42532 Federal Register / Vol. 83, No. 163 / Wednesday, August 22, 2018 / Notices 

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

2 17 CFR 240.19b–4. 

3Manual execution by a specialist could occur in 

AUTOM. This first paragraph also refers to AUTOM 

routing orders to the specialist unit, and this rule 

governing order messages, all of which is obsolete. 

AUTOM and AUTO–X were replaced by Phlx XL. 

See Securities Exchange Act Release No. 50100 

(July 27, 2004), 69 FR 46612 (August 3, 2004) (SR– 

Phlx–2003–59). 

4Phlx XL was replaced by Phlx XL II, which was 

phased in over a period of time. See Securities 

Exchange Act Release No. 59995 (May 28, 2009), 74 

FR 26750 (June 3, 2009) (SR–Phlx–2009–32). 

5See Securities Exchange Act Release No. 82577 

(January 24, 2018), 83 FR 4354 (January 30, 2018) 

(SR-Phlx-2018–09). 

6See Securities Exchange Act Release Nos. 83729 

(July 27, 2018), 83 FR 37870 (August 2, 2018) (SR– 

ISE–2018–65); 83731 (July 27, 2018), 83 FR 37867 

(August 2, 2018) (SR–GEMX–2018–26); and 83730 

(July 27, 2018), 83 FR 37873 (August 2, 2018) (SR– 

MRX–2018–25). Nasdaq BX, Inc. was filed as SR– 

BX–2018–038. The Nasdaq Stock Market LLC will 

submit a similar filing to amend The Nasdaq 

Options Market LLC ports. 

7See Securities Exchange Act Release No. 61665 

(March 5, 2010), 75 FR 11967 (March 12, 2010) (SR– 

Phlx–2010–25). The FIX port was previously 

referred to as the ‘‘Order Entry Port’’ and described 

as a connection to routing orders to the Exchange 

via an external order entry port. Members access the 

Exchange’s network through order entry ports. A 

6. Docket No(s).: MC2018–209 and 

CP2018–291; Filing Title: USPS Request 

to Add Priority Mail Express & Priority 

Mail Contract 71 to Competitive Product 

List and Notice of Filing Materials 

Under Seal; Filing Acceptance Date: 

August 16, 2018; Filing Authority: 39 

U.S.C. 3642, 39 CFR 3020.30 et seq., and 

39 CFR 3015.5; Public Representative: 

Christopher C. Mohr; Comments Due: 

August 24, 2018. 

This Notice will be published in the 

Federal Register. 

Stacy L. Ruble, 

Secretary. 

[FR Doc. 2018–18109 Filed 8–21–18; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83867; File No. SR–Phlx– 

2018–54] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Codify the Definitions 

of the Protocols To Enter Quotes and 

Orders 

August 16, 2018. 

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 

14, 2018, 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 remove text 

currently contained in Rule 1080(a) and 

relocate and add text into that section 

(a) to codify the definitions of the 

protocols that members can use to enter 

quotes and orders on the Exchange. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://nasdaqphlx.cchwallstreet.com/, 

at the principal office of the Exchange, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to: (i) Retitle 

Rule 1080; (ii) remove the current rule 

text located at Phlx Rule 1080(a); and 

(iii) relocate the definition of the 

Specialized Quote Feed (‘‘SQF’’) from 

Commentary .01(a) of Rule 1080 to 

proposed 1080(a)(i)(b) and relocate the 

definition of the Options Floor Based 

Management System (‘‘FBMS’’) from 

Commentary .06 of Rule 1080 to 

proposed 1080(a)(i)(c) and codify the 

Financial Information eXchange (‘‘FIX’’) 

within Rule 1080(a)(i)(a). 

Rule 1080 Title 

Rule 1080 is currently titled ‘‘Phlx.’’ 

The Exchange proposes to retitle Rule 

1080 as ‘‘Electronic Acceptance of 

Quotes and Orders.’’ 

Rule 1080(a) ‘‘General’’ 

The Exchange proposes to delete 

paragraph (a), ‘‘General,’’ which defines 

the Exchange’s System using a prior 

system’s names AUTOM and AUTO–X, 

which terms are obsolete, as are 

references to and the functions of each.3

Rule 1080(a) also refers to a successor 

system, Phlx XL, which is also 

obsolete.4 The Exchange recently added 

a definition to its Rules at 1000(b)(45) 

which describes the Exchange’s 

System.5

The Exchange also proposes to delete 

cross-references to Rules 1014(b) and 

1017, which are unnecessary. Rule 

1014, entitled, ‘‘Obligations and 

Restrictions Applicable to Specialists 

and Registered Options Traders,’’ 

contains various definitions, including a 

Registered Options Trader at Rule 

1014(b). The Exchange believes it is 

unnecessary to cite the specific rule. 

Further, Rule 1017 entitled ‘‘Openings 

in Options’’ does not require a specific 

citation. 

New Rule 1080(a) 

The Exchange believes that codifying 

definitions of these protocols in its rules 

will increase transparency around its 

operations.6 The protocols used by 

members to submit quotes and orders 

play an important role in the operation 

of the System. The Exchange therefore 

believes that codifying definitions of 

these protocols in its rules will increase 

transparency around its operations. 

The Exchange proposes to add a new 

section (a) entitled ‘‘Entry and Display 

of Orders and Quotes.’’ The Exchange 

proposes to state in proposed Rule 

1080(a) ‘‘Members may enter orders and 

quotes into the System as specified 

below.’’ The Exchange proposes to add 

a section 1080(a)(i) which provides, 

‘‘The Exchange offers members the 

following protocols for entering orders 

and quotes respectively.’’ 

Although the Exchange is changing 

how it categorizes various features 

included on FIX and SQF as part of its 

harmonization effort, the list of features 

included in the proposed definitions are 

intended to be exhaustive with respect 

to the buckets of information provided 

on each protocol. Overall, the Exchange 

believes that the proposed changes will 

allow members to more easily 

understand what information is 

available on which protocol. 

A. Financial Information eXchange 

Ports 

This protocol is not memorialized 

within the Exchange’s Rulebook, 

however rule changes describing FIX 

have been filed.7 The Exchange 


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Federal Register / Vol. 83, No. 163 / Wednesday, August 22, 2018 / Notices 42533 

member organization may have more than one order 

entry port. The Exchange recently renamed the 

‘‘Order Entry Port’’ as the ‘‘FIX Port’’ in the 

Exchange’s Pricing Schedule. See Securities 

Exchange Act Release No. 83194 (May 9, 2018), 83 

FR 22555 (May 15, 2018) (SR–Phlx–2018–34). 

8All of the notification messages available on 

SQF ports as described above (i.e., options symbol 

directory messages, system event messages, trading 

action messages, etc.) are configurable in that 

Specialists, SQTs or RSQTs can select the specific 

types of notifications they wish to receive on their 

SQF ports. As such, SQF Purge Interface ports are 

a subpart of SQF ports that have been configured 

to only receive and notify of purge requests. 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(5). 

proposes to now codify a description of 

FIX in its rulebook to add even greater 

specificity within proposed Rule 

1080(a)(i)(A). The Exchange proposes to 

state that FIX is an interface that allows 

members and their Sponsored 

Customers to connect, send and receive 

messages related to orders and auction 

orders and responses to and from the 

Exchange. Features include the 

following: (1) Execution messages; (2) 

order messages; and (3) risk protection 

triggers and cancel notifications. 

B. Specialized Quote Feed Ports 

SQF is currently defined at 

Commentary .01(a) to Rule 1080 as ‘‘A 

specialist, RSQT or SQT may establish 

an option pricing model via a 

specialized connection, which is known 

as a specialized quote feed (‘‘SQF’’).’’ 

The Exchange proposes to remove this 

description from Commentary .01(a) to 

Rule 1080 and relocate the definition to 

proposed Rule 1080(a)(i)(B) and instead 

a more descriptive definition of this 

protocol. The Exchange proposes the 

following: 

SQF is an interface that allows Specialists, 

Streaming Quote Traders (‘‘SQTs’’) and 

Remote Streaming Quote Traders (‘‘RSQTs’’) 

to connect, send, and receive messages 

related to quotes, Immediate-or-Cancel 

Orders, and auction responses into and from 

the Exchange. Features include the following: 

(1) Options symbol directory messages (e.g., 

underlying and complex instruments); (2) 

system event messages (e.g., start of trading 

hours messages and start of opening); (3) 

trading action messages (e.g., halts and 

resumes); (4) execution messages; (5) quote 

messages; (6) Immediate-or-Cancel Order 

messages; (7) risk protection triggers and 

purge notifications; (8) opening imbalance 

messages; (9) auction notifications; and (10) 

auction responses. The SQF Purge Interface 

only receives and notifies of purge request 

from the Specialist, SQT or RSQT.8

The Exchange believes that this 

information provides a more thorough 

description of the SQF protocol. 

The Exchange also proposes to 

remove the remainder of Commentary 

.01(a) to Rule 1080, which provides, 

‘‘Specialists, SQTs and RSQTs 

individually determine which model to 

select per option and may change 

models during the trading day. Each 

pricing model requires the specialist, 

SQTs and RSQTs to input various 

parameters, such as interest rates, 

volatilities (delta, vega, theta, gamma, 

etc.) and dividends.’’ The Exchange is 

no longer involved in the pricing 

models that its users choose. This rule 

text is obsolete. Specialists, SQTs, and 

RSQTs provide their quotations to the 

Exchange using their own proprietary 

models; the Exchange does not offer any 

pricing models to its members. The 

Exchange proposes to reserve this 

section. 

C. Options Floor Based Management 

System (‘‘FBMS’’) 

The Exchange proposes to relocate the 

Options Floor Based Management 

System currently defined in 

Commentary .06 of Rule 1080 to 

proposed Rule 1080(a)(i)(C). No 

substantive changes are being made to 

the description. The Exchange proposes 

to delete .06 and also to delete .07 and 

.08 of the Commentary, which are 

currently reserved. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,9 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,10

in particular, in that it is designed to 

promote just and equitable principles of 

trade and to protect investors and the 

public interest by removing obsolete 

text from its rules and adding greater 

transparency to the order and quote 

protocols available on Phlx. 

The Exchange believes that renaming 

Phlx Rule 1080 will better describe the 

information contained in the rule. Also, 

removing obsolete rule text from Phlx 

Rule 1080(a) and Commentary .01(a) to 

Rule 1080 will remove confusion as to 

the System and its offerings. The rule 

text being removed is obsolete. 

The Exchange believes that the 

proposed rule change is consistent with 

the protection of investors and the 

public interest as it codifies the 

protocols used to connect to the 

Exchange’s System. While no functional 

changes to the protocols are proposed in 

this filing, the Exchange believes that 

including a description of the protocols 

in its rulebook will benefit members by 

increasing transparency around the 

operation of the Exchange. Furthermore, 

the proposed definitions being included 

in the rulebook will more clearly and 

accurately reflect the information 

included on the protocols, and will be 

harmonized with language to be 

included in the rules of its affiliated 

exchanges to the extent that the 

protocols operate in the same manner. 

The protocols described in this filing 

provide a range of important features to 

members, including the ability to 

submit quotes and orders, and perform 

other functions necessary to manage 

trading on the Exchange. The Exchange 

believes codifying the quote and order 

entry protocols will increase 

transparency to the members that use 

these protocols to connect to the 

Exchange. 

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. As explained 

above, the Exchange is codifying the 

quote and order entry protocols that 

members use to connect to the 

Exchange’s System. The obsolete rule 

text does not currently apply to any 

member on Phlx and therefore removing 

the inapplicable language will not 

impact any member on Phlx. 

The Exchange does not believe that 

codifying the order entry protocols in 

the rulebook will have any competitive 

impact. Locating all the descriptions 

within a single rule and adding context 

around each order entry protocol will 

increase transparency around the 

operation of the Exchange without 

having any impact on inter-market or 

intra-market competition. All market 

participants have the ability to subscribe 

to the protocols for order entry. The 

quoting protocols are limited to the 

market participants who are permitted 

by rule to quote on Phlx, but the 

function is uniformly available to these 

eligible participants. 

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 


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42534 Federal Register / Vol. 83, No. 163 / Wednesday, August 22, 2018 / Notices 

11 15 U.S.C. 78s(b)(3)(A)(iii). 

12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) 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. 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3NMS Stock is defined in Rule 600 of Regulation 

NMS, 17 CFR 242.600(b)(47). 

4See Securities Exchange Act Release No. 83560 

(June 29, 2018), 83 FR 31585. 

5 15 U.S.C. 78s(b)(2). 

6 Id. 

7 17 CFR 200.30–3(a)(31). 

19(b)(3)(A)(iii) of the Act 11 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.12

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is: (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 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

Phlx–2018–54 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-2018–54. 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 (http://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 

10:00 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–2018–54 and should 

be submitted on or before September 12, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–18064 Filed 8–21–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83860; File No. SR–NYSE– 

2018–30] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Designation of a Longer Period for 

Commission Action on a Proposed 

Rule Change To Provide for the Listing 

of Exchange Traded Products With No 

Component NMS Stock Listed on the 

Exchange, Amend Its Rules Regarding 

Unlisted Trading Privileges, and Make 

Corresponding Changes 

August 16, 2018. 

On June 15, 2018, New York Stock 

Exchange LLC (‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to: (1) Provide for the listing of 

exchange traded products (‘‘ETPs’’) that 

do not have any component NMS 

Stock 3 that is listed on the Exchange or 

that is based on, or represents an 

interest in, an underlying index or 

reference asset that includes an NMS 

Stock listed on the Exchange; (2) delete 

certain redundant listing rules that 

would be superseded by these initial 

and continued listing and trading 

requirements for the listing of ETPs; and 

(3) make changes to its unlisted trading 

privileges rule, Rule 5.1(a)(2), as well as 

certain supplementary changes 

throughout Rules 5P and 8P to conform 

to the rules of the Exchange’s affiliate, 

NYSE National, Inc. The proposed rule 

change was published for comment in 

the Federal Register on July 6, 2018.4

The Commission has received no 

comment letters on the proposed rule 

change. 

Section 19(b)(2) of the Act 5 provides 

that, within 45 days of the publication 

of notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for this 

proposed rule change is August 20, 

2018. The Commission is extending this 

45-day time period. 

The Commission finds that it is 

appropriate to designate a longer period 

within which to take action on the 

proposed rule change so that it has 

sufficient time to consider the proposed 

rule change. Accordingly, the 

Commission, pursuant to Section 

19(b)(2) of the Act,6 designates October 

4, 2018, as the date by which the 

Commission shall either approve or 

disapprove or institute proceedings to 

determine whether to disapprove the 

proposed rule change (File Number SR– 

NYSE–2018–30). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–18063 Filed 8–21–18; 8:45 am] 

BILLING CODE 8011–01–P 


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