6148 Federal Register / Vol. 80, No. 23 / Wednesday, February 4, 2015 / Notices 

21 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

the Exchange. Enhancing the audit trail 

with respect to open outcry complex 

order processing will further improve 

the Exchange’s ability to better enforce 

compliance by the Exchange’s TPHs 

(and persons associated with its TPHs) 

with the Act, the rules and regulations 

thereunder and the rules of the 

Exchange. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE does not believe that the 

proposed rule change will impose any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange does not believe that the 

proposed rule change will impose any 

burden on intramarket or intermarket 

competition because the order ticket 

requirements will be applicable to all 

TPHs executing complex orders in open 

outcry and SPX Combo Orders. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposal. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the Exchange consents, the Commission 

will: 

A. By order approve or disapprove 

such proposed rule change, or 

B. institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

The Exchange has requested 

accelerated approval of the proposed 

rule change. The Commission is 

considering granting accelerated 

approval of the proposed rule change at 

the end of a 15-day comment period. 

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 rulecomments@sec.gov. Please include File 

Number SR–CBOE–2015–011 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–CBOE–2015–011. 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 Web site (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 Web site 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; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–CBOE– 

2015–011 and should be submitted on 

or before February 19, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–02104 Filed 2–3–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74170; File No. SR–Phlx– 

2015–08] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Exchange’s Pricing Schedule Under 

Section VIII With Respect To Execution 

and Routing of Orders in Securities 

Priced at $1 or More Per Share 

January 29, 2015. 

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 January 

16, 2015, NASDAQ OMX 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. 

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 under 

Section VIII, entitled ‘‘NASDAQ OMX 

PSX FEES,’’ with respect to execution 

and routing of orders in securities 

priced at $1 or more per share. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://

nasdaqomxphlx.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. 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 23 / Wednesday, February 4, 2015 / Notices 6149 

3 15 U.S.C. 78f(b). 

4 15 U.S.C. 78f(b)(4) and (5). 5 15 U.S.C. 78f(b)(8). 6 15 U.S.C. 78s(b)(3)(A)(ii). 

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 certain fees and 

rebates for order execution and routing 

applicable to the use of the order 

execution and routing services of the 

NASDAQ OMX PSX System (‘‘PSX’’) by 

member organizations for all securities 

traded at $1 or more per share. 

Currently, for non-displayed orders 

the Exchange assesses a charge of 

‘‘$0.0003 per share executed charge for 

a midpoint pegged order (‘‘midpoint 

order’’)’’. The Exchange proposes to 

delete this so that the charge for orders 

with midpoint pegging to access 

liquidity will revert to the $0.0024 per 

share executed charge currently 

assessed on member organizations that 

enter orders that execute in PSX. 

Additionally, the Exchange proposes 

to eliminate the $0.0003 per share 

executed charge for orders that execute 

against resting midpoint liquidity and 

add a $0.0010 per share credit for orders 

with midpoint pegging that provide 

liquidity. 

The current $0.0005 per share 

executed credit for other non-displayed 

orders that provide liquidity will remain 

unchanged, but within the Pricing 

Schedule it will follow the charge listed 

in the paragraph immediately above for 

purposes of clarity. This makes it clear 

that the word ‘‘other’’ in ‘‘other nondisplayed orders that provide liquidity’’ 

refers to orders other than ‘‘orders with 

midpoint pegging’’. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Pricing Schedule 

is consistent with Section 6(b) of the 

Act 3 in general, and furthers the 

objectives of Sections 6(b)(4) and (b)(5) 

of the Act 4 in particular, in that it is an 

equitable allocation of reasonable fees 

and other charges among Exchange 

members and other persons using its 

facilities, and it does not unfairly 

discriminate between customers, 

issuers, brokers or dealers. The 

proposed changes are reasonable 

because they reflect the Exchange’s need 

to adjust its credits and fees in response 

to the costs and benefits provided. 

Credits provided by the Exchange are 

given in lieu of assessing normal fees, 

and accordingly provide incentives to 

market participants to enter such orders. 

The proposed changes balance the 

Exchange’s desire to provide certain 

incentives to market participants with 

the costs the Exchange incurs in 

providing such incentives. 

Thus, the proposed change with 

respect to the elimination of the $0.0003 

per share executed charge for a 

midpoint pegged order is reasonable 

because by eliminating the charge 

within this part of the Pricing Schedule, 

the charge will become the already 

existing current charge of $0.0024 per 

share executed assessed on member 

organizations that enter orders that 

execute in PSX, regardless of the listing 

venue of the security. The Exchange 

also believes that the proposed change 

is consistent with an equitable 

allocation of fees and is not unfairly 

discriminatory because it applies to all 

member organizations that enter orders 

that execute in PSX, regardless of the 

listing venue of the security. 

The Exchange believes that 

eliminating the $0.0003 per share 

executed charge for orders that execute 

against resting midpoint liquidity is 

reasonable for the reasons discussed 

above regarding the Exchange’s need to 

adjust its credits and fees. The Exchange 

also believes that it is consistent with an 

equitable allocation of fees and is not 

unfairly discriminatory because it 

applies to all market participants. 

The Exchange believes that adding a 

$0.0010 per share credit for orders with 

midpoint pegging that provide liquidity 

is reasonable for the reasons discussed 

above regarding the Exchange’s need to 

adjust its credits and fees. Specifically, 

the Exchange believes that the $0.0010 

per share credit for orders with 

midpoint pegging will incentivize 

market participants to add liquidity 

using orders with midpoint pegging. 

The Exchange also believes that the 

$0.0010 per share credit for orders with 

midpoint pegging is consistent with an 

equitable allocation of fees and is not 

unfairly discriminatory because it 

applies to all market participants that 

provide liquidity using orders with 

midpoint pegging, regardless of the 

listing venue of the security of the order. 

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 amended.5

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 changes to 

the credits provided and charges 

assessed are intended to reduce the 

Exchange’s costs, while still continuing 

to provide an incentive for members to 

execute shares on PSX. Because there 

are numerous competitive alternatives 

to PSX, it is likely the Exchange will 

lose market share as a result of the 

changes if they are unattractive to 

market participants. Accordingly, the 

Exchange does not believe the proposed 

changes will impair the ability of 

members 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 

Pursuant to Section 19(b)(3)(A)(ii) of 

the Act,6 the Exchange has designated 

this proposal as establishing or changing 

a due, fee, or other charge imposed by 

the self-regulatory organization on any 

person, whether or not the person is a 

member of the self-regulatory 

organization, which renders the 

proposed rule change effective upon 

filing. 

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. 

mstockstill on DSK4VPTVN1PROD with NOTICES

6150 Federal Register / Vol. 80, No. 23 / Wednesday, February 4, 2015 / Notices 

7 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. 

4An Investment Company Unit is a security that 

represents an interest in a registered investment 

company that holds securities comprising, or 

otherwise based on or representing an interest in, 

an index or portfolio of securities (or holds 

securities in another registered investment 

company that holds securities comprising, or 

otherwise based on or representing an interest in, 

an index or portfolio of securities). See NYSE Arca 

Equities Rule 5.2(j)(3)(A). 

5 17 CFR 240.19b–4(e). 

6Fixed Income Securities are described in NYSE 

Arca Equities Rule 5.2(j)(3), Commentary .02 as debt 

securities that are notes, bonds, debentures or 

evidence of indebtedness that include, but are not 

limited to, U.S. Department of Treasury securities, 

government-sponsored entity securities, municipal 

securities, trust preferred securities, supranational 

debt and debt of a foreign country or a subdivision 

thereof. 

7The Commission approved NYSE Arca Equities 

Rule 5.2(j)(3), Commentary .02 in Securities 

Exchange Act Release No. 55783 (May 17, 2007), 72 

FR 29194 (May 24, 2007) (SR–NYSEArca–2007–36) 

(order approving generic listing standards for series 

of Units based on Fixed Income Indexes and 

Combination Indexes). The Commission also 

approved generic listing standards for the American 

Stock Exchange LLC (‘‘Amex’’) for Index Fund 

Shares based on Fixed Income Indexes and 

Combination Indexes in Securities Exchange Act 

Release No. 55437 (March 9, 2007), 72 FR 12233 

(March 15, 2007) (SR–Amex–2006–118). The 

Commission has approved listing of exchangetraded funds based on a fixed income index or 

portfolio. See, e.g., Securities Exchange Act Release 

No. 48534 (September 24, 2003), 68 FR 56353 

(September 30, 2003) (SR–Amex–2003–75) (order 

approving listing on Amex of eight series of iShares 

Lehman Bond Funds). 

8 15 U.S.C. 78s(b)(2). 

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–2015–08 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F 

Street, NE., Washington, DC 20549– 

1090. 

All submissions should refer to File 

Number SR–Phlx–2015–08. 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 Web site (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 Web site 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 such 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–Phlx– 

2015–08 and should be submitted on or 

before February 25, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–02105 Filed 2–3–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74175; File No. SR– 

NYSEArca–2015–01] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change Amending NYSE Arca 

Equities Rule 5.2(j)(3), Commentary .02 

Relating To Listing of Investment 

Company Units Based on Municipal 

Bond Indexes 

January 29, 2015. 

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 January 

16, 2015, NYSE Arca, Inc. (‘‘Exchange’’ 

or ‘‘NYSE Arca’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. 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 

NYSE Arca Equities Rule 5.2(j)(3), 

Commentary .02 relating to listing of 

Investment Company Units based on 

municipal bond indexes. The text of the 

proposed rule change is available on the 

Exchange’s Web site at www.nyse.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 

self-regulatory organization 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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NYSE Arca Equities Rule 5.2(j)(3) 

permits the listing and trading, 

including trading pursuant to unlisted 

trading privileges (‘‘UTP’’), of 

Investment Company Units (‘‘Units’’).4

NYSE Arca Equities Rule 5.2(j)(3), 

Commentary .02 provides for listing on 

the Exchange pursuant to Rule 19b– 

4(e) 5 under the Act of a series of Units 

with an underlying index or portfolio of 

Fixed Income Securities 6 meeting 

specified criteria.7 These ‘‘generic’’ 

listing criteria permit listing and trading 

on the Exchange of series of Units 

meeting such criteria without 

Commission approval of each 

individual product pursuant to Section 

19(b)(2) of the Act.8

NYSE Arca Equities Rule 5.2(j)(3), 

Commentary .02(a)(2) provides that, in 

order to be listed and traded pursuant 

to Rule 19b–4(e), components of an 

index or portfolio that in aggregate 

account for at least 75% of the weight 

mstockstill on DSK4VPTVN1PROD with NOTICES