103002 Federal Register / Vol. 89, No. 243 / Wednesday, December 18, 2024 / Notices 

53NOM conducts surveillances and enforces 

NOM Rules, however only a subset of those rules 

is subject to cross-market surveillance, such as 

margin and position limits. Of note, some NOM 

trading rules are automatically enforced by NOM’s 

System. 

54 15 U.S.C. 78s(b)(3)(A)(ii). 

55 17 CFR 240.19b–4(f)(2). 

56 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 101413 

(October 23, 2024), 89 FR 86007. 

4 15 U.S.C. 78s(b)(2). 

given the lower volume that is 

attributed to these Participants 

combined with the activity that is 

required to be regulated both on the 

Exchange and across options markets. 

There are Exchange rules that involve 

cross market surveillances that relate to 

activities conducted by Firm and 

Broker-Dealer Participants.53 While not 

large in number, when compared to the 

overall number of Exchange rules that 

are surveilled by NOM for on-Exchange 

activity, the Away ORF that would be 

assessed to Firm and Broker-Dealer 

Transactions would account for those 

Options Regulatory Costs. Additionally, 

the Exchange believes that limiting the 

amount of ORF assessed for activity that 

occurs on non-NOM exchanges does not 

impose a burden on intra-market 

competition, rather it avoids 

overlapping ORFs that would otherwise 

be assessed by NOM and other options 

exchanges that also assess an ORF. With 

this model, Customer transactions 

would be assessed a higher Local ORF, 

while not being assessed an Away ORF 

as compared to Firm and Broker-Dealer 

Transactions. The Exchange believes 

that this difference in allocation is 

appropriate and correlates to the degree 

of regulatory responsibility and Options 

Regulatory Costs borne by different 

Participants of the Exchange in light of 

the volume different Participants 

transact 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 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act 54 and Rule 

19b–4(f)(2) 55 thereunder. 

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 

change 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– 

NASDAQ–2024–078 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–NASDAQ–2024–078. 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–NASDAQ–2024–078 and should be 

submitted on or before January 8, 2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.56

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–29921 Filed 12–17–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101889; File No. SR–Phlx– 

2024–51] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Designation of a 

Longer Period for Commission Action 

on a Proposed Rule Change To Amend 

FLEX Floor Trading 

December 12, 2024. 

On October 8, 2024, Nasdaq PHLX 

LLC 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: (i) amend 

Options 8, Section 34, FLEX Trading to 

clarify certain functionality; (ii) list 

p.m.-settled FLEX Index Options whose 

exercise settlement value is derived 

from closing prices on the last trading 

day prior to expiration that expire on or 

within two business days of a third 

Friday-of-the-month expiration day for a 

non-FLEX Option; and (iii) permit FLEX 

Options on certain Exchange-Traded 

Funds to be settled by delivery in cash 

if the underlying security meets 

prescribed criteria and set forth the 

applicable position and exercise limits 

for these options; and (iv) require that 

position and exercise limits for FLEX 

Options be aggregated with non-FLEX 

options in certain circumstances. The 

proposed rule change was published for 

comment in the Federal Register on 

October 29, 2024.3 The Commission has 

received no comment letters on the 

proposed rule change. 

Section 19(b)(2) of the Act 4 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 will either approve the 

proposed rule change, disapprove the 


khammond on DSK9W7S144PROD with NOTICES
Federal Register / Vol. 89, No. 243 / Wednesday, December 18, 2024 / Notices 103003 

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

6 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

3On October 31, 2024, SR–Phlx–2024–50 was 

filed to amend ORF. On November 27, 2024, SR– 

SR–Phlx–2024–50 was withdrawn and this rule 

change was filed. The current proposal amends the 

ORF Rate for Local Customer ‘‘C’’ Origin Code 

transactions executed on Phlx, Local Firm ‘‘F’’ 

Origin Code transactions executed on Phlx, and 

Away ORF Rate Firm ‘‘F’’ Origin Code multi-list 

transactions executed on non-Phlx exchanges. 

4Today, ORF is collected from Customers, 

Professionals and broker-dealers that are not 

affiliated with a clearing member that clear in the 

‘‘C’’ range at OCC. See supra notes 18 and 19 for 

descriptions of Customers and Professionals. 

5The term ‘‘member organization’’ means a 

corporation, partnership (general or limited), 

limited liability partnership, limited liability 

company, business trust or similar organization, 

transacting business as a broker or a dealer in 

securities and which has the status of a member 

organization by virtue of (i) admission to 

membership given to it by the Membership 

Department pursuant to the provisions of General 

3, Sections 5 and 10 or the By-Laws or (ii) the 

transitional rules adopted by the Exchange pursuant 

to Section 6–4 of the By-Laws. References herein to 

officer or partner, when used in the context of a 

member organization, shall include any person 

holding a similar position in any organization other 

than a corporation or partnership that has the status 

of a member organization. See General 1, Section 

1(17). 

6Market participants must record the appropriate 

account origin code on all orders at the time of 

entry of the order. The Exchange represents that it 

has surveillances in place to verify that member 

organizations mark orders with the correct account 

origin code. 

7The Exchange uses reports from OCC when 

assessing and collecting the ORF. 

8CMTA or Clearing Member Trade Assignment is 

a form of ‘‘give-up’’ whereby the position will be 

assigned to a specific clearing firm at OCC. 

9By way of example, if Broker A, a Phlx member 

organization, routes a Customer order to CBOE and 

the transaction executes on CBOE and clears in 

Broker A’s OCC Clearing account, ORF will be 

collected by Phlx from Broker A’s clearing account 

at OCC via direct debit. While this transaction was 

executed on a market other than Phlx, it was 

cleared by a Phlx member organization in the 

member organization’s OCC clearing account in the 

Customer range, therefore there is a regulatory 

nexus between Phlx and the transaction. If Broker 

A was not a Phlx member organization, then no 

ORF should be assessed and collected because there 

is no nexus; the transaction did not execute on Phlx 

nor was it cleared by a Phlx member organization. 

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 December 13, 

2024. The Commission is extending this 

45-day time period. 

The Commission finds it 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,5

designates January 27, 2025, 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 No. SR–Phlx–2024–51). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–29918 Filed 12–17–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101893; File No. SR–Phlx– 

2024–66] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Lower the Options 

Regulatory Fee (ORF) and Adopt a New 

Approach to ORF in 2025 

December 12, 2024. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on November 

27, 2024, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘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 proposes to amend 

Phlx’s Pricing Schedule at Options 7, 

Section 6D, Options Regulatory Fee.3

While the changes proposed herein 

are effective upon filing, the Exchange 

has designated certain amendments to 

be operative on November 1, 2024, and 

other amendments to be operative on 

January 1, 2025, as noted in the Exhibit 

5 and herein. 

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 its current 

ORF in several respects. In summary, 

first, Phlx proposes to reduce its ORF 

from $0.0034 to $0.0022 per contract 

side from November 1, 2024, through 

December 31, 2024. Second, as of 

January 1, 2025, Phlx proposes to 

amend its methodology of collection to: 

(1) specify that it is including options 

transactions in Phlx proprietary 

products; and (2) assess ORF in all 

clearing ranges except market makers 

who clear as ‘‘M’’ at The Options 

Clearing Corporation (‘‘OCC’’). 

Additionally, Phlx will assess a 

different rate for trades executed on 

Phlx (‘‘Local ORF Rate’’) and trades 

executed on non-Phlx exchanges 

(‘‘Away ORF Rate’’). Each change will 

be described below in greater detail. 

Background on Current ORF 

Today, Phlx assesses its ORF for each 

Customer 4 option transaction that is 

either: (1) executed by a member 

organization 5 on Phlx; or (2) cleared by 

a Phlx member organization at OCC in 

the Customer range,6 even if the 

transaction was executed by a nonmember organization of Phlx, regardless 

of the exchange on which the 

transaction occurs.7 If the OCC clearing 

member is a Phlx member organization, 

ORF is assessed and collected on all 

ultimately cleared Customer contracts 

(after adjustment for CMTA 8); and (2) if 

the OCC clearing member is not a Phlx 

member organization, ORF is collected 

only on the cleared Customer contracts 

executed at Phlx, taking into account 

any CMTA instructions which may 

result in collecting the ORF from a nonmember organization.9

Today, in the case where a member 

organization both executes a transaction 

and clears the transaction, the ORF will 


khammond on DSK9W7S144PROD with NOTICES