Notice2024-20906

Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend its Fees for Connectivity and Co-location Services

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Published
September 16, 2024

Issuing agencies

Securities and Exchange Commission

Full Text

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<title>Federal Register, Volume 89 Issue 179 (Monday, September 16, 2024)</title>
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[Federal Register Volume 89, Number 179 (Monday, September 16, 2024)]
[Notices]
[Pages 75608-75611]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-20906]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-100989; File No. SR-Phlx-2024-45]


Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend its Fees 
for Connectivity and Co-location Services

September 10, 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 August 26, 2024, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``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 fees for connectivity 
and co-location services, 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 the Exchange's 
fees relating to connectivity and co-location services.\3\ 
Specifically, the Exchange proposes to raise its fees for connectivity 
and co-location services in General 8 as well as certain fees related 
to its Testing Facilities in Equity 7, Section 3 by 5.5%, with certain 
exceptions.
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    \3\ The Exchange initially filed the proposed pricing change on 
March 1, 2024 (SR-Phlx-2024-08). On April 29, 2024, the Exchange 
withdrew that filing and submitted SR-Phlx-2024-019. The Exchange 
withdrew SR-Phlx-2024-019 and replaced it with SR-Phlx-2024-27. The 
instant filing replaces SR-Phlx-2024-027, which was withdrawn on 
August 23, 2024.
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    General 8, Section 1 includes the Exchange's fees that relate to 
connectivity, including fees for cabinets, external telco/inter-cabinet 
connectivity fees, fees for connectivity to the Exchange, fees for 
connectivity to third party services, fees for market data 
connectivity, fees for cabinet power install, and fees for additional 
charges and services. General 8, Section 2 includes the Exchange's fees 
for direct connectivity services, including fees for direct circuit 
connection to the Exchange, fees for direct circuit connection to third 
party services, and fees for point of presence connectivity. With the 
exception of the Exchange's GPS Antenna fees and the Cabinet Proximity 
Option Fee for cabinets with power density >10kW,\4\ the Exchange 
proposes to increase its fees throughout General 8 by 5.5%. For Remote 
Hands Services, at General 8, Section 1, the Exchange proposes to 
increase its fee by 1%, from $150 to $151.50 per hour.\5\
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    \4\ The Exchange proposes to exclude the GPS Antenna fees from 
the proposed fee increase because, unlike the other fees in General 
8, the Exchange recently increased its GPS Antenna fees. See 
Securities Exchange Act Release No. 34-99125 (December 8, 2023), 88 
FR 86705 (December 14, 2023) (SR-Phlx-2023-53). The Exchange also 
proposes to exclude the Cabinet Proximity Option Fee for cabinets 
with power density >10kW from the proposed fee increase because the 
Exchange recently established such fee. See Securities Exchange Act 
Release No. 34-100197 (May 21, 2024), 89 FR 46185 (May 28, 2024) 
(SR-Phlx-2024-23).
    \5\ The term ``Remote Hands Services'' refers to the use of 
Nasdaq engineers to perform on-site technical support tasks in its 
Data Center on behalf of its co-located customers, including the 
following: (1) power cycling of equipment; (2) patching and plugging 
in cabling and circuits; (3) observing, describing or reporting on 
display indicators; (4) configuration of hardware components 
instructed by the customer; (5) diagnosis and repairs as instructed 
by the customer; (6) swapping hardware components with customer-
supplied spares or upgrades; (7) troubleshooting heat related issues 
as instructed by the Customer; and (8) returning defective equipment 
to the manufacturer or customer.
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    In addition to increasing fees in General 8, the Exchange also 
proposes to increase certain fees in Equity 7, Section 3, which relate 
to the Testing Facility. Equity 7, Section 3 provides that subscribers 
to the Testing Facility located in Carteret, New Jersey shall pay a fee 
of $1,000 per hand-off, per month for connection to the Testing 
Facility. The hand-off fee includes either a 1Gb or 10Gb switch port 
and a cross connect to the Testing Facility. In addition, Equity 7, 
Section 3 provides that subscribers shall also pay a one-time 
installation fee of $1,000 per hand-off. The Exchange proposes to 
increase these aforementioned fees by 5.5% to require that subscribers 
to the Testing Facility shall pay a fee of $1,055 per hand-off, per 
month for connection to the Testing Facility and a one-time 
installation fee of $1,055 per hand-off.
    The proposed increases in fees would enable the Exchange to 
maintain and improve its market technology and services. With the 
exception of fees that were established as part of a new service in 
2017 (and have remained unchanged since their adoption), the Exchange 
has not increased any of the fees included in the proposal since 2015, 
and many of the fees date back to between 2010 and 2014. However, since 
2015, there has been notable inflation by various measures.
    Between January 2010 and August 2024, the dollar had an average 
inflation rate of 2.65% per year, as measured by

[[Page 75609]]

the Consumer Price Index,\6\ producing a cumulative price increase of 
44.25%.\7\ Said otherwise, the value of a dollar of revenue collected 
today is worth only 69.444% of what it was worth in 2010.
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    \6\ The Consumer Price Index (``CPI'') is a measure of the 
average change over time in the prices paid by urban consumers for a 
market basket of consumer goods and services. The CPI represents all 
goods and services purchased for consumption by the reference 
population (U or W). BLS has classified all expenditure items into 
more than 200 categories, arranged into eight major groups (food and 
beverages, housing, apparel, transportation, medical care, 
recreation, education and communication, and other goods and 
services). Included within these major groups are various 
government-charged user fees, such as water and sewerage charges, 
auto registration fees, and vehicle tolls.. See <a href="https://www.bls.gov/cpi/questions-and-answers.htm">https://www.bls.gov/cpi/questions-and-answers.htm</a>.
    \7\ See <a href="https://www.officialdata.org/us/inflation/2010?amount=1">https://www.officialdata.org/us/inflation/2010?amount=1</a> 
(Last updated August 21, 2024).
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    Additionally, as measured by another gauge of inflation, the 
Producer Price Index (``PPI''),\8\ inflation has increased by roughly 
43% during the same time period.\9\
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    \8\ The PPI is a family of indexes that measures the average 
change over time in selling prices received by domestic producers of 
goods and services. PPIs measure price change from the perspective 
of the seller. This contrasts with other measures, such as the 
Consumer Price Index (CPI), that measure price change from the 
purchaser's perspective. See <a href="https://www.bls.gov/ppi/overview.htm">https://www.bls.gov/ppi/overview.htm</a>.
    \9\ See U.S. Bureau of Labor Statistics (``BLS''), Producer 
Price Index by Commodity: Final Demand [PPIFIS], retrieved from 
FRED, Federal Reserve Bank of St. Louis; <a href="https://fred.stlouisfed.org/series/PPIFIS">https://fred.stlouisfed.org/series/PPIFIS</a> (last updated August 22, 2024).
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    Meanwhile, a more granular version of the PPI exists which measures 
inflation by category of industry.\10\ The most apt of these industry 
categorizations measures inflation for the provision of data 
processing, hosting and related services as well as other information 
technology infrastructure provisioning services.\11\ The Exchange 
believes that this measure of inflation is particularly apt because 
many of the colocation and connectivity services that the Exchange 
offers to customers involve hosting and providing connections for its 
customers' telecommunications and information technology equipment 
colocated in its Data Center. Between January 2010 and July 2024, the 
inflation rate for hosting, ASP, and other IT infrastructure 
provisioning services was 17.4%.\12\
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    \10\ As noted by the BLS, the ``Producer Price Index for an 
industry is a measure of changes in prices received for the 
industry's output sold outside the industry (that is, its net 
output).'' See id.
    \11\ Among the industry-specific PPIs is for North American 
Industry Classification System (``NAICS'') Code 518210: ``Data 
Processing, Hosting and Related Services: Hosting, Active Server 
Pages (ASP), and Other Information Technology (IT) Infrastructure 
Provisioning Services,'' NAICS index codes categorize products and 
services that are common to particular industries. According to BLS, 
these codes ``provide comparability with a wide assortment of 
industry-based data for other economic programs, including 
productivity, production, employment, wages, and earnings.'' See 
<a href="https://www.bls.gov/ppi/overview.htm">https://www.bls.gov/ppi/overview.htm</a>. BLS describes NAICS 51820 as 
follows: ``The primary output of NAICS 518210 is the provision of 
electronic data processing services. In the broadest sense, computer 
services companies help their customers efficiently use technology. 
The processing services market consists of vendors who use their own 
computer systems--often utilizing proprietary software--to process 
customers' transactions and data. Companies that offer processing 
services collect, organize, and store a customer's transactions and 
other data for record-keeping purposes.''
    \12\ See U.S. Bureau of Labor Statistics, Producer Price Index 
by Industry: Data Processing, Hosting and Related Services: Hosting, 
Active Server Pages (ASP), and Other Information Technology (IT) 
Infrastructure Provisioning Services [PCU5182105182105], retrieved 
from FRED, Federal Reserve Bank of St. Louis; <a href="https://fred.stlouisfed.org/series/PCU5182105182105">https://fred.stlouisfed.org/series/PCU5182105182105</a> (las updated August 22, 
2024).
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    Finally, yet another gauge of inflation--average hourly earnings 
(``AHE'') growth for Computing Infrastructure--increased 77% for non-
managers and 81% for all employees from 2010 to 2024.\13\ This gauge of 
inflation is apt to the extent that the Exchange proposes to increase 
its fees for remote hands services, which are services performed by 
engineers and other technical personnel to support customer 
connectivity and colocation in the Exchange's Data Center.
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    \13\ See <a href="https://www.bls.gov/web/empsit/ceseeb3a.htm">https://www.bls.gov/web/empsit/ceseeb3a.htm</a> (Last 
updated July 5, 2024); <a href="https://www.bls.gov/web/empsit/ceseeb8a.htm">https://www.bls.gov/web/empsit/ceseeb8a.htm</a> 
(Last updated July 5, 2024).
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    Notwithstanding inflation, the Exchange historically has not 
increased its fees every year.\14\ The proposed fees represent a 5.5% 
increase (and for Remote Hands, a 1% increase) from the current fees, 
which is far below any of the above-described gauges of inflation since 
2010. In addition to being far below cumulative inflation rates since 
2010, the Exchange also believes that the proposed 5.5%/1% increase is 
reasonable because it is comparable to recent inflation rates even for 
one-year periods. For example, in 2022, the inflation rate, as measured 
by the CPI, was 8.00% and it was 9.47%, as measured by the PPI.\15\ The 
Exchange is sensitive to the sticker shock that would occur if the 
Exchange raised its fees by 17% or more than 40% and therefore proposes 
a more modest increase, similar to that of inflation in recent one-year 
periods.
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    \14\ Unregulated competitors providing connectivity and co-
location services often have annual price increases written into 
their agreements with customers to account for inflation and rising 
costs.
    \15\ See <a href="https://www.officialdata.org/us/inflation/2022?endYear=2023&amount=1">https://www.officialdata.org/us/inflation/2022?endYear=2023&amount=1</a>; see also <a href="https://fred.stlouisfed.org/series/PPIFIS#0">https://fred.stlouisfed.org/series/PPIFIS#0</a>.
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    The Exchange believes that it is reasonable to increase its fees to 
compensate for inflation because, over time, inflation has degraded the 
value of each dollar that the Exchange collects in fees, such that the 
real revenue collected today is considerably less than that same 
revenue collected in 2010. The Exchange notes that this inflationary 
effect is a general phenomenon that is independent of any change in the 
Exchange's costs in providing its goods and services. The Exchange 
believes that it is reasonable for it to offset, in part, this erosion 
in the value of the revenues it collects. The Exchange notes that other 
exchanges have filed for comparable or higher increases in certain 
connectivity-related fees, based in part on similar rationale.\16\
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    \16\ See, e.g., Securities Exchange Act Release No. 34-100004 
(April 22, 2024), 89 FR 32465 (April 26, 2024) (SR-CboeBYX-2024-
012).
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    In addition, the Exchange continues to invest in maintaining, 
improving, and enhancing its connectivity and co-location products, 
services, and facilities--for the benefit and often at the behest of 
its customers. Such enhancements include refreshing hardware and 
expanding Nasdaq's existing co-location facility to offer customers 
additional space and power. These investments, and the value they 
provide to customers, far exceed the amount of the proposed price 
increases. It is reasonable and consistent with the Act for the 
Commission to allow the Exchange to recoup these investments by 
charging fees, lest the Commission will disincentivize the Exchange to 
make similar investments in the future--a result that would be 
detrimental to the Exchange's competitiveness as well as the interests 
of market participants and investors.
2. Statutory Basis
    As explained above, with the exception of fees that were 
established as part of a new service in 2017 (and have remained 
unchanged since their adoption), the Exchange has not increased any of 
the fees included in the proposal since 2015, and many of the fees date 
back to between 2010 and 2014. This means that such fees have fallen in 
real terms due to inflation, which has been notable by various 
measures.
    Between January 2010 and August 2024, the dollar had an average 
inflation rate of 2.65% per year, as measured by the CPI, producing a 
cumulative price increase of 44.25%.\17\ Said otherwise, the value of a 
dollar of revenue collected today is worth only 69.444% of what it was 
worth in 2010.
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    \17\ See <a href="https://www.officialdata.org/us/inflation/2010?amount=1">https://www.officialdata.org/us/inflation/2010?amount=1</a> 
(Last updated August 21, 2024).

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[[Page 75610]]

    Additionally, as measured by another gauge of inflation, the PPI 
has increased by roughly 43% during the same time period.\18\
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    \18\ See U.S. Bureau of Labor Statistics (``BLS''), Producer 
Price Index by Commodity: Final Demand [PPIFIS], retrieved from 
FRED, Federal Reserve Bank of St. Louis; <a href="https://fred.stlouisfed.org/series/PPIFIS">https://fred.stlouisfed.org/series/PPIFIS</a> (last updated August 22, 2024).
---------------------------------------------------------------------------

    Meanwhile, a more granular version of the PPI exists which measures 
inflation by category of industry. The most apt of these industry 
categorizations measures inflation for the provision of data 
processing, hosting and related services as well as other information 
technology infrastructure provisioning services. The Exchange believes 
that this measure of inflation is particularly apt because many of the 
colocation and connectivity services that the Exchange offers to 
customers involve hosting and providing connections for its customers' 
telecommunications and information technology equipment collocated in 
its Data Center. Between January 2010 and July 2024, the inflation rate 
for hosting, ASP, and other IT infrastructure provisioning services was 
17.4%.\19\
---------------------------------------------------------------------------

    \19\ See U.S. Bureau of Labor Statistics, Producer Price Index 
by Industry: Data Processing, Hosting and Related Services: Hosting, 
Active Server Pages (ASP), and Other Information Technology (IT) 
Infrastructure Provisioning Services [PCU5182105182105], retrieved 
from FRED, Federal Reserve Bank of St. Louis; <a href="https://fred.stlouisfed.org/series/PCU5182105182105">https://fred.stlouisfed.org/series/PCU5182105182105</a> (last updated August 22, 
2024).
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    Finally, yet another gauge of inflation--AHE growth for Computing 
Infrastructure--increased 77% for non-managers and 81% for all 
employees from 2010 to 2024.\20\ This gauge of inflation is apt to the 
extent that the Exchange proposes to increase its fees for remote hands 
services, which are services performed by engineers and other technical 
personnel to support customer connectivity and colocation in the 
Exchange's Data Center.
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    \20\ See <a href="https://www.bls.gov/web/empsit/ceseeb3a.htm">https://www.bls.gov/web/empsit/ceseeb3a.htm</a> (Last 
updated July 5, 2024); <a href="https://www.bls.gov/web/empsit/ceseeb8a.htm">https://www.bls.gov/web/empsit/ceseeb8a.htm</a> 
(Last updated July 5, 2024).
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    Notwithstanding inflation, the Exchange historically has not 
increased its fees every year.\21\ As noted above, the Exchange has not 
increased the fees in this proposal for over 8 years (or in the case of 
services introduced in 2017, for over 6 years since the services were 
introduced). Accordingly, the Exchange believes that the proposed fees 
are reasonable as they represent a 5.5% increase (and for Remote Hands, 
a 1% increase) from the current fees, which is far below inflation 
since 2010, however measured. In addition to being far below the 
inflation rate since 2010, the Exchange also believes that the proposed 
5.5%/1% increase is reasonable because it is comparable to recent 
inflation rates for one-year periods. For example, in 2022, the 
inflation rate, as measured by the CPI, was 8.00% and it was 9.47%, as 
measured by the PPI.\22\ The Exchange is sensitive to the sticker shock 
that would occur if the Exchange raised its fees by 17% or more than 
40% and therefore proposes a more modest increase, similar to that of 
inflation in recent one-year periods.
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    \21\ As noted above, unregulated competitors providing 
connectivity and co-location services often have annual price 
increases written into their agreements with customers to account 
for inflation and rising costs.
    \22\ See <a href="https://www.officialdata.org/us/inflation/2022?endYear=2023&amount=1">https://www.officialdata.org/us/inflation/2022?endYear=2023&amount=1</a>; see also <a href="https://fred.stlouisfed.org/series/PPIFIS#0">https://fred.stlouisfed.org/series/PPIFIS#0</a>.
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    The Exchange believes that it is reasonable to increase its fees to 
compensate for inflation because, over time, inflation has degraded the 
value of each dollar that the Exchange collects in fees, such that the 
real revenue collected today is considerably less than that same 
revenue collected in 2010. The Exchange notes that this inflationary 
effect is a general phenomenon that is independent of any change in the 
Exchange's costs in providing its goods and services. The Exchange 
believes that it is reasonable for it to offset, in part, this erosion 
in the value of the revenues it collects.
    In addition, the Exchange continues to invest in maintaining, 
improving, and enhancing its connectivity and co-location products, 
services, and facilities--for the benefit and often at the behest of 
its customers. Such enhancements include refreshing hardware and 
expanding Nasdaq's existing co-location facility to offer customers 
additional space and power. Again, these investments, and the value 
they provide to customers, far exceed the amount of the proposed price 
increases. It is reasonable and consistent with the Act for the 
Commission to allow the Exchange to recoup these investments by 
charging fees, lest the Commission will disincentivize the Exchange to 
make similar investments in the future--a result that would be 
detrimental to the Exchange's competitiveness as well as the interests 
of market participants and investors.
Customers Have a Choice in Trading Venue
    Customers face many choices in where to trade both equities and 
options. Market participants will continue to choose trading venues and 
the method of connectivity based on their specific needs. No broker-
dealer is required to become a Member of the Exchange. There is no 
regulatory requirement that any market participant connect to any one 
exchange, nor that any market participant connect at a particular 
connection speed or act in a particular capacity on the Exchange, or 
trade any particular product offered on an exchange. Moreover, 
membership is not a requirement to participate on the Exchange. Indeed, 
the Exchange is unaware of any one exchange whose membership includes 
every registered broker-dealer. The Exchange also believes 
substitutable products and services are available to market 
participants, including, among other things, other equities and options 
exchanges that a market participant may connect to in lieu of the 
Exchange, indirect connectivity to the Exchange via a third-party 
reseller of connectivity, and/or trading of equities or options 
products within markets which do not require connectivity to the 
Exchange, such as the Over-the-Counter markets.
    There are currently 16 registered equities exchanges that trade 
equities and 17 exchanges offering options trading services. No single 
equities exchange has more than 15% of the market share.\23\ No single 
options exchange trades more than 14% of the options market by volume 
and only one of the 17 options exchanges has a market share over 10 
percent.\24\ This broad dispersion of market share demonstrates that 
market participants can and do exercise choice in trading venues. 
Further, low barriers to entry mean that new exchanges may rapidly 
enter the market and offer additional substitute platforms to further 
compete with the Exchange and the products it offers.
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    \23\ See Cboe Global Markets, U.S. Equities Market Volume 
Summary, Month-to-Date (Last updated January 11, 2024), available at 
<a href="https://www.cboe.com/us/equities/market_statistics/">https://www.cboe.com/us/equities/market_statistics/</a>.
    \24\ See Nasdaq, Options Market Statistics (Last updated January 
11, 2024), available at <a href="https://www.nasdaqtrader.com/Trader.aspx?id=OptionsVolumeSummary">https://www.nasdaqtrader.com/Trader.aspx?id=OptionsVolumeSummary</a>.
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    As such, the Exchange must set its fees, including its fees for 
connectivity and co-location services and products, competitively. If 
not, customers may move to other venues or reduce use of the Exchange's 
services. ``If competitive forces are operative, the self-interest of 
the exchanges themselves will work powerfully to constrain unreasonable 
or unfair behavior.'' \25\ Accordingly, ``the existence of significant 
competition provides a substantial basis for finding that the terms of 
an exchange's fee proposal are equitable, fair, reasonable,

[[Page 75611]]

and not unreasonably or unfairly discriminatory.'' \26\ 
Disincentivizing market participants from purchasing Exchange 
connectivity would only serve to discourage participation on the 
Exchange, which ultimately does not benefit the Exchange. Moreover, if 
the Exchange charges excessive fees, it may stand to lose not only 
connectivity revenues but also other revenues, including revenues 
associated with the execution of orders.
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    \25\ See Securities Exchange Act Release No. 59039 (December 2, 
2008), 73 FR 74770 (December 9, 2008) (SR-NYSEArca-2006-21).
    \26\ Id.
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    In summary, the proposal represents an equitable allocation of 
reasonable dues, fees and other charges because Exchange fees have 
fallen in real terms and customers have a choice in trading venue and 
will exercise that choice and trade at another venue if exchange fees 
are not set competitively.
No Unfair Discrimination
    The Exchange believes that the proposed fee changes are not 
unfairly discriminatory because the fees are assessed uniformly across 
all market participants that voluntarily subscribe to or purchase 
connectivity and co-location services or products, which are available 
to all customers.

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.
    Nothing in the proposal burdens inter-market competition (the 
competition among self-regulatory organizations) because approval of 
the proposal does not impose any burden on the ability of other 
exchanges to compete. The Exchange operates in a highly competitive 
market in which market participants can determine whether or not to 
connect to the Exchange based on the value received compared to the 
cost of doing so. Indeed, market participants have numerous alternative 
exchanges that they may participate on and direct their order flow, as 
well as off-exchange venues, where competitive products are available 
for trading.
    Nothing in the proposal burdens intra-market competition (the 
competition among consumers) because the Exchange's connectivity and 
co-location services are available to any customer under the same fee 
schedule as any other customer, and any market participant that wishes 
to purchase such services can do so on a non-discriminatory basis.

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.\27\
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    \27\ 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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#a4d6d1c8c189c7cbc9c9c1cad0d7e4d7c1c78ac3cbd2"><span class="__cf_email__" data-cfemail="6210170e074f010d0f0f070c1611221107014c050d14">[email&#160;protected]</span></a>. Please include 
file number SR-Phlx-2024-45 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-2024-45. 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="https://www.sec.gov/rules/sro.shtml">https://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 
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-2024-45 and should be 
submitted on or before October 7, 2024

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\28\
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    \28\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-20906 Filed 9-13-24; 8:45 am]
BILLING CODE 8011-01-P


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Indexed from Federal Register on September 16, 2024.

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