Document ID: SEC-2013-1091-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX, LLC
Posted Date: 2013-06-19T04:00Z

[Federal Register Volume 78, Number 118 (Wednesday, June 19, 2013)]
[Notices]
[Pages 36807-36810]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-14503]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69752; File No. SR-Phlx-2013-62]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change and 
Amendment No. 1 Thereto To Introduce a Market Maker Peg Order for Use 
on NASDAQ OMX PSX

June 13, 2013.
    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 June 3, 2013, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``Commission'') a proposed 
rule change as described in Items I, II, and III, below, which Items 
have been prepared by the Exchange. The Exchange filed Amendment No. 1 
to the proposed rule change on June 6, 2013.\3\ The Commission is 
publishing this notice, as amended, 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.
    \3\ In Amendment No. 1, the Exchange replaced two erroneous 
references to Nasdaq with references to Phlx.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to introduce a Market Maker Peg Order 
(``MMPO'') for use on NASDAQ OMX PSX (``PSX''). The Exchange proposes 
to implement the change on a date that is on, or shortly after, the 
expiration of the 30-day operative delay provided for under Rule 19b-
4(f)(6)(iii).\4\
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    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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    The text of the proposed rule change is below. Proposed deletions 
are in brackets; proposed additions are in italics.

3301. Definitions

    The following definitions apply to the Rule 3200 and 3300 Series 
for the trading of securities on PSX.
    (a)-(e) No change.
    (f) The term ``Order Type'' shall mean the unique processing 
prescribed for designated orders that are eligible for entry into 
the System, and shall include:
    (1)-(11) No change.
    (12) ``Market Maker Peg Order'' is a limit order that, upon 
entry, the bid or offer is automatically priced by the System at the 
Designated Percentage away from the then current National Best Bid 
and National Best Offer, or if no National Best Bid or National Best 
Offer, at the Designated Percentage away from the last reported sale 
from the responsible single plan processor in order to comply with 
the quotation requirements for Market Makers set forth in Rule 
3213(a)(2). Upon reaching the Defined Limit, the price of a Market 
Maker Peg Order bid or offer will be adjusted by the System to the 
Designated Percentage away from the then current National Best Bid 
and National Best Offer, or, if no National Best Bid or National 
Best Offer, to the Designated Percentage away from the last reported 
sale from the responsible single plan processor. If a Market Maker 
Peg Order bid or offer moves away from the Designated Percentage 
towards the then current National Best Bid or National Best Offer, 
as appropriate, by 4 percentage points, the price of such bid or 
offer will be adjusted to the Designated Percentage away from the 
then current National Best Bid and National Best Offer, or if no 
National Best Bid or National Best Offer, to the Designated 
Percentage away from the last reported sale from the responsible 
single plan processor. In the absence of a National Best Bid or 
National Best Offer and if no last reported sale, the order will be 
cancelled or rejected. During the period before 9:30 a.m. and after 
4:00 p.m., the Designated Percentage and Defined Limit applicable to 
a Market Maker Peg Order will be the same as for the periods from 
9:30 a.m. through 9:45 a.m.
    If, after entry, the Market Maker Peg Order is priced based on 
the consolidated last sale and such Market Maker Peg Order is 
established as the National Best Bid or National Best Offer, the 
Market Maker Peg Order will not be subsequently adjusted in 
accordance with this rule until either there is a new consolidated 
last sale, or a new National Best Bid or new National Best Offer is 
established by either another national securities exchange or PSX. 
Market Maker Peg Orders are not eligible for routing pursuant to 
Rule 3315 and are always displayed on PSX. Notwithstanding the 
availability of Market Maker Peg Order functionality, a Market Maker 
remains responsible for entering, monitoring, and resubmitting, as 
applicable, quotations that meet the requirements of Rule 3213. A 
new timestamp is created for the order each time that it is 
automatically adjusted.
    For purposes of this paragraph, PSX will apply the Designated 
Percentage and Defined Limit as set forth in Rule 3213, subject to 
the following exception. Nothing in this rule shall preclude a 
Market Maker from designating a more aggressive offset from the 
National Best Bid or National Best Offer than the given Designated 
Percentage for any individual Market Maker Peg Order. If a Market 
Maker designates a more aggressive offset from the National Best Bid 
or National Best Offer, the price of a Market Maker Peg Order bid or 
offer will be adjusted by the System to maintain the Market Maker-
designated offset from the National Best Bid or National Best Offer, 
or if no National Best Bid or National Best Offer, the order will be 
cancelled or rejected.
    (g)-(i) No change.
* * * * *

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 is proposing to introduce a Market Maker Peg Order 
(``MMPO'') for use on PSX by registered PSX Market Makers. The MMPO, 
which is currently available for use on The NASDAQ Stock Market 
(``NASDAQ''), is an order type that provides a means by which a market 
maker may comply with its market making obligations under applicable 
Exchange rules.\5\ The Exchange recently adopted rules to allowing 
[sic] market making on PSX, and is proposing to introduce the MMPO in 
order to facilitate compliance by PSX Market Makers with quoting 
obligations contained in these newly adopted rules.\6\ The MMPO is 
available for use only by PSX Market Makers because these obligations 
are not applicable to other market participants. The MMPO is available 
only through the Exchange's RASH and FIX connectivity protocols, 
because these are the only protocols that support continuous pegging 
functionality.
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    \5\ Securities Exchange Act Release No. 67584 (August 2, 2012), 
77 FR 47472 (August 8, 2012) (SR-NASDAQ-2012-066).
    \6\ Securities Exchange Act Release No. 69452 (April 25, 2013), 
78 FR 25512 (May 1, 2013) (SR-Phlx-2013-24).
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    PSX Rule 3213 requires a member organization registered as a Market

[[Page 36808]]

Maker in a particular security to be willing to buy and sell such 
security for its own account on a continuous basis during regular 
market hours and to enter and maintain a two-sided trading interest 
(``Two-Sided Obligation'') that is identified to the Exchange as the 
interest meeting the obligation and is displayed in PSX's quotation 
montage at all times. Interest eligible to be considered as part of a 
Market Maker's Two-Sided Obligation must have a displayed quotation 
size of at least one normal unit of trading \7\ (or a larger multiple 
thereof). After an execution against its Two-Sided Obligation, a Market 
Maker must ensure that additional trading interest exists in PSX to 
satisfy its Two-Sided Obligation either by immediately entering new 
interest to comply with this obligation to maintain continuous two-
sided quotations or by identifying existing interest on the PSX book 
that will satisfy this obligation.
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    \7\ Unless otherwise designated, 100 shares.
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    PSX Market Makers must also adhere to certain pricing obligations 
established by Rule 3213, which are premised on entering quotation 
prices that are not more than a ``Designated Percentage'' \8\ away from 
the National Best Bid or Best Offer \9\ (as applicable), and that must 
be refreshed if a change in the National Best Bid or Best Offer causes 
the quotation price to be more than a ``Defined Limit'' \10\ away from 
the National Best Bid or Best Offer.\11\ The pricing obligations 
established by the Rule apply during regular trading hours (i.e., 9:30 
a.m. to 4:00 p.m.), but do not commence during any trading day until 
after the first regular way transaction on the primary listing market 
in the security. Moreover, the obligations are suspended during a 
trading halt, suspension, or pause, and do not re-commence until after 
the first regular way transaction on the primary listing market in the 
security following such halt, suspension, or pause, as reported by the 
responsible single plan processor.
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    \8\ The ``Designated Percentage'' is: (i) 8% for securities 
included in the S&P 500[supreg] Index, Russell 1000[supreg] Index, 
and a pilot list of Exchange Traded Products (``Tier 1 
Securities''); (ii) 28% for all NMS stocks that are not Tier 1 
Securities with a price equal to or greater than $1 (``Tier 2 
Securities''); (iii) 30% for all NMS stocks that are not Tier 1 
Securities with a price less than $1 (``Tier 3 Securities''), except 
that between 9:30 a.m. and 9:45 a.m. and between 3:35 p.m. and the 
close of trading, the Designated Percentage is 20% for Tier 1 
Securities, 28% for Tier 2 Securities, and 30% for Tier 3 
Securities. The Designated Percentage for rights and warrants is 
30%. For the pilot list of Exchange Traded Products that are Tier 1 
Securities, see Exhibit 3 to SR-Phlx-2013-24, Amendment No. 1 (March 
18, 2013) (available at http://nasdaqomxphlx.cchwallstreet.com/NASDAQOMXPHLX/pdf/phlx-filings/2013/SR-Phlx-2013-24_Amendment_1.pdf).
    \9\ Determined by the Exchange in accordance with its procedures 
for determining Protected Quotations under SEC Rule 600 under 
Regulation NMS.
    \10\ The ``Defined Limit'' is 9.5% for Tier 1 Securities, 29.5% 
for Tier 2 Securities, and 31.5% for Tier 3 Securities, except that 
between 9:30 a.m. and 9:45 a.m. and between 3:35 p.m. and the close 
of trading, the Defined Limit is 21.5% for Tier 1 Securities, 29.5% 
for Tier 2 Securities, and 31.5% for Tier 3 Securities.
    \11\ Nothing in Rule 3213 precludes a PSX Market Maker from 
quoting at price levels that are closer to the National Best Bid and 
Offer than the levels required by the rule.
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    For bid quotations, at the time of entry of bid interest satisfying 
the Two-Sided Obligation, the price of the bid interest may not be more 
than the applicable Designated Percentage away from the then current 
National Best Bid, or if no National Best Bid, not more than the 
Designated Percentage away from the last reported sale from the 
responsible single plan securities information processor. In the event 
that the National Best Bid (or if no National Best Bid, the last 
reported sale) increases to a level that would cause the bid interest 
of the Two-Sided Obligation to be more than the Defined Limit away from 
the National Best Bid (or if no National Best Bid, the last reported 
sale), or if the bid is executed or cancelled, the Market Maker must 
enter new bid interest at a price not more than the Designated 
Percentage away from the then current National Best Bid (or if no 
National Best Bid, the last reported sale), or identify to the Exchange 
current resting interest that satisfies the Two-Sided Obligation. 
Similarly, for offer quotations, at the time of entry of offer interest 
satisfying the Two-Sided Obligation, the price of the offer interest 
may not be more than the Designated Percentage away from the then 
current National Best Offer, or if no National Best Offer, not more 
than the Designated Percentage away from the last reported sale 
received from the responsible single plan securities information 
processor. In the event that the National Best Offer (or if no National 
Best Offer, the last reported sale) decreases to a level that would 
cause the offer interest of the Two-Sided Obligation to be more than 
the Defined Limit away from the National Best Offer (or if no National 
Best Offer, the last reported sale), or if the offer is executed or 
cancelled, the Market Maker must enter new offer interest at a price 
not more than the Designated Percentage away from the then current 
National Best Offer (or if no National Best Offer, the last reported 
sale), or identify to the Exchange current resting interest that 
satisfies the Two-Sided Obligation.
    The MMPO is designed to assist Market Makers in complying with 
these requirements by having its price adjusted in accordance with the 
parameters required by Rule 3213. Thus, use of the order will allow 
market makers to make liquidity available at prices reasonably related 
to the National Best Bid and National Best Offer, even in circumstances 
where they are not themselves quoting at the best price or have more 
limited liquidity available at the best price. The Exchange believes 
that use of the order may therefore serve to dampen volatility and 
minimize the extent to which transactions on PSX result in the 
imposition of limit-up, limit-down restrictions or trading pauses under 
Rule 3100 and related rules of other exchanges.
    Specifically, the MMPO is a limit order that, upon entry, is 
automatically priced by the PSX System at the Designated Percentage 
away from the then current National Best Bid and National Best Offer, 
or if no National Best Bid or National Best Offer, at the Designated 
Percentage away from the last reported sale from the responsible single 
plan processor in order. For example, if the National Best Bid was $10 
in a Tier 1 Security, the Designated Percentage would be 8%, an MMPO to 
buy entered between 9:45 a.m. and 3:45 p.m. would be priced at 
$9.20.\12\ Because the order is designed to post to the book at the 
Designated Percentage, it would not be marketable upon entry and 
therefore may not be entered with a time-in-force of Immediate-or-
Cancel. As a result, an MMPO would provide, rather than access, 
liquidity. The order may not be assigned any special conditions 
governing its terms of execution, other than time-in-force, limit 
price, and the pegging functionality described herein.
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    \12\ As noted above, the MMPO is a limit order and therefore 
must be assigned a limit priced beyond which it will not execute. If 
the repricing mechanism of the order would result in the order being 
priced at a level inconsistent with its limit price, the order will 
be rejected or cancelled.
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    Upon reaching the Defined Limit, the price of an MMPO will be 
adjusted by the System to the Designated Percentage away from the then 
current National Best Bid and National Best Offer, or, if no National 
Best Bid or National Best Offer, to the Designated Percentage away from 
the last reported sale from the responsible single plan processor. 
Thus, if the National Best Bid in the above example increased to 
$10.17, the MMPO priced at $9.20 would now be more than 9.5%, the 
Defined Limit, away from the National Best Bid, and would be repriced 
to $9.35, the Designated Percentage away from $10.17.
    If the market moves such that the price of an MMPO is within 4

[[Page 36809]]

percentage points of the National Best Bid or National Best Offer, as 
appropriate, the price of the order will be adjusted to the Designated 
Percentage away from the then current National Best Bid and National 
Best Offer, or if no National Best Bid or National Best Offer, to the 
Designated Percentage away from the last reported sale from the 
responsible single plan processor. Thus, if the National Best Bid was 
initially $10 in a Tier 1 Security, and an MMPO to buy was initially 
entered at $9.20, if the National Best Bid decreased to $9.58 (such 
that the MMPO was less than 4% away from the National Best Bid), the 
MMPO would be repriced to $8.81 (8% away from the National Best Bid).
    For a given MMPO, a Market Maker may designate a more aggressive 
offset from the National Best Bid or National Best Offer than the given 
Designated Percentage.\13\ Thus, for example, the Market Maker could 
designate an offset of $0.25, in which case the order would be 
continually repriced to maintain the $0.25 offset as the National Best 
Bid or National Best Offer moved. Thus, if the National Best Bid was 
$10, an MMPO to buy with a $0.25 offset would initially be priced at 
$9.75, with the price rising or falling continually as the National 
Best Bid moved.\14\ If there is no National Best Bid or National Best 
Offer (as applicable), an MMPO with a designated offset amount will be 
cancelled or rejected.
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    \13\ Such an offset will be expressed in dollars and cents 
rather than as a percentage.
    \14\ An MMPO with an offset operates in a manner similar to a 
Primary Pegged Order with an offset amount (see Rule 3301(f)(4)), 
but an MMPO is always displayed. Note also that if the repricing of 
an order with an offset amount would result in the order being 
priced at a level inconsistent with its limit price, the order will 
be rejected or cancelled.
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    If an MMPO is entered or on the book at a time when there is no 
National Best Bid or National Best Offer (as applicable) and no last 
reported sale, the order will be cancelled or rejected. If an MMPO is 
priced based on the consolidated last sale because there is no National 
Best Bid or National Best Offer, and the MMPO itself establishes the 
National Best Bid or National Best Offer, the order will not be 
subsequently adjusted until either there is a new consolidated last 
sale, or a new National Best Bid or new National Best Offer is 
established. Thus, if the last sale price on the consolidated tape was 
$10 and an MMPO to buy is priced at $9.20 and establishes the National 
Best Bid, the order will not then be repriced to maintain an offset 
from itself. Rather, the order will be repriced only once there is an 
independent basis pricing the order. In the event of an execution 
against an MMPO that reduces the size of the order below one round lot, 
the Market Maker would need to enter a new order (after performing 
required regulatory checks, as discussed below) to satisfy its 
obligations under Rule 3213.\15\
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    \15\ Rule 3213 generally sets forth PSX Market Maker 
requirements, which include quotation and pricing obligations, and 
the firm quote obligation.
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    MMPOs are not eligible for routing pursuant to Rule 3315 and are 
always displayed on PSX. Notwithstanding the availability of MMPO 
functionality, a Market Maker remains responsible for entering, 
monitoring, and resubmitting, as applicable, quotations that meet the 
requirements of Rule 3213. A new timestamp is created for an MMPO each 
time that its price is automatically adjusted. At a particular price, 
the order would be processed in regular price/time priority, with 
better priced interest being executed prior to the MMPO and with the 
MMPO being executed behind similarly priced orders entered before the 
MMPO had its price adjusted.
    Although Rule 3213 does not govern the pre-market trading session 
before 9:30 a.m. and the post-market trading session after 4:00 p.m., a 
Market Maker may enter an MMPO during such periods. In that case, the 
Designated Percentage and Defined Limit applicable to the MMPO will be 
the same as for the periods from 9:30 a.m. through 9:45 a.m., as 
described in Rule 3213.\16\ As PSX does not have a special market 
opening or closing process, an MMPO does not behave differently at 9:30 
a.m. or 4:00 p.m. than it does immediately before or after such times.
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    \16\ See supra notes 7 and 9 [sic]. This aspect of the operation 
of the MMPO is identical to the operation of NASDAQ's MMPO. Phlx is, 
however, adding additional language to its rule to promote its 
clarity.
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    Because use of the MMPO would not be inconsistent with Market 
Makers having the capacity to control order origination, as required by 
SEC Rule 15c3-5 (the ``Market Access Rule''),\17\ and because Market 
Makers using the MMPO will be able to make marking and locate 
determinations prior to order entry, as required by Regulation SHO,\18\ 
use of the order is not inconsistent with Market Makers fulfilling 
their obligations under these rules, while also meeting their Exchange 
market making obligations. It should be noted, however, that use of the 
order does not ensure that the Market Maker is in compliance with its 
regulatory obligations under the Market Access Rule or Regulation SHO.
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    \17\ 17 CFR 240.15c3-5. The Market Access Rule requires a 
broker-dealer with market access, or that provides a customer or any 
other person with access to an exchange or alternative trading 
system through use of its market participant identifier (``MPID'') 
or otherwise, to establish, document, and maintain a system of risk 
management controls and supervisory procedures reasonably designed 
to manage the financial, regulatory and other risks of this business 
activity.
    \18\ 17 CFR 242.200-.204. Regulation SHO obligations generally 
include properly marking sell orders, obtaining a ``locate'' for 
short sale orders, closing out fail to deliver positions, and, where 
applicable, complying with the short sale price test.
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2. Statutory Basis
    Phlx believes that the proposed rule change is consistent with the 
provisions of Section 6 of the Act,\19\ in general, and with Section 
6(b)(5) of the Act,\20\ in particular, in that the proposal 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 regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and, in general, to 
protect investors and the public interest; and also in that it is not 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers. The Exchange believes that the MMPO will aid 
Market Makers in complying with the requirements of Rule 3312. The 
Exchange further believes that compliance with this rule will 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, because it will provide a means by which Market Makers may 
offer liquidity at prices that are reasonably related to the National 
Best Bid and National Best Offer, even in circumstances where they are 
not willing to quote at the inside market. As a result, in 
circumstances where liquidity available at prices closer to the inside 
than the price of an MMPO is exhausted, the MMPO will nevertheless be 
available to support executions at prices that are not widely at 
variance with the prior inside market. Thus, use of the order will 
serve to lessen volatility and diminish the likelihood that a limit-up, 
limit-down restriction or a trading pause will be triggered in a 
particular stock that is subject to buying or selling pressure.
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    \19\ 15 U.S.C. 78f.
    \20\ 15 U.S.C. 78f(b)(4) and (5).
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    The methodology for repricing an MMPO is consistent with the 
requirements of the Act because it will ensure that the price of the 
order bears

[[Page 36810]]

a reasonable relationship to the inside market and is less likely to 
execute at a price that would trigger a limit-up, limit-down 
restriction or a trading pause. Moreover, because the repricing of an 
MMPO results in a new timestamp being attached to the order, the MMPO 
does not provide a means by which an MMPO may achieve an execution 
priority superior to an order entered at that price earlier in time. In 
addition, the use of the MMPO would not be inconsistent with Market 
Makers fulfilling their obligations under the Market Access Rule and 
Regulation SHO.
    The Exchange also believes that although the order may be used only 
by Market Makers, this restriction is not unfairly discriminatory 
because only Market Makers are subject to the requirements of Rule 
3312; accordingly, the order is not needed to assist other market 
participants in fulfilling regulatory obligations. To the extent that a 
market participant wishes to maintain an order at a price that deviates 
from the inside market by a particular amount, however, it may use the 
Primary Peg Order to achieve this purpose. Accordingly, an alternative 
to the MMPO is already available to market participants.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. Specifically, 
the Exchange believes that the proposal will enhance PSX's 
competitiveness by providing Market Makers on PSX with a means to offer 
liquidity at prices reasonably related to the inside market. The 
Exchange believes that this functionality will be appealing to 
potential Market Makers, and therefore will make it more likely that 
market participants will choose to become active on PSX. This may, in 
turn, increase the extent of liquidity available on PSX and increase 
its ability to compete with other execution venues to attract orders 
that are seeking liquidity. The Exchange further believes that the 
introduction of the MMPO will not impair in any manner the ability of 
market participants or other execution venues to compete.

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)(ii) of the Act \21\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\22\
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    \21\ 15 U.S.C. 78s(b)(3)(a)(ii).
    \22\ 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.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended, 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-2013-62 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2013-62. 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-2013-62 and should be 
submitted on or before July 10, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Kevin M O'Neill,
Deputy Secretary.
[FR Doc. 2013-14503 Filed 6-18-13; 8:45 am]
BILLING CODE 8011-01-P