Federal Register / Vol. 86, No. 180 / Tuesday, September 21, 2021 / Notices 52513 

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

2 17 CFR 240.19b–4. 

3Phlx capitalizes the ‘‘of’’ and ‘‘and’’ in title to 

Options 4, Section 2, while ISE does not capitalize 

those words. Phlx Options 4, Section 3(c)(2)(A)(ii) 

uses a ‘‘that’’ instead of a ‘‘than’’ like ISE. Phlx 

Options 4, Section 3(c)(3) has an extra phrase ‘‘of 

this Rule’’ as does Phlx Options 4, Section 

3(c)(4)(B)(ii). Also, Phlx Options 4, Section 

3(c)(4)(B)(ii) cites to ‘‘Options 4, Section 3(b)(5)(i)’’ 

instead of ‘‘Options 4, Section 3(b)(5)(l)’’ like ISE. 

Phlx defines a ‘‘market information sharing 

agreement’’ within Options 4, Section 3(g)(2), 

whereas ISE defines the same term within Options 

4, Section 3(i). ISE Options 4, Section 4(b)(5) has 

a reference to ‘‘paragraph (b)’’ where Phlx does not 

have the reference to (b) it only states of this 

paragraph. Options 4, Section 4(g) lacks an ‘‘if’’ 

similar to ISE. Phlx Options 4, Section 4(f)(1) lacks 

an ‘‘of’’ similar to ISE. ISE Options 4, Section 5(a), 

unlike Phlx, has an extra ‘‘as’’, specific reference to 

‘‘Options 4, Section 6(b)’’ and use of the phrase ‘‘to 

this Section 5’’ in two places. ISE Options 4, 

Section 5(d) has an extra ‘‘the.’’ Phlx Options 4, 

Section 5 at Supplementary Material .03 is missing 

a reference to ‘‘and QQQ’’ which should appear as 

it does in the remainder of the rule filing. Phlx 

Options 4, Section 5 at Supplementary Material .04 

has the term ‘‘P.M. settled’’ where ISE does not and 

capitalizes some terms that ISE does not capitalize. 

The word ‘‘approximate’’ appears in Phlx Options 

4, Section 5 at Supplementary Material .04(c) and 

not in ISE. Phlx Options 4, Section 5 at 

Supplementary Material .04(d) references Options 

1, Section 1(b)(13) when it should reference 

Options 4, Section 3(h) similar to ISE. Options 4, 

Section 3(f)(1) should have an ‘‘and’’ and an ‘‘a’’ 

similar to ISE instead of an ‘‘or.’’ Phlx Options 4, 

Section 5 at Supplementary Material .06 uses the 

term ‘‘Strike Price Program’’ instead of ‘‘Strike 

Program’’ like ISE. Phlx Options 4, Section 8 uses 

the term ‘‘intervals’’ instead of the singular 

‘‘interval’’ like ISE and references Options 2, 

Section 4(c)(1)(A) instead of Options 2, Section 

4(b)(4)(i)(A) like ISE. Phlx Options 4, Section 9 uses 

the term ‘‘Exchange-Traded Fund Shares’’ and ISE 

uses the term ‘‘Fund Shares.’’ Options 4, Section 10 

references different exchange names and terms for 

members and market makers. 

4Options 4, Section 3(f)(4) states, ‘‘the SEC has 

otherwise authorized the listing’’ whereas ISE states 

‘‘the SEC has otherwise authorized the listing.’’ 

Unlike ISE, Phlx does not have the phrase ‘‘In the 

case of options covering Fund Shares approved 

pursuant to’’ at the beginning of Options 4, Section 

4(g)(2). ISE Options 4, Section 5(b) uses ‘‘shall’’ and 

Phlx uses ‘‘will.’’ Phlx Options 4, Section 5 at 

Supplementary .01 has an extra phrase, ‘‘(a) The 

interval of strike prices of series of options on 

individual stocks may be:’’ and a period after Strike 

Price Interval Program. Phlx Options 4, Section 5 

at Supplementary .01(b) uses the term ‘‘security’’ 

instead of ‘‘stock’’ and numbers the subsections 

differently. Phlx has the sentence, ‘‘A security shall 

remain in the $1 Strike Price Interval Program until 

otherwise designated by the Exchange’’ and ISE 

does not have the same sentence, although ISE has 

the same ability to determine what listings are in 

the $1 Strike Price Interval Program. Also, ISE uses 

the phrase ‘‘Strike Price Interval Program’’ in that 

paragraph and Phlx uses ‘‘Strike Program.’’ 

5See Phlx Options 4, Section 3(c)(2). 

6See Securities Exchange Act Release No. 92226 

(June 22, 2021) (SR–ISE–2021–14). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–20326 Filed 9–20–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92990; File No. SR–Phlx– 

2021–53] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Incorporate the Phlx 

Options 4 Rules By Reference to 

Nasdaq ISE, LLC Options 4 Rules 

September 15, 2021. 

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 

September 3, 2021, Nasdaq 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 incorporate 

the Phlx Options 4 Rules by reference to 

Nasdaq ISE, LLC (‘‘ISE’’) Options 4 

Rules. 

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 

The Phlx Options 4 Listing Rules 

provide for the options that may be 

listed and traded on Phlx. The Exchange 

proposes to incorporate the Phlx 

Options 4 Rules by reference to Nasdaq 

ISE, LLC (‘‘ISE’’) Options 4 Rules. 

Options 4, Section 3, Criteria for 

Underlying Securities 

Currently, the Phlx Options 4 Rules 

are very similar to the ISE Options 4 

Rules, except for Options 4, Section 

3(h). The differences between the Phlx 

and ISE Options 4 Rules are nonsubstantive technical differences.3 Other 

changes are non-substantive word 

choice differences.4 Finally, certain 

rules utilize the phrase ‘‘this Rule’’ 

instead of a citation.5

Also, ISE recently amended its 

Options 4, Section 3(h) 6 to make certain 

amendments which Phlx proposes to 

adopt in order that its rules may be 

identical. 

First, Phlx would remove rule text 

within Options 4, Section 3(h) at the 

end of the paragraph which provides, 

‘‘all of the following conditions are 

met.’’ Paragraph (h) would simply end 

with ‘‘provided that:’’ and direct market 

participants to subparagraphs (1) and 

(2). 

Second, the Exchange proposes to 

capitalize ‘‘the’’ at the beginning of 

Options 4, Section 3(h)(1) and remove ‘‘; 

and’’ at the end of the paragraph and 

instead at a period so that 

subparagraphs (1) and (2) are not linked, 

but rather read independently. Today, 

Options 4, Section 3(h)(1) applies to all 

Exchange-Traded Fund Shares. 

Third, the Exchange proposes to 

clarify that Options 4, Section 3(h)(2) 

applies to only international or global 

Exchange-Traded Fund Shares. 

Specifically, the Exchange proposes to 

provide within Options 4, Section 

3(h)(2) that, ‘‘Exchange-Traded Fund 

Shares based on international or global 

indexes, or portfolios that include nonU.S. securities, shall meet the following 

criteria.’’ Proposed Options 4, Sections 

3(h) generally concerns securities 

deemed appropriate for options trading. 

The proposed rule text adds language 

stating that subparagraph (h)(2) of 

Options 4, Section 3 applies to the 

extent the Exchange-Traded Fund Share 

is based on international or global 

indexes, or portfolios that include nonU.S. securities. This language is 

intended to serve as a guidepost and 

clarify that (1) subparagraph (h)(2) does 

not apply to an Exchange-Traded Fund 

Shares based on a U.S. domestic index 

or portfolio, and (2) subparagraph (h)(2) 

includes Exchange-Traded Fund Shares 

that track a portfolio and do not track 

an index. 


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7Subsection (h)(i) concerns passive ExchangeTraded Fund Shares. Subsection (h)(1) provides, 

‘‘represent interests in registered investment 

companies (or series thereof) organized as open-end 

management investment companies, unit 

investment trusts or similar entities that hold 

portfolios of securities and/or financial instruments, 

including, but not limited to, stock index futures 

contracts, options on futures, options on securities 

and indices, equity caps, collars and floors, swap 

agreements, forward contracts, repurchase 

agreements and reverse repurchase agreements (the 

‘‘Financial Instruments’’), and money market 

instruments, including, but not limited to, U.S. 

government securities and repurchase agreements 

(the ‘‘Money Market Instruments’’) comprising or 

otherwise based on or representing investments in 

broad-based indexes or portfolios of securities and/ 

or Financial Instruments and Money Market 

Instruments (or that hold securities in one or more 

other registered investment companies that 

themselves hold such portfolios of securities and/ 

or Financial Instruments and Money Market 

Instruments).’’ 

8Subsection (h)(v) concerns active ExchangeTraded Fund Shares. Subsection (h)(v) Provides, 

‘‘represents an interest in a registered investment 

company (‘‘Investment Company’’) organized as an 

open-end management company or similar entity, 

that invests in a portfolio of securities selected by 

the Investment Company’s investment adviser 

consistent with the Investment Company’s 

investment objectives and policies, which is issued 

in a specified aggregate minimum number in return 

for a deposit of a specified portfolio of securities 

and/or a cash amount with a value equal to the next 

determined net asset value (‘‘NAV’’), and when 

aggregated in the same specified minimum number, 

may be redeemed at a holder’s request, which 

holder will be paid a specified portfolio of 

securities and/or cash with a value equal to the next 

determined NAV (‘‘Managed Fund Share’’). 

9The Exchange will separately request an 

exemption from the rule filing requirements of 

Section 19(b) of the Act for changes to Phlx Options 

4 Rules to the extent such rules are affected solely 

by virtue of a change to ISE Options 4 Rules. The 

Exchange’s proposed rule change will not become 

effective unless and until the Commission grants 

this exemption request. 

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

11 15 U.S.C. 78f(b)(5). 

Fourth, the Exchange proposes to 

remove a phrase within Options 4, 

Section 3(h)(2)(A), which provides, ‘‘for 

series of portfolio depositary receipts 

and index fund shares based on 

international or global indexes,’’. Today, 

Options 4, Section 3(h), subparagraphs 

(h)(1) 7 and (h)(v) 8 permit the Exchange 

to list options on Exchange-Traded 

Fund Shares based on generic listing 

standards for portfolio depositary 

receipts and index fund shares without 

applying component-based 

requirements in subparagraphs 

(h)(2)(B)–(D). By removing the proposed 

rule text, the Exchange would make 

clear that subparagraph (h)(2)(A) applies 

to Exchange-Traded Fund Shares based 

on international or global indexes, or 

portfolios that include non-U.S. 

securities, that are listed pursuant to 

generic listing standards and comply 

with Options 4, Section 3(h) and 

subparagraph (h)(1). 

Fifth, the Exchange proposes to 

replace the term ‘‘comprehensive 

surveillance agreement’’ within Options 

4, Section 3(h)(2) (A)—(D) with the term 

‘‘comprehensive surveillance sharing 

agreement.’’ This will bring greater 

clarity to the term. Further, the 

Exchange proposes to add the phrase ‘‘if 

not available or applicable, the 

Exchange-Traded Fund’s’’ within 

Options 4, Section 3(h)(2)(B), (C), and 

(D) to clarify that when component 

securities are not available, the portfolio 

of securities upon which the ExchangeTraded Fund Share is based can be used 

instead. The Exchange notes that ‘‘not 

available’’ is intended for cases where 

the Exchange does not have access to 

the index components, in those cases 

the Exchange would look to the 

portfolio components. The term ‘‘not 

applicable’’ is intended if the fund is 

active and does not track an index and 

only the portfolio is available. The 

Exchange also proposes to wordsmith 

Options 4, Section 3(h)(2)(B) to provide, 

‘‘any non-U.S. component securities of 

an index on which the Exchange-Traded 

Fund Shares are based or if not available 

or applicable, the Exchange-Traded 

Fund’s portfolio of securities that are 

not subject to comprehensive 

surveillance sharing agreements do not 

in the aggregate represent more than 

50% of the weight of the index or 

portfolio;’’. Finally, the Exchange 

proposes to wordsmith Options 4, 

Section 3(h)(2)(C) and (D) to relocate the 

phrase ‘‘on which the Exchange-Traded 

Fund Shares are based’’ and add ‘‘or 

portfolio’’ to bring greater clarity to the 

rule text by conforming the rule text of 

(C) and (D) to the language within (B). 

The Exchange believes that the revised 

wording will bring greater clarity to the 

rule text. The Exchange proposes to 

change ‘‘than’’ to ‘‘that’’ within Options 

4, Section 3(C)(2)(A)(ii). Also, the 

Exchange proposes to change ‘‘In’’ to 

‘‘in’’ within Options 4, Section 3(h)(1). 

Incorporation by Reference 

The Exchange proposes to incorporate 

by reference the Phlx Options 4 Rules to 

ISE Options 4 Rules. To that end, Phlx 

proposes to replace the current Phlx 

Options 4 Rules with the following rule 

text: 

The rules contained in Nasdaq ISE Options 

4, as such rules may be in effect from time 

to time (the ‘‘Options 4 Rules’’), are hereby 

incorporated by reference into this Nasdaq 

PHLX Options 4, and are thus Nasdaq PHLX 

Rules and thereby applicable to Nasdaq 

PHLX members, member organizations, and 

associated persons and other personnel. 

Nasdaq PHLX members and member 

organizations shall comply with the Options 

4 Rules as though such rules were fully set 

forth herein. All defined terms, including any 

variations thereof, contained in the Options 

4 Rules shall be read to refer to the Nasdaq 

PHLX related meaning of such term. Solely 

by way of example, and not in limitation or 

in exhaustion: The defined term ‘‘Exchange’’ 

in the Options 4 Rules shall be read to refer 

to Nasdaq PHLX; the defined term ‘‘Rule’’ in 

the Options 4 Rules shall be read to refer to 

the Nasdaq PHLX Rule; the defined term 

‘‘Market Maker’’ in the Options 4 Rules shall 

be read to refer to the Nasdaq PHLX Market 

Maker; the defined term ‘‘Primary Market 

Maker’’ in the Options 4 Rules shall be read 

to refer to the Nasdaq PHLX Lead Market 

Maker; the defined term ‘‘Competitive Market 

Maker’’ in the Options 4 Rules shall be read 

to refer to Nasdaq PHLX Market Maker; and 

the defined terms ‘‘Electronic Access 

Member,’’ ‘‘EAM,’’ or ‘‘Member’’ in the 

Options 4 Rules shall be read to refer to the 

Nasdaq PHLX member organization. 

This rule text will account for 

differences that may exist in the usage 

of terms as between Phlx and ISE. The 

proposed rule text list instances in 

which cross references in the ISE 

Options 4 Rules to Phlx Options 4 Rules 

shall be read to refer instead to the 

Exchange Rules, and references to ISE 

terms (whether or not defined) shall be 

read to refer to the Exchange-related 

meanings of those terms. For instance, 

references to defined terms ‘‘Exchange’’ 

or ‘‘ISE’’ shall be read to refer to ISE. 

The Exchange proposes to delete in 

their entirety the Phlx Options 4 Rules 

and incorporate by reference the ISE 

Options 4 Rules.9 Today, the rules of 

Nasdaq GEMX, LLC and Nasdaq MRX, 

LLC are incorporated by reference to the 

rules of ISE. The Exchange will also 

separately file to incorporate the 

Options 4 Rules of Nasdaq BX, Inc. and 

The Nasdaq Stock Market LLC to the ISE 

Options 4 Rules, respectively, to ISE. 

The Exchange believes that harmonizing 

the Options 4 Rules across its 6 Nasdaq 

Affiliated Options Exchanges will assist 

the Exchange in listing options across 

its affiliated markets. Also, 

incorporating by reference the ISE 

Options 4 Rules into the Exchange’s 

rulebook will organize those listing 

rules in a more logical order, thereby 

eliminating unnecessary complexity in 

the listing process and otherwise 

streamlining the Exchange’s existing 

listing rules and their associated 

procedures. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,10 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,11

in particular, in that it is designed to 

promote just and equitable principles of 

trade and to protect investors and the 

public interest. 

The Exchange’s proposal to remove 

the rule text at the end of the paragraph 


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within Options 4, Section 3(h) which 

provides, ‘‘all of the following 

conditions are met,’’ and creating 

separate paragraphs for Options 4, 

Section 3(h)(1) and (2) is consistent with 

the Act. This will de-link these 

subparagraphs so they are read 

independently. Today, Options 4, 

Section 3(h)(1) applies to all ExchangeTraded Fund Shares. The Exchange’s 

proposal to clarify that Options 4, 

Section 3(h)(2) applies to only 

international or global indexes or 

portfolios that include non-U.S. 

securities will bring greater clarity to the 

qualification standards for listing 

options on Exchange-Traded Fund 

Shares. ISE Options 4, Section 3(h) 

currently has similar rule text. Proposed 

Options 4, Sections 3(h) generally 

concerns securities deemed appropriate 

for options trading. The proposed rule 

text adds language stating that 

subparagraph (h)(2) of Options 4, 

Section 3 applies to the extent the 

Exchange-Traded Fund Share is based 

on international or global indexes or 

portfolios that include non-U.S. 

securities. This language is intended to 

serve as a guidepost and clarify that (1) 

subparagraph (h)(2) does not apply to an 

Exchange-Traded Fund Shares based on 

a U.S. domestic index or portfolio, and 

(2) subparagraph (h)(2) includes 

Exchange-Traded Fund Shares that track 

a portfolio and do not track an index. 

The Exchange’s proposal to remove 

the phrase ‘‘for series of portfolio 

depositary receipts and index fund 

shares based on international or global 

indexes,’’ within Options 4, Section 

3(h)(2)(A) is consistent with the Act. 

Today, Options 4, Section 3(h), 

subparagraphs (h)(1) and (h)(v) permit 

the Exchange to list options on 

Exchange-Traded Fund Shares based on 

generic listing standards for portfolio 

depositary receipts and index fund 

shares without applying componentbased requirements in subparagraphs 

(h)(2)(B)–(D). By removing the proposed 

rule text, the Exchange would make 

clear that subparagraph (h)(2)(A) applies 

to Exchange-Traded Fund Shares based 

on international or global indexes, or 

portfolios that include non-U.S. 

securities, that are listed pursuant to 

generic listing standards and comply 

with Options 4, Section 3(h) and 

subparagraph (h)(1). 

The Exchange’s proposal to replace 

the term ‘‘comprehensive surveillance 

agreement’’ within Options 4, Section 

3(h)(2) (A)–(D) with the term 

‘‘comprehensive surveillance sharing 

agreement’’ is consistent with the Act as 

the proposed phrase will bring greater 

clarity to the rule. 

Adding the phrase ‘‘if not available or 

applicable, the Exchange-Traded 

Fund’s’’ to Options 4, Section 3(h)(2)(B), 

(C), and (D) is consistent with the Act 

as it will clarify that when component 

securities are not available, the portfolio 

of securities upon which the ExchangeTraded Fund Share is based can be used 

instead. This rule text currently exists 

within ISE Options 4, Section 3(h). 

The Exchange’s proposal to relocate 

the rule text within Options 4, Section 

3(h)(2)(B), (C), and (D) will bring greater 

clarity to the current rule text by 

explicitly providing that the index being 

referenced is the one on which the 

Exchange-Traded Fund Shares is based. 

Also, adding ‘‘or portfolio’’ to Options 4, 

Section 3(h)(2)(C), and (D) will bring 

greater clarity to the rule text by 

conforming the rule text of (C) and (D) 

to the language within (B). 

As proposed herein, the rule text of 

Options 3, Section 3 will conform to ISE 

Options 3, Section 3. The proposal 

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 by easing the 

Participants’, market participants’, and 

the general public’s navigation and 

reading of the rules, lessening potential 

confusion, and adding clarity for market 

participants. 

As a general matter, deleting its 

existing listing rules and incorporating 

by reference the ISE Options 4 Rules 

will promote a free and open market, 

and will benefit investors, the public, 

and the markets, because the new rules 

will be clearer, better organized, and 

simpler. Also, the proposal is just and 

equitable because it will render the 

Exchange’s listing rules easier for 

members and member organizations to 

read and understand. 

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. 

Removing rule text within Options 4, 

Section 3(h) at the end of the paragraph 

and creating separate paragraphs for 

Options 4, Section 3(h)(1) and (2) does 

not impose an undue burden on 

competition, rather it will de-link these 

subparagraphs so they are read 

independently. Today, Options 4, 

Section 3(h)(1) applies to all ExchangeTraded Fund Shares. Clarifying Options 

4, Section 3(h)(2) applies to only 

international or global Exchange-Traded 

Fund Shares that include non-U.S. 

securities will bring greater clarity to the 

qualification standards for listing 

options on Exchange-Traded Fund 

Shares. Specifically, this language is 

intended to serve as a guidepost and 

clarify that (1) subparagraph (h)(2) does 

not apply to an Exchange-Traded Fund 

Shares based on a U.S. domestic index 

or portfolio, and (2) subparagraph (h)(2) 

includes Exchange-Traded Fund Shares 

that track a portfolio and do not track 

an index. The Exchange will uniformly 

apply the criteria within Options 4, 

Section 3 when it lists options products 

on Phlx. 

Removing rule text within Options 4, 

Section 3(h)(2)(A) does not impose an 

undue burden on competition. Today, 

Options 4, Section 3(h), subparagraphs 

(h)(1) and (h)(v) permit the Exchange to 

list options on Exchange-Traded Fund 

Shares based on generic listing 

standards for portfolio depositary 

receipts and index fund shares without 

applying component-based 

requirements in subparagraphs 

(h)(2)(B)–(D). By removing the proposed 

rule text, the Exchange would make 

clear that subparagraph (h)(2)(A) applies 

to Exchange-Traded Fund Shares based 

on international or global indexes, or 

portfolios that include non-U.S. 

securities, that are listed pursuant to 

generic listing standards and comply 

with Options 4, Section 3(h) and 

subparagraph (h)(1). The Exchange will 

uniformly apply the criteria within 

Options 4, Section 3 when it lists 

options products on Phlx. 

Replacing the term ‘‘comprehensive 

surveillance agreement’’ within Options 

4, Section 3(h)(2)(A)–(D) with 

‘‘comprehensive surveillance sharing 

agreement’’ does not impose an undue 

burden on competition as the new 

phrase will bring greater clarity to the 

rule. 

Adding the phrase ‘‘if not available or 

applicable, the Exchange-Traded 

Fund’s’’ to Options 4, Section 3(h)(2)(B), 

(C), and (D) does not impose an undue 

burden on competition as it will clarify 

that when component securities are not 

available, the portfolio of securities 

upon which the Exchange-Traded Fund 

Share is based can be used instead. 

Relocating the rule text within 

Options 4, Section 3(h)(2)(B), (C), and 

(D) will bring greater clarity to the 

current rule text by explicitly providing 

that the index being referenced is the 

one on which the Exchange-Traded 

Fund Shares is based. Also, adding ‘‘or 

portfolio’’ to Options 4, Section 

3(h)(2)(C), and (D) will bring greater 

clarity to the rule text by conforming the 

rule text of (C) and (D) to the language 

within (B). 

The Exchange does not expect that its 

proposed changes to incorporate Phlx’s 


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12 15 U.S.C. 78s(b)(3)(A)(iii). 

13 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. 14 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. 

Options 4 Rules to ISE’s Options 4 Rules 

will have any competitive impact on 

Phlx’s listing rules, to the contrary, the 

Exchange hopes that by clarifying, 

reorganizing, and streamlining its listing 

rules, the Exchange’s listing process will 

be clear. The proposed changes will 

apply equally to all market 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 

19(b)(3)(A)(iii) of the Act 12 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.13

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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

Phlx–2021–53 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–2021–53. 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–2021–53 and should 

be submitted on or before October 12, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–20329 Filed 9–20–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–93004; File No. SR–MRX– 

2021–10] 

Self-Regulatory Organizations; Nasdaq 

MRX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Options 3, 

Section 17 To Decommission the 

Exchange’s Quote Removal Kill Switch 

Functionality 

September 15, 2021. 

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 

September 2, 2021, Nasdaq MRX, LLC 

(‘‘MRX’’ or ‘‘Exchange’’) 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 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 

decommission the Exchange’s quote 

removal Kill Switch functionality at 

Options 3, Section 17. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/mrx/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. 


lotter on DSK11XQN23PROD with NOTICES1