Document ID: SEC-2016-0232-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ PHLX LLC
Posted Date: 2016-02-12T05:00Z

[Federal Register Volume 81, Number 29 (Friday, February 12, 2016)]
[Notices]
[Pages 7618-7619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-02836]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77076; File No. SR-Phlx-2016-16]

Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Delete Obsolete 
Rules 1000C-1009C

February 8, 2016.
    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 February 1, 2016, NASDAQ PHLX LLC (``Phlx'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I.Self-Regulatory Organization's Statement of the Terms of Substance of 
the Proposed Rule Change

    The Exchange proposes to delete obsolete Rules 1000C-1009C, 
collectively captioned Rules Applicable to Trading of PHLX FOREX 
OptionsTM.
    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
PHLX FOREX Options \TM\
    The Exchange's rules for listing and trading PHLX FOREX Options 
were approved by the Commission in 2012 \3\ but were never in fact 
listed or traded on Phlx. The Exchange has no current intention to list 
or trade PHLX FOREX Options in the foreseeable future. Accordingly, the 
Exchange proposes to delete the caption ``Rules Applicable to Trading 
of PHLX FOREX Options \TM\ (Rules 1000C-1009C)'' as well as Rules 1000C 
through 1009C dealing solely with PHLX FOREX Options.
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    \3\ See Securities Exchange Act Release No. 66616 (March 16, 
2012) 77 FR 16879 (March 22, 2012) (SR-Phlx-2012-11) (Order Granting 
Approval of Proposed Rule Change Regarding the Listing and Trading 
of PHLX FOREX Options\TM\). In the approval order the Commission 
approved listing and trading of PHLX FOREX Options the British 
pound, the Swiss franc, the Canadian dollar, the Australian dollar, 
the New Zealand dollar, and the Euro. These six foreign currencies 
also underlie another type of foreign currency option that is 
currently listed and traded on the Exchange (referred to as either 
``FCOs'' or World Currency Options, ``WCOs''). The primary 
difference between FCOs and the PHLX FOREX Options is the pricing 
convention of PHLX FOREX Options, which resembles the ``spot market 
pricing'' on the underlying currencies. The proposal to delist the 
PHLX FOREX Options\TM\ does not affect the continued listing and 
trading of FCOs on the Exchange.
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    The Exchange also proposes to make conforming changes to Phlx 
Option Floor Procedure Advices F-6, Option Quote Parameters, and F-15, 
Minor Infractions of Position/Exercise Limits and Hedge Exemptions, 
removing language which is specific to PHLX FOREX Options.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \4\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \5\ in particular, in that it is designed to promote 
just and equitable principles of trade, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general to protect investors and the public interest. 
In particular, this proposed change removes from the Phlx rulebook the 
rules applicable to PHLX FOREX Options and makes conforming changes as 
needed to certain other rules. The rule language to be deleted is not 
relevant or necessary because it deals solely with PHLX FOREX Options 
which were never listed or traded on the Exchange. Removing this rule 
language from the Phlx rulebook will help eliminate potential member 
and investor confusion about products listed and traded on Phlx.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
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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. The proposed change is not 
designed to address any competitive issue but would merely remove rule 
language relating to PHLX FOREX Options that is not relevant to the 
Exchange's business in any respect.

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

[[Page 7619]]

19(b)(3)(A)(iii) of the Act \6\ and subparagraph (f)(6) of Rule 19b-4 
thereunder.\7\
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    \6\ 15 U.S.C. 78s(b)(3)(a)(iii).
    \7\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    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-2016-16 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-2016-16. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-Phlx-2016-16 and should be 
submitted on or before March 4, 2016.
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    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-02836 Filed 2-11-16; 8:45 am]
BILLING CODE 8011-01-P