Notice2021-12120
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Various Phlx Rules
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Published
June 10, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 110 (Thursday, June 10, 2021)</title>
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[Federal Register Volume 86, Number 110 (Thursday, June 10, 2021)]
[Notices]
[Pages 30995-30999]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-12120]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92107; File No. SR-Phlx-2021-32]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Various
Phlx Rules
June 4, 2021.
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 24, 2021, 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.
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\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 amend Phlx Rules at Options 1, Section 1,
Applicability, Definitions and References; Options 2, Section 4,
Obligations of Market Makers; Options 2, Section 12, Registration and
Functions of Options Lead Market Makers; Options 3, Section 7, Types of
Orders and Order and Quote Protocols; Options 3, Section 15, Simple
Order Risk Protections; and Options 3, Section 16, Complex Order Risk
Protections. The Exchange also proposes to add a new Equity 3A, which
will be reserved, to the Rulebook Shell.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/phlx/rules">https://listingcenter.nasdaq.com/rulebook/phlx/rules</a>, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of
[[Page 30996]]
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 amend Phlx Rules at Options 1, Section 1,
Applicability, Definitions and References; Options 2, Section 4,
Obligations of Market Makers; Options 2, Section 12, Registration and
Functions of Options Lead Market Makers; Options 3, Section 7, Types of
Orders and Order and Quote Protocols; Options 3, Section 15, Simple
Order Risk Protections; and Options 3, Section 16, Complex Order Risk
Protections. The Exchange also proposes to add and reserve a new Equity
3A to the Rulebook Shell. Each change is described below.
Options 2, Section 4
The Exchange proposes to amend Options 2, Section 4, Obligations of
Market Makers. First, the Exchange proposes some technical amendments.
The Exchange proposes to amend Options 2, Section 4(b) and 4(b)(1) to
change the term ``an'' to ``a''. The Exchange also proposes to
capitalize the term ``market maker'' within Options 2, Section 4(b)(4).
Finally, the Exchange proposes to amend the term ``is'' to ``are''
within Options 2, Section 4(c). These corrections are non-substantive
and intended to make the rule text clearer.
Second, the Exchange proposes to amend the current rule text within
Options 2, Section 4(b)(5) which states,
An RSQT electing to engage in Exchange options transactions is
designated as a Lead Market Maker on the Exchange for all purposes
under the Exchange Act and the rules and regulations thereunder with
respect to options transactions initiated and effected by him in his
capacity as a Market Maker.
The Exchange proposes to amend the rule to replace the term
``RSQT'' with the broader term ``Market Maker'' and replace the term
``Lead Market Maker'' with the term ``specialist.'' Phlx filed a rule
change \3\ to amend certain rules, the rule text previously at
Commentary .01 of Rule 1014, which is now located at Options 2, Section
4(b)(5) stated,
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\3\ See Securities Exchange Act Release No. 51126 (February 9,
2005), 70 FR 6915 (February 9, 2005) (SR-Phlx-2004-90) (Order
Approving Proposed Rule Change by the Philadelphia Stock Exchange,
Inc., Relating to Remote Streaming Quote Traders).
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An ROT electing to engage in Exchange Options transactions is
designated as a specialist on the Exchange for all purposes under the
Securities Exchange Act of 1934 and the rules and regulations
thereunder with respect to options transactions initiated and effected
by him on the floor in his capacity as an ROT. For purposes of this
commentary, the term ``transactions initiated and effected on the
floor'' shall not include transactions initiated by an ROT off the
floor, but which are considered ``on-floor'' pursuant to Commentaries
.07 and .08 of Rule 1014. Similarly, an RSQT electing to engage in
Exchange Options transactions is designated as a specialist on the
Exchange for all purposes under the Securities Exchange Act of 1934 and
the rules and regulations thereunder with respect to options
transactions initiated and effected by him in his capacity as an ROT.
At this time, the Exchange proposes to revert the rule text back to
a part of original language and state, ``A Market Maker electing to
engage in Exchange Options transactions is designated as a specialist
on the Exchange for all purposes under the Securities Exchange Act of
1934 and the rules and regulations thereunder with respect to options
transactions initiated and effected by him on the floor in his capacity
as an Market Maker.'' Pursuant to Options 1, Section 1(b)(28), the term
'' Market Maker'' means a Streaming Quote Trader (``SQT'') or a Remote
Streaming Quote Trader (``RSQT'') who enters quotations for his own
account electronically into the System. An RSQT is only one type of
Market Maker, the other is an SQT. In 2020, the Exchange amended the
term ``ROT'' to ``Market Maker.'' \4\ The original term ``ROT''
included both SQTs and RSQTs and therefore the broader term ``Market
Maker'' should replace ``RSQT.'' While the Rulebook Relocation amended
the term ``specialist'' to '' Lead Market Maker,'' the Exchange notes
that the term ``specialist'' within prior Rule 1014, which is now
Options 2, Section 4(b)(5), did not refer to a Phlx participant also
known as a ``specialist,'' rather the term referred to an individual
that engages in market making pursuant to the Act. The Exchange
proposes to replace the term ``Lead Market Maker'' with the term
``specialist'' which shall mean, for purposes of this rule, an
individual that engages in market making. The term ``specialist'' is
broader than the term ``Lead Market Maker.'' This proposal reverts back
to language previously used and should capture the universe of market
makers the rule was originally intended to capture.
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\4\ See Securities Exchange Act 88213 (February 14, 2020), 85 FR
9859 (February 20, 2020) (SR-Phlx-2020-03)(Notice of Filing and
Immediate Effectiveness of Proposed Rule Change To Relocate Rules
From Its Current Rulebook Into Its New Rulebook Shell) (``Rulebook
Relocation'').
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Options 3, Section 15 and Options 3, Section 16
The Exchange proposes to add provisions within Options 3, Section
15 at paragraph (b)(2), related to Simple Order Risk Protections, and
Options 3, Section 16 at paragraph (e), related to Complex Order Risk
Protections, to describe a current limitation that exists within its
rules today as to the number of contracts an incoming order or quote
may specify. Specifically, for simple orders, the maximum number of
contracts, which shall not be less than 10,000 contracts, is
established by the Exchange from time-to-time. For Complex Orders, the
maximum number of contracts (or shares), which shall not be less than
10,000 contracts (or 100,000 shares), is established by the Exchange
from time-to-time. Orders or quotes that exceed the maximum number of
contracts/shares are rejected. This System limitation is the same on
all Nasdaq affiliated exchanges.\5\ Today, Nasdaq ISE, LLC (``ISE''),
Nasdaq GEMX, LLC (``GEMX'') and Nasdaq MRX, LLC (``MRX'') describe this
limitation within their rules at Options 3, Section 15(a)(2)(B). ISE
and MRX also describe the Size Limitation within Options 3, Section
16(c)(2). Phlx proposes to similarly describe this limitation in its
rules.
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\5\ The Exchange recently filed to add Size Limitation to BX and
The Nasdaq Stock Market LLC. See Securities Exchange Act Release
Nos. 91838 (May 11, 2021), 86 FR 26750 (May 17, 2021) (SR-BX-2021-
020) (Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Amend BX Rules at Options 3, Section 7, Types of Orders
and Order and Quote Protocols, and Options 3, Section 15, Risk
Protections); and 91841 (May 11, 2021), 86 FR 26753 (May 17, 2021)
(SR-NASDAQ-2021-030) (Notice of Filing and Immediate Effectiveness
of Proposed Rule Change To Amend the Nasdaq Options Market LLC Rules
at Options 3, Section 7, Types of Orders and Order and Quote
Protocols, and Options 3, Section 15, Risk Protections).
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Options 3, Section 7
The Exchange also proposes to amend Options 3, Section 7(c)(2),
Types of Orders and Order and Quote Protocols, which describes
Immediate-or-Cancel Orders or ``IOC'' Orders. Today, the Exchange
describes an IOC order as a Market Order or Limit Order to be executed
in whole or in part upon receipt. Any portion not so executed is
cancelled.\6\ Options 3, Section 7(c)(2)(B) provides that IOC orders
may be entered
[[Page 30997]]
through FIX \7\ or SQF,\8\ provided that an IOC order entered by a
Market Maker \9\ through SQF is not subject to the Order Price
Protection or the Market Order Spread Protection in Options 3, Section
15(a)(1) and (a)(2), respectively. With the proposed addition of the
Size Limitation to proposed new Options 3, Section 15(b)(2) and Options
3, Section 16(e), the Exchange also proposes to note that Size
Limitation does not apply to IOC orders entered through SQF.
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\6\ See Options 3, Section 7(c)(2). The Exchange also notes that
IOC orders entered with a TIF of IOC are not eligible for routing.
\7\ ``Financial Information eXchange'' or ``FIX'' is an
interface that allows members and their Sponsored Customers to
connect, send, and receive messages related to orders and auction
orders and responses to and from the Exchange. Features include the
following: (1) Execution messages; (2) order messages; and (3) risk
protection triggers and cancel notifications. See Options 3, Section
7(a)(i)(A).
\8\ ``Specialized Quote Feed'' or ``SQF'' is an interface that
allows Lead Market Makers, RSQTs, SQTs to connect, send, and receive
messages related to quotes, Immediate-or-Cancel Orders, and auction
responses into and from the Exchange. Features include the
following: (1) Options symbol directory messages (e.g underlying and
complex instruments); (2) system event messages (e.g., start of
trading hours messages and start of opening); (3) trading action
messages (e.g., halts and resumes); (4) execution messages; (5)
quote messages; (6) Immediate-or-Cancel Order messages; (7) risk
protection triggers and purge notifications; (8) opening imbalance
messages; (9) auction notifications; and (10) auction responses. The
SQF Purge Interface only receives and notifies of purge requests
from the Lead Market Maker, SQT or RSQT. Lead Market Makers, SQTs
and RSQTs may only enter interest into SQF in their assigned options
series.
\9\ The Exchange notes that Lead Market Makers are also Market
Makers for purposes of the Options 3, Section 7 discussion.
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Today, orders that are entered as IOC by a Market Maker through SQF
are subject to the protections in Options 3, Section 15, except for
Order Price Protection and Market Order Spread Protection. The Exchange
proposes to add Size Limitation to the list of protections that are
available for IOC orders entered through FIX, but not SQF. In addition,
the Exchange proposes to note within Options 3, Section 7(c)(2), that,
``IOC orders may be entered through FIX or SQF, provided that an IOC
order entered by a Market Maker through SQF is not subject to the Order
Price Protection, the Market Order Spread Protection, or the Size
Limitation in Options 3, Section 15(a)(1), (a)(2) and (b)(2),
respectively, or Size Limitation within Options 3, Section 16(e).'' The
addition of this rule text will bring greater clarity to the order
type.
The Exchange notes that while only orders are entered into FIX, SQF
is a quote protocol that also permits Market Makers to enter IOC orders
that do not rest on the order book. The Exchange has not elected to
utilize Size Limitation on SQF as it did for FIX because Market Makers
only utilize SQF to enter IOC orders and Market Makers are professional
traders with their own risk settings. FIX, on the other hand, is
utilized by all market participants who may not have their own risk
settings, unlike Market Makers.
Market Makers utilize IOC orders to trade out of accumulated
positions and manage their risk when providing liquidity on the
Exchange. Proper risk management, including using these IOC orders to
offload risk, is vital for Market Makers, and allows them to maintain
tight markets and meet their quoting and other obligations to the
market. Market Makers handle a large amount of risk when quoting and in
addition to the risk protections required by the Exchange. Market
Makers utilize their own risk management parameters when entering
orders, minimizing the likelihood of a Market Maker's erroneous order
from being entered. The Exchange believes that Market Makers, unlike
other market participants, have the ability to manage their risk when
submitting IOC orders through SQF and should be permitted to elect this
method of order entry to obtain efficiency and speed of order entry,
particularly in light of the continuous quoting obligations the
Exchange imposes on these participants.
The Exchange believes that allowing Market Makers to submit IOC
orders through their preferred protocol increases their efficiency in
submitting such orders and thereby allows them to maintain quality
markets to the benefit of all market participants that trade on the
Exchange. Further, unlike other market participants, Market Makers
provide liquidity to the market place and have obligations.\10\ Thus,
the Exchange opted to not offer Size Limitation for IOC orders entered
through SQF because Market Makers have more sophisticated
infrastructures than other market participants and are able to manage
their risk.
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\10\ Lead Market Makers have quoting obligations during the
Opening Process as specified in Options 3, Section 8 and Market
Makers and Lead Market Makers have intra-day quoting obligations as
specified in Options 2, Section 5.
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Similarly, the Exchange also proposes to amend Options 3, Section
7(c)(3) which describes an Opening Only or ``OPG'' order. Today, an OPG
order can only be executed in the Opening Process pursuant to Options
3, Section 8. The rule currently states that this order type is not
subject to any protections listed in Options 3, Section 15 describing
risk protections. With the proposed addition of Size Limitation to
proposed new Options 3, Section 15(b)(2) and Options 3, Section 16(e),
the Exchange proposes to note within Options 3, Section 7(c)(3) that
OPG orders are subject to Size Limitation. OPG orders are entered
during the Opening Process ``Financial Information eXchange'' or
``FIX''. Also, any participant may enter an OPG order and be subject to
Size Limitation protections.
Non-Substantive Amendments
The Exchange proposes to amend the Rulebook shell to add a new
Equity 3A and reserve that section. Equity 3A will be utilized by the
Nasdaq BX, Inc. (``BX'') Rulebook and the Exchange proposes to reserve
that section in this Rulebook to demonstrate the section does not exist
for the Exchange's equity market.
The Exchange proposes to make minor technical amendments to Options
1, Section 1(b)(27) which describes a Lead Market Maker. The Exchange
proposes to change an ``an'' to ``the'' and capitalize the term
``Trading Floor.''
The Exchange proposes to amend Options 2, Section 12(a)(1),
Registration and Functions of Options Lead Market Makers, to add a
parenthetical and space that were missing.
Finally, the Exchange proposes to amend the description of a
Specialized Quote Feed within Options 3, Section 7(a)(i)(B) to make
plural the word ``request'' and also add an ``.,'' after an e.g to
conform the punctuation in the paragraph.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\11\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\12\ in particular, in that it is designed to
promote just and equitable principles of trade and to protect investors
and the public interest.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
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Options 2, Section 4
The Exchange's proposal to amend Options 2, Section 4(b)(5) is
consistent with the Act because the paragraph will read as intended. In
the Rulebook Relocation, the Exchange amended the term ``ROT'' to
``Market Maker.'' \13\ Pursuant to Options 1, Section 1(b)(28), the
term ``Market Maker'' means an SQT or an RSQT who enters quotations for
his own account electronically into the System. An RSQT is only one
type of Market Maker, the other is an SQT. The original term ``ROT''
included both SQTs and RSQTs and therefore the Exchange proposes to
revert back to the broader term ``Market Maker.'' While
[[Page 30998]]
the Rulebook Relocation amended the term ``specialist'' to ``Lead
Market Maker,'' the Exchange notes that the term ``specialist'' within
prior Rule 1014, which is now Options 2, Section 4(b)(5), did not refer
to a Phlx participant also known as a ``specialist,'' rather the term
referred to an individual that engages in market making pursuant to the
Act. The Exchange proposes to replace the term ``Lead Market Maker''
with the term ``specialist'' which shall mean, for purposes of this
rule, an individual that engages in market making. The term
``specialist'' is broader than the term ``Lead Market Maker.'' This
proposal reverts back to language previously used and should capture
the universe of market makers the rule was originally intended to
capture.
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\13\ See supra note 4.
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The remainder of the proposed amendments to Options 2, Section 4
are non-substantive technical amendments that are intended to bring
greater clarity to the Exchange's Rules.
Options 3, Section 15 and Options 3, Section 16
The Exchange's proposal to add provisions within Options 3, Section
15 at paragraph (b)(2), related to Simple Order Risk Protections, and
Options 3, Section 16 at paragraph (e), related to Complex Order Risk
Protections, to describe a current limitation that exists within its
rules today as to the number of contracts an incoming order or quote
may specify is consistent with the Act. The proposal is intended to
describe a current limitation that exists today as to the number of
contracts an incoming order or quote may specify. Specifically, for
simple orders, the maximum number of contracts, which shall not be less
than 10,000 contracts, is established by the Exchange from time-to-
time. For Complex Orders, the maximum number of contracts (or shares),
which shall not be less than 10,000 contracts (or 100,000 shares), is
established by the Exchange from time-to-time. Orders or quotes that
exceed the maximum number of contracts/shares are rejected. This System
limitation is the same on all Nasdaq affiliated exchanges.\14\ Today,
ISE, GEMX and MRX describe this limitation within its rules at Options
3, Section 15(a)(2)(B) and ISE and MRX describe the limitation in
Options 3, Section 16(c)(2). Phlx proposes to similarly describe this
limitation in its rules.
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\14\ See supra note 5.
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Options 3, Section 7
The Exchange's proposal to amend Options 3, Section 7(c)(2) with
respect to IOC orders is consistent with the Act. Today, the Exchange
describes an IOC order as a Market Order or Limit Order to be executed
in whole or in part upon receipt. Any portion not so executed is
cancelled.\15\ Options 3, Section 7(c)(2)(B) provides that IOC orders
may be entered through FIX or SQF, provided that an IOC order entered
by a Market Maker through SQF is not subject to the Order Price
Protection or the Market Order Spread Protection in Options 3, Section
15(a)(1) and (a)(2) respectively. With the proposed additions of the
Size Limitation within Options 3, Section 15(b)(2) and Options 3,
Section 16(e), the Exchange also proposes to note that Size Limitation
does not apply to IOC orders entered through SQF. The Exchange notes
these exceptions within this rule to make clear that this information
is available to market participants within the description of IOC.
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\15\ See Options 3, Section 7(c)(2).
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The Exchange notes that while only orders are entered into FIX, SQF
is a quote protocol that also permits Market Makers to enter IOC orders
that do not rest on the order book. The Exchange has not elected to
utilize Size Limitation on SQF as it did for FIX because Market Makers
only utilize SQF to enter IOC orders and Market Makers are professional
traders with their own risk settings. FIX, on the other hand, is
utilized by all market participants who unlike Market Makers may not
have their own risk settings. Market Makers utilize IOC orders to trade
out of accumulated positions and manage their risk when providing
liquidity on the Exchange. Proper risk management, including using
these IOC orders to offload risk, is vital for Market Makers, and
allows them to maintain tight markets and meet their quoting and other
obligations to the market. Market Makers handle a large amount of risk
when quoting and in addition to the risk protections required by the
Exchange. Market Makers utilize their own risk management parameters
when entering orders, minimizing the likelihood of a Market Maker's
erroneous order from being entered. The Exchange believes that Market
Makers, unlike other market participants, have the ability to manage
their risk when submitting IOC orders through SQF and should be
permitted to elect this method of order entry to obtain efficiency and
speed of order entry, particularly in light of the continuous quoting
obligations the Exchange imposes on these participants.
The Exchange believes that allowing Market Makers to submit IOC
orders through their preferred protocol increases their efficiency in
submitting such orders and thereby allows them to maintain quality
markets to the benefit of all market participants that trade on the
Exchange. Further, unlike other market participants, Market Makers
provide liquidity to the market place and have obligations.\16\ The
Exchange believes not offering Size Limitation for IOC orders entered
through SQF is consistent with the Act because Market Makers have more
sophisticated infrastructures than other market participants and are
able to manage their risk.
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\16\ See supra note 10.
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The Exchange's proposal to amend OPG orders within Options 3,
Section 7(c)(3) to make clear that Size Limitation applies to OPG
orders is consistent with the Act as this rule text will clarify the
existing language and make clear that Size Limitation is applicable to
the order type. OPG orders are entered during the Opening Process
utilizing FIX. Any participant may enter an OPG order. The Exchange's
proposal to amend Options 3, Section 7(c)(3) to make clear that Size
Limitation applies to OPG orders is consistent with the Act as this
rule text will clarify the existing language and make clear that Size
Limitation is applicable to this order type.
Non-Substantive Amendments
The Exchange's proposal to add a new Equity 3A and reserve that
section, and amend Options 1, Section 1(b)(27), Options 2, Section 12
and Options 3, Section 7(a)(i)(B) to make technical changes, are
consistent with the Act as these changes will add clarity to the
Exchange's rules.
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 2, Section 4
The Exchange's proposal to amend Options 2, Section 4(b)(5) does
not impose an undue burden on competition because the paragraph will
read as intended. The Exchange's proposal will make clear that all
participants engaged in market making activities are specialists
pursuant to the Act.\17\
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\17\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
The remainder of the proposed amendments to Options 2, Section 4
are non-substantive technical amendments.
[[Page 30999]]
Options 3, Section 15 and Options 3, Section 16
The Exchange's proposal to add provisions within Options 3, Section
15 at paragraph (b)(2), related to Simple Order Risk Protections, and
Options 3, Section 16 at paragraph (e), related to Complex Order Risk
Protections, to describe a current limitation that exists within its
rules today as to the number of contracts an incoming order or quote
may specify does not impose an undue burden on competition. The
proposal is intended to describe a current limitation that exists today
as to the number of contracts an incoming order or quote may specify.
This System limitation is the same on all Nasdaq affiliated
exchanges.\18\ Today, ISE, GEMX and MRX describe this limitation within
its rules at Options 3, Section 15(a)(2)(B) and ISE and MRX describe
this limitation within Options 3, Section 16(c)(2). Phlx proposes to
similarly describe this limitation in its rules.
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\18\ See supra note 5.
---------------------------------------------------------------------------
Options 3, Section 7
The Exchange's proposal to amend Options 3, Section 7(c)(2) with
respect to IOC orders does not impose an undue burden on competition.
With the proposed additions of the Size Limitation within Options 3,
Section 15(b)(2) and Options 3, Section 16(e), the Exchange also
proposes to note that Size Limitation does not apply to IOC orders
entered through SQF. Unlike other market participants, Market Makers
provide liquidity to the market place and have obligations.\19\
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\19\ See supra note 10.
---------------------------------------------------------------------------
The Exchange's proposal to amend Options 3, Section 7(c)(3) to make
clear that Size Limitation applies to OPG orders does not impose an
undue burden on competition as this rule text will clarify the existing
language and make clear that Size Limitation is applicable to this
order type. OPG orders are entered during the Opening Process utilizing
FIX.
Non-Substantive Amendments
The Exchange's proposal to add a new Equity 3A and reserve that
section, and amend Options 1, Section 1(b)(27), Options 2, Section 12
and Options 3, Section 7(a)(i)(B) to make technical changes, do not
impose an undue burden on competition as these changes will add clarity
to the Exchange's 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 \20\ and Rule 19b-
4(f)(6) thereunder.\21\
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\20\ 15 U.S.C. 78s(b)(3)(A).
\21\ 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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The Exchange has requested that the Commission waive the 30-day
operative delay. The Commission notes that other exchanges have
substantively similar rules regarding size limitation for certain
incoming orders or quotes.\22\ The Exchange's proposal will also revert
a rule unintentionally modified to its original intention. Finally, the
non-substantive amendments should clarify the Exchange's rules. Thus,
the Commission believes waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest.
The Commission therefore waives the 30-day operative delay and
designates this proposal operative upon filing.\23\
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\22\ See supra note 5.
\23\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
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
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#b7c5c2dbd29ad4d8dadad2d9c3c4f7c4d2d499d0d8c1"><span class="__cf_email__" data-cfemail="abd9dec7ce86c8c4c6c6cec5dfd8ebd8cec885ccc4dd">[email protected]</span></a>. Please include
File Number SR-PHLX-2021-32 on the subject line.
Paper Comments
<bullet> 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-2021-32. 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 (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-PHLX-2021-32 and should be submitted on
or before July 1, 2021.
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\24\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-12120 Filed 6-9-21; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on June 10, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.