Federal Register / Vol. 79, No. 219 / Thursday, November 13, 2014 / Notices 67501 

37See supra note 4 for a description of 

Amendment No. 1. 38 15 U.S.C. 78s(b)(2). 39 Id. 40 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

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–2014–54 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–2014–54. 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 20549–1090 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–Phlx– 

2014–54, and should be submitted on or 

before December 4, 2014. 

V. Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 1 

The Commission finds good cause for 

approving the proposed rule change, as 

amended by Amendment No. 1, prior to 

the 30th day after the date of 

publication of notice in the Federal 

Register. Amendment No. 1 revises the 

proposal to, among other things, provide 

for two instances whereby the Exchange 

will remove legging orders to ensure 

that legging orders are removed when 

public customer orders are crossed 

through the Exchange’s PIXL auction 

pursuant to Phlx Rule 1080(n)(vi) and to 

ensure that legging orders are removed 

consistent with Phlx Rule 1084 

governing order protection.37 The 

Commission notes that the revisions are 

designed to provide market participants 

with more specificity regarding the 

operation and implementation of the 

Exchange’s legging order functionality. 

Accordingly, the Commission finds 

good cause for approving the proposed 

rule change, as amended, on an 

accelerated basis, pursuant to Section 

19(b)(2) of the Act.38

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,39 that the 

proposed rule change (SR–Phlx–2014– 

54), as amended, be, and hereby is, 

approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.40

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–26809 Filed 11–12–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73540; File No. SR– 

NASDAQ–2014–099] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Cancel-Replacement and Route Timer 

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, The NASDAQ Stock Market 

LLC (‘‘NASDAQ’’ 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 NASDAQ. 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 

NASDAQ proposes to add specificity 

to the Exchange’s options trading rules. 

The NASDAQ Options Market (‘‘NOM’’) 

is Nasdaq’s facility for executing and 

routing standardized equity and index 

options. The Exchange proposes to 

define cancel-replacement orders and 

also describe a route timer in Chapter 

VI, entitled ‘‘Trading Systems.’’ 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://

www.nasdaq.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, Proposed Rule 

Change 

1. Purpose 

The Exchange is proposing to amend 

Chapter VI to add additional specificity 

to its rules. The Exchange proposes to 

amend Section 1, Definitions, to define 

a cancel- replacement order. The 

Exchange proposes to amend Section 

11, Order Routing, to add greater 

specificity to the Rulebook concerning a 

route timer. 

Cancel-Replacement Orders 

A market participant today has the 

option of either sending in a cancel 

order and then separately sending in a 

new order which serves as a 

replacement of the original order (two 

separate messages) or sending a single 

cancel-replacement order in one 

message. 

If an order is submitted to the System 

and then subsequently a cancel order is 

sent to the System cancelling the 

original order, the original order will be 

cancelled by the System provided the 

original order was not already filled 

partially or in its entirety. A subsequent 

replacement order would be treated as 

a new order by the System and will not 

retain the priority of the cancelled 

order. 

An order that is entered as one single 

message (‘‘cancel-replacement order’’) 


tkelley on DSK3SPTVN1PROD with NOTICES
67502 Federal Register / Vol. 79, No. 219 / Thursday, November 13, 2014 / Notices 

3With cancel-replacement orders, the original 

order is automatically canceled or reduced by the 

number of contracts that were executed depending 

on the volume of the original order that was filled. 

The market participant is required to enter the 

original order reference number when a cancelreplacement order is sent to the System as one 

message. 

4When a cancel-replacement order is sent to the 

System as one message the original order number 

reference is maintained by the System. 

5Participants can designate orders as either 

available for routing or not available for routing. See 

Chapter VI, Sec. 11(a). 

6 If an order is only partially routed the portion 

that was not routed will be posted to the book. 

7Pursuant to Section 11(c) of Chapter VI, orders 

sent by the System pursuant to the SEEK and SRCH 

routing options to other markets would not retain 

time priority with respect to other orders in the 

System. If an order routed pursuant to SEEK or 

SRCH is subsequently returned, in whole or in part, 

that order, or its remainder, will receive a new time 

stamp reflecting the time of its return to the System. 

8See Phlx Rule 1080(m). 

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

10 15 U.S.C. 78f(b)(5). 

containing two orders (versus two 

messages as described above) will also 

result in the original order being 

cancelled, provided the original order 

was not already filled partially or in its 

entirety.3 The replacement order will be 

considered a new order by the System 

and will have time priority as of the 

time that order is entered into the 

System, except in the case that the 

replacement order only serves to reduce 

the size of the order. A cancelreplacement order which only reduces 

the size of the order will continue to 

retain the priority of the original order.4

The replacement order will not retain 

the priority of the cancelled order 

except when the replacement reduces 

the size of the order and all other terms 

and conditions are retained. This is 

similar to the manner in which partially 

executed orders are prioritized in the 

System. 

By way of example, if the original 

order is for 600 contracts and a market 

participant submits a cancelreplacement order for 600 contracts and 

in doing so, amends a term or condition 

such as the order type, presuming the 

original order was not filled in its 

entirety or partially, the entire original 

order would be cancelled. If the original 

order is for 600 contracts and a market 

participant submits a cancelreplacement order for 600 contracts and 

in doing so, amends a term or condition 

such as the order type, and 600 

contracts were already filled, the cancelreplacement order would be returned to 

the market participant. If the original 

order is for 600 contracts and a market 

participant submits a cancelreplacement order for 600 contracts and 

in doing so, amends a term or condition 

such as the order type, and 300 

contracts were already filled, the order 

would be modified to 300 contracts. 

Finally, if the original order is for 600 

contracts and a market participant 

submits a cancel-replacement order 

solely reducing the size of the order by 

300 contracts, the order would be 

modified to 300 contracts and the 

original order would retain its priority. 

In the previous examples provided, the 

orders would not retain the priority of 

the original orders. 

The Exchange proposes to add the 

following definition in Chapter VI, 

Section 1, ‘‘Cancel-replacement order 

shall mean a single message for the 

immediate cancellation of a previously 

received order and the replacement of 

that order with a new order with new 

terms and conditions. If the previously 

placed order is already filled partially or 

in its entirety, the replacement order is 

automatically canceled or reduced by 

the number of contracts that were 

executed. The replacement order will 

not retain the priority of the cancelled 

order except when the replacement 

order reduces the size of the order and 

all other terms and conditions are 

retained.’’ This language is being added 

to Section 1(e)(1) to reflect the manner 

in which cancel-replacement orders 

function today. This filing does not 

reflect a change to the System; rather, 

the Exchange is memorializing in its 

rules the manner in which cancelreplacement orders are treated today. 

Route Timer 

Today, the System provides a number 

of routing options pursuant to which 

orders are sent to other available market 

centers for potential execution, per the 

entering market participant’s 

instructions.5 The System routing 

options are SEEK or SRCH. With SEEK 

and SRCH, an order will first check the 

System for available contracts for 

execution. After checking the System for 

available contracts, orders are sent to 

other available market centers for 

potential execution, per the entering 

firm’s instructions. 

The Exchange proposes to add 

language in a new Section 11(a)(1)(C) to 

specify that after an order is initially 

routed,6 pursuant to either the SEEK or 

SRCH routing option, the order will post 

to the book and will be routed after a 

time period (‘‘Route Timer’’) not to 

exceed one second as specified by the 

Exchange on its Web site provided that 

the order’s limit price would lock or 

cross other market center(s).7 If, during 

the Route Timer, any new interest 

arrives opposite the order that is equal 

to or better than the away best bid or 

offer (‘‘ABBO’’) price, the order will 

trade against such new interest at the 

ABBO price. Eligible unexecuted orders 

will be routed at the end of the Route 

Timer provided the order was not filled 

and the order’s limit price would 

continue to lock or cross the ABBO. If 

an order was routed with either the 

SEEK or SRCH routing option, and has 

size after such routing, it will execute 

against contra side interest in the book, 

post in the book, and route again 

pursuant to the process described above, 

if applicable, if the order’s limit price 

would lock or cross another market 

center(s). 

This language is being added to 

Section 11 to reflect the manner in 

which the Exchange imposes a Route 

Timer on routed orders today to permit 

quote updates to occur prior to 

subsequent routing. This filing does not 

reflect a change to the System, rather the 

Exchange is memorializing in its rules 

the manner in which orders are routed 

today. 

The Exchange also proposes to amend 

rule text in Section 11(a)(1)(A) of 

Chapter VI concerning the SEEK routing 

option. The Exchange proposes to add 

language which clarifies the differences 

between SEEK and SRCH routing 

options with respect to contracts that 

remain un-executed after routing and 

are posted on the book. The Exchange 

proposes to state, ‘‘Once on the book at 

the limit price, should the order 

subsequently be locked or crossed by 

another market center, the System will 

not route the order to the locking or 

crossing market center.’’ The Exchange 

believes this language more clearly 

differentiates an order routed pursuant 

to SEEK as compared to the SRCH 

routing option. An order routed 

pursuant to the SEEK routing option is 

routable until it is posted at its limit 

price. Once posted at its limit price, an 

order routed pursuant to the SEEK 

routing option would not continue to 

route, as compared to an order routed 

pursuant to the SRCH routing option. 

An order routed pursuant to the SRCH 

routing option is routable for the life of 

the order. The routing functionality is 

similar to functionality currently on 

Phlx.8

The Exchange also proposes to correct 

a typographical error in Chapter VI, 

Section 11(a)(1). 

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 

prevent fraudulent and manipulative 

acts and practices, to promote just and 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 219 / Thursday, November 13, 2014 / Notices 67503 

11 15 U.S.C. 78s(b)(3)(a)(ii). 

12 17 CFR 240.19b–4(f)(6). 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, to 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. 

The Exchange believes that its 

proposal to define cancel-replacement 

orders will add transparency to the 

rules. The Exchange is not amending the 

manner in which the System handles 

these orders. The Exchange is 

memorializing, in its rules, the method 

by which orders are handled by the 

System. The Exchange is defining 

cancel-replacement orders within 

Chapter VI, Section 1. 

Specifically, with respect to cancelreplacement orders that reduce size, the 

Exchange believes that allowing cancelreplacement orders where only size is 

reduced to retain the priority of the 

original order is consistent with the 

manner in which the Exchange treats 

partially executed orders, which 

similarly apply the priority of the 

executed portion of the order to the 

remaining portion of the order. In 

addition, by permitting market 

participants’ orders to remain on the 

book with the original priority and 

reduced size, the Exchange is providing 

market participants an ability to reduce 

exposure. The Exchange believes that 

adding transparency and specificity to 

the Rules protects investors and the 

public interest by reducing the potential 

for investor confusion. 

The Exchange is also memorializing 

the manner in which the Exchange 

routes unexecuted portions of an order 

that will be subsequently routed to other 

markets when it comes back and 

subsequently locks and/or crosses the 

market. The Exchange will continue to 

re-route eligible unexecuted orders 

pursuant to a Route Timer. Contracts 

which remain unexecuted will be 

posted to the book provided the order’s 

limit price would not lock or cross the 

ABBO. Specifically, the Exchange is 

describing the Route Timer that applies 

to eligible unexecuted portions of an 

order which will be subsequently 

routed. The timer protects investors and 

the public interest by providing a brief 

time period to allow the opportunity for 

markets to update quotes prior to 

subsequent routes. 

The Exchange seeks to add language 

concerning the specific manner in 

which the Exchange will handle the 

routed order by specifying the routing 

methods in which SEEK or SRCH orders 

will route to the away market(s). The 

Exchange is adding clarifying language 

to make clear that after an order is 

initially routed, pursuant to either the 

SEEK or SRCH routing option, the order 

will post to the book and will be routed 

after a time period (‘‘Route Timer’’) not 

to exceed one second as specified by the 

Exchange on its Web site provided that 

the order would lock or cross other 

market center(s). If, during the Route 

Timer, any new interest arrives opposite 

the order that is equal to or better than 

the ABBO price, the order will trade 

against such new interest at the ABBO 

price. Eligible unexecuted orders will be 

routed at the end of the Route Timer 

provided the order was not filled and it 

would continue to lock or cross the 

ABBO. If an order was routed with 

either the SEEK or SRCH routing option, 

and has size after such routing, it will 

execute against contra side interest in 

the book, post in the book, and route 

again pursuant to the process described 

above, if applicable, if the order would 

lock or cross another market center(s). 

Further, the proposal to amend rule 

text in Section 11(a)(1)(A) of Chapter VI 

concerning SEEK orders clarifies the 

differences between SEEK and SRCH 

routing options with respect to contracts 

that remain un-executed after routing 

and are posted on the book. The 

Exchange seeks to clearly note that once 

an order routed pursuant to the SEEK 

routing option is on the order book at 

the limit price, it will not route, despite 

the order locking or crossing another 

market center. The Exchange believes 

this language more clearly differentiates 

an order routed pursuant to the SEEK 

routing option as compared to SRCH 

routing option. 

The Exchange believes this language 

adds specificity and detail to the rule 

text so that market participants may 

anticipate the manner in which orders 

are handled by the Exchange when 

routing. The Exchange believes that 

adding transparency and specificity to 

the Rules protects investors and the 

public interest by reducing the potential 

for investor confusion. 

The Exchange’s proposal is intended 

to provide additional specificity to the 

rules in the manner in which the 

System treats cancel-replacement orders 

and handles routing of eligible 

unexecuted portions of previously 

routed orders, which is designed to 

promote just and equitable principles of 

trade. 

The Exchange is not proposing to 

amend the manner in which the System 

operates. Cancel-replacement orders 

have been treated in this fashion since 

NOM was first launched. Further, the 

Routing Timer for subsequent routes has 

also been in place on NOM since its 

launch. The Exchange is proposing 

these additions to the rules in order to 

provide greater specificity to the 

Exchange’s rules. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Nasdaq 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. The Exchange is 

seeking to provide greater transparency 

in its rules. The amendments are nonsubstantive and would apply to all 

market participants in the same manner. 

Permitting cancel-replacement orders to 

retain their original priority does not 

impose a burden on competition 

because the priority is retained only in 

the instance that size alone is changed 

and only if it is reduced. Permitting all 

market participants to reduce their 

exposure without penalty does not 

burden competition, rather it promotes 

competition by allowing participants 

the ability to change their orders in a 

changing market, provided the order 

was not already partially filled or filled 

in its entirety. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

No Written comments were neither 

solicited nor 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)(ii) of the Act 11 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.12

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. The 

Exchange has provided the Commission 


tkelley on DSK3SPTVN1PROD with NOTICES
67504 Federal Register / Vol. 79, No. 219 / Thursday, November 13, 2014 / Notices 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term ‘‘Customer’’ applies to any transaction 

that is identified by a Participant for clearing in the 

Customer range at The Options Clearing 

Corporation (‘‘OCC’’) which is not for the account 

of broker or dealer or for the account of a 

‘‘Professional’’ (as that term is defined in Rule 

1000(b)(14)). Section V of Pricing Schedule. 

4This includes BATS Exchange, Inc. (‘‘BATS’’), 

BOX Options Exchange LLC (‘‘BOX’’), the Chicago 

Board Options Exchange, Incorporated (‘‘CBOE’’), 

C2 Options Exchange, Incorporated (‘‘C2’’), 

International Securities Exchange, LLC (‘‘ISE’’), the 

Miami International Securities Exchange, LLC 

(‘‘MIAX’’), NYSE Arca, Inc. (‘‘NYSE Arca’’), NYSE 

MKT LLC (‘‘NYSE Amex’’) and ISE Gemini, LLC 

(‘‘Gemini’’). 

written notice of its intent to file the 

proposed rule change, along with a brief 

description and text of the proposed 

rule change, at least five business days 

prior to the date of filing of the 

proposed rule change. 

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– 

NASDAQ–2014–099 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. 

All submissions should refer to File 

Number SR–NASDAQ–2014–099. 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 NASDAQ. 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– 

NASDAQ–2014–099 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. 2014–26807 Filed 11–12–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73548; File No. SR–Phlx– 

2014–68] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Routing Fees 

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 

30, 2014, NASDAQ OMX 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 modify 

Section V entitled ‘‘Routing Fees’’ of the 

NASDAQ OMX Phlx LLC Pricing 

Schedule (‘‘Pricing Schedule’’). 

Specifically, the Exchange proposes to 

modify Section V entitled ‘‘Routing 

Fees’’ of the Phlx Pricing Schedule 

(‘‘Pricing Schedule’’). Specifically, the 

Exchange proposes to amend its Routing 

Fees, and to allow aggregation of 

Customer 3 volume for calculating 

discount thresholds and receiving 

discounted routing fees. 

While the changes proposed herein 

are effective upon filing, the Exchange 

has designated that the amendments be 

operative on November 3, 2014. 

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 purpose of this filing is to amend 

the Routing Fees in Section V of the 

Pricing Schedule in order to recoup 

costs incurred by the Exchange to route 

orders to away markets, and to allow 

members and member organizations to 

aggregate their Customer volume for 

calculating discount thresholds and 

receiving discounted routing fees. 

Today, the Exchange assesses a NonCustomer a $0.97 per contract Routing 

Fee to any options exchange for routing 

an order. The Customer Routing Fee for 

option orders routed to The NASDAQ 

Options Market, LLC (‘‘NOM’’) is a 

$0.12 per contract Fixed Fee (‘‘Fixed 

Fee’’) in addition to the actual 

transaction fee assessed. The Customer 

Routing Fee for option orders routed to 

NASDAQ OMX BX, Inc. (‘‘BX Options’’) 

is $0.12 per contract. The Customer 

Routing Fee for option orders routed to 

all other options exchanges 4 (excluding 

NOM and BX Options) is a fixed fee of 

$0.22 per contract in addition to the 

actual transaction fee assessed. If the 

away market pays a rebate, the Routing 

Fee is $0.12 per contract. 

With respect to the fixed costs, the 

Exchange incurs a fee when it utilizes 


tkelley on DSK3SPTVN1PROD with NOTICES