Federal Register / Vol. 80, No. 51 / Tuesday, March 17, 2015 / Notices 13923 

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

2 17 CFR 240.19b–4. 

3 In addition to FLEX Options, FLEX currency 

options are also traded on the Exchange. These 

flexible index, equity, and currency options provide 

investors the ability to customize basic option 

features including size, expiration date, exercise 

style, and certain exercise prices; and may have 

expiration dates within five years. See Rule 1079. 

FLEX currency options traded on the Exchange are 

also known as FLEX FX Options. The pilot program 

discussed herein does not encompass FLEX 

currency options. 

4The Exchange is also filing a separate proposal 

to permanently approve the Pilot Program. 

agencies, and the Municipal Securities 

Rulemaking Board (‘‘MSRB’’) 

(collectively, ‘‘SROs’’) to destroy or 

convert to microfilm or other recording 

media records maintained under Rule 

17a–1, if they have filed a record 

destruction plan with the Commission 

and the Commission has declared the 

plan effective. 

There are currently 29 SROs: 18 

national securities exchanges, 1 national 

securities association, the MSRB, and 9 

registered clearing agencies. Of the 29 

SROs, only 2 SRO respondents have 

filed a record destruction plan with the 

Commission. The staff calculates that 

the preparation and filing of a new 

record destruction plan should take 160 

hours. Further, any existing SRO record 

destruction plans may require revision, 

over time, in response to, for example, 

changes in document retention 

technology, which the Commission 

estimates will take much less than the 

160 hours estimated for a new plan. The 

Commission estimates that each SRO 

that has filed a destruction plan will 

spend approximately 30 hours per year 

making required revisions. Thus, the 

total annual compliance burden is 

estimated to be 60 hours per year based 

on two respondents. The approximate 

compliance cost per hour is $380, 

resulting in a total internal cost of 

compliance for these respondents of 

$22,800 per year (60 hours @$380 per 

hour). 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’s 

estimate of the burden of the collection 

of information; (c) ways to enhance the 

quality, utility, and clarity of the 

information to be collected; and (d) 

ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

Consideration will be given to 

comments and suggestions submitted in 

writing within 60 days of this 

publication. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

Please direct your written comments 

to: Pamela Dyson, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington, 

DC 20549, or send an email to: PRA_

Mailbox@sec.gov. 

Dated: March 10, 2015. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–05986 Filed 3–16–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74481; File No. SR–Phlx– 

2015–22] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Regarding 

FLEX No Minimum Value Size Pilot 

March 11, 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 February 

27, 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 and 

II 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 is filing with the 

Commission a proposal to amend Phlx 

Rule 1079 (FLEX Index, Equity and 

Currency Options) to extend a pilot 

program that eliminates minimum value 

sizes for opening transactions in new 

series of FLEX index options and FLEX 

equity options (together known as 

‘‘FLEX Options’’).3

The text of the amended Exchange 

rule is set forth immediately below. 

Additions are in italics and deletions 

are [bracketed]. 

Rules of the Exchange 

Options Rules 

* * * * * 

Rule 1079. FLEX Index, Equity and 

Currency Options 

A Requesting Member shall obtain 

quotes and execute trades in certain 

non-listed FLEX options at the specialist 

post of the non-FLEX option on the 

Exchange. The term ‘‘FLEX option’’ 

means a FLEX option contract that is 

traded subject to this Rule. Although 

FLEX options are generally subject to 

the Rules in this section, to the extent 

that the provisions of this Rule are 

inconsistent with other applicable 

Exchange Rules, this Rule takes 

precedence with respect to FLEX 

options. 

(a)–(f) No Change. 

* * * Commentary: 

lllllllll 

.01 Notwithstanding subparagraphs 

(a)(8)(A)(i) and (a)(8)(A)(ii) above, for a 

pilot period ending the earlier of 

[February 28]August 31, 2015, or the 

date on which the pilot is approved on 

a permanent basis, there shall be no 

minimum value size requirements for 

FLEX options. 

* * * * * 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqomxphlx.cchwall

street.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 purpose of this proposed rule 

change is to amend Phlx Rule 1079 

(FLEX Index, Equity and Currency 

Options) to extend a pilot program that 

eliminates minimum value sizes for 

opening transactions in new series of 

FLEX Options (the ‘‘Pilot Program’’ or 

‘‘Pilot’’).4

mstockstill on DSK4VPTVN1PROD with NOTICES

13924 Federal Register / Vol. 80, No. 51 / Tuesday, March 17, 2015 / Notices 

5Market index options and industry index 

options are broad-based index options and narrowbased index options, respectively. See Rule 

1000A(b)(11) and (12). 

6Subsection (a)(8)(A) also provides a third 

alternative: (iii) 50 contracts in the case of FLEX 

currency options. However, this alternative is not 

part of the Pilot Program. 

7See Securities Exchange Act Release No. 73474 

(October 30, 2014), 79 FR 65742 (November 5, 2014) 

(SR–Phlx–2014–69) (notice of filing and immediate 

effectiveness of proposal to extend Pilot Program). 

The Pilot Program was instituted in 2010. See 

Securities Exchange Act Release No. 62900 

(September 13, 2010), 75 FR 57098 (September 17, 

2010) (SR–Phlx–2010–123) (notice of filing and 

immediate effectiveness of proposal to institute 

Pilot Program). 

8The Exchange notes that any positions 

established under this Pilot would not be impacted 

by the expiration of the Pilot. For example, a 10- 

contract FLEX equity option opening position that 

overlies less than $1 million in the underlying 

security and expires in January 2016 could be 

established during the Pilot. If the Pilot Program 

were not extended, the position would continue to 

exist and any further trading in the series would be 

subject to the minimum value size requirements for 

continued trading in that series. 

9The Exchange has not experienced any adverse 

market effects with respect to the Pilot Program. 

10 5 U.S.C. 552. The Exchange notes that it 

expects to file a proposal for permanent approval 

of the Pilot Program. With this proposal, the 

Exchange will submit a Report that is publicly 

available. In the event the Pilot Program is not 

permanently approved by August 31, 2015, the 

Exchange will submit an additional Report covering 

the extended Pilot period. 

11 15 U.S.C. 78f(b). 

12 15 U.S.C. 78f(b)(5). 

13 15 U.S.C. 78s(b)(3)(A). 

14 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, along with a brief 

description and text of 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. 

15 17 CFR 240.19b–4(f)(6). 

16 17 CFR 240.19b–4(f)(6)(iii). 

Rule 1079 deals with the process of 

listing and trading FLEX equity, index, 

and currency options on the Exchange. 

Rule 1079(a)(8)(A) currently sets the 

minimum opening transaction value 

size in the case of a FLEX Option in a 

newly established (opening) series if 

there is no open interest in the 

particular series when a Request-forQuote (‘‘RFQ’’) is submitted (except as 

provided in Commentary .01 to Rule 

1079): (i) $10 million underlying 

equivalent value, respecting FLEX 

market index options, and $5 million 

underlying equivalent value respecting 

FLEX industry index options; 5 (ii) the 

lesser of 250 contracts or the number of 

contracts overlying $1 million in the 

underlying securities, with respect to 

FLEX equity options (together the 

‘‘minimum value size’’).6

Presently, Commentary .01 to Rule 

1079 states that by virtue of the Pilot 

Program ending February 28, 2015, or 

the date on which the pilot is approved 

on a permanent basis, there shall be no 

minimum value size requirements for 

FLEX Options as noted in subsections 

(a)(8)(A)(i) and (a)(8)(A)(ii) of Rule 

1079.7

The Exchange now proposes to extend 

the Pilot Program for a pilot period 

ending the earlier of August 31, 2015, or 

the date on which the Pilot is approved 

on a permanent basis.8

The Exchange believes that there is 

sufficient investor interest and demand 

in the Pilot Program to warrant an 

extension. The Exchange believes that 

the Pilot Program has provided 

investors with additional means of 

managing their risk exposures and 

carrying out their investment objectives. 

Extension of the Pilot Program would 

continue to provide greater 

opportunities for traders and investors 

to manage risk through the use of FLEX 

Options, including investors that may 

otherwise trade in the unregulated over 

the counter (‘‘OTC’’) market where 

similar size restrictions do not apply.9

In support of the proposed extension 

of the Pilot Program, the Exchange has 

under separate cover submitted to the 

Commission a Pilot Program Report 

(‘‘Report’’) that provides an analysis of 

the Pilot Program covering the period 

during which the Pilot has been in 

effect. This Report includes: (i) Data and 

analysis on the open interest and 

trading volume in (a) FLEX equity 

options that have an opening 

transaction with a minimum size of 0 to 

249 contracts and less than $1 million 

in underlying value; (b) FLEX index 

options that have an opening 

transaction with a minimum opening 

size of less than $10 million in 

underlying equivalent value; and (ii) 

analysis of the types of investors that 

initiated opening FLEX Options 

transactions (i.e., institutional, high net 

worth, or retail). The Report has been 

submitted to the Commission and the 

Exchange has requested confidential 

treatment under the Freedom of 

Information Act.10

2. Statutory Basis 

The Exchange’s proposal is consistent 

with Section 6(b) of the Act 11 in 

general, and furthers the objectives of 

Section 6(b)(5) of the Act 12 in 

particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, and to remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system. 

Specifically, the Exchange believes that 

the proposed extension of the Pilot 

Program, which eliminates the 

minimum value size applicable to 

opening transactions in new series of 

FLEX Options, would provide greater 

opportunities for investors to manage 

risk through the use of FLEX Options. 

The Exchange notes that it has not 

experienced any adverse market effects 

with respect to the Pilot Program. 

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. To the 

contrary, the proposal would give 

traders and investors the opportunity to 

more effectively tailor their trading, 

investing and hedging through FLEX 

options traded on the Exchange. Prior to 

the Pilot, options that represented 

opening transactions in new series that 

could not meet a minimum value size 

could not trade via FLEX on the 

Exchange, but rather had to trade OTC. 

Extension of the Pilot enables such 

options to continue to trade on the 

Exchange. 

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 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 prior to 30 days from the date 

on which it was filed, or such shorter 

time as the Commission may designate, 

the proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 13 and Rule 19b–4(f)(6) 

thereunder.14

A proposed rule change filed under 

Rule 19b–4(f)(6) 15 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),16 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the Exchange 

may continue its Pilot Program without 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 51 / Tuesday, March 17, 2015 / Notices 13925 

17For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 73647 

(November 19, 2014), 79 FR 70232 (November 25, 

2014) (approving SR–NASDAQ–2014–087). 

4 Id. 

5See IM–5910–1(b)(1) and IM–5920–1(b)(1). 

interruption. The Commission believes 

that waiving the 30-day operative delay 

is consistent with the protection of 

investors and the public interest.17 The 

Commission notes that waiving the 30- 

day operative delay would prevent the 

expiration of the Pilot Program prior to 

the extension of the pilot program 

becoming operative. Therefore, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposal operative 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: (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–2015–22 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–2015–22. 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–Phlx– 

2015–22 and should be submitted on or 

before April 7, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–06011 Filed 3–16–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74472; File No. SR– 

NASDAQ–2015–017] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Provide a 

Limited Price Guarantee to Certain 

Companies That Switch Their Listing 

to Nasdaq From Another Exchange 

March 11, 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 February 

25, 2015, The NASDAQ Stock Market 

LLC (‘‘Nasdaq’’ 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 the Substance 

of the Proposed Rule Change 

Nasdaq proposes to provide a limited 

price guarantee to certain companies 

that switch their listing to Nasdaq from 

another securities exchange. The text of 

the proposed rule change is available on 

the Exchange’s Web site at http://

nasdaq.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 

Nasdaq recently adopted an allinclusive annual listing fee, which 

simplifies billing and provides 

transparency and certainty to companies 

as to the annual cost of listing.3 This 

new fee structure was designed, 

primarily, to address customer 

complaints about the number and in 

some cases the variable nature of certain 

of Nasdaq’s listing fees. It also provides 

benefits to Nasdaq, including 

eliminating the multiple invoices that 

were sent to a company each year and 

providing more certainty as to revenue.4

While this new fee structure will 

become operative for all listed 

companies in 2018, currently listed 

companies were allowed to elect to be 

subject to the all-inclusive annual 

listing fee effective January 1, 2015, and 

were provided certain incentives to do 

so.5 In addition, because they may have 

made their listing decision based on 

Nasdaq’s prior fee schedule, any 

company that applied to list on Nasdaq 

prior to January 1, 2015, and lists after 

that date, is also provided an 

mstockstill on DSK4VPTVN1PROD with NOTICES