Federal Register / Vol. 79, No. 231 / Tuesday, December 2, 2014 / Notices 71485 

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

6 15 U.S.C. 78f(b)(5). 

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

8 17 CFR 240.19b–4(f)(6). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 5 in general, and furthers the 

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

in particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, and to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system. 

In particular, the proposed rule 

change, which extends the Penny Pilot 

for an additional six months through 

June 30, 2015, and changes the date for 

replacing Penny Pilot issues that were 

delisted to the second trading day 

following January 1, 2015, will enable 

public customers and other market 

participants to express their true prices 

to buy and sell options for the benefit 

of all market participants. This is 

consistent with the Act. 

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. To the 

contrary, this proposal is procompetitive because it allows Penny 

Pilot issues to continue trading on the 

Exchange. Moreover, the Exchange 

believes that the proposed rule change 

will allow for further analysis of the 

Pilot and a determination of how the 

Pilot should be structured in the future; 

and will serve to promote regulatory 

clarity and consistency, thereby 

reducing burdens on the marketplace 

and facilitating investor protection. The 

Pilot is an industry wide initiative 

supported by all other option 

exchanges. The Exchange believes that 

extending the Pilot will allow for 

continued competition between market 

participants on the Exchange trading 

similar products as their counterparts 

on other exchanges, while at the same 

time allowing the Exchange to continue 

to compete for order flow with other 

exchanges in option issues trading as 

part of the Pilot. 

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) 7 of the Act and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.8

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–2014–77 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, Station 

Place, 100 F Street NE., Washington, DC 

20549–9303. 

All submissions should refer to File 

Number SR-Phlx-2014–77. 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 Phlx. 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–2014–77 and should 

be submitted on or before December 23, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–28320 Filed 12–1–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73687; File No. SR–Phlx– 

2014–73] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Active SQF Port Fees 

November 25, 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 November 

12, 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. 


rljohnson on DSK3VPTVN1PROD with NOTICES
71486 Federal Register / Vol. 79, No. 231 / Tuesday, December 2, 2014 / Notices 

3An SQT is defined in Exchange Rule 

1014(b)(ii)(A) as a Registered Options Trader 

(‘‘ROT’’) who has received permission from the 

Exchange to generate and submit option quotations 

electronically in options to which such SQT is 

assigned. 

4An RSQT is defined in Exchange Rule in 

1014(b)(ii)(B) as an ROT that is a member or 

member 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. An RSQT may only submit such 

quotations electronically from off the floor of the 

Exchange. 

5See Securities Exchange Act Release No. 63034 

(October 4, 2010), 75 FR 62441 (October 8, 2010) 

(SR–Phlx–2010–124). 

6The current Active SQF Ports allows member 

organizations to access, information such as 

execution reports, execution report messages, 

auction notifications, and administrative data 

through a single feed. Other data that is available 

includes: (1) Options Auction Notifications (e.g., 

opening imbalance, market exhaust, PIXL or other 

information); (2) Options Symbol Directory 

Messages; (3) System Event Messages (e.g., start of 

messages, start of system hours, start of quoting, 

start of opening); (4) Complex Order Strategy 

Auction Notifications (COLA); (5) Complex Order 

Strategy messages; (6) Option Trading Action 

Messages (e.g., trading halts, resumption of trading); 

and (7) Complex Strategy Trading Action Message 

(e.g., trading halts, resumption of trading). 

7These four connections each contain various 

alpha ranges and therefore four ports are required 

to access all options. 

8The Exchange will migrate on a symbol by 

symbol basis thereby requiring the use of both new 

and old Active SQF Ports for a period of time. The 

Commission notes that the exchange has 

represented that the rollout will take place over an 

8 week period. See Email from Angela Dunn, 

Associate General Counsel, Phlx, to Tyler Raimo, 

Senior Special Counsel, Commission, dated 

November 21, 2014. 

9The Exchange intends to notify each Phlx 

member firm impacted by this proposal in writing, 

either via email or letter, of the amount of their 

Fixed Fee. 

10The Exchange does not anticipate any existing 

or prospective members seeking to become 

Specialists or Market Makers to utilize the current 

system for less than two months given the cost of 

technology and development resources required to 

connect to an exchange. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend 

Section VI of the Exchange’s Fee 

Schedule pertaining to the Active SQF 

Port Fee. 

While the changes proposed herein 

are effective upon filing, the Exchange 

has designated that the amendments be 

operative on December 1, 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 Exchange proposes to amend the 

Active SQF Port Fee in Section VII of 

the Exchange’s Fee Schedule, titled 

‘‘Access Service, Cancellation, 

Membership, Regulatory and Other 

Member Fees,’’ [sic] in order that the 

Exchange may provide an equal 

opportunity to Specialists and Market 

Makers to access the Specialized Quote 

Feed (‘‘SQF’’) data at a lower cost. SQF 

is an interface that enables specialists, 

Streaming Quote Traders (‘‘SQTs’’) 3 and 

Remote Streaming Quote Traders 

(‘‘RSQTs’’) 4 to connect and send quotes 

into Phlx XL.5 Active SQF ports are 

ports that receive inbound quotes at any 

time within that month.6

The Exchange is currently undergoing 

a technology refresh on the Phlx trading 

system. State-of-the-art hardware and 

software architecture will be deployed 

in order to achieve a more efficient and 

more robust infrastructure to support 

the growing needs of market 

participants. Today, the Exchange offers 

Active SQF Ports in sets of four to 

accommodate the connections necessary 

to[sic] the match engine.7 The refresh 

will require at least one port to connect 

to the match engine as compared to a set 

of four ports. The functionality will not 

change as a result of the refresh. The 

Exchange anticipates that Specialists 

and Market Makers will benefit from the 

efficiency of the service that will be 

available to them as a result of the 

refresh. While Specialists and Market 

Makers will be required to make 

network and other technical changes in 

order to connect to the Phlx system via 

SQF, the Exchange believes that 

members costs will decline overall as a 

result of the more efficient connectivity 

offered by the refresh. The increased 

efficiency in connectivity will not 

require the same infrastructure on the 

part of members to connect to the 

Exchange. Members will not need to 

have the same level of connectivity after 

the conversion to the new ports and 

overall this will reduce cost. 

The Exchange intends to provide 

Specialists and Market Makers with new 

SQF ports for connectivity and 

functionality testing so that Specialists 

and Market Makers may migrate from 

the old to the new Active SQF Ports 

over a reasonable period of time.8 For 

purposes of this filing the current ports 

will be referred to as ‘‘current ports’’ 

and the ports available after the refresh 

will be referred to as ‘‘new ports.’’ 

Current ports will be eliminated after 

the refresh is complete and only new 

ports will be utilized thereafter. 

Today, the Exchange assesses member 

organizations an Active SQF Port Fee 

based on the number of active ports. For 

0–4 ports, the member organization is 

assessed $350, for 5–18 ports the 

member organization is assessed $1,350 

and for 19 or more ports the member 

organization is assessed $2,500. Active 

SQF Port Fees are capped at $41,000 per 

month. 

The Exchange proposes to assess 

Specialists and Market Makers, who are 

currently assessed the Active SQF Port 

Fee because they have ports today, a fee 

for their current ports which reflects the 

average of fees assessed to them for the 

months of August, September and 

October 2014 (‘‘Fixed Fee’’). The Active 

SQF Fixed Fee will be assessed on a 

monthly basis to these Specialists and 

Market Makers, for their current ports, 

from December 1, 2014 through March 

31, 2015.9 Any new ports utilized by 

Specialists or Market Makers, that are 

being assessed the Fixed Fee, will not be 

subject to any additional fees through 

March 31, 2015 beyond the Fixed Fee. 

The Exchange proposes to not assess 

Specialists or Market Makers for new 

ports assigned in connection with XL 

refresh during the time period from 

December 1, 2014 through March 31, 

2015. 

All Specialists and Market Makers 

would be subject to the following Active 

SQF Port Fees as of April 1, 2015: 

Number of active SQF port Monthly fee 

per port 

1 ............................................ $2,500 

2–6 ........................................ 4,000 

7 and over ............................ 15,000 

A Specialist or Market Maker who 

was not subject to Fixed Fees prior to 

December 1, 2014, because that 

Specialist or Marker Maker did not have 

Active SQF Ports, will be assessed the 

above Active SQF Port Fees as of 

December 1, 2014.10


rljohnson on DSK3VPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 231 / Tuesday, December 2, 2014 / Notices 71487 

11 15 U.S.C. 78f. 

12 15 U.S.C. 78f(b)(4) and (5). 

13See Securities Exchange Act Release No. 48459 

(September 8, 2003), 68 FR 54034 (September 15, 

2003) (SR–Phlx–2003–61). This proposal offered 

specialists the ability to pay a fixed monthly fee 

which was computed by taking the equity options 

and index options volume in May and June 2003 

and multiplying that volume, for the specific 

specialist, by the specialist transaction fee in effect 

for equity and index options and adding the total 

of the charges for that period. In order to qualify 

for the option of paying a fixed fee, the specialist 

unit must have been trading an equity or index 

option book on the Phlx trading floor in their 

capacity as a specialist unit with Phlx equity option 

or index option transactions in at least one equity 

option or index option book, for at least one year 

from September 1, 2002. 

14The member organization may have some 

technological reasons for desiring the same number 

of ports based on their own technical infrastructure 

but not because of Phlx’s system structure. 

15Currently all Specialists and Market Makers are 

utilizing the current ports. If during the end of 

October 2014 or November 2014 a new Specialist 

or Market Maker desired ports they could still 

obtain the current ports. After December 1, 2014, 

only the new ports would be offered to a new 

Specialist or Market Maker. 

Finally, the Exchange proposes to 

increase the Active SQF fee cap from 

$41,000 to $42,000 a month as of April 

1, 2015. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,11

in general, and with Section 6(b)(4) and 

6(b)(5) of the Act,12 in particular, in that 

it provides for the equitable allocation 

of reasonable dues, fees and other 

charges among members and issuers and 

other persons using any facility or 

system which the Exchange operates or 

controls, and is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

The concept of a fixed fee is not novel. 

A fixed monthly fee was previously 

adopted in connection with a specialist 

unit fee on Phlx.13

The Exchange believes it is reasonable 

to allow Specialists and Market Makers 

to utilize new ports at no cost for a 

period of time to transition their current 

SQF ports to the new ports that will be 

offered as a result of the technology 

refresh. In order to ease the transition 

from the current ports to new ports, 

Specialists and Market Makers would be 

given an extended period to test 

functionality and connectivity and 

resolve any issues that may arise during 

the testing phase with the new ports. 

Therefore, pursuant to this proposal, 

new ports will be offered at no cost to 

those Specialists and Market Makers 

that currently pay Active SQF Fees 

through March 31, 2015 beyond the 

Fixed Fee. Also, Specialists and Market 

Maker will be able to continue to utilize 

their existing SQF ports in the interim 

to continue to conduct their business at 

a fixed cost. The Exchange believes that 

this will allow Specialists and Market 

Makers to have flexibility when testing 

the new ports as they will not be limited 

in number by cost. 

The Exchange believes it is equitable 

and not unfairly discriminatory to allow 

Specialists and Market Makers to utilize 

new ports at no cost because the 

Exchange is permitting all current 

Specialists and Market Makers, who 

will be paying the Active SQF Port 

Fixed Fee, the opportunity to utilize the 

new ports at no costs. 

The Exchange believes that averaging 

the months of August, September and 

October 2014 for the Fixed Active SQF 

Port Fee that will be assessed from 

December 1, 2014 to March 31, 2015 is 

reasonable because the Exchange desires 

to offer Specialists and Market Makers 

who currently have ports some certainty 

with respect to their costs through the 

transition. The Exchange believes that 

utilizing the months August, September 

and October 2014 to determine the 

Fixed Fee is reasonable because it 

should reflect an accurate 

representation of the number of ports 

typically utilized by that particular 

Specialist and Market Maker for Active 

SQF Ports. The three month window 

reflects the typical pattern of usage for 

the Specialist or Market Maker. Also, 

these Specialists and Market Makers 

would not be assessed any fees to utilize 

as many new ports as they require to 

test in the new system. 

The Exchange believes that averaging 

the months of August, September and 

October 2014 for the Fixed Active SQF 

Port Fee that will be assessed from 

December 1, 2014 to March 31, 2015 is 

equitable and not unfairly 

discriminatory because the Exchange 

will assess all current users of Active 

SQF Ports a Fixed Fee based on the 

same criteria. 

The Exchange believes that it is 

reasonable to assess the increased port 

fees as of April 1, 2015 of $2,500 for 1 

port, $4,000 for 2–6 ports and $15,000 

for 7 or more ports. The technology 

refresh will increase the efficiency with 

which members can connect to the Phlx 

system. As a result of the refresh, 

members would not be required to 

utilize the same number of ports as they 

do today to connect to the Phlx system 

and therefore this should reduce the 

number of ports required and lower 

costs.14 The refresh will require at least 

one port to connect to the match engine 

as compared to a set of four ports. The 

functionality will not change as a result 

of the refresh. The Exchange anticipates 

that Specialists and Market Makers will 

benefit from the efficiency of the service 

that will be available to them as a result 

of the refresh. While Specialists and 

Market Makers will be required to make 

network and other technical changes in 

order to connect to the Phlx system via 

SQF, the Exchange believes that 

members costs will decline overall as a 

result of the more efficient connectivity 

offered by the refresh. The increased 

efficiency in connectivity will not 

require the same infrastructure on the 

part of members to connect to the 

Exchange. Members will not need to 

have the same level of connectivity after 

the conversion to the new ports and 

overall this will reduce cost. 

The Exchange believes it is equitable 

and not unfairly discriminatory to 

increase the port fees as of April 1, 2015 

because all Specialists and Market 

Makers would be subject to the same 

fees. 

The Exchange believes that assessing 

new Specialists and Market Makers the 

new Active SQF Port fees as of 

December 1, 2014 if they currently have 

no Active SQF Ports is reasonable 

because these Specialists and Market 

Makers would not be required to 

maintain two sets of ports during the 

transition.15 Existing Specialists and 

Market Makers will be required to 

maintain old as well as new ports 

during portions of the migration. These 

Specialists and Market Makers would be 

able to commence utilizing the new 

ports for testing. As previously 

explained, the technology refresh will 

increase the efficiency with which 

members can connect to the Phlx 

system. As a result of the refresh, 

members would not be required to 

utilize the same number of ports as they 

do today to connect to the Phlx system 

and therefore this should reduce the 

number of ports required and lower 

costs. 

The Exchange believes that assessing 

Specialists and Market Makers the new 

Active SQF Port fees if they currently 

have no Active SQF Ports is equitable 

and not unfairly discriminatory because 

these Specialists and Market Makers 

would not be paying an Active SQF Fee 

for the current ports. All Specialists and 

Market Makers would be paying a fee to 

utilize Active SQF Port Fees. 

The Exchange believes that increasing 

the Active Port Fee cap from $41,000 to 

$42,000 as of April 1, 2015 is reasonable 

because the Exchange is increasing the 

pricing on new ports. The increase in 

the cost of the ports aligns with the 

increased fee cap. 


rljohnson on DSK3VPTVN1PROD with NOTICES
71488 Federal Register / Vol. 79, No. 231 / Tuesday, December 2, 2014 / Notices 

16 15 U.S.C. 78s(b)(3)(A)(ii). 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Penny Pilot was established in June 2012 

and extended in 2014. See Securities Exchange Act 

Release Nos. 67256 (June 26, 2012), 77 FR 39277 

(July 2, 2012) (SR–BX–2012–030) (order approving 

BX option rules and establishing Penny Pilot); and 

72246 (May 23, 2014), 79 FR 31160 (May 30, 2014) 

(SR–BX–2014–027) (notice of filing and immediate 

effectiveness extending the Penny Pilot through 

December 31, 2014). 

The Exchange believes that increasing 

the Active Port Fee cap from $41,000 to 

$42,000 as of April 1, 2015 is equitable 

and not unfairly discriminatory because 

the Exchange will apply the fee cap to 

all Specialists and Market Makers 

uniformly at that time. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

an undue burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange believes that offering 

Specialists and Market Makers the 

opportunity to utilize certain Active 

SQF ports, during this transition with 

XL, at no cost will ensure the transition 

is done smoothly. Specialists and 

Market Makers will continue to be 

assessed the Active SQF Port Fees for 

current ports at a Fixed Fee that is 

representative of their typical usage. 

The Exchange would allow these market 

participants to utilize new ports at no 

cost without limit. 

Finally, increasing the Active SQF 

Fee cap from $41,000 to $42,000 as of 

April 1, 2015 will not impose an undue 

burden on competition because the cap 

would be applied uniformly to all 

market participants. 

The Exchange operates in a highly 

competitive market, comprised of 

twelve options exchanges, in which 

market participants can easily and 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive or 

rebates to be inadequate. Accordingly, 

the fees that are assessed and the rebates 

paid by the Exchange described in the 

above proposal are influenced by these 

robust market forces and therefore must 

remain competitive with fees charged 

and rebates paid by other venues and 

therefore must continue to be reasonable 

and equitably allocated to those 

members that opt to direct orders to the 

Exchange rather than competing venues. 

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)(ii) of the Act.16 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–2014–73 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–2014–73. 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– 

2014–73, and should be submitted on or 

before December 23, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–28319 Filed 12–1–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73689; File No. SR–BX– 

2014–057] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Relating to 

Extension of the Exchange’s Penny 

Pilot Program and Replacement of 

Penny Pilot Issues That Have Been 

Delisted 

November 25, 2014. 

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 November 

21, 2014, NASDAQ OMX BX, Inc. 

(‘‘Exchange’’ or ‘‘BX’’) 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 

BX is filing with the Commission a 

proposal to amend Chapter VI, Section 

5 (Minimum Increments) to extend 

through June 30, 2015, the Penny Pilot 

Program in options classes in certain 

issues (‘‘Penny Pilot’’ or ‘‘Pilot’’), and to 

change the date when delisted classes 

may be replaced in the Penny Pilot.3

The Exchange requests that the 

Commission waive the 30-day operative 


rljohnson on DSK3VPTVN1PROD with NOTICES