Federal Register / Vol. 80, No. 7 / Monday, January 12, 2015 / Notices 1567 

13 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. 

execution of complex order strategies, 

such as Box Spreads and Condors, 

which consist of four legs. The proposed 

rule change is designed to protect 

investors and the public interest in that 

the proposal amends a current rule to 

ensure that complex orders with three 

or four option legs where all legs are 

buying or all legs are selling only trade 

against other complex orders in the 

complex order book. The Exchange 

notes that prior to the Legging Filing 

and before the Non-Standard Strategies 

were codified into the Exchange’s rules, 

the complex order strategies affected by 

this proposal were permitted to trade 

and leg into the regular market. 

Therefore, this proposed rule change 

simply adjusts Exchange rules to once 

again permit the execution such 

complex order strategies. The proposed 

rule change will also benefit investors 

and the general public because multilegged strategies will have a greater 

chance of execution when they are 

allowed to leg into the regular market 

and thereby increase the execution rate 

for these orders thus, providing market 

participants with an increased 

opportunity to execute these orders on 

ISE rather than on a competing 

exchange. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose any burden on competition. The 

proposed change to amend the 

restriction against complex order 

strategies, such as Box Spreads and 

Condors, from legging into the regular 

market will allow a greater number of 

complex orders to be executed on the 

Exchange without adversely impacting 

risk to market makers that are quoting 

in the regular market. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

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) of the Act and Rule 19b– 

4(f)(6) thereunder. 

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. 

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 No. SR–ISE– 

2014–56 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–ISE–2014–56. 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 ISE. 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–ISE– 

2014–56 and should be submitted on or 

before February 2, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00221 Filed 1–9–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 74006; File No. SR–NYSE– 

2014–73] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Amending Rule 

123C To Specify That Exchange 

Systems May Close One or More 

Securities Electronically 

January 6, 2015. 

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 December 23, 

2014, New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory 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 amend 

Rule 123C to specify that Exchange 

systems may close one or more 

securities electronically if a Designated 

Market Maker (‘‘DMM’’) registered in a 

security or securities cannot facilitate 

the close of trading as required by 

Exchange rules. 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, 

on the Commission’s Web site at 

www.sec.gov, and at the Commission’s 

Public Reference Room. 


tkelley on DSK3SPTVN1PROD with NOTICES
1568 Federal Register / Vol. 80, No. 7 / Monday, January 12, 2015 / Notices 

4See Rule 123C(7) (Order of Execution at the 

Close). Rule 123C(7)(a) specifies the type of interest 

that must be executed in whole or in part in the 

closing transaction, and the allocation order of such 

interest. 

5See Rule 123C(8). 

6The proposed amendment contemplates that a 

DMM’s inability to close securities either manually 

or electronically would be related to business 

continuity disruptions such as the physical closing 

of the Exchange Trading Floor or equipment and 

connectivity breakdowns that prevent the DMM 

from closing a security either manually or 

electronically. When a DMM is unable to close 

securities manually or electronically, the DMM’s 

affirmative obligations under Rule 104 would not 

apply. 

7See Rule 104(a)(3) and 104(f)(iii). 

8Rule 128 defines a clearly erroneous execution 

as an execution with an obvious error in any term, 

such as price, number of shares or other unit of 

trading, or identification of the security. Under the 

numerical guidelines set forth in Rule 128, an 

execution may be found to be clearly erroneous 

only if the price of the transaction to buy is greater, 

or less in the case of a sale, than the reference price 

by an amount that equals or exceeds the numerical 

guidelines for a particular transaction category. In 

determining whether an execution is clearly 

erroneous, the Exchange generally utilizes the 

consolidated last sale as the Reference Price. 

9Manually-entered Floor interest includes 

interest entered by the DMM on behalf of a Floor 

broker and the DMM interest entered manually. The 

Exchange notes that, under regular trading 

conditions, if manually-entered Floor interest has 

been entered into Exchange systems, Exchange 

systems will not permit a DMM to close a stock 

electronically and the DMM would instead be 

required to close the security manually. The 

Exchange proposes to make this explicit in the text 

of Supplementary Material .10. 10Rule 123C(7)(a) sets forth the interest that must 

be executed or cancelled as part of the closing 

transaction as well as the order of execution. Rule 

123C(7)(b) sets forth the interest that may be used 

to offset a closing imbalance and the order of 

execution (i.e., interest that is not guaranteed to 

participate in the closing transaction). 11Rule 123C(8) governs printing of the closing 

transaction where there is an order imbalance (Rule 

123C(8)(a)) and where there is no order imbalance 

(Rule 123C(8)(b)). 

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 

Rule 123C to specify that Exchange 

systems may close one or more 

securities electronically if a Designated 

Market Maker registered in a security or 

securities cannot facilitate the close of 

trading as required by Exchange rules. 

Rule 123C specifies the procedures to 

be followed at the close of trading on 

the Exchange, including procedures for 

the execution of closing interest,4 which 

interest is guaranteed to participate in 

the closing transaction,5 and the 

determination of the closing print(s) to 

be reported to the Consolidated Tape for 

each security. Supplementary Material 

.10 to Rule 123C (‘‘Rule 123C.10’’) 

currently provides that closings may be 

effectuated manually or electronically. 

However, the current rule contemplates 

that closings would be facilitated by the 

DMM, as provided for in Rule 104(a)(3). 

The Exchange proposes to amend 

Rule 123C.10 to provide that, if a DMM 

cannot facilitate the close of trading for 

one or more securities for which the 

DMM is registered, the Exchange would 

close those securities electronically.6

Unlike DMMs, who have the obligation 

to trade for their own account to supply 

liquidity as needed to facilitate the 

close,7 the Exchange would not supply 

any liquidity when effectuating an 

electronic close. Without the addition of 

liquidity to offset an imbalance, the 

closing price may not be reasonably 

related to the last sale. To avoid closing 

at a price too far away from the last sale, 

the Exchange proposes to establish 

numerical guidelines to provide 

parameters regarding the price a 

security may close when the Exchange 

closes such security. 

As proposed, the closing price of a 

security closed by the Exchange would 

not be greater than or less than the last 

sale price on the Exchange (the 

‘‘Reference Price’’) by an amount within 

the Closing Numerical Guidelines set 

forth below: 

Reference price 

Closing 

numerical 

guideline 

(closing price 

% difference 

from the reference price) 

Greater than $0.00 up to and 

including $25.00 ................ 10 

Greater than $25.00 up to 

and including $50.00 ......... 5 

Greater than $50.00 ............. 3 

The proposed numerical guidelines 

are the same as those currently utilized 

in determining whether an execution 

qualifies as clearly erroneous under 

Rule 128.8 The Exchange believes that 

using the same guidelines when the 

Exchange closes a security 

electronically is appropriate because it 

would reduce the potential for the 

closing price on the Exchange to be 

considered erroneous. 

Further, the Exchange proposes to 

amend Rule 123C.10 to specify the 

eligible interest to be considered in an 

Exchange electronic close. Specifically, 

as proposed, no manually-entered Floor 

interest would participate in an 

Exchange electronic close, and if 

previously entered, would be ignored.9

Further, in performing a close under the 

proposed rule, the Exchange would 

consider all interest eligible to trade in 

the close consistent with Rule 123C(7) 10

and 123C(8)(a).11 Under no 

circumstances, however, would the 

Exchange close a security if the closing 

price would be greater than or less than 

the Reference Price by an amount 

outside the Closing Numerical 

Guidelines. Accordingly, interest 

specified in Rule 123C(7)(a) would not 

participate in a closing trade if such 

interest would cause a closing price to 

be outside the Closing Numerical 

Guidelines. 

The proposed rule would also specify 

that the provisions of Rule 123C(9)(a)(1) 

and 123C(9)(b) would be suspended if 

the Exchange closes a security 

electronically. Rule 123C(9)(a)(1) 

permits the Exchange, on a security-bysecurity basis, to temporarily suspend 

the hours of operation under Rule 52 so 

that offsetting interest may be solicited 

from both on-Floor and off-Floor 

participants and entered after 4:00 p.m. 

ET to reduce the size of the imbalance. 

Rule 123C(9)(b) specifies that only the 

DMM may request the temporary 

suspensions available under Rule 

123C(9)(a). As proposed, if the Exchange 

closes a security electronically, the 

assigned DMM would not have the 

authority to invoke Rule 123C(9)(a)(1). 

Similarly, the proposed rule would 

specify that only the Exchange would be 

able to invoke Rule 123C(9)(a)(2) if the 

Exchange closes a security 

electronically. Rule 123C(9)(a)(2) 

permits temporary suspensions of the 

prohibition on the cancellation or 

reduction of a Market on Close 

(‘‘MOC’’)/Limit on Close (‘‘LOC’’) order 

after 3:58 p.m. where there is a 

legitimate error in such an order and 

execution of the order would cause 

significant price dislocation at the close. 

Only the assigned DMM can request 

relief under Rule 123C(9)(a)(2). Under 

the proposed rule, in an electronic close 

by the Exchange, Rule 123C(9)(a)(2) 

would be in effect but the assigned 

DMM would not have authority to 

temporarily suspend cancellation; only 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 7 / Monday, January 12, 2015 / Notices 1569 

12 15 U.S.C. 78f(b). 

13 15 U.S.C. 78f(b)(5). 

14 15 U.S.C. 78s(b)(3)(A)(iii). 

15 17 CFR 240.19b–4(f)(6). 

16 17 CFR 240.19b–4(f)(6). 

17 17 CFR 240.19b–4(f)(6)(iii). 

18 15 U.S.C. 78s(b)(2)(B). 

the Exchange would be able to invoke 

a temporary suspension under the rule. 

Because of the technology changes 

associated with the proposed rule 

change, the Exchange proposes to 

announce the implementation date via 

Trader Update. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,12 in general, and 

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

of the Act,13 in particular, because it is 

designed to prevent fraudulent and 

manipulative acts and practices, 

promote just and equitable principles of 

trade, remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and protect investors and the 

public interest. The Exchange believes 

that permitting the Exchange to 

automatically close trading would 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system by 

ensuring an orderly close if the 

registered DMM cannot manually or 

electronically facilitate the close of 

trading as required by Exchange rules. 

Similarly, the proposal promotes just 

and equitable principles of trade and 

removes impediments to and perfects 

the mechanism of a free and open 

market by providing customers and the 

investing public with the certainty of a 

close in circumstances where business 

continuity disruptions or other 

emergencies would prevent the assigned 

DMMs from closing a security. For the 

same reasons, the proposal is also 

designed to protect investors as well as 

the public interest. 

The Exchange believes that the 

proposed amendment to Rule 123C.10 

to provide that closings effectuated by 

the Exchange would be within a 

proposed numerical guideline would 

remove impediments to and perfect the 

mechanism of a free and open market 

because having such guidelines 

provides transparency regarding the 

range of potential prices that a security 

may close in such scenario. The 

Exchange further believes that the 

proposed numerical guidelines, which 

are based on existing guidelines for 

clearly erroneous executions, would 

remove impediments to and perfect the 

mechanism of a fair and orderly market 

because in the absence of a DMM 

supplying liquidity, the proposed 

guidelines would reduce the possibility 

for closing prices to not [sic] be 

executed at potentially erroneous prices, 

thereby protecting investors and the 

public. Similarly, the Exchange believes 

that excluding interest eligible for the 

close that would cause an execution to 

occur outside the proposed numerical 

guidelines, even if such interest would 

otherwise be required to be included in 

a close effectuated by a DMM, and 

permitting the Exchange to cancel or 

reduce an MOC/LOC order after 3:58 

p.m. where there is a legitimate error 

and execution of the order would cause 

significant price dislocation at the close, 

would remove impediments to and 

perfect the mechanism of a fair and 

orderly market because it would assure 

that the Exchange could effectuate the 

close within the proposed specified 

price ranges. The proposed rule 

therefore promotes just and equitable 

principles of trade because it provides 

transparency to entering firms of 

whether interest would be eligible to 

participate in a closing transaction 

effectuated by the Exchange. 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change is not intended to 

address competitive issues but rather 

enable the Exchange to close trading 

where circumstances would prevent a 

DMM from facilitating a close. 

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 Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 14 and Rule 

19b–4(f)(6) thereunder.15 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 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 16 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),17 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. 

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) 18 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– 

NYSE–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–NYSE–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 


tkelley on DSK3SPTVN1PROD with NOTICES
1570 Federal Register / Vol. 80, No. 7 / Monday, January 12, 2015 / Notices 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Real-Time Risk Management Fee was 

adopted well over a decade ago for members 

receiving option trading information on-line (i.e., 

electronically) from the Exchange. See Securities 

Exchange Act Release No. 43719 (December 13, 

2000), 65 FR 80975 (December 22, 2000) (SR–Phlx– 

00–97) (notice of filing and immediate 

effectiveness). This fee is, as discussed, being 

deleted as the CTI Port Fee, which is also used on 

other exchanges, is added. 

4Mnemonics are codes that identify member 

organization order entry ports. 

5A Complex Order is any order involving the 

simultaneous purchase and/or sale of two or more 

different options series in the same underlying 

security, priced at a net debit or credit based on the 

relative prices of the individual components, for the 

same account, for the purpose of executing a 

particular investment strategy. Furthermore, a 

Complex Order can also be a stock-option order, 

which is an order to buy or sell a stated number 

of units of an underlying stock or exchange-traded 

fund (‘‘ETF’’) coupled with the purchase or sale of 

options contract(s). See Exchange Rule 1080, 

Commentary .08(a)(i). 

6Similarly, member organizations will continue 

to be required to provide the Exchange with written 

notification of the transition and all additional ports 

which were provided at no cost will be removed at 

the end of the ten business days. 

7See Securities Exchange Act Release No. 73843 

(December 16, 2014) (SR–NASDAQ–2014–122) (not 

yet published). 

8A ‘‘clearing firm’’ is a member organization that 

meets the requirements of Rule 165(c). 

9A ‘‘Specialist’’ is an Exchange member who is 

registered as an options specialist pursuant to Rule 

1020(a). 

10A ‘‘Market Maker’’ includes Registered Options 

Traders (Rule 1014(b)(i) and (ii)), which includes 

Streaming Quote Traders (Rule 1014(b)(ii)(A)) and 

Remote Streaming Quote Traders (Rule 

1014(b)(ii)(B)). 

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–NYSE– 

2014–73 and should be submitted on or 

before February 2, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00222 Filed 1–9–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74000; File No. SR–Phlx– 

2014–83] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Port Fees 

January 6, 2015. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on December 

24, 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to modify 

Section VII entitled ‘‘Other Member 

Fees’’ of the Phlx Pricing Schedule 

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

Exchange proposes to amend the Port 

Fees in Section VII of the Pricing 

Schedule in order to increase the Order 

Entry Port Fee, establish a CTI Port Fee, 

and delete the Real-Time Risk 

Management Fee. 

While the changes proposed herein 

are effective upon filing, the Exchange 

has designated that the amendments be 

operative on January 2, 2015. 

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 Port Fees in Section VII of the 

Pricing Schedule in order to increase 

the Order Entry Port Fee, establish a CTI 

Port Fee, and remove the Real-Time 

Risk Management Fee.3

Today, all Port Fees on the Exchange 

are located in subsection B of Section 

VII of the Pricing Schedule. These Port 

Fees include Order Entry Port Fees, 

Real-time Risk Management Fees, and 

Active SQF Port Fees, which are not 

amended by this proposal. Each of the 

amended fees is discussed below. 

Order Entry Port Fee 

The Order Entry Port Fee is a 

connectivity fee related to routing 

orders to the Exchange via an external 

order entry port. Phlx members access 

the Exchange’s network through order 

entry ports. A Phlx member may have 

more than one order entry port. Today, 

the Exchange assesses members an 

Order Entry Port Fee of $550 per month, 

per mnemonic.4 The current practice 

will continue whereby the Order Entry 

Port Fee will be waived for mnemonics 

that are used exclusively for Complex 

Orders 5 where one of the components 

of the Complex Order is the underlying 

security. Member organizations will 

continue not being assessed an Order 

Entry Port Fee for additional ports 

acquired for only ten business days for 

the purpose of transitioning 

technology.6

The Exchange proposes to increase 

the Order Entry Port Fee of $550 per 

month, per mnemonic to $600 per 

month, per mnemonic, as described 

below. This is exactly the same as a rule 

change filed by NASDAQ Options 

Market (‘‘NOM’’) proposing to assess 

$600 for Order Entry Port Fees as of 

January 2, 2015.7

Real-Time Risk Management Fee 

The Exchange is eliminating the Realtime Risk Management Fee from 

subsection B of Section VII of the 

Pricing Schedule, entitled ‘‘Port Fees.’’ 

The proposal to delete the Real-Time 

Risk Management Fee results in a price 

reduction to member organizations and 

members (clearing firms,8 Specialists,9

and Market Makers 10), 


tkelley on DSK3SPTVN1PROD with NOTICES