67496 Federal Register / Vol. 79, No. 219 / Thursday, November 13, 2014 / Notices 

7 15 U.S.C. 78s(b)(3)(A). 

8 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. 

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 240.19b–4(f)(6)(iii). 

11For 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). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

market participants. The Exchange 

believes that ensuring the proper rule 

references in PSX Rule 3315 will 

promote market participants’ 

understanding of the rule and its 

administration. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Phlx does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of purposes of the Act. The Exchange 

believes that while rule clarity is 

generally pro-competitive, the act of 

clarifying and conforming the two nonsubstantive typographical errors should 

have little, if any, impact on 

competition. 

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 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)of the Act 7 and of Rule 19b– 

4(f)(6) thereunder.8

A proposed rule change filed under 

Rule 19b–4(f)(6) 9 normally does not 

become operative prior to 30 days after 

the date of filing. However, pursuant to 

Rule 19b–4(f)(6)(iii),10 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. The 

Commission believes that waiving the 

30-day operative delay could eliminate 

confusion that may exist if an operative 

delay was applied to the typographical 

errors, and believes that waiving the 30- 

day operative delay is consistent with 

the protection of investors and the 

public interest.11 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–2014–67 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–PHLX–2014–67. 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– 

2014–67 and should be submitted on or 

before December 4, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–26810 Filed 11–12–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73542; File No. SR– 

NYSEMKT–2014–87] 

Self-Regulatory Organizations; NYSE 

MKT LLC; Notice of Filing of Proposed 

Rule Change Amending the NYSE 

Amex Options Fee Schedule To Add a 

Service Fee for Certain Post Trade 

Adjustments Performed by the 

Exchange To Be Effective December 1, 

2014 

November 6, 2014. 

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 October 

28, 2014, NYSE MKT LLC (the 

‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) a 

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 amend the 

NYSE Amex Options Fee Schedule 

(‘‘Fee Schedule’’) to add a service fee for 

certain post-trade adjustments 

performed by the Exchange. The 

Exchange proposes to implement the fee 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 219 / Thursday, November 13, 2014 / Notices 67497 

3Should the Exchange propose to charge ATP 

Holders for any additional post-trade adjustments 

made on behalf of ATP Holders, other than noncontractual changes that ATP Holders may do on 

their own behalf, the Exchange would only do so 

pursuant to a separate fee filing. 

4The Exchange proposes to add this Service Fee 

to the Fee Schedule immediately following ‘‘Report 

Fees’’ under a new section entitled ‘‘NYSE AMEX 

OPTIONS: SERVICE FEES.’’ 

5See NYSE Amex Options Trader Update, 

available here, http://www1.nyse.com/pdfs/NYSE_

Amex_Options_Service_Fee_Post_Trade_

Adjustments_10_13_14.pdf. 6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(4) and (5). 

8As noted above, the Exchange would offer an 

introductory rate of $1.00 per trade adjusted for the 

first three months that the Service Fee is 

operational. 

change effective December 1, 2014. The 

text of 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 amend the 

Fee Schedule to add a service fee for 

certain post-trade adjustments 

performed by the Exchange (the 

‘‘Service Fee’’). The Exchange proposes 

to implement the Service Fee effective 

December 1, 2014. As described below, 

the proposed Service Fee would apply 

to certain post-trade adjustments 

performed by Exchange staff. The 

purpose of the proposed Service Fee is 

to ensure a fair and reasonable use of 

Exchange resources by allowing the 

Exchange to recoup for valuable 

employee time and resources expended 

on these post-trade adjustments that 

may also be self-executed by ATP 

Holders. In addition, the Exchange 

believes that the proposed Service Fee 

would incentivize ATP Holders to 

process their own post-trade 

adjustments going forward. 

In an effort to conserve Exchange 

resources, the Exchange has provided 

ATP Holders with the functionality to 

perform certain of their own post-trade 

adjustments. Specifically, ATP Holders 

may perform post-trade adjustments on 

their side of the trade that do not affect 

the contractual terms of a transaction. 

For example, ATP Holders may 

currently make the following noncontractual post-trade adjustments 

without Exchange interaction: changing 

the position indicator (e.g., from Open 

to Close or Close to Open); adding or 

removing Clearing Member Trade 

Agreement (‘‘CMTA’’) information; 

allocating trades (e.g., adding multiple 

executing domains or ‘‘give-ups’’); 

changing the clearing account type (e.g., 

Customer, Firm, Market Maker) and 

modifying the optional data field, which 

may be used by ATP Holders for their 

own internal back-office processing 

(collectively, the ‘‘Post-Trade 

Adjustments’’). 

Notwithstanding the availability of 

functionality for ATP Holders to 

perform this function themselves, ATP 

Holders still send the Exchange a 

significant number of requests, on a 

daily basis, to perform these 

straightforward Post-Trade Adjustments 

on the ATP Holders’ behalf. The 

Exchange uses its best efforts to respond 

to these requests by ATP Holders in a 

timely manner. While the Exchange is 

committed to delivering a certain level 

of customer service to its ATP Holders, 

it believes that performing the PostTrade Adjustments free of charge results 

in the diversion of valuable Exchange 

time and resources in a manner that is 

not a [sic] fair and equitable to either the 

Exchange or, ultimately the ATP 

Holders. 

Thus, to help offset the costs of 

having Exchange staff process PostTrade Adjustments on behalf of ATP 

Holders, the Exchange is proposing a 

$5.00 Service Fee, per trade adjusted. 

The Post-Trade Adjustments that would 

be subject to the proposed Service Fee 

would be only those Post-Trade 

Adjustments that do not affect the 

contractual terms of a transaction and 

that are performed by the Exchange on 

behalf of ATP Holders when the ATP 

Holders could otherwise enter the PostTrade Adjustments on their own 

behalf.3 The Exchange notes that if an 

outage or malfunction of an Exchange 

system makes it infeasible for ATP 

Holders to enter Post-Trade 

Adjustments on their own behalf, the 

Exchange would not assess any Service 

Fees to process Post-Trade Adjustments 

on behalf of ATP Holders. 

The $5.00 Service Fee would apply to 

each trade adjusted, not to each noncontractual change that the Exchange is 

requested to make to a given trade.4 For 

example, if, for a given trade, an ATP 

Holder requested that the Exchange 

change both the position indicator from 

open to close and at the same time 

change the CMTA information, the 

Service Fee would still be $5.00, 

because the changes were for the same 

trade. The Exchange believes that the 

$5.00 Service Fee would reasonably 

compensate the Exchange for the 

resources diverted to the Post-Trade 

Adjustments (i.e., cover employee and 

overhead expenses). The Exchange also 

believes that the $5.00 Service Fee may 

operate as an effective disincentive for 

ATP Holders that have relied on the 

Exchange to perform these services free 

of charge and believes these ATP 

Holders may take these tasks in-house 

given the newly introduced costs. 

The Exchange is proposing to 

discount the $5.00 fee to $1.00 per trade 

adjusted for the first three months that 

the Service Fee is operative (i.e., 

December 1, 2014—February 28, 2015). 

The Exchange believes this temporary 

discount is reasonable as it would 

provide ATP Holders time to adjust to 

the Exchange’s new policy. To further 

provide ATP Holders notice of this 

proposed change, the Exchange 

previously announced by Trader Update 

the specific type of Post-Trade 

Adjustments that would be subject to 

the Service Fee.5

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,6 in general, and 

furthers the objectives of Sections 

6(b)(4) and (5) of the Act,7 in particular, 

because it provides for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members, 

issuers and other persons using its 

facilities and does not unfairly 

discriminate between customers, 

issuers, brokers or dealers. 

The Exchange believes that the 

Service Fee is reasonable, equitable and 

not unfairly discriminatory because it is 

designed to ensure a fair and reasonable 

use of Exchange resources by allowing 

the Exchange to recoup for valuable 

employee time and resources expended 

on the Post-Trade Adjustments. The 

Exchange believes that imposing this 

$5.00 fee per trade adjusted would 

reasonably compensate the Exchange for 

the resources diverted to the Post-Trade 

Adjustments (i.e., cover employee and 

overhead expenses).8

Moreover, the Exchange believes that 

the Service Fee would promote a fair 


tkelley on DSK3SPTVN1PROD with NOTICES
67498 Federal Register / Vol. 79, No. 219 / Thursday, November 13, 2014 / Notices 

9 15 U.S.C. 78f(b)(8). 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(2). 

12 15 U.S.C. 78s(b)(2)(B). 

13 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. 73152 

(September 19, 2014), 79 FR 57632. 

and orderly market and protect 

investors and the public interest 

because the Service Fee may result in a 

more efficient use of Exchange 

resources, which would benefit all 

market participants. 

The Exchange believes that the 

Service Fee is reasonable, equitable and 

not unfairly discriminatory because 

ATP Holders would have the option, as 

they do today, to perform the Post-Trade 

Adjustments themselves and the Service 

Fee would only apply if ATP Holders 

elected to rely on the Exchange to 

perform these adjustments for them. 

Moreover, the Service Fee would apply 

equally to all market participants who 

opt to rely on the Exchange to perform 

the Post-Trade Adjustments. In fact, the 

Exchange believes that the proposed 

Service Fee would incentivize ATP 

Holders to process their own Post-Trade 

Adjustments going forward. 

Finally, the Exchange believes that it 

is subject to significant competitive 

forces, as described below in the 

Exchange’s statement regarding the 

burden on competition. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act,9 the Exchange does not believe 

that the proposed rule change would 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

The proposed rule Service Fee is not 

intended to address any competitive 

issues among exchanges or ATP Holders 

but rather to more efficiently use the 

Exchange’s employee time and 

resources, which may ultimately benefit 

ATP Holders. 

The Exchange notes that it operates in 

a highly competitive market in which 

market participants can readily favor 

competing venues, and imposing the 

Service Fee may enable the Exchange to 

improve efficiency and ensure the fair 

and reasonable use of Exchange 

resources. In such an environment, the 

Exchange must continually review, and 

consider adjusting, its fees and credits 

to remain competitive with other 

exchanges. For the reasons described 

above, the Exchange believes that the 

proposed Service Fee reflects this 

competitive environment. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 10 of the Act and 

subparagraph (f)(2) of Rule 19b–4 11

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such 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 

under Section 19(b)(2)(B) 12 of the Act 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 (http://www.sec.gov/

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSEMKT–2014–87 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–NYSEMKT–2014–87. 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 

offices 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– 

NYSEMKT–2014–87, and should be 

submitted on or before December 4, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Kevin M. O’ Neill, 

Deputy Secretary. 

[FR Doc. 2014–26843 Filed 11–12–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73545; File No. SR–Phlx– 

2014–54] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing of Amendment No. 1 and Order 

Granting Accelerated Approval of a 

Proposed Rule Change, as Modified by 

Amendment No. 1, To Add a New 

Complex Order Process Called 

Legging Orders 

November 6, 2014. 

I. Introduction 

On September 10, 2014, NASDAQ 

OMX PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (the ‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend its rules governing the trading of 

complex orders on the Exchange to 

adopt ‘‘legging orders.’’ The proposed 

rule change was published for comment 

in the Federal Register on September 

25, 2014.3 The Commission received no 


tkelley on DSK3SPTVN1PROD with NOTICES