50584 Federal Register / Vol. 86, No. 172 / Thursday, September 9, 2021 / Notices 

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

2 17 CFR 240.19b–4. 

3 A ‘‘Market Maker’’ means a Streaming Quote 

Trader or a Remote Streaming Quote Trader who 

enters quotations for his own account electronically 

into the System. See Options 1, Section 1(b)(28). A 

‘‘Streaming Quote Trader’’ or ‘‘SQT’’ means a 

Market Maker who has received permission from 

the Exchange to generate and submit option 

quotations electronically in options to which such 

SQT is assigned. An SQT may only submit such 

quotations while such SQT is physically present on 

the trading floor of the Exchange. An SQT may only 

submit quotes in classes of options in which the 

SQT is assigned. See Options 1, Section 1(b)(54). A 

‘‘Remote Streaming Quote Trader’’ or ‘‘RSQT’’ 

means a Market Maker that is a member affiliated 

with an Remote Streaming Quote Trader 

Organization with no physical trading floor 

presence who has received permission from the 

Exchange to generate and submit option quotations 

electronically in options to which such RSQT has 

been assigned. A qualified RSQT may function as 

a Remote Lead Market Maker upon Exchange 

approval. An RSQT is also known as a Remote 

Market Maker (‘‘RMM’’) pursuant to Options 2, 

Section 11. A Remote Streaming Quote 

Organization (‘‘RSQTO’’) or Remote Market Maker 

Organization (‘‘RMO’’) are Exchange member 

organizations that have qualified pursuant to 

Options 2, Section 1. See Options 1, Section 

1(b)(49). 

4 A ‘‘Lead Market Maker’’ means a member who 

is registered as an options Lead Market Maker 

pursuant to Options 2, Section 12(a). A Lead Market 

Maker includes a Remote Lead Market Maker which 

is defined as a Lead Market Maker in one or more 

classes that does not have a physical presence on 

an Exchange’s trading floor and is approved by the 

Exchange pursuant to Options 2, Section 11. See 

Options 1, Section 1(b)(27). 

5 Phlx previously amended its Options 4A, 

Section 12, Terms of Option Contracts, to change 

the number of expirations that the Exchange may 

open for trading in series of options related to LongTerm Options Series of index options. See 

Securities Exchange Act Release No. 88460 (March 

23, 2020), 85 FR 17146 (March 26, 2020) (SR–Phlx– 

2020–10) (Notice of Filing and Immediate 

Effectiveness of Proposed Rule Change To Amend 

Options 4A, Section 12, Terms of Option Contracts). 

This proposal amended Phlx’s current expiration 

for long-term index options from those series not 

having less than nine and up to 60 months to 

expirations to a number of expirations not having 

less than twelve and up to 60 months to expiration 

with respect to Long-Term Options Series. 

6 Lead Market Makers are required to make twosided markets in any Quarterly Option Series, any 

Adjusted Option Series, and any LEAP. See Options 

2, Section 5(c)(2)(B). 

7 Directed SQTs and Directed RSQTs are not 

required to make two-sided markets in any 

Quarterly Option Series, any Adjusted Option 

Series, and any LEAP. See Options 2, Section 

5(c)(2)(C). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92873; File No. SR–Phlx– 

2021–48] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Various Phlx 

Rules 

September 2, 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 August 

23, 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 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 Options 2, Section 5, Electronic 

Market Maker Obligations and Quoting 

Requirements, Options 2, Section 10, 

Directed Orders, Options 3, Section 13, 

Price Improvement XL (‘‘PIXL’’), and 

Options 3, Section 26, Message Traffic 

Mitigation. 

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 Exchange proposes to amend 

Phlx Rules at Options 2, Section 5, 

Electronic Market Maker Obligations 

and Quoting Requirements, Options 2, 

Section 10, Directed Orders, Options 3, 

Section 13, Price Improvement XL 

(‘‘PIXL’’), and Options 3, Section 26, 

Message Traffic Mitigation. Each change 

is described below. 

Options 2, Section 5 

The Exchange proposes to amend 

Options 2, Section 5, which describes 

quoting obligations for Market Makers 3

and Lead Market Makers,4 to conform 

the description of a LEAP for index 

options with Options 4A, Section 

12(b)(2). Today, SQTs and RSQTs are 

not required to make two-sided markets 

in any Quarterly Option Series, any 

adjusted option series, and any option 

series with an expiration of nine months 

or greater, otherwise known as longterm options series or ‘‘LEAPs.’’ Current 

Options 2, Section 5(c)(2)(A) describes a 

LEAP as any option series with an 

expiration of nine months or greater, 

while Options 4A, Section 12(b)(2) 

describes a LEAP on an index option as 

a series of options having not less than 

twelve and up to 60 months to 

expiration.5 The Exchange proposes to 

amend Options 2, Section 5(c)(2)(A) to 

explicitly define a LEAP by product. 

Specifically, the Exchange proposes to 

add the following phrase to end of the 

paragraph, ‘‘for options on equities and 

exchange-traded funds (‘‘ETFs’’) or with 

an expiration of twelve months or 

greater for index options’’ to distinguish 

LEAPs for options on equities and ETFs, 

which have an opening month of 9 

months, from LEAPS for index options, 

which have an opening month of 12 

months. This proposal is nonsubstantive as Options 4A, Section 

12(b)(2) already defines a LEAP on an 

index option. The Exchange is simply 

conforming Options 2, Section 

5(c)(2)(A) to Options 4A, Section 

12(b)(2). 

Similar changes to distinguish terms 

for LEAPs on index options are 

proposed for Options 2, Section 

5(c)(2)(B) and (C) which are applicable 

to Lead Market Makers,6 and Directed 

SQTs and Directed RSQTs.7 Also, a 

similar change is proposed to be added 

to Options 2, Section 5(c)(2)(D) which 

generally describes the manner in which 

the Exchange calculates quoting 

obligations. This amendment will bring 

greater clarity to the Exchange’s rules. 

Options 2, Section 10 

The Exchange proposes to correct an 

improper citation within Options 2, 

Section 10(a)(iii) to Options 10, Section 

11(a)(1)(C). The citation should refer to 

the allocation rule at Options 3, Section 

10(a)(1). 

Options 3, Section 13 

The Exchange proposes to amend 

Options 3, Section 13, Price 

Improvement XL (‘‘PIXL’’). Specifically, 

the Exchange proposes to update rule 

citations within Options 3, Section 


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Federal Register / Vol. 86, No. 172 / Thursday, September 9, 2021 / Notices 50585 

8See Securities Exchange Act Release No. 91058 

(February 4, 2021), 86 FR 8966 (February 10, 2021) 

(SR-Phlx-2021–04) (Notice of Filing and Immediate 

Effectiveness of Proposed Rule Change To Relocate 

Its PSX Equity and General Rules From Its Current 

Rulebook Into Its New Rulebook Shell and Make 

Other Changes to the Phlx Rules). 

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

10 15 U.S.C. 78f(b)(5). 11 15 U.S.C. 78s(b)(3)(A)(iii). 

13(c)—(e) to Options 9. The rule 

citations to ‘‘Options 9, Section 1’’ and 

‘‘Options 9, Section’’ are being replaced 

with ‘‘General 9, Section 1(c).’’ The 

Exchange previously relocated Options 

9, Section 1, Conduct Inconsistent with 

Just and Equitable Principles of Trade, 

to General 9, Section 1(c).8 Certain 

citations were missing the Section ‘‘1’’ 

as well. The Exchange also proposes to 

make ‘‘exceed’’ plural within Options 3, 

Section 13(d). 

Options 3 Section 26 

The Exchange proposes to amend 

Options 3, Section 26, Message Traffic 

Mitigation. Specifically, the Exchange 

proposes to amend Options 3, Section 

26(a)(3) which currently provides, ‘‘The 

Exchange shall disseminate an updated 

bid and offer price, together with the 

size associated with such bid and offer, 

when:. . . the size associated with the 

Exchange’s bid (offer) increases by an 

amount greater than or equal to a 

percentage (never to exceed 20%) of the 

size associated with previously 

disseminated bid (offer). Such 

percentage, which shall never exceed 

20%, shall be determined on an issueby-issue basis by the Exchange and 

announced to membership via Exchange 

circular.’’ The Exchange proposes to 

make some non-substantive 

amendments to the sentence, such as 

changing ‘‘shall’’ to ‘‘will’’ and moving 

the phrase ‘‘by the Exchange’’. The 

Exchange also proposes to amend the 

practice of issuing a circular to 

announce the percentage specified in 

Options 3, Section 26(a)(3) to instead 

posting the percentage on the 

Exchange’s website. The Exchange 

believes that posting the information on 

the Exchange’s website will provide 

members and member organizations a 

reference to the current percentage 

provided for within Options 3, Section 

26(a)(3) without the need to locate a 

notice that was previously issued. 

Further, this practice will continue to 

provide transparency to members and 

member organizations. 

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. 

Options 2, Section 5 

The proposed amendment to Options 

2, Section 5 is consistent with the Act 

because it will distinguish LEAPs for 

options on equities and ETFs, which 

have an opening month of 9 months, 

from LEAPS for index options, which 

have an opening month of 12 months. 

This proposal is non-substantive as 

Options 4A, Section 12(b)(2) already 

defines a LEAP on an index option. The 

Exchange is simply conforming Options 

2, Section 5(c)(2)(A) to Options 4A, 

Section 12(b)(2). This amendment will 

bring greater clarity to the Exchange’s 

rules. 

Options 2, Section 10 

The Exchange’s proposal to correct an 

improper citation within Options 2, 

Section 10(a)(iii) is consistent with the 

Act and will bring greater clarity to the 

Exchange’s rules. 

Options 3, Section 13 

The Exchange’s proposal to update 

rule citations within Options 3, Section 

13(c)—(e) from ‘‘Options 9’’ or ‘‘Options 

9, Section 1’’ to ‘‘General 9, Section 

1(c)’’ is consistent with the Act and will 

bring greater clarity to the Exchange’s 

Rulebook. 

Options 3 Section 26 

The Exchange’s proposal to amend 

Options 3, Section 26(a)(3) to make 

some non-substantive amendments, 

such as changing ‘‘shall’’ to ‘‘will’’ and 

moving the phrase ‘‘by the Exchange’’ 

and amending the practice of issuing a 

circular to instead posting the 

percentage on the Exchange’s website 

are consistent with the Act. The 

Exchange believes that posting the 

information on the Exchange’s website 

will provide members and member 

organizations a reference to the current 

percentage within Options 3, Section 

26(a)(3) without the need to locate a 

notice that was previously issued. 

Further, this practice will continue to 

provide transparency to members and 

member organizations. 

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. 

Options 2, Section 5 

The proposed amendment to Options 

2, Section 5 does not impose an undue 

burden on competition because the 

proposal is a non-substantive 

amendment to add specificity to the rule 

by distinguishing LEAPs for options on 

equities and ETFs, which have an 

opening month of 9 months, from 

LEAPS for index options, which have an 

opening month of 12 months. This 

proposal will conform Options 2, 

Section 5(c)(2)(A) to Options 4A, 

Section 12(b)(2). 

Options 2, Section 10 

The Exchange’s proposal to correct an 

improper citation within Options 2, 

Section 10(a)(iii) does not impose an 

undue burden on competition, rather it 

will bring greater clarity to the 

Exchange’s rules. 

Options 3, Section 13 

The Exchange’s proposal to update 

rule citations within Options 3, Section 

13(c)—(e) from ‘‘Options 9’’ or ‘‘Options 

9, Section 1’’ to ‘‘General 9, Section 

1(c)’’ does not impose an undue burden 

on competition, rather the proposal will 

bring greater clarity to the Exchange’s 

Rulebook. 

Options 3 Section 26 

The Exchange’s proposal to amend 

Options 3, Section 26(a)(3) to make 

some non-substantive amendments, 

such as changing ‘‘shall’’ to ‘‘will’’ and 

moving the phrase ‘‘by the Exchange’’ 

and amending the practice of issuing a 

circular to instead posting the 

percentage within Options 3, Section 

26(a)(3) on the Exchange’s website does 

not impose an undue burden on 

competition. The Exchange believes that 

posting the information on the 

Exchange’s website will continue to 

provide transparency to members and 

member organizations. 

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 11 and 


lotter on DSK11XQN23PROD with NOTICES1
50586 Federal Register / Vol. 86, No. 172 / Thursday, September 9, 2021 / Notices 

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 240.19b–4(f)(6). 

14 17 CFR 240.19b–4(f)(6)(iii). 

15For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 16 17 CFR 200.30–3(a)(12). 

subparagraph (f)(6) of Rule 19b–4 

thereunder.12

A proposed rule change filed under 

Rule 19b–4(f)(6) 13 normally does not 

become operative prior to 30 days after 

the date of the filing. However, Rule 

19b–4(f)(6)(iii) 14 permits the 

Commission to designate a shorter time 

if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked that 

the Commission waive the operative 

delay to permit the Exchange to 

immediately amend Options 2, Section 

5 to distinguish LEAPs for options on 

equities and ETFs, which have an 

opening month of 9 months or greater, 

from LEAPS for index options, which 

have an opening month of 12 months or 

greater, thereby conforming Options 2, 

Section 5(c)(2)(A) to Options 4A, 

Section 12(b)(2). Further, the Exchange 

states that amending Options 3, Section 

26(a)(3) will continue to provide 

transparency to members and member 

organizations with respect to the 

manner in which the Exchange manages 

quote traffic. The Commission believes 

that waiving the 30-day operative delay 

is consistent with the protection of 

investors and the public interest 

because (1) it will allow the Exchange 

to immediately implement the proposed 

changes which are designed to add 

clarity and consistency to the 

Exchange’s rules concerning LEAPs and 

(2) it will allow the Exchange to

immediately implement a change

designed to better communicate to

market participants information

concerning quote mitigation. Therefore,

the Commission hereby waives the 30-

day operative delay and designates the

proposed rule change as operative upon

filing.15

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–2021–48 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–2021–48. 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-2021–48 and should 

be submitted on or before September 30, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

J. Matthew DeLesDernier,

Assistant Secretary. 

[FR Doc. 2021–19423 Filed 9–8–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

FEDERAL REGISTER CITATION OF PREVIOUS

ANNOUNCEMENT: 86 FR 50201, September 

7, 2021. 

PREVIOUSLY ANNOUNCED TIME AND DATE OF

THE MEETING: Thursday, September 9, 

2021 at 2:00 p.m. 

CHANGES IN THE MEETING: The Closed 

Meeting scheduled for Thursday, 

September 9, 2021 at 2:00 p.m., has 

been changed to Thursday, September 9, 

2021 at 3:00 p.m. 

CONTACT PERSON FOR MORE INFORMATION: 

For further information; please contact 

Vanessa A. Countryman from the Office 

of the Secretary at (202) 551–5400. 

Dated: September 7, 2021. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2021–19557 Filed 9–7–21; 4:15 pm] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice: 11519] 

30-Day Notice of Proposed Information

Collection: Statement Regarding a

Lost or Stolen U.S. Passport Book and/

or Card

ACTION: Notice of request for public 

comment. 

SUMMARY: The Department of State is 

seeking Office of Management and 

Budget (OMB) approval for the 

information collection described below. 

In accordance with the Paperwork 

Reduction Act of 1995, we are 

requesting comments on this collection 

from all interested individuals and 

organizations. The purpose of this 

notice is to allow 30 days for public 

comment preceding submission of the 

collection to OMB. 

DATES: The Department will accept 

comments from the public up to October 

12, 2021. 

ADDRESSES: Written comments and 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice to www.reginfo.gov/public/do/ 


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