Notice2021-23435

Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Pricing Schedule at Equity 7, Section 3 To Modify the Enhanced Market Quality Program

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Published
October 28, 2021

Issuing agencies

Securities and Exchange Commission

Full Text

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<title>Federal Register, Volume 86 Issue 206 (Thursday, October 28, 2021)</title>
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[Federal Register Volume 86, Number 206 (Thursday, October 28, 2021)]
[Notices]
[Pages 59767-59771]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-23435]



[[Page 59767]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93406; File No. SR-Phlx-2021-64]


Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend the 
Exchange's Pricing Schedule at Equity 7, Section 3 To Modify the 
Enhanced Market Quality Program

October 22, 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 October 19, 2021, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``SEC'' or ``Commission'') 
the proposed rule change as described in Items I, II, and III 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 the Exchange's pricing schedule at 
Equity 7, Section 3, to modify the Enhanced Market Quality Program, as 
described further below. 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 the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to amend Equity 7, 
Section 3 to modify the Enhanced Market Quality Program, which the 
Exchange established earlier this year.\3\
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    \3\ See Securities Exchange Act Release No. 34-92754 (August 25, 
2021), 86 FR 48789 (August 31, 2021) (SR-Phlx-2021-47).
---------------------------------------------------------------------------

The Existing Enhanced Market Quality Program
    The Enhanced Market Quality Program, as it presently exists on the 
Exchange, provides supplemental incentives to member organizations that 
meet certain quality standards in acting as market makers for 
securities on the Exchange. It rewards member organizations that make a 
significant contribution to market quality by providing liquidity at 
the national best bid and offer (``NBBO'') in a large number of 
securities for a significant portion of the day.\4\
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    \4\ For purposes of the Enhanced Market Quality Program, a 
member organization is deemed to quote at the NBBO in a security if 
it quotes a displayed order of at least 100 shares in the security 
and prices the order at either the national best bid or the national 
best offer or both the national best bid and offer for the security.
---------------------------------------------------------------------------

    Specifically, the Exchange makes a lump sum payment at the end of 
each month (a ``Fixed Payment'') to a member organization to the extent 
that the member organization, through one or more of its MPIDs, quotes 
at the NBBO for at least a threshold percentage of the time during 
Market Hours in an average number of securities per day during the 
month, as specified below (satisfying the ``NBBO requirement'').
    On a daily basis, the Exchange determines the number of securities 
in which each of a member organization's MPIDs satisfies the NBBO 
requirement. The Exchange aggregates all of a member organization's 
MPIDs to determine the number of securities for purposes of the NBBO 
requirement.
    The Program is open to all member organizations. A member 
organization may, but is not required to be, a registered market maker 
in any security; thus, the Program does not by itself impose a two-
sided quotation obligation or convey any of the benefits associated 
with being a registered market maker. Accordingly, the Program is 
designed to attract liquidity both from traditional market makers and 
from other firms that are willing to commit capital to support 
liquidity at the NBBO.
    The Exchange determines the amount of the Fixed Payment that it 
pays to a qualifying member organization by multiplying the average 
daily number of its qualifying securities during the month within the 
range set forth in the highest qualifying Tier (rounded to the nearest 
whole number) by the applicable amounts set forth in the tables below 
and adding the specified lump sum, where applicable. For a particular 
Tape A security to count towards the threshold for qualifying for the 
Fixed Payment on a particular day, and receiving the Fixed Payment, a 
member organization has to quote such security at the NBBO for at least 
30% of the time during Market Hours on that day. For a particular Tape 
B security to count towards the threshold for qualifying for the Fixed 
Payment on a particular day, and receiving the Fixed Payment, a member 
organization has to quote such security at the NBBO for at least 50% of 
the time during Market Hours on that day. A member organization that 
qualifies for the Fixed Payment for securities in each of Tapes A and B 
receive Fixed Payments covering qualifying securities in both Tapes, 
but within each Tape, a member organization may only qualify for one 
Tier during a month. The Exchange notes that it makes the Fixed Payment 
in addition to other rebates or fees provided under Equity 7, Sections 
3 (a)-(c).
    The existing schedules of Tiers and Fixed Payments are as follows:

                            Tape A Securities
------------------------------------------------------------------------
                   Average daily number of
                   securities quoted at the
     Tiers         NBBO for at least 30% of          Fixed payment
                    the time during Market
                    Hours during the month
------------------------------------------------------------------------
1..............  0-199......................  $0 per qualified security
                                               per month.
2..............  200-299....................  $25 per qualified security
                                               over 199.
3..............  300-399....................  $2,500 + ($200 per
                                               qualified security over
                                               299).
4..............  400-499....................  $22,500 + ($300 per
                                               qualified security over
                                               399).
5..............  500 or greater.............  $52,500 + ($400 per
                                               qualified security over
                                               499).
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[[Page 59768]]


                            Tape B Securities
------------------------------------------------------------------------
                   Average daily number of
                   securities quoted at the
     Tiers         NBBO for at least 50% of          Fixed payment
                    the time during Market
                    Hours during the month
------------------------------------------------------------------------
1..............  0-299......................  $0 per qualified security
                                               per month.
2..............  300-399....................  $100 per qualified
                                               security over 299.
3..............  400-499....................  $10,000 + ($200 per
                                               qualified security over
                                               399).
4..............  500 or greater.............  $30,000 + ($300 per
                                               qualified security over
                                               499).
------------------------------------------------------------------------

    In establishing this Program, the Exchange hoped to provide 
improved trading conditions for all market participants through 
narrower bid-ask spreads and increased depth of liquidity available at 
the inside market. In addition, the Program reflected an effort by the 
Exchange to use financial incentives to encourage a wider variety of 
member organizations to make positive commitments to promote market 
quality. The Exchange believes that different member organizations may 
respond to different incentives, and therefore the Enhanced Market 
Quality Program was designed to promote market quality through quoting 
activity. The Exchange recognized that while generally market 
participants will provide quotes with the intention of trading, market 
makers and liquidity providers cannot control when counterparties 
choose to interact with those quotes; as such, the Exchange believed 
that it would be beneficial to the market to offer this incentive based 
on quoting activity directly.
Proposed Amendments to the Existing Enhanced Market Quality Program
    The Exchange remains committed to achieving the objectives of the 
Enhanced Market Quality Program insofar as it believes that the Program 
will facilitate the growth and strengthening of its market. However, 
the Exchange has determined that the existing design of the Program 
requires modification to improve its effectiveness. As presently 
designed, the Enhanced Market Quality Program provides incentives to 
those member organizations that meet the NBBO requirement for all 
securities in Tapes A and B, without consideration for the extent to 
which such securities actually trade. As a result, the Exchange has 
observed that it has paid much of its Fixed Payments to member 
organizations for quoting at the NBBO in securities that trade 
scarcely, if at all. Paying incentives in this way has done little to 
raise the profile and attractiveness of the Exchange. The Exchange 
believes that it would be better positioned to meet its objectives by 
reallocating incentives so that they reward member organizations that 
meet the NBBO requirement for securities in Tapes A and B that are in 
demand among market participants and trade extensively. To this end, 
the Exchange proposes the following amendments to the Enhanced Market 
Quality Program.
    First, rather than pay Fixed Payments to member organizations that 
meet the NBBO requirements for any Tape A or B security, the Exchange 
proposes to limit payments each month to the top 1,500 securities in 
each of these Tapes, as determined by their total value traded during 
the second month prior to the current month. The Exchange would then 
divide these 1,500 securities into three equal groups (or ``Classes'') 
for each Tape, with the top 500 ranked securities placed in Class 3, 
the middle 500 ranked securities placed in Class 2, and the lowest 
ranked 500 securities placed in Class 1. The Exchange would assign 
Fixed Payment amounts to each of the three Classes in each Tape and in 
each of five Tiers,\5\ with these amounts generally increasing from 
Class 1 to Class 3, and from Tiers 1-5. Generally speaking (with 
exceptions set forth in the schedules below), this proposed structure 
would provide the largest Fixed Payments to those member organizations 
that meet the NBBO requirement in the greatest number of qualifying 
securities and those that trade most extensively, and the lowest 
incentives to those member organizations that meet the NBBO requirement 
in the fewest number of qualifying securities and those that trade 
least extensively.
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    \5\ For securities in Tape B, the Exchange proposes to increase 
the number of Tiers from 4 to 5. For securities in both Tapes A and 
B, the Exchange proposes to modify the numbers of securities for 
which a member organization must meet the NBBO requirement during 
Market Hours during the month to qualify for each of these Tiers.
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    The proposed amended schedules are as follows:

                                                Tape A Securities
----------------------------------------------------------------------------------------------------------------
                                     Average daily
                                       number of
                                   securities quoted
                                  at the NBBO for at   Fixed payment for   Fixed payment for   Fixed payment for
              Tiers                least 30% of the   securities in Tape  securities in Tape  securities in Tape
                                  time during Market     A in Class 1        A in Class 2        A in Class 3.
                                   Hours during the
                                         month
----------------------------------------------------------------------------------------------------------------
1...............................  0-24..............  $0 per qualified    $0 per qualified    $0 per qualified
                                                       security per        security per        security per
                                                       month.              month.              month.
2...............................  25-49.............  $0 per qualified    $0 per qualified    $200 per qualified
                                                       security per        security per        security over 24
                                                       month.              month.              per month.
3...............................  50-149............  $50 per qualified   $200 per qualified  $5,000 + ($450 per
                                                       security per        security over 49    qualified
                                                       month [sic].        per month.          security over 49)
                                                                                               per month.
4...............................  150-249...........  $5,000 + ($100 per  $20,000 + ($300     $50,000 + ($600
                                                       qualified           per qualified       per qualified
                                                       security over       security over       security over
                                                       149) per month.     149) per month.     149) per month.
5...............................  250 or greater....  $15,000 + ($150     $50,000 + ($350     $50,000 + ($600
                                                       per qualified       per qualified       per qualified
                                                       security over       security over       security over
                                                       249) per month.     249) per month.     149) per month.
----------------------------------------------------------------------------------------------------------------


[[Page 59769]]


                                                Tape B Securities
----------------------------------------------------------------------------------------------------------------
                                     Average daily
                                       number of
                                   securities quoted
                                  at the NBBO for at   Fixed payment for   Fixed payment for   Fixed payment for
              Tiers                least 50% of the   securities in Tape  securities in Tape  securities in Tape
                                  time during Market     B in Class 1        B in Class 2        B in Class 3.
                                   Hours during the
                                         month
----------------------------------------------------------------------------------------------------------------
1...............................  0-24..............  $0 per qualified    $0 per qualified    $0 per qualified
                                                       security per        security per        security per
                                                       month.              month.              month.
2...............................  25-49.............  $0 per qualified    $0 per qualified    $100 per qualified
                                                       security per        security per        security over 24
                                                       month.              month.              per month.
3...............................  50-149............  $0 per qualified    $25 per qualified   $2,500 + ($150 per
                                                       security per        security over 49    qualified
                                                       month.              per month.          security over 49)
                                                                                               per month.
4...............................  150-249...........  $50 per qualified   $2,500 + ($50 per   $17,500 + ($300
                                                       security over 149   qualified           per qualified
                                                       per month.          security over       security over
                                                                           149) per month.     149) per month.
5...............................  250 or greater....  $5,000 + ($75 per   $7,500 + ($150 per  $17,500 + ($300
                                                       qualified           qualified           per qualified
                                                       security over       security over       security over
                                                       249) per month.     249) per month.     149) per month.
----------------------------------------------------------------------------------------------------------------

    Under these proposed amended schedules, a member organization that 
meets the NBBO requirement for a requisite number of qualifying 
securities during a month to qualify for a particular Tier will be 
entitled to receive the Fixed Payment that corresponds to the 
combination of: (i) That Tier; and (ii) the Class in which the Exchange 
has placed the qualifying securities for that month.
    Generally speaking, the Tier qualification calculation methodology 
will not change under the proposal,\6\ except that the numbers of 
securities for which a member organization must meet the NBBO 
requirement to qualify for each Tier will be different. Also, the 
universe of qualifying securities that count towards the Tier 
requirement will be limited to the Exchange's list of the top 1,500 
securities for each Tape by total value traded during the second month 
prior to the current month (e.g., for October 2021, the measurement 
period for determining the list will be August 2021). The Exchange 
notes that a symbol that did not trade during the measurement month 
will not be eligible for inclusion in the list.
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    \6\ The amended Program will continue to be open to all member 
organizations. As in the existing Program, a member organization 
may, but is not required to be, a registered market maker in any 
security.
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    Under the proposal, a member organization that qualifies for a 
Fixed Payment for securities in each of Tapes A and B and in multiple 
Classes within each Tape will receive Fixed Payments covering 
qualifying securities in both Tapes, and within each Tape, for the each 
of the applicable Classes, but within each Tape and Class, a member 
organization may only qualify for one Tier during a month. The Exchange 
will continue to pay the Fixed Payment in addition to other rebates or 
fees provided under Equity 7, Sections 3(a)-(c).
    As of the outset of every month, the Exchange will reevaluate and, 
as applicable, update its lists of the securities that it places in 
each Class, and it will publish its updated lists on its website as of 
the outset of the month in which they will apply.
    The following are examples of the operation of the proposed amended 
Enhanced Market Quality Program.
    Example 1: A member organization quotes an average of 200 symbols a 
day in Tape A, Class 2 in excess of the 30% NBBO requirement to qualify 
for a Tier during the month. Under the proposal, the member 
organization would qualify for a Fixed Payment equal to the combination 
of Tier 4, Class 2. The Fixed Payment due to such member organization 
is calculated as follows: 51 (the number of symbols over 149) times 
$300, which equals $15,300, plus $20,000, for a total of $35,300 for 
the month.
    Example 2: A member organization meets the NBBO requirements for an 
average of 200 symbols a day in Tape A, Class 2, 26 symbols a day in 
securities in Tape A, Class 3, and 51 securities in Tape B, Class 2. In 
this scenario, the member organization would qualify for three Fixed 
Payments.
    <bullet> First, for the 200 Tape A, Class 2 securities for which 
the member organization meets the NBBO requirement during the month, 
the member organization would receive a Fixed Payment equal to the 
combination of Tier 4, Class 2. The Fixed Payment due to such member 
organization is calculated as follows: 51 (the number of symbols over 
149) times $300, which equals $15,300, plus $20,000, for a total of 
$35,300 for the month.
    <bullet> Second, for the 26 Tape A, Class 3 securities for which 
the member organization meets the NBBO requirement during the month, 
the member organization would receive a Fixed Payment equal to the 
combination of Tier 2, Class 3. The Fixed Payment due to such member 
organization is calculated as follows: 2 (the number of symbols over 
24) times $200, which equals $400 for the month.
    <bullet> Third, for the 51 Tape B, Class 2 securities for which the 
member organization meets the NBBO requirement during the month, the 
member organization would receive a Fixed Payment equal to the 
combination of Tier 3, Class 2. The Fixed Payment due to such member 
organization is calculated as follows: 2 (the number of symbols over 
49) times $25, which equals $50 for the month.
    The total of all Fixed Payments due to the member organization for 
the month will be $35,750 ($35,300 + $400 + $50).
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 Sections 
6(b)(4) and 6(b)(5) of the Act,\8\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees and other charges 
among member organizations and issuers and other persons using any 
facility, and is not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4) and (5).
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    The Commission and the courts have repeatedly expressed their 
preference for competition over regulatory intervention in determining 
prices, products, and services in the securities markets. In Regulation 
NMS, while adopting a series of steps to improve the current market 
model, the Commission

[[Page 59770]]

highlighted the importance of market forces in determining prices and 
SRO revenues and, also, recognized that current regulation of the 
market system ``has been remarkably successful in promoting market 
competition in its broader forms that are most important to investors 
and listed companies.'' \9\
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    \9\ Securities Exchange Act Release No. 51808 (June 9, 2005), 70 
FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting 
Release'').
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    Likewise, in NetCoalition v. Securities and Exchange Commission 
\10\ (``NetCoalition'') the D.C. Circuit stated as follows: ``[n]o one 
disputes that competition for order flow is `fierce.' . . . As the SEC 
explained, `[i]n the U.S. national market system, buyers and sellers of 
securities, and the broker-dealers that act as their order-routing 
agents, have a wide range of choices of where to route orders for 
execution'; [and] `no exchange can afford to take its market share 
percentages for granted' because `no exchange possesses a monopoly, 
regulatory or otherwise, in the execution of order flow from broker 
dealers'. . . .'' \11\
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    \10\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
    \11\ Id. at 539 (quoting Securities Exchange Act Release No. 
59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008) 
(SR-NYSEArca-2006-21)).
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    The Exchange believes that the proposed amended Enhanced Market 
Quality Program is reasonable because it is similar to other incentive 
programs offered by the Exchange for displayed orders that provide 
liquidity, like the Qualified Market Maker Program set forth in Equity 
7, Sections 3(c). The proposed amended Fixed Payment will provide an 
opportunity to member organizations to receive an additional credit in 
return for certain levels of participation on the Exchange as measured 
by quoting at the NBBO for a significant portion of the day each month. 
The proposed Fixed Payment is set at a level that reflects the 
beneficial contributions of market participants that quote 
significantly at the NBBO in certain qualifying securities. The 
Exchange believes that it is reasonable to amend the Program to limit 
the universe of qualifying securities to a list of 1,500 symbols that 
traded most extensively on the Exchange in Tapes A and B during the 
second month prior to the current month, and to vary the amount of 
Fixed Payments in relation to the relative extent to which symbols on 
that list trade, because improving the quality of quotes for more 
popular symbols will do more to enhance the attractiveness of the 
Exchange than will improving quote quality for thinly-traded symbols. 
Given that the Exchange has finite resources to allocate to incentive 
programs, it is reasonable to allocate (or reallocate) those resources 
in a manner that is most likely to achieve its intended objectives. The 
Exchange notes that a competing exchange which operates a similar 
incentive program also targets its incentives to a select list of 
symbols.\12\
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    \12\ Securities Exchange Act Release No. 34-92150 (June 10, 
2021), 86 FR 32090, 32091 n.9 (June 16, 2021) (``SR-MEMX-2021-07'') 
(``As proposed, the term `DLI Target Securities' means a list of 
securities designated as such, the universe of which will be 
determined by the Exchange and published on the Exchange's website. 
The Exchange anticipates that the initial DLI Target Securities list 
will include between 275 and 300 securities. The DLI Target 
Securities list will always include at least 75 securities and may 
be periodically updated by the Exchange, provided that the Exchange 
will not remove a security from the DLI Target Securities list 
without at least 30 days' prior notice to Members as published on 
the Exchange's website (unless the security is no longer eligible 
for trading on the Exchange).''
---------------------------------------------------------------------------

    The Exchange believes that it remains reasonable to limit 
applicability of the proposed Fixed Payments to securities in Tapes A 
and B, and to set the credits higher for the Tape A securities, insofar 
as the Exchange seeks to incentivize member organizations to quote at 
the NBBO on the Exchange in such securities and improve the market 
therefor.
    The Exchange believes that the proposed amended Fixed Payments set 
forth by the Enhanced Market Quality Program are an equitable 
allocation and are not unfairly discriminatory because the Exchange 
will offer the same Fixed Payment rates to all similarly situated 
member organizations. Moreover, the proposed qualification criteria 
requires a member organization to quote significantly at the NBBO in 
securities that trade extensively, therefore contributing to market 
quality in a meaningful way on the Exchange. Any member organization 
may quote at the NBBO at the level required by the qualification 
criteria of the Enhanced Market Quality Program. The Exchange notes 
that it has a similar Qualified Market Maker Program in which member 
organizations are required to quote at the NBBO more than a certain 
amount of time during regular market hours.\13\ For these reasons, the 
Exchange believes that the proposed amended Enhanced Market Quality 
Program Fixed Payments and qualification criteria are an equitable 
allocation and are not unfairly discriminatory.
---------------------------------------------------------------------------

    \13\ See Qualified Market Maker Program, Equity 7, Section 3(c).
---------------------------------------------------------------------------

    The Exchange also believes that it is equitable and not unfairly 
discriminatory to apply the Enhanced Market Quality Program only to 
Tape A and Tape B securities, and then only to the top 1,500 symbols in 
each Tape by total value traded during the second month prior to the 
current month, and to set the Fixed Payment rates higher for the Tape A 
securities than Tape B securities, because the Exchange has limited 
resources available to it for incentive programs and the Exchange 
believes that the most effective application of such limited resources 
is to improve the market quality for the most actively traded Tape A 
and Tape B securities, as proposed.

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. In terms of inter-market 
competition, the Exchange notes that it operates in a highly 
competitive market in which market participants can readily favor 
competing venues if they deem fee levels at a particular venue to be 
excessive, or rebate opportunities available at other venues to be more 
favorable. In such an environment, the Exchange must continually adjust 
its fees to remain competitive with other exchanges and with 
alternative trading systems that have been exempted from compliance 
with the statutory standards applicable to exchanges. Because 
competitors are free to modify their own fees in response, and because 
market participants may readily adjust their order routing practices, 
the Exchange believes that the degree to which fee changes in this 
market may impose any burden on competition is extremely limited.
    In this instance, the proposed changes to the Exchange's Program do 
not impose a burden on competition because the Exchange's execution 
services are completely voluntary and subject to extensive competition 
both from other exchanges and from off-exchange venues. The proposed 
amended Program will continue to provide member organizations with the 
opportunity to receive incentive payments if they improve the market by 
providing significant quoting at the NBBO in a large number of 
securities, while limiting the universe of such securities to those 
which the Exchange believes will do most to improve market quality.
    In terms of intra-market 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 
because the program

[[Page 59771]]

is open to all member organizations on the same terms.
    In sum, the proposed amendments to the Program are designed to 
render it more effective in improving the quality of the Exchange for 
securities that are likely to attract the greatest trading interest; 
however, if the changes proposed herein are unattractive to market 
participants, it is likely that the Exchange will lose market share as 
a result. Accordingly, the Exchange does not believe that the proposed 
changes will impair the ability of member organizations or competing 
order execution venues to maintain their competitive standing in the 
financial markets.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act.\14\
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

    <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#cfbdbaa3aae2aca0a2a2aaa1bbbc8fbcaaace1a8a0b9"><span class="__cf_email__" data-cfemail="80f2f5ece5ade3efedede5eef4f3c0f3e5e3aee7eff6">[email&#160;protected]</span></a>. Please include 
File Number SR-Phlx-2021-64 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-2021-64. 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-2021-64 and should be submitted on 
or before November 18, 2021.
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    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-23435 Filed 10-27-21; 8:45 am]
BILLING CODE 8011-01-P


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Indexed from Federal Register on October 28, 2021.

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