8308 Federal Register / Vol. 81, No. 32 / Thursday, February 18, 2016 / Notices 

204See 17 CFR 201.451. 

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

2 17 CFR 240.19b–4. 

3References to rules are to Phlx rules unless 

otherwise noted. 

4See, e.g., Securities Exchange Act Release No. 

37019 (August 17, 1982), 47 FR 37019 (August 24, 

1982) (SR–Phlx–81–1) (approval order). 

5Electronic traders include market makers that 

are streaming quote traders (‘‘SQTs’’), remote 

streaming quote traders (‘‘RSQTs’’), and off-floor 

specialists (‘‘Remote Specialists’’). See Rules 

1014(b)(ii)(A), 1014(b)(ii)(B), and 1020. 

6Remote Specialists do not have a physical 

presence on the floor of the Exchange. Rule 1020. 

7While the vast majority of options rules are 

found in Rule 1000 and higher of the Exchange’s 

rule book, some older options-related rules, such as 

Rules 505 and 506, are in the Exchange’s rule book 

below Rule 1000. 

8 ‘‘Leasing’’ is the now-obsolete practice or one 

specialist leasing, or renting, an allocated issue to 

another specialist. 

the decisional process would be 

significantly aided by oral argument.204

The Commission notes the record is 

extensive, and contains significant 

amounts of data and information related 

to the Capital Plan. As a result, the 

Commission does not believe that either 

the presentation of facts and legal 

arguments in the briefs and record or 

the decisional process would be 

significantly aided by oral argument. 

Accordingly, the Commission denies the 

Oral Argument Motion. 

V. Conclusion 

It is therefore ordered that the earlier 

action taken by delegated authority, 

Securities Exchange Act Release No. 

74452 (March 6, 2015), 80 FR 13058 

(March 12, 2015) is set aside and 

pursuant to section 19(b)(2) of the 

Exchange Act SR–OCC–2015–02 is 

approved. All pending motions in this 

matter are hereby denied. 

For the reasons stated above, it is 

hereby: 

Ordered that the earlier action taken 

by delegated authority, Securities 

Exchange Act Release No. 74452 (March 

6, 2015), 80 FR 13058 (March 12, 2015) 

is hereby set aside; and 

It is further ordered that SR–OCC– 

2015–02 is hereby approved pursuant to 

section 19(b)(2) of the Exchange Act; 

and 

It is further ordered that the Motion to 

Reinstitute Automatic Stay is denied as 

moot; and 

It is further ordered that the Motion to 

Expedite the Commission’s Ruling on 

the Pending Motion to Reinstitute the 

Automatic Stay is denied as moot; and 

It is further ordered that the Motion 

for an Order (1) Referring this Matter to 

a Hearing Officer for the Taking of 

Additional Evidence, And (2) Directing 

Discovery in Advance of the Hearing is 

denied; and 

It is further ordered that the Motion 

for Oral Argument in Connection with 

the Commission’s Review of the Staff’s 

Order Approving OCC’s Capital Plan 

and Supporting Brief is denied. 

By the Commission. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2016–03265 Filed 2–17–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–77121; File No. SR–Phlx– 

2016–22] 

Self-Regulatory Organizations; 

NASDAQ PHLX LLC; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change Regarding Rule 

505 and Rule 506 

February 11, 2016. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on February 

5, 2016, NASDAQ PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘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 

The Exchange is filing with the 

Commission a proposal to delete Rule 

505 (Allocation, Reallocation and 

Transfer of Issues) and update Rule 506 

(Allocation Application).3

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqomxphlx.

cchwallstreet.com, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to update its 

rules to delete Rule 505 (Allocation, 

Reallocation and Transfer of Issues) and 

update Rule 506 (Allocation 

Application). 

Rules 505 and 506 were approved 

more than three decades ago,4 at which 

time Exchange options trading was 

strictly on-floor open outcry through 

specialists. Exchange options trading 

developed into a robust hybrid system 

that is currently largely electronic and 

off-floor 5 but continues to have on-floor 

specialists 6 and open outcry trading. 

The Exchange is now consolidating its 

Rules 505 and 506.7 Having found that 

some of the concepts in Rule 505 are 

obsolete and that others belong in Rule 

506, the Exchange is deleting Rule 505. 

Simultaneously, the Exchange is 

updating Rule 506 to make it more 

easily readable and to transfer certain 

concepts from Rule 505 to Rule 506. 

These changes are described below. 

Deletion of Rule 505 

The Exchange has concluded that 

with the placement of certain concepts 

from Rule 505 into Rule 506, Rule 505 

is no longer needed. The Exchange 

believes that it is desirable to discuss 

the process of allocation or reallocation 

application, allocation, reallocation, and 

transfer in one rule, namely Rule 506. 

Moreover, ‘‘leasing’’ is not practiced on 

the Exchange and obsolete language in 

Rule 505 in respect of leasing is no 

longer needed.8 The Exchange proposes 

to therefore delete Rule 505, and to 

update and clarify Rule 506 to be more 

descriptive and to add several concepts 

from deleted Rule 505. 

Updating of Rule 506 

First, Rule 506 is updated to make it 

clear to the reader that the rule applies 

to the process of allocation application 

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Federal Register / Vol. 81, No. 32 / Thursday, February 18, 2016 / Notices 8309 

9The ability of the Exchange to require that the 

application include other information is continued. 

Rule 506(b). The Exchange is removing from section 

(b) antiquated language regarding system 

acceptance/execution levels and guarantees, as 

these are not currently used and are therefore 

obsolete. The language was used with allocation 

and transfers at a time when there was a lack of 

uniformity regarding execution levels, as opposed 

to standardization now (e.g., 1-up, 10-up). Rule 

506(b). 

10Automatic allocations are discussed in 

Supplementary Material .02 to Rule 506. The 

Exchange proposes to add ‘‘Automatic’’ in front of 

the current title ‘‘Allocation of Options on Related 

Securities’’ so that the title is more descriptive. The 

Exchange also proposes to rename ‘‘Supplementary 

Material’’ to ‘‘Commentary’’ to conform with the 

general naming convention for rules. 

11The term ‘‘specialist unit’’ is used for 

uniformity and readability in section Rule 506(a) 

and elsewhere in the rule (e.g., sections (d), (e), 

Commentary .01 (renamed from Supplementary 

Material .01 to better follow the naming 

convention)). Similarly, ‘‘issue’’ is proposed to be 

changed to ‘‘options class’’. 

12The Exchange proposes to also remove obsolete 

language regarding system acceptance/execution 

levels from Rule 506(d). 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(5). 

as well as allocation, reallocation, and 

transfer. Specifically, the title to Rule 

506 is expanded to state ‘‘Allocation 

Application, Allocation, Reallocation, 

and Transfer’’. This will allow the 

reader to more easily understand what 

Rule 506 is about. 

Second, the Exchange is adding 

language to indicate that applications 

may be regarding reallocation. Section 

(b) of Rule 506 is expanded to state that 

an allocation or reallocation application 

shall be submitted to the Exchange’s 

staff in writing. Each allocation or 

reallocation application will continue to 

include, at a minimum, the name and 

background of the head specialist and 

assistant specialist(s) (except that a 

Remote Specialist need not include an 

assistant specialist), the unit’s 

experience and capitalization 

demonstrating an ability to trade the 

particular options class sought, and any 

other reasons why the unit believes it 

should be assigned or allocated the 

security.9

Third, section (c) of Rule 506 states 

that allocation decisions and automatic 

allocations 10 shall be communicated in 

writing to Exchange members. The 

Exchange proposes to add into section 

(c) language to state that reallocation or 

transfer decisions, like allocation 

decisions and automatic allocations, 

shall be communicated in writing to 

Exchange members. 

Fourth, the Exchange is transferring 

the ‘‘Registrant’’ concept from deleted 

Rule 505 to section (d) of Rule 506 

indicating in whose names an options 

class needs to be registered; and 

indicating that Registrant will act as 

specialist for a period of at least one 

year (known as ‘‘minimum specialist 

period’’). Specifically, the Exchange 

proposes to add to section (d) the 

following language: 

Upon allocation, reallocation, or 

transfer of an options class, the options 

class must be registered in either the 

name of the specialist unit, or jointly in 

the name of the unit and the specialist 

(‘‘Registrant’’). Each Registrant must be 

an Exchange member and an approved 

specialist. The Registrant shall act as 

specialist for the options class for at 

least one year (‘‘minimum specialist 

period’’); unless some other period is 

defined by the Exchange pursuant to 

this rule. After expiration of the 

minimum specialist period, the 

Exchange may re-allocate the options 

class. 

In transferring the ‘‘Registrant’’ 

concept from deleted Rule 505, the 

Exchange does not state that the options 

class can be registered solely in the 

name of an individual acting as 

specialist since this is not the current 

practice. Rather, the Exchange proposes 

to state that the options class must be 

registered in either the name of the 

specialist unit, or jointly in the name of 

the unit and the specialist. 

Commensurate with other changes and 

the language of Rule 506, the Exchange 

is also proposing to state in Rule 506(d) 

that once the specialist unit is allocated, 

reallocated, or transferred an options 

class,11 such specialist unit will notify 

the Exchange in writing regarding any 

material change in the application for 

any assigned options class.12

Fifth, the Exchange is transferring 

from Commentary .01 of deleted Rule 

505 to new Commentary.03 of Rule 506 

the concept that the Exchange may 

establish a period of less than one year 

for Registrant to act as a specialist in an 

options class (known as ‘‘alternate 

specialist period’’). This allows the 

Exchange to establish a period of time 

that is less than one year, which is 

shorter than the minimum specialist 

period. During the alternate specialist 

period established by the Exchange the 

Registrant must act as specialist in an 

allocated options class. If the Exchange 

decides to establish an alternate 

specialist period, it will communicate 

such period in solicitation applications. 

Also, after the alternate or minimum 

specialist period the Exchange may reallocate an options class. Specifically, 

the Exchange proposes to state in 

Commentary .03: 

.03 Alternate Specialist Period. 

The Exchange may establish that a 

Registrant shall act as a specialist in an 

allocated options class for a shorter 

period defined by the Exchange that is 

less than one year (‘‘alternate specialist 

period’’). If the Exchange establishes an 

alternate specialist period, it will 

communicate such period in solicitation 

applications (notices) pursuant to Rule 

506. After expiration of the alternate 

specialist period, the Exchange may reallocate the options class. 

The Exchange believes that these noncontroversial changes to consolidate 

Rules 505 and 506 and to update and 

modernize Rule 506 as discussed will 

make remaining Rule 506 clearer and 

easier to use. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 13 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 14

in particular, in that it is designed to 

promote just and equitable principles of 

trade and to protect investors and the 

public interest by deleting Rule 505 and 

updating Rule 506 and thereby 

consolidating the rules as discussed. 

The Exchange believes that the rule 

change will promote just and equitable 

principles of trade by making the rules 

clearer and easier to use. The Exchange 

is proposing to get rid of an older rule, 

specifically Rule 505, and to consolidate 

certain concepts from Rule 505 into 

remaining Rule 506. By doing so the 

Exchange is deleting obsolete language 

in Rule 505 regarding options classes 

that are subject to a lease, as leasing is 

not practiced on the Exchange. The 

Exchange is clarifying that Rule 506 will 

deal with allocation, reallocation, and 

transfer and that allocation, reallocation, 

or transfer decisions and automatic 

allocations will be communicated in 

writing to Exchange members. The 

Exchange proposes to transfer from 

deleted Rule 505 to Rule 506 the 

Registrant concept indicating that an 

options class must be registered in 

either the name of the specialist unit, or 

jointly in the name of the unit and the 

specialist; and indicating that Registrant 

will act as specialist for a one year 

minimum specialist period. The 

Exchange proposes to state in Rule 506 

that the Exchange can establish an 

alternate specialist period that is shorter 

than the minimum specialist period, 

and that such alternate specialist period 

will be communicated in solicitation 

applications. The Exchange will also 

update language in Rule 506 for clarity 

and readability (e.g., ‘‘specialist unit’’ 

and ‘‘options class’’). 

The Exchange believes that the 

proposed non-controversial change to 

consolidate Rules 505 and 506 and to 

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8310 Federal Register / Vol. 81, No. 32 / Thursday, February 18, 2016 / Notices 

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

16 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. 17 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. 

update and modernize Rule 506 will 

make Rule 506 clearer and easier to use 

to the benefit of market participants. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended. 

While the Exchange does not believe 

that the proposed non-controversial 

change is a burden on competition, or 

is competitive in nature, the Exchange 

believes that clearer, updated rules are 

always beneficial to 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 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A) 15 of the Act and Rule 19b– 

4(f)(6) thereunder 16 in that it effects a 

change that: (i) Does not significantly 

affect the protection of investors or the 

public interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, does not become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest. 

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 SRPhlx-2016–22 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–2016–22. 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 such 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–Phlx– 

2016–22, and should be submitted on or 

before March 10, 2016. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–03274 Filed 2–17–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–77110; File No. SR– 

NYSEMKT–2016–23] 

Self-Regulatory Organizations; NYSE 

MKT LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Modifying the Amex 

Options Deep Market Data Product 

February 11, 2016. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on February 

4, 2016, NYSE MKT LLC (the 

‘‘Exchange’’ or ‘‘NYSE MKT’’) 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 self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to modify the 

Amex Options Deep market data 

product. The proposed rule change is 

available on the Exchange’s Web site at 

www.nyse.com, at the principal office of 

the Exchange, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to modify the 

Amex Options Deep market data 

product. 

mstockstill on DSK4VPTVN1PROD with NOTICES