Federal Register / Vol. 82, No. 212 / Friday, November 3, 2017 / Notices 51313 

6The term ‘‘Member’’ means an individual or 

organization approved to exercise the trading rights 

associated with a Trading Permit. Members are 

deemed ‘‘members’’ under the Exchange Act. See 

Exchange Rule 100. 

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

8 17 CFR 240.19b–4(f)(6). 

9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and the text of 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. 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Phlx Rule 1034 (defining terms of the 

Options Penny Pilot). 

typographical errors and corrects errors 

in the hierarchical heading scheme to 

provide uniformity in the Exchange’s 

rulebook. The Exchange notes that the 

proposed changes to Exchange Rule 700, 

Exercise of Option Contracts; Rule 1322, 

Options Communications; and Rule 517, 

Quote Types Defined do not alter the 

application of each rule. As such, the 

proposed amendments would foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities and would 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national exchange system. In 

particular, the Exchange believes that 

the proposed changes will provide 

greater clarity to Members 6 and the 

public regarding the Exchange’s Rules. 

It is in the public interest for rules to be 

accurate and concise so as to eliminate 

the potential for confusion. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

MIAX Options 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 

proposed rule change will have no 

impact on competition as it is not 

designed to address any competitive 

issues but rather is designed to add 

additional clarity to existing rules and 

to remedy minor non-substantive issues 

in the text of various rules identified in 

this proposal. 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on intermarket competition 

as the Rules apply equally to all 

Exchange Members. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Pursuant to Section 19(b)(3)(A) of the 

Act 7 and Rule 19b–4(f)(6) 8 thereunder, 

the Exchange has designated this 

proposal as one that effects a change 

that: (i) Does not significantly affect the 

protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, does not become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest.9

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 Number SR– 

MIAX–2017–43 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–MIAX–2017–43. 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. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–MIAX–2017–43 and should 

be submitted on or before November 24, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–23922 Filed 11–2–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81980; File No. SR–Phlx– 

2017–34] 

Self-Regulatory Organizations; Nasdaq 

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 an 

Exception to Phlx Rule 1000(f)(iii) for 

Certain Floor Broker Transactions and 

add the Snapshot Functionality to the 

Options Floor Broker Management 

System 

October 30, 2017. 

I. Introduction 

On July 18, 2017, Nasdaq PHLX LLC 

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

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

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

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

add an exception to Phlx Rule 

1000(f)(iii) to permit Floor Brokers to 

execute (1) multi-leg orders and (2) 

simple orders in options on Exchange 

Trade Funds (‘‘ETFs’’) that are included 

in the Options Penny Pilot,3 in the 


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51314 Federal Register / Vol. 82, No. 212 / Friday, November 3, 2017 / Notices 

4See Securities Exchange Act Release No. 81230 

(July 27, 2016), 82 FR 35858 (‘‘Notice’’). 

5See Securities Exchange Act Release No. 81567, 

82 FR 43432 (September 15, 2017). 

6See Amendment No. 1, dated October 17, 2017 

(‘‘Amendment No. 1’’). Amendment No. 1 updated 

the original filing to: (1) Reflect the implementation 

of the new Snapshot functionality prior to the end 

of the fourth quarter of 2017; (2) modify the 

proposal to allow Floor Brokers 30 seconds within 

which to submit a provisionally executed trade and 

Snapshot to the Trading System, rather than the 15 

seconds that was originally proposed; (3) clarify 

that if a Snapshot expires, or if the Floor Broker 

cancels the Snapshot or expects that the Trading 

System will reject the Snapshot, the Floor Broker 

must re-announce the order to the trading crowd, 

provisionally re-execute the order, and take a new 

Snapshot; (4) further explain how limit orders on 

the limit order book will interact with the Snapshot 

functionality; and (5) make conforming changes to 

Phlx Rule 1064 and Options Floor Procedure 

Advices and Order and Decorum Regulations C–2 

(‘‘Options Floor Procedure Advice C–2’’ or 

‘‘Advice’’). To promote transparency of its proposed 

amendment, when Phlx filed Amendment No. 1 

with the Commission, it also submitted 

Amendment No. 1 as a comment letter to the file, 

which the Commission posted on its Web site and 

placed in the public comment file for SR–Phlx– 

2017–34 (available at https://www.sec.gov/ 

comments/sr-phlx-2017-34/phlx201734-2642790- 

161304.pdf). The Exchange also posted a copy of its 

Amendment No. 1 on its Web site at http://

nasdaqphlx.cchwallstreet.com/NASDAQPHLXTools

/PlatformViewer

.asp?selectednode=chp%5F1%5F1%5F1&

manual=%2FNASDAQOMXPHLX%2Ffilings

%2Fphlx%2Dfilings%2F) when it filed Amendment 

No.1 with the Commission. 

7A more detailed description of the proposal 

appears in the Notice and in Amendment No. 1. 

8See Phlx Rule 1000(f). 

9See Phlx Rule 1000(f)(iii). 

10See Phlx Rule 1000(f)(iii)(A)–(D). 

11See Notice, supra note 4, at 35860 n.7. 

12As defined in Phlx Rule 1066(f). 

13See proposed Phlx Rule 1000(f)(iii)(E). 

14See proposed Phlx Rule 1063(e)(v)(A)(1). 

According to the Exchange, due to system 

limitations in FBMS, Floor Brokers are not able to 

use Snapshot to execute Multi-leg Orders with more 

than 15 legs. See Amendment No. 1, supra note 6, 

at 6 and 8. 

15Phlx Rule 1064(a) allows a Floor Broker who 

holds orders to buy and to sell the same options 

series the opportunity to cross such orders, 

provided that he or she satisfies certain 

requirements. 16A Floor Broker ‘‘triggers’’ the snapshot by 

pressing a button in the FBMS and in doing so 

captures the market conditions that exist at the time 

when the Floor Broker provisionally executes an 

order in the trading crowd. See Notice, supra note 

4, at 35860–61. 17See proposed Phlx Rule 1063(e)(v). See also 

Notice, supra note 4, at 35860 n.8. 

18See Amendment No. 1, supra note 6, at 6–7. 

19See proposed Phlx Rule 1063(e)(v)(A)(3). 

20See Amendment No. 1, supra note 6, at 8. The 

Exchange represents that in most instances, 30 

seconds will provide ample time for Floor Brokers 

to enter their trades into FBMS. See id. at 5. 

21See proposed Phlx Rule 1063(e)(v)(B). See also 

Amendment No. 1, supra note 6, at 13. The 

Exchange represents that every time a Floor Broker 

triggers Snapshot, a record of the Snapshot will be 

created and retained for audit trail purposes 

regardless of whether the Floor Broker submits the 

provisional execution and Snapshot to the Trading 

System. This record is in addition to the record the 

Exchange presently creates upon initiation of an 

order in FBMS. Moreover, according to the 

Exchange, when a Floor Broker submits a trade 

subject to a Snapshot to the Trading System and the 

trade is thereafter reported to the consolidated tape, 

an additional execution record will be created and 

retained for audit trail purposes that will contain all 

of the same details as the other trade records. See 

Notice, supra note 4, at 35860 n.9. 

trading crowd using ‘‘Snapshot,’’ a new 

functionality Phlx is proposing for its 

Floor Broker Management System 

(‘‘FBMS’’). The proposed rule change 

was published for comment in the 

Federal Register on August 1, 2017.4 On 

September 11, 2017, the Commission 

extended the time period within which 

to approve the proposed rule change, 

disapprove the proposed rule change, or 

institute proceedings to determine 

whether to approve or disapprove the 

proposed rule change to October 30, 

2017.5 On October 17, 2017, the 

Exchange filed Amendment No. 1 to the 

proposed rule change.6 The Commission 

received no comment letters on the 

proposed rule change. This order 

provides notice of filing of Amendment 

No. 1 and approves the proposal, as 

modified by Amendment No. 1, on an 

accelerated basis. 

II. Description of the Proposal 7

A. Proposed Exception to Phlx Rule 

1000(f) 

Currently, Phlx Rule 1000(f) requires 

that all Exchange options transactions 

be executed in one of the following 

three ways: ‘‘(i) [a]utomatically by the 

[Trading System] pursuant to [Phlx] 

Rule 1080 and other applicable options 

rules; (ii) by and among members in the 

Exchange’s options trading crowd none 

of whom is a Floor Broker; or (iii) 

through the Options [FBMS] for trades 

involving at least one Floor Broker.’’ 8

Although a Floor Broker may represent 

orders in the trading crowd, a Floor 

Broker is not permitted to execute an 

order in the trading crowd unless one of 

four exceptions applies.9 These 

exceptions are listed in Phlx Rule 

1000(f)(iii)(A)–(D) and permit a Floor 

Broker to execute orders in the trading 

crowd (rather than through FBMS) if: 

(A) There is a problem with the 

Exchange’s systems; (B) the Floor Broker 

is executing the trade pursuant to Phlx 

Rule 1059 (‘‘Accommodation 

Transactions’’) or Phlx Rule 1079 

(‘‘FLEX Index, Equity and Currency 

Options’’); (C) the transaction involves a 

multi-leg order with more than 15 legs; 

or (D) the transaction involves certain 

types of split-price orders that, due to 

FBMS system limitations, require 

manual calculation.10

The Exchange is proposing to add a 

new exception to Rule 1000(f)(iii).11

Proposed Phlx Rule 1000(f)(iii)(E) 

would permit Floor Brokers to execute 

multi-leg orders 12 and simple orders in 

options on ETFs that are included in the 

Options Penny Pilot in the trading 

crowd using ‘‘Snapshot,’’ a new 

functionality that Phlx is proposing to 

add to FBMS.13

B. Proposed Snapshot Functionality for 

FBMS 

Under the proposal, Phlx would 

permit a Floor Broker to use the 

Snapshot functionality at the time the 

Floor Broker ‘‘provisionally executes’’ a 

trade in the trading crowd that involves 

a multi-leg order or a simple order in an 

option on an ETF that is included in the 

Options Penny Pilot.14 For purposes of 

the proposed Phlx Rule 1000(f)(iii)(E) 

exception, a ‘‘provisional execution’’ 

would occur in the trading crowd when 

either (i) the participants to a trade 

reach a verbal agreement in the trading 

crowd as to the terms of the trade, or (ii) 

a Floor Broker announces a cross in 

accordance with Phlx Rule 1064(a).15

According to the Exchange, Snapshot 

will record the time when a Floor 

Broker triggers the functionality and the 

prevailing market conditions for an 

options class or series,16 which includes 

all information required to determine 

compliance with priority and tradethrough requirements, including the 

Away Best Bid and Offer, the Exchange 

Best Bid and Offer, customer orders at 

the top of the Exchange book, and the 

best bid and offer of all-or-none 

orders.17 According to the Exchange, the 

market conditions captured by Snapshot 

will be derived from the same real-time 

market information that exists in the 

Trading System.18 At any given time, 

Phlx would only permit a Floor Broker 

to have one Snapshot outstanding across 

all options classes and series.19

After a Floor Broker triggers Snapshot 

and captures the prevailing market 

conditions, the Floor Broker will have 

no more than 30 seconds to enter the 

final terms of the trade into FBMS and 

then submit the provisional execution 

(along with the prevailing price and 

market conditions captured by Snapshot 

for the options class or series) to the 

Trading System.20 If the Floor Broker 

fails to submit this information to the 

Trading System by way of FBMS within 

30 seconds, the Snapshot will 

automatically expire and become 

unavailable.21

After the Trading System receives the 

provisional execution, Phlx proposes 

that the Trading System will compare 

the price and terms of the provisional 

execution, as entered into FBMS by the 

Floor Broker, against the prevailing 


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22See proposed Phlx Rule 1063(e)(v)(C). 23See proposed Phlx Rule 1063(e)(v)(C)(1). 24See proposed Phlx Rule 1063(e)(v)(C)(2). See 

Notice, supra note 4, at 35863. 25See Notice, supra note 4, at 35863. 

26See proposed Phlx Rule 1063(e)(v)(C)(3). See 

also Amendment No. 1, supra note 6, at 8. 

27See id. 

28See Amendment No. 1, supra note 6, at 10–12 

and 13. The Trading System would reject a 

provisionally executed order if, for example, there 

was an order on the limit order book with priority 

at the time the order was provisionally executed in 

the trading crowed or the provisionally executed 

order did not comply with applicable trade-through 

rules. See Notice, supra note 4, at 35860–61 

(providing examples of orders executed using the 

Snapshot functionality) and Amendment No. 1, 

supra note 6, at 10–12 (providing examples of when 

a Floor Broker would be permitted to take a new 

Snapshot). 

29 In this instance, triggering a new Snapshot 

would cause a new 30-second Snapshot timer to 

begin, and the Floor Broker must submit the new 

provisionally executed trade and Snapshot to the 

Trading System before the end of that 30-second 

timer. See Amendment No. 1, supra note 6, at 10– 

12. 30See proposed Phlx Rule 1063(e)(v)(A)(2) and 

Options Floor Procedure Advice C–2. 31See Amendment No. 1, supra note 6, at 9 and 

12. 32See id. at 9. 33See Notice, supra note 4, at 35860. See 

Amendment No. 1, supra note 6, at 9 and 12. 

34See Amendment No. 1, supra note 6, at 12. 

35 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

36 15 U.S.C. 78f(b)(5). 

37See Phlx Rule 1000(f). 

38See Notice, supra note 4, at 35859. 

market conditions captured by Snapshot 

for the options class or series to 

determine whether the provisional 

execution is consistent with applicable 

priority and trade-through rules.22 If the 

price and terms of the provisional 

execution entered into FBMS by the 

Floor Broker is consistent with the 

applicable priority and trade-through 

rules based on the market conditions 

reflected in the Snapshot, the Trading 

System would report the trade to the 

Consolidated Tape; 23 if not, the Trading 

System will reject the provisional 

execution.24 The Exchange represents 

that its Trading System’s automated 

process for verifying trades for priority 

and trade-through compliance remains 

unchanged.25

Phlx proposes that, if an order is 

present on the Exchange’s limit order 

book that has priority at the time a Floor 

Broker triggers a Snapshot, the Trading 

System would not prevent the Floor 

Broker from capturing the Snapshot; 

however, the Trading System would 

reject the provisional execution because 

the order on the limit order book would 

have priority.26 In these circumstances, 

Phlx proposes that the Floor Broker 

must clear the order with priority on the 

limit order book, re-announce and again 

provisionally execute the Floor Broker’s 

order, and take a new Snapshot before 

submitting the new provisional 

execution and Snapshot to the Trading 

System for validation.27

Phlx proposes to allow a Floor Broker 

to take a new Snapshot when the 

original Snapshot becomes invalid in 

the occasional event a provisional 

execution pursuant to Phlx Rule 

1000(f)(iii)(E) does not result in a 

validated execution in the Trading 

System; however, the Floor Broker must 

re-expose the order to the trading crowd 

before triggering a new Snapshot. 

Specifically, proposed Phlx Rule 

1063(e)(v)(D) would allow a Floor 

Broker to obtain a new Snapshot if: (1) 

The original Snapshot expires before the 

Floor Broker submits the provisional 

execution to the Trading System; (2) the 

Trading System rejects a provisional 

execution that was subject to a 

Snapshot; or (3) the Floor Broker 

cancels the Snapshot by taking a new 

Snapshot or allows the original 

Snapshot to expire because the Floor 

Broker anticipates that the Trading 

System will reject a provisional 

execution.28 In each of these three 

instances, the Floor Broker must reannounce and provisionally re-execute 

the order in the trading crowd, and take 

a new Snapshot before submitting the 

new provisional execution to the 

Trading System.29

Phlx is proposing Phlx Rule 

1063(e)(v)(A)(2), and amending Options 

Floor Procedure Advice C–2 to specify, 

that ‘‘[a] Floor Broker is prohibited from 

triggering the Snapshot feature for the 

purpose of obtaining favorable priority 

or trade-through conditions or avoiding 

unfavorable priority or trade-through 

conditions.’’ 30 According to the 

Exchange, conduct that would violate 

this Advice includes repeated instances 

in which Floor Brokers cancel, or permit 

valid Snapshots to expire, without 

submitting trades subject to Snapshots 

to the Trading System for verification 

and reporting to the consolidated tape. 

According to the Exchange, violations 

would also include repeated instances 

in which a Floor Broker takes more time 

than is reasonably necessary under the 

circumstances to submit provisional 

executions to the Trading System that 

are subject to valid Snapshots.31 The 

Exchange notes that it expects Floor 

Brokers to submit a provisional 

execution that is subject to a Snapshot 

as quickly as possible, notwithstanding 

the existence of the 30-second time 

frame within which to do so, and notes 

that, in most instances, it should not 

require a full 30 seconds for a Floor 

Broker to submit a simple trade or a 

cross to the Trading System.32 The 

Exchange represents that its 

Surveillance Staff will monitor Floor 

Brokers’ use of the Snapshot 

functionality and the Exchange will take 

appropriate action if it determines Floor 

Brokers are abusing the functionality.33

The Exchange proposes to make the 

Snapshot functionality available to its 

Floor Brokers during the fourth quarter 

of 2017. The Exchange represents that it 

will notify members via an Options 

Trader Alert, which will be posted on 

the Exchange’s Web site, at least seven 

calendar days prior to the date on which 

the Snapshot functionality will be 

available for use.34

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change, as 

modified by Amendment No. 1, is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.35 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,36 which requires, 

among other things, that the rules of a 

national securities exchange be 

designed to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in securities 

and, in general, to protect investors and 

the public interest, and not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Commission notes that the 

Exchange’s rules require Floor Brokers 

to execute transactions through FBMS 

and prohibit Floor Brokers from 

executing orders in the trading crowd 

unless an exception applies.37

According to the Exchange, however, 

transactions involving multi-leg orders 

and simple orders in options on ETFs in 

the Options Penny Pilot that a Floor 

Broker submits through FBMS are at a 

heightened risk of failing to execute 

when market conditions change 

between the time when Floor Brokers 

and participants in the crowd agree 

upon the terms of the trade and the time 

when the Trading System receives the 

trade for verification and execution. In 

these circumstances, the Trading 

System would reject the Floor Broker’s 

trade because it is inconsistent with the 

Exchange’s priority or trade-through 

rules.38 To mitigate this risk, the new 

exception under Phlx Rule 

1000(f)(iii)(E) is designed to permit 

Floor Brokers to use the Snapshot 


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39See Notice, supra note 4, at 35862–63. The 

Options Order Protection and Locked/Crossed 

Market Plan is available at http://

www.optionsclearing.com/components/docs/ 

clearing/services/options_order_protection_

plan.pdf. The Commission notes that the Exchange 

represents that the market conditions provided by 

Snapshot are derived from the same real-time 

market conditions that exist in the Trading System 

and that Snapshot will contain all information 

necessary for the Trading System to determine that 

a provisional execution is consistent with 

applicable priority and trade-through rules. See 

Amendment No. 1, supra note 6, at 6–7. 

40See Notice, supra note 4, at 35861. The 

Exchange notes that the limitation to only allow 

Floor Brokers to have one Snapshot outstanding at 

any given time across options classes and series 

should contribute to preventing Floor Brokers from 

engaging in excessive use of and abuse of Snapshot. 

See Notice, supra note 4, at 35861. 

41See Amendment No. 1, supra note 6, at 5 and 

7. 

42See Notice, supra note 4, at 35860 n.9. See also 

supra note 21. 

43See Amendment No. 1, supra note 6, at 9 and 

12. 44See Amendment No. 1, supra note 6, at 3–7. 

functionality to execute two types of 

orders in the trading crowd that they 

may not otherwise be able to execute 

successfully under certain market 

conditions given the requirements of 

Phlx Rule 1000(f). 

The Commission notes that the 

Exchange is proposing several measures 

to help ensure that Snapshot operates, 

and is used by Floor Brokers, in a 

manner that is consistent with the 

Exchange Act and Phlx rules. 

First, Snapshot is designed to capture 

the market conditions for the options 

class or series at the time of the 

provisional execution, which will be the 

time of execution that the Trading 

System will use when verifying the 

price and terms of the provisional 

execution, as entered into FBMS by the 

Floor Broker, for compliance with 

applicable priority rules of the Exchange 

and the trade-through rules of the 

Options Order Protection and Locked/ 

Crossed Market Plan.39

Second, the Exchange has designed 

Snapshot so that the price and market 

conditions captured for the options 

class or series will expire within 30 

seconds after the Floor Broker triggers it, 

and so that a Floor Broker will only be 

allowed to have one Snapshot 

outstanding across all options classes 

and series at any given time.40 As stated 

above, the Exchange anticipates that 

Floor Brokers will enter their 

provisional executions as quickly as 

possible, notwithstanding the 

availability of Snapshot and the 30- 

second Snapshot timer, and in most 

instances, 30 seconds will provide 

ample time for Floor Brokers to enter 

provisional executions into FBMS.41

Third, to the extent that a Snapshot 

expires, the Trading System rejects a 

provisional execution, or the Floor 

Broker cancels or permits a Snapshot to 

expire, the Floor Broker must reannounce and provisionally execute the 

order again in the trading crowd before 

taking a new Snapshot. 

Fourth, the Exchange represents that 

all relevant trade data resulting from 

executions pursuant to proposed Phlx 

Rule 1000(f)(iii)(E) will be recorded in 

both Snapshot and on a separate 

execution record, which will be created 

once the trade is reported to the 

consolidated tape.42

Finally, the Commission notes that 

the Exchange’s rule will prohibit Floor 

Brokers from triggering Snapshot for the 

purpose of obtaining favorable, or 

avoiding unfavorable, priority or tradethrough conditions. In addition, the 

Exchange represents that its 

surveillance staff will monitor Floor 

Brokers for excessive use or abuse for 

the Snapshot functionality (e.g., 

repeated expirations or cancellations of 

the Snapshot) and it will take 

appropriate action if it determines such 

instances are occurring.43

For the foregoing reasons, the 

Commission finds that the proposed 

rule change, as modified by Amendment 

No. 1, is consistent with Section 6(b)(5) 

of the Act and the rules and regulations 

thereunder applicable to national 

securities exchanges. 

IV. Solicitation of Comments on 

Amendment No. 1 to the Proposed Rule 

Change 

Interested persons are invited to 

submit written data, views, and 

arguments concerning whether 

Amendment No. 1 to 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– 

Phlx–2017–34 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 No. 

SR–Phlx–2017–34. 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 will also be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File No. 

SR–Phlx–2017–34 and should be 

submitted on or before November 24, 

2017. 

V. Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 1 

The Commission finds good cause to 

approve the proposed rule change, as 

modified by Amendment No. 1, prior to 

the thirtieth day after the date of 

publication of notice of the amended 

proposal in the Federal Register. As 

described above, in Amendment No. 1, 

Phlx (1) updated its proposal to state 

that the new Snapshot functionality will 

be made available prior to the end of the 

fourth quarter of 2017; (2) modified the 

proposal to allow Floor Brokers 30 

seconds within which to submit a 

provisionally executed trade and 

Snapshot to the Trading System, rather 

than the 15 seconds that was originally 

proposed; (3) further explained how 

limit orders on the limit order book will 

interact with the Snapshot functionality; 

(4) clarified the circumstances when a 

new Snapshot may be taken and the 

conditions for doing so; and (5) made 

conforming changes to Phlx Rule 1064 

and Options Floor Procedure Advice C– 

2.44 The Commission believes that 

Amendment No. 1 provided additional 

specificity regarding the new proposed 

exception in Phlx Rule 1000(f)(iii) and 

the operation of the Snapshot 

functionality. Specifically, Amendment 


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Federal Register / Vol. 82, No. 212 / Friday, November 3, 2017 / Notices 51317 

45See id. at 5–6. 

46 15 U.S.C. 78s(b)(2) 

47 15 U.S.C. 78s(b)(2). 

48 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange initially filed the proposed rule 

changes on October 16, 2017 (SR–C2–2017–027). 

On October 19, 2017 the Exchange withdrew SR– 

C2–2017–027 and then subsequently submitted this 

filing (SR–C2–2017–028). 

No. 1 eliminated the concept of 

‘‘refreshing’’ a Snapshot and instead 

clarified the specific circumstances in 

which a Floor Broker will be permitted 

to take a new Snapshot and the 

conditions that must be satisfied to do 

so (e.g., re-announcing the order to the 

trading crowd and provisionally reexecuting the order). The Exchange 

states that the changes in Amendment 

No. 1 simplify the proposal and will 

make it easier for the Exchange to 

administer and surveil the use of the 

Snapshot functionality.45 In addition, 

the Commission notes that the changes 

may create additional opportunities for 

orders to interact in the trading crowd 

in those occasional instances when a 

provisional execution pursuant to Phlx 

Rule 1000(f)(iii)(E) does not result in a 

validated execution in the Trading 

System. Accordingly, the Commission 

finds good cause, pursuant to Section 

19(b)(2) of the Act,46 to approve the 

proposed rule change, as modified by 

Amendment No. 1, on an accelerated 

basis. 

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,47 that the 

proposed rule change (SR–Phlx–2017– 

34), as modified by Amendment No. 1, 

be, and it hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.48

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–23926 Filed 11–2–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81979; File No. SR–C2– 

2017–028] 

Self-Regulatory Organizations; C2 

Options Exchange, Incorporated; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change Relating To Reflect in the 

Exchange’s Governing Documents, 

Rulebook and Fees Schedules, a NonSubstantive Corporate Branding 

Change, Including Changes to the 

Company’s Name, the Intermediate’s 

Name, and the Exchange’s Name 

October 30, 2017. 

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 October 

19, 2017, C2 Options Exchange, 

Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) 

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 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 filed a proposed rule 

change with respect to amendments of 

the Second Amended and Restated 

Certificate of Incorporation (the 

‘‘Company’s Certificate’’) and Third 

Amended and Restated Bylaws (the 

‘‘Company’s Bylaws’’) of its parent 

corporation, CBOE Holdings, Inc. 

(‘‘CBOE Holdings’’ or the ‘‘Company’’) 

to change the name of the Company to 

Cboe Global Markets, Inc. The Exchange 

also proposes to amend its Fourth 

Amended and Restated Certificate of 

Incorporation (the ‘‘Exchange 

Certificate’’), Eighth Amended and 

Restated Bylaws of C2 Options 

Exchange, Incorporated (the ‘‘Exchange 

Bylaws’’), rulebook and fees schedules 

(collectively ‘‘operative documents’’) in 

connection with the name change of its 

parent Company and the Exchange. 

The text of the proposed rule change 

is also available on the Exchange’s Web 

site (http://www.c2exchange.com/Legal/ 

), at the Exchange’s Office of the 

Secretary, 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 

Background 

The purpose of this filing is to reflect 

in the Exchange’s governing documents 

(and the governing documents of its 

parent company, CBOE Holdings) and 

the Exchange’s rulebook and fees 

schedules, a non-substantive corporate 

branding change, including changes to 

the Company’s name and the 

Exchange’s name.3 Particularly, 

references to Company’s and Exchange’s 

names will be deleted and revised to 

state the new names, as described more 

fully below. No other substantive 

changes are being proposed in this 

filing. The Exchange represents that 

these changes are concerned solely with 

the administration of the Exchange and 

do not affect the meaning, 

administration, or enforcement of any 

rules of the Exchange or the rights, 

obligations, or privileges of Exchange 

members or their associated persons is 

[sic] any way. Accordingly, this filing is 

being submitted under Rule 19b–4(f)(3). 

In lieu of providing a copy of the 

marked name changes, the Exchange 

represents that it will make the 

necessary non-substantive revisions 

described below to the Exchange’s 

corporate governance documents, 

rulebook, and fees schedules, and post 

updated versions of each on the 

Exchange’s Web site pursuant to Rule 

19b–4(m)(2). 

The Company’s Name Change 

In connection with the corporate 

name change of its parent company, the 

Exchange is proposing to amend the 

Company’s Certificate and Bylaws. 

Specifically, the Company is changing 

its name from ‘‘CBOE Holdings, Inc.’’ to 

‘‘Cboe Global Markets, Inc.’’ 

(a) Company’s Certificate 

The Exchange proposes to (i) delete 

the following language from Paragraph 

(1) of the introductory paragraph: ‘‘The 

name of the Corporation is CBOE 

Holdings, Inc.’’ and (ii) amend Article 

First of the Company’s Certificate to 

reflect the new name, ‘‘Cboe Global 

Markets, Inc.’’. The Exchange also 

proposes to add clarifying language and 

cite to the applicable provisions of the 

General Corporation Law of the State of 


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