57140 Federal Register / Vol. 88, No. 161 / Tuesday, August 22, 2023 / Notices 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3The term ‘‘Public Customer’’ means a person or 

entity that is not a broker or dealer in securities and 

is not a Professional as defined within Options 1, 

Section (b)(45). See Options 1, Section 1(b)(46). 

4Top of PHLX Options (‘‘TOPO’’) is a direct data 

feed product that includes the Exchange’s best bid 

and offer price, with aggregate size, based on 

displayable order and quoting interest on Phlx and 

last sale information for trades executed on Phlx. 

The data contained in the TOPO data feed is 

identical to the data simultaneously sent to the 

processor for the OPRA and subscribers of the data 

feed. The data provided for each options series 

includes the symbols (series and underlying 

security), put or call indicator, expiration date, the 

strike price of the series, and whether the option 

series is available for trading on Phlx and identifies 

if the series is available for closing transactions 

only. See Options 3, Section 23(a)(1). 

5PHLX Orders is a real-time full Limit Order book 

data feed that provides pricing information for 

orders on the PHLX Order book for displayed order 

types and All-or-None Orders, as well as market 

participant capacity. PHLX Orders is currently 

provided as part of the TOPO Plus Orders data 

product. PHLX Orders provides real-time 

information to enable users to keep track of the 

single and complex order book(s). The data 

provided for each options series includes the 

symbols (series and underlying security), put or call 

indicator, expiration date, the strike price of the 

series, leg information on complex strategies and 

whether the option series is available for trading on 

Phlx and identifies if the series is available for 

closing transactions only. The feed also provides 

auction and exposure notifications and order 

imbalances on opening/reopening (size of matched 

contracts and size of the imbalance). See Options 

3, Section 23(a)(2). 

6PHLX Depth of Market is a data product that 

provides: (i) order and quotation information for 

individual quotes and orders on the order book; (ii) 

last sale information for trades executed on Phlx; 

(iii) auction; and (iv) an Imbalance Message which 

includes the symbol, side of the market, size of 

matched contracts, size of the imbalance, and price 

of the affected series. The data provided for each 

options series includes the symbols (series and 

underlying security), put or call indicator, 

expiration date, the strike price of the series, and 

whether the option series is available for trading on 

Phlx and identifies if the series is available for 

closing transactions only. The feed also provides 

order imbalances on opening/reopening (size of 

matched contracts and size of the imbalance) and 

exposure notifications, with market participant 

capacity. See Options 3, Section 23(a)(2). 

7Also of note, All-or-None Orders are nonroutable and the Acceptable Trade Range protection 

in Options 3, Section 15(a) is not applied to AllOr-None Orders. See Options 7, Section 7(b)(5). 

Materials Under Seal; Filing Acceptance 

Date: August 16, 2023; Filing Authority: 

39 U.S.C. 3642, 39 CFR 3040.130 

through 3040.135, and 39 CFR 3035.105; 

Public Representative: Christopher C. 

Mohr; Comments Due: August 24, 2023. 

This Notice will be published in the 

Federal Register. 

Erica A. Barker, 

Secretary. 

[FR Doc. 2023–18059 Filed 8–21–23; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98142; File No. SR–Phlx– 

2023–34] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Phlx’s All-orNone Order 

August 16, 2023. 

Pursuant to section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on August 3, 

2023, 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

Rules at Options 3, Options Trading 

Rules, at: Section 7, Types of Orders and 

Order and Quote Protocols; Section 8, 

Options Opening Process; Section 10, 

Electronic Execution Priority and 

Processing in the System; Section 12, 

Electronic Qualified Contingent Cross 

Order; Section 13, Price Improvement 

XL (‘‘PIXL’’); Section 14, Complex 

Orders; Section 23, Data Feeds and 

Trade Information; Options 5, Section 4, 

Order Routing; and Options 7, Section 

3, Rebates and Fees for Adding and 

Removing Liquidity in SPY. The 

Exchange also proposes to amend its 

Rules at Options 8, Floor Trading, at: 

Section 30, Crossing, Facilitation and 

Solicited Orders; and Section 32, Types 

of Floor-Based (Non-System) Orders. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/phlx/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Phlx proposes to amend Options 3, 

Options Trading Rules, at: Section 7, 

Types of Orders and Order and Quote 

Protocols; Section 8, Options Opening 

Process; Section 10, Electronic 

Execution Priority and Processing in the 

System; Section 12, Electronic Qualified 

Contingent Cross Order; Section 13, 

Price Improvement XL (‘‘PIXL’’); 

Section 14, Complex Orders; Section 23, 

Data Feeds and Trade Information; 

Option5, Section 4, Order Routing; and 

Options 7, Section 3, Rebates and Fees 

for Adding and Removing Liquidity in 

SPY. The Exchange also proposes to 

amend its Rules at Options 8, Floor 

Trading, at: Section 30, Crossing, 

Facilitation and Solicited Orders; and 

Section 32, Types of Floor-Based (NonSystem) Orders. 

Background 

Today, Phlx’s All-or-None Orders are 

described in Options 7, Section 7(b)(5) 

as Limit Orders or Market Orders that 

are executed in their entirety or not at 

all. All-or None Orders may only be 

submitted by a Public Customer.3 Phlx’s 

All-or-None Orders rest on the order 

book as non-displayed orders. The 

Exchange does not disseminate bids or 

offers of All-or-None Orders to the 

Options Price Reporting Authority or 

‘‘OPRA’’ and Top of PHLX Options 4

feed, however All-or-None Orders are 

displayed in the PHLX Orders 5 and 

PHLX Depth of Book 6 feed. Further, 

All-or-None Orders are executed in 

price-time priority among all Public 

Customer orders if the size contingency 

can be met. If an All-or-None Order 

contingency cannot be met, the All-orNone Order would be by-passed until 

such time as the contingency could be 

met.7

Proposal 

At this time, the Exchange proposes to 

amend All-or-None Orders so that they 

may only be submitted by a Public 

Customer as an Immediate-or-Cancel 

Order. With this proposed change, Allor-None Orders would no longer rest on 

the order book. Upon entry, an All-orNone Order would be executed in its 


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Federal Register / Vol. 88, No. 161 / Tuesday, August 22, 2023 / Notices 57141 

8See Nasdaq GEMX, LLC (‘‘GEMX’’) Options 3, 

Section 7(c). See Securities Exchange Act Release 

No. 80102 (February 24, 2017), 82 FR 12381 (March 

2, 2017) (Notice of Filing and Immediate 

Effectiveness of Proposed Rule Change Related to 

All-or-None Orders). See also GEMX, Nasdaq MRX, 

LLC (‘‘MRX’’), and Nasdaq ISE, LLC (‘‘ISE’’) 

Options 3, Section 7(c), The Nasdaq Options Market 

LLC (‘‘NOM’’) Options 3, Section 7(a)(8) and 

Nasdaq BX, Inc. (‘‘BX’’) Options 3, Section 7(a)(7). 

GEMX, MRX, ISE, NOM and BX have All-or-None 

Orders that are Immediate-or-Cancel. 

9The term ‘‘Professional’’ means any person or 

entity that (i) is not a broker or dealer in securities, 

and (ii) places more than 390 orders in listed 

options per day on average during a calendar month 

for its own beneficial account(s). Member 

organizations must indicate whether orders are for 

Professionals. See Options 1, Section 1(b)(45). 

10See Options 3, Section 7(b)(5). 

11See Securities Exchange Act Release No. 85262 

(March 7, 2019), 84 FR 9192 (March 13, 2019) (SR– 

Phlx–2019–03). 

12 15 U.S.C. 78f(b). 

13 15 U.S.C. 78f(b)(5). 

entirety or it will cancel if it cannot 

execute. Other options markets require 

All-or-None Orders to be Immediate-orCancel such as Nasdaq GEMX, LLC.8

The Exchange proposes to amend the 

order type description in Options 3, 

Section 7(b)(5) to state, ‘‘An All-or-None 

Order is a Limit Order or Market Order 

that is to be executed in its entirety or 

not at all. An All-or None Order may 

only be submitted by a Public Customer 

as an Immediate-or-Cancel Order.’’ As is 

the case today, the Acceptable Trade 

Range protection in Options 3, Section 

15(a) is not applied to All-Or-None 

Orders. Further, the All-or-None Order 

type in Options 8, Section 32(b)(3) may 

only be submitted by a Public Customer. 

The Exchange proposes to add a new 

sentence in Options 8, Section 32(b)(3) 

that would state, ‘‘Further, pursuant to 

Options 8, Section 39, A–3, an All-orNone Order has no standing respecting 

executions in the trading crowd except 

with respect to other All-or-None 

Orders. When represented in the trading 

crowd, All-or-None Orders are not 

included as part of the bid or offer.’’ The 

Exchange believes the new sentence, 

which references existing language in 

Options 8, Section 39, A–3, will bring 

greater clarity to the All-or-None Order 

type description. 

The Exchange proposes to also 

remove rule text about All-or-None 

Orders as a Non-Displayed Contingency 

Order in Options 3, Section 7(b)(5)(i). 

The Exchange proposes to add a new 

Options 3, Section 7(b)(4)(C) that states, 

‘‘A Stop Order is a non-displayed, 

contingency order until elected,’’ in 

order to preserve the current rule text 

related to Stop Orders at Options 3, 

Section 7(b)(5)(i). 

As a result of the proposed 

amendment to the All-or-None Order 

type, Phlx proposes to remove rule text 

regarding All-or-None Orders in various 

other rules. Since All-or-None Orders 

will not rest on the order book, it is not 

considered for purposes of Legging 

Orders and therefore the rule text within 

Options 3, Section 7(b)(10)(2) and (4) 

related to All-or-None Orders is being 

removed. Additionally, the Exchange 

proposes a technical amendment to reletter Options 3, Section 7(b)(1) (1)–(4) 

as (A)–(D). 

Since All-or-None Orders will not rest 

on the order book as proposed, those 

orders would be treated the same as all 

other Immediate-or-Cancel Orders in the 

Opening Process and, therefore, do not 

need to be separately described in 

Options 3, Section 8. The Exchange 

proposes to remove specific references 

to All-or-None Orders in Options 3, 

Section 8(b), (h) and (k)(C)(6). 

All-or-None Orders do not need to be 

excluded from the internal PBBO in 

Options 3, Section 10, which describes 

the Exchange’s allocation process, 

because All-or-None Orders will not rest 

on the order book with this proposed 

amendment. The Exchange proposes to 

remove the language concerning All-orNone Orders from Options 3, Section 

10(a)(1)(B), (C), and (D)(i) and (ii). 

As proposed, Public Customers All-or 

None Orders, similar to all other Public 

Customer Orders which are Immediateor-Cancel Orders, will not be considered 

for purposes of checking the order book 

prior to executing a Qualified 

Contingent Cross Order since they will 

not rest on the order book. Therefore, 

the Exchange proposes to remove the 

language within Supplementary 

Material .01 to Options 3, Section 12 

and Options 8, Section 30 concerning 

All-or-None Orders. 

As proposed, All-or None Orders will 

not be considered when checking the 

order book to start a PIXL Auction or to 

allocate the PIXL Order at the end of the 

PIXL Auction because All-or-None 

Orders will not rest on the order book. 

Therefore, the Exchange proposes to 

remove the language within Options 3, 

Section 13(a)(2) and (f) related to All-orNone Orders on the order book. 

As amended, All-or-None Orders will 

be treated in the same manner as other 

Immediate-or-Cancel Orders with 

respect to a Complex Opening Process 

and a Complex Order Live Auction. 

Also, All-or-None Orders will not rest 

on the order book and are not 

considered for purposes of legging into 

the simple order book. Therefore, the 

Exchange is removing language 

concerning All-or-None Orders within 

Options 3, Section 14(d)(ii)(C), 

(e)(vi)(A)(1), (e)(viii)(C)(3), and (f)(iii)(A) 

because All-or-None Orders do not need 

to be treated differently. 

For purposes of the PHLX Orders 

feed, All-or-None Orders will be treated 

the same as all other Immediate-orCancel Orders and not displayed on the 

PHLX Orders feed. Options 3, Section 

23(a)(2) is being amended to remove 

All-or-None Orders from the feed 

description. 

Since All-or-None Orders will not rest 

on the order book the Exchange 

proposes to amend Options 5, Section 

4(a), 4(a)(iii)(C)(3), (5), (7) and (9), 

concerning Routing, to remove 

references to the exclusion of All-orNone Orders from the PBBO and their 

partial exclusion from the internal 

PBBO. 

The Exchange proposes to remove the 

following pricing from Options 7, 

Section 3, Rebates and Fees for Adding 

and Removing Liquidity in SPY, ‘‘The 

Cancellation Fee for each cancelled 

electronically delivered Professional 9

AON order will continue to apply to the 

SPY. The Cancellation Fee will not 

apply for each cancelled electronically 

delivered Customer order in SPY.’’ 

Today, only Public Customers may 

submit All-or-None Orders.10 In 2019, 

Phlx amended its All-or-None Order 

type to offer it only to Public Customers 

and no longer offer the order type to 

Professionals.11 This pricing should 

have been removed in 2019, as 

Professionals could no longer enter Allor-None Orders after the 2019 

amendment. 

Implementation 

The Exchange proposes to implement 

this rule proposal before January 31, 

2024. The Exchange will announce the 

implementation date in an Options 

Trader Alert to provide notice to 

members and member organizations. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,12 in general, and furthers the 

objectives of section 6(b)(5) of the Act,13

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest. 

The Exchange believes that the 

proposal is appropriate and reasonable, 

because the time-in-force designation of 

Immediate-Or-Cancel will offer 

members and member organizations 

certainty with respect to their order 

handling. Today, All-or-None Orders are 

executed in price-time priority among 

all Public Customer orders if the size 

contingency can be met, but otherwise 


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57142 Federal Register / Vol. 88, No. 161 / Tuesday, August 22, 2023 / Notices 

14See GEMX, MRX, ISE Options 3, Section 7(c), 

NOM Options 3, Section 7(a)(8) and BX Options 3, 

Section 7(a)(7). GEMX, MRX, ISE, NOM and BX 

have All-or-None Orders that are Immediate-orCancel. 

15See Options Trader Alert 2023–17. The 

Exchange has not received any feedback from 

members or member organizations regarding the 

change to the All-or-None Order as a result of the 

Options Trader Alert. Further, the Exchange 

reached out to member organizations about the Allor-None change and, based on those conversations, 

the Exchange does not believe that member 

organizations have any concerns with the proposed 

change. 

16See supra note 14. 

17 15 U.S.C. 78s(b)(3)(A)(iii). 

18 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

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. 

19 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

have no priority on the order book. With 

this proposal, an All-Or-None Order 

will either execute immediately or be 

cancelled back to the member or 

member organization. This proposal 

would remove uncertainty with respect 

to the manner in which these orders 

would be handled in the order book by 

cancelling back an All-Or-None Order if 

it cannot be immediately executed in its 

entirety. This proposal would 

harmonize Phlx’s All-or-None Order 

type across its various options 

markets.14

The Exchange notes that members and 

member organizations are aware of this 

proposed change.15

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. The 

Exchange does not believe that the 

proposed rule change will impact the 

intense competition that exists in the 

options market. With this change, no 

market participant would be able to 

submit an All-Or-None Order without a 

time-in-force designation of ImmediateOr-Cancel. The Exchange believes the 

All-Or-None Order type, as proposed, 

will continue to offer members and 

member organizations a competitive 

alternative for submitting orders for 

execution. Furthermore, the proposed 

rule changes align the Exchange’s 

System functionality across the Nasdaq 

affiliated options exchanges that have 

all-or-none order types.16

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)(iii) of the Act 17 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.18

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

Phlx–2023–34 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–Phlx–2023–34. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–Phlx–2023–34 and should be 

submitted on or before September 12, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–17976 Filed 8–21–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98150; File No. SR– 

NYSEARCA–2023–53] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change To Amend the 

Connectivity Fee Schedule Regarding 

Power Allocation 

August 16, 2023. 

Pursuant to section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on August 

3, 2023, NYSE Arca, Inc. (‘‘NYSE Arca’’ 

or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 


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