trading floor. Second, the Exchange
removed its RFQ process including the BBO Improvement Interval Process,
with the rule change. Third, the Exchange reorganized Options 8,
Section 34 to restructure the rule to include additional information
which describes current FLEX trading on Phlx. With respect to Cabinet
Orders, SR-Phlx-2023-22 amended Options 8, Section 33 to require
Cabinet Orders to be reported into FBMS. With this change, members and
member organizations will be required to record all Cabinet Orders
represented in the trading crowd into FBMS. All executed contracts will
be reported to OPRA and sent to OCC for clearing similar to all other
equity, equity index and U.S. dollar-settled foreign currency options
orders executed on the Exchange's trading floor.
At this time, the Exchange proposes to delay the implementation of
SR-Phlx-2023-22 so that it may also implement the other rule changes
proposed herein at the same time and complete an OCC industry rule
change prior to implementation as well as a Phlx technology migration.
The Exchange proposes to implement SR-Phlx-2023-22 and the proposed
changes noted in this proposal prior to the end of Q4 2025. The
Exchange would issue an Options Trader Alert announcing the exact
implementation date to members and member organizations at least thirty
days prior to implementation.
Options 8, Section 34(b)(3)
Phlx proposes to correct a drafting error in Options 8, Section
34(b)(3) to remove one clause.\6\ Options 8, Section 34(b)(3) currently
states, ``. . . for a FLEX Index Option, may have a different
settlement type (a.m.-settled or p.m.- settled), except each leg must
have the same settlement type.'' At this time, Phlx proposes to delete
the clause ``. . . except each leg must have the same settlement type''
in Options 8, Section 34(b)(3) to correct a drafting error. The rule
text does not apply as Phlx does not support Asian-settled or Cliquet-
settled options.
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\6\ This rule text was copied from Cboe Exchange Inc.'s Rule
5.70(b). The copied rule text included a clause related to Asian-
settled or Cliquet-settled options. This clause is not applicable to
Phlx which does not utilize these settlement styles. However, part
of the clause related to the Asian-settled or Cliquet-settled
options was inadvertently copied with respect to its application to
complex orders. This clause is being removed as it is inapplicable
to Phlx.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\7\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\8\ 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.
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\7\ 15 U.S.C. 78f(b)
\8\ 15 U.S.C. 78f(b)(5).
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Delay of Implementation
The Exchange's proposal to delay the implementation of SR-Phlx-2023
prior to the end of Q4 2025 is consistent with the Act because it will
allow Phlx time to implement the other rule changes proposed herein at
the same time and complete an OCC industry rule change as well as a
Phlx technology migration prior to implementation.
Options 8, Section 34(b)(3)
Phlx's proposal to amend rule text at Options 8, Section 34(b)(3)
that was adopted in SR-Phlx-2023-22 is consistent with the Act because
it merely corrects a drafting error.
B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.
Delay of Implementation
The Exchange's proposal to delay the implementation of SR-Phlx-2023
prior to the end of Q4 2025 does not impose an undue burden on
competition because it will allow Phlx time to implement the other rule
changes proposed herein at the same time and complete an OCC industry
rule change as well as a Phlx technology migration prior to
implementation.
Options 8, Section 34(b)(3)
Phlx's proposal to amend rule text at Options 8, Section 34(b)(3)
that was adopted in SR-Phlx-2023-22 does not impose an undue burden on
competition because it merely corrects a drafting error.
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 Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\
Because the foregoing proposed rule change does not: (i) significantly
affect the protection of investors or the public interest; (ii) impose
any significant burden on competition; and (iii) become operative for
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, it has become effective pursuant to
Section 19(b)(3)(A)(iii) of the Act \11\ and subparagraph (f)(6) of
Rule 19b-4 thereunder.\12\
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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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 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.
[[Page 51582]]
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-2024-24 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-2024-24. 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-2024-24 and should be
submitted on or before July 9, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-13316 Filed 6-17-24; 8:45 am]
BILLING CODE 8011-01-P
