[Federal Register Volume 80, Number 57 (Wednesday, March 25, 2015)]
[Notices]
[Pages 15850-15857]
[FR Doc No: 2015-06710]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74531; File No. SR-Phlx-2015-25]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
the Pricing Schedule's Preface and Sections I, II and IV

March 19, 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 March 11, 2015, 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.
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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 the
Substance of the Proposed Rule Change

    The Exchange proposes to modify the Phlx Pricing Schedule
(``Pricing Schedule''). Specifically, the Exchange proposes to amend:
(1) The Preface to the Pricing Schedule to include a reference to a
Non-Customer; (2) amend the Customer \3\ Simple Order Fee for Removing
Liquidity in Section I, entitled ``Rebates and Fees for Adding and
Removing Liquidity in SPY'' as well as certain PIXL \4\ executions in
options overlying SPY; \5\ (3) amend a Firm \6\ fee in Section II,
entitled ``Multiply Listed Options Fees,'' \7\ as well as certain
pricing applicable to Specialists \8\ and Market Makers; \9\ (4) amend
PIXL pricing in Section IV, Part A entitled ``PIXL Pricing,'' and FLEX
pricing in Section IV, Part B, entitled ``FLEX Transaction Fees'' of
the Pricing Schedule.
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    \3\ The term ``Customer'' applies to any transaction that is
identified by a member or member organization for clearing in the
Customer range at The Options Clearing Corporation (``OCC'') which
is not for the account of broker or dealer or for the account of a
``professional'' (as that term is defined in Rule 1000(b)(14)).
    \4\ PIXL\SM\ is the Exchange's price improvement mechanism known
as Price Improvement XL or PIXL. See Rule 1080(n).
    \5\ Options overlying Standard and Poor's Depositary Receipts/
SPDRs (``SPY'') are based on the SPDR exchange-traded fund, which is
designed to track the performance of the S&P 500 Index.
    \6\ The term ``Firm'' applies to any transaction that is
identified by a member or member organization for clearing in the
Firm range at OCC.
    \7\ This includes options overlying equities, exchange traded
funds (``ETFs''), exchange traded notes (``ETNs'') and indexes which
are Multiply Listed.
    \8\ A Specialist is an Exchange member who is registered as an
options specialist pursuant to Rule 1020(a).
    \9\ A ``Market Maker'' includes Registered Options Traders (Rule
1014(b)(i) and (ii)), which includes Streaming Quote Traders (see
Rule 1014(b)(ii)(A)) and Remote Streaming Quote Traders (see Rule
1014(b)(ii)(B)). Directed Participants are also market makers.
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    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 modify the Pricing Schedule to
specifically amend the Preface, Section I, entitled ``Rebates and Fees
for Adding and Removing Liquidity in SPY,'' Section II, entitled
``Multiply Listed Options Fees,'' and Section IV, Part A, entitled
``PIXL Pricing'' and Part B entitled ``FLEX Transaction Fees.'' The
Exchange proposes various amendments to the Pricing Schedule as
described below.
Preface
    The Exchange proposes to amend the Preface of the Pricing Schedule
to add a defined term, ``Non-Customer.'' The Exchange proposes to state
that a Non-Customer refers to transactions for the accounts of
Specialists, Market Makers, Firms, Professionals,\10\ Broker-Dealers
\11\ and JBOs.\12\ The Exchange believes that adding this reference to
the Preface will assist members and member organizations to better
understand references to the term ``Non-Customer'' in the Pricing
Schedule when pricing is applied to market participants other than a
Customer.
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    \10\ The term ``professional'' means any person or entity that
(i) is not a broker or dealer in securities, and (ii) places more
than 390 orders in listed options per day on average during a
calendar month for its own beneficial account(s). See Rule
1000(b)(14).
    \11\ The term ``Broker-Dealer'' applies to any transaction which
is not subject to any of the other transaction fees applicable
within a particular category.
    \12\ The term ``Joint Back Office'' or ``JBO'' applies to any
transaction that is identified by a member or member organization
for clearing in the Firm range at OCC and is identified with an
origin code as a JBO. A JBO will be priced the same as a Broker-
Dealer. A JBO participant is a member, member organization or non-
member organization that maintains a JBO arrangement with a clearing
broker-dealer (``JBO Broker'') subject to the requirements of
Regulation T Section 220.7 of the Federal Reserve System as further
discussed at Exchange Rule 703.
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Section I Rebates and Fees for Adding and Removing Liquidity in SPY
    The Exchange is proposing to amend the Customer Simple Order Fees
for Removing Liquidity in Section I applicable to transactions
overlying SPY. The Exchange currently assesses Customers a $0.43 per
contract Fee for Removing Liquidity in SPY Simple Orders and
Specialists, Market Makers, Firms, Broker-Dealers and Professionals are
assessed a $0.49 per contract Fee for Removing Liquidity in SPY Simple
Orders. The Exchange is proposing to increase the Customer Fee for
Removing Liquidity in SPY Simple Orders from $0.43 to $0.44 per
contract. Despite the increased fee, Customers will continue to be
assessed a lower Fee for Removing Liquidity in SPY Simple Orders as
compared to other market participants.
    The Exchange also proposes to amend PIXL fees in SPY in Section I
of the Pricing Schedule. Today, when a PIXL Order is contra to other
than the Initiating Order,\13\ the PIXL Order will be assessed $0.00
per contract, unless the order is a Customer, in which case the
Customer will receive a rebate of $0.38 per contract. All other contra
parties to the PIXL Order, other than the Initiating Order, will be
assessed a Fee for Removing Liquidity of $0.38 per contract or will
receive the Rebate for Adding Liquidity.\14\ The Exchange is proposing
to increase the amount that all other contra parties to the PIXL Order,
other than the Initiating Order, will be assessed to remove liquidity
from $0.38 to $0.42 per contract. These contra parties will continue to
be entitled to receive the Rebate for Adding Liquidity, as is the case
today. Despite, the increase [the Exchange] believes that its current
SPY PIXL fees remain competitive.
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    \13\ A member may electronically submit for execution an order
it represents as agent on behalf of a public customer, broker-
dealer, or any other entity (``PIXL Order'') against principal
interest or against any other order (except as provided in Rule
1080(n)(i)(E)) it represents as agent (``Initiating Order'')
provided it submits the PIXL order for electronic execution into the
PIXL Auction (``Auction'') pursuant to Rule 1080. See Exchange Rule
1080(n). Non-Initiating Order interest could be a PIXL Auction
Responder or a resting order or quote that was on the Phlx book
prior to the auction.
    \14\ The Exchange offers Specialists and Maker Makers a $0.20
per contract Simple Order Rebate for Adding Liquidity in SPY.
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    For clarity, the Exchange is also proposing to add the word ``Non-
Customer'' to the Pricing Schedule in Section I, when describing all
other contra parties for purposes of the PIXL Order fees.
Section II--Multiply Listed Options
    The Exchange proposes to continue provide a reduction to the Firm
Options Transaction fee in Penny Pilot Options \15\ and Non-Penny Pilot
Options for electronic Simple Orders in Apple Inc. (``AAPL''), Bank of
America Corporation (``BAC''), iShares MSCI Emerging Markets ETF
(``EEM''), Facebook, Inc. (``FB''), iShares China Large-Cap ETF
(``FXI''), iShares Russell 2000 ETF (``IWM''), PowerShares QQQ Trust
(``QQQ''), Twitter, Inc. (``TWTR''), iPath S&P 500 VIX Short-Term
Futures ETF (``VXX'') and Financial Select Sector SPDR Fund (``XLF'').
The current fee of $0.27 per contract, which is discounted as compared
to the Options Transaction Fee in Section II, will be increased to
$0.34 per contract. This proposed fee is lower than the $0.48 per
contract fee Firm electronic Penny Pilot Options Transaction Charge in
Section II of the Pricing Schedule.\16\ Despite the increase in this
fee, the Exchange believes that Firms will continue to be incentivized
to transact volume in these aforementioned symbols as the fee continues
to be discounted.
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    \15\ The Penny Pilot was established in January 2007 and was
last extended to June 30, 2015. See Securities and Exchange Release
No. 73688 (November 25, 2014), 79 FR 71484 (December 2, 2014) (SR-
Phlx-2014-77).
    \16\ See Section II of the Pricing Schedule. AAPL, BAC, EEM, FB,
FXI, IWM, QQQ, TWTR, VXX and XLF are currently Penny Pilot Options
(together ``certain Penny Options''). The $0.34 per contract pricing
proposed herein is symbol specific and will continue to apply to
these symbols whether or not they are deleted from or added from the
Penny Pilot Options Program.
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    Currently, Specialists and Market Makers are subject to a ``Monthly
Market Maker Cap'' of $500,000 for: (i) Electronic and floor Option
Transaction Charges; and (ii) Qualified Contingent Cross or ``QCC''
Transaction Fees.\17\ The trading activity of separate Specialist and
Market Maker member organizations are aggregated in calculating the
Monthly Market Maker Cap if there is Common Ownership \18\ between the
member organizations. All dividend, merger, short stock interest,
reversal and conversion, jelly roll and box spread strategy executions
\19\ are excluded from the Monthly Market Maker Cap. Today, Specialists
or Market Makers that (i) are on the contra-side of an electronically-
delivered and executed Customer order, excluding responses to a PIXL
auction; and (ii) have reached the Monthly Market Maker Cap are
currently assessed fees per contract as follows: $0.05 per contract Fee
for Adding Liquidity in Penny Pilot Options; $0.17 per contract Fee for
Removing Liquidity in Penny Pilot Options; $0.17 per contract in Non-
Penny Pilot Options; and $0.17 per contract in a non-Complex electronic
auction, including the Quote Exhaust auction and, for purposes of this
fee, the opening process. A Complex electronic auction includes, but is
not limited to, the Complex Order Live Auction

(``COLA'').\20\ Transactions which execute against an order for which
the Exchange broadcast an order exposure alert are subject to this fee.
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    \17\ QCC Orders are defined in Exchange Rule 1080(o) and Floor
QCC Orders are defined in 1064(e)).
    \18\ Common Ownership shall mean members or member organizations
under 75% common ownership or control.
    \19\ See descriptions of these strategies in Section II of the
Pricing Schedule.
    \20\ A Complex electronic auction includes, but is not limited
to, the Complex Order Live Auction (``COLA'').
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    The Exchange proposes to increase the $0.17 per contract Fee for
Removing Liquidity in Penny Pilot Options to $0.18 per contract; the
$0.17 per contract in Non-Penny Pilot Options to $0.18 per contract;
and the $0.17 per contract in a non-Complex electronic auction to $0.18
per contract, provided a Specialist or Market Maker is on the contra-
side of an electronically-delivered and executed Customer order and has
reached the Monthly Market Maker Cap. Despite these increases, the
Exchange believes that Specialists and Market Makers will continue to
be encouraged to transact orders on the market because the fees are
still discounted.\21\
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    \21\ Specialists and Market Makers that do not meet the
requirements specified herein are subject to the Options Transaction
Charges in Section II of the Pricing Schedule.
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Section IV, Part A--PIXL Pricing
    PIXL pricing for Initiating Orders is located in subsection IV,
Part A, entitled ``Other Transaction Fees'' of the Pricing Schedule.
Today, the Initiating Order Fee is $0.07 per contract. If the member or
member organization qualifies for the Tier 4 or 5 Customer Rebate in
Section B of the Pricing Schedule, the member or member organization
will be assessed $0.05 per contract for Simple PIXL Orders and $0.03
per contract for Complex PIXL Orders. Any member or member organization
under Common Ownership with another member or member organization that
qualifies for a Customer Rebate Tier 4 or 5 discount in Section B of
the Pricing Schedule will receive the PIXL Initiating Order discount.
The Initiating Order Fee for Professional, Firm, Broker-Dealer,
Specialist and Market Maker orders that are contra to a Customer PIXL
Order is reduced to $0.00 if the Customer PIXL Order is greater than
399 contracts. Today, for PIXL Order Executions in Section II, Multiply
Listed Options, when a PIXL Order is contra to a PIXL Auction
Responder, a Customer PIXL Order will be assessed $0.00 per contract,
other market participants will be assessed $0.30 per contract in Penny
Pilot Options or $0.38 per contract in Non-Penny Pilot Options. A
Responder will be assessed $0.30 per contract in Penny Pilot Options or
$0.38 per contract in Non-Penny Pilot Options, unless the Responder is
a Customer, in which case the fee will be $0.00 per contract.
    The Exchange is proposing to amend fees when a PIXL Order is contra
to a PIXL Auction Responder for Multiply Listed Options. A Customer
PIXL Order will continue to be assessed $0.00 per contract and other
market participants will continue to be assessed $0.30 per contract in
Penny Pilot Options or $0.38 per contract in Non-Penny Pilot Options in
Multiply Listed Options. The Exchange proposes to continue to assess a
Responder that is a Specialist or Market Maker a $0.30 per contract fee
in Penny Pilot Options and an increased $0.40 per contract (today this
fee is $0.38 per contract) fee in Non-Penny Pilot Options. Other Non-
Customer Responders (Professionals, Firms and Broker-Dealers) will be
assessed an increased fee in Penny Pilot Options of $0.48 per contract
and an increased fee of $0.70 per contract in Non-Penny Pilot
Options.\22\ A Responder that is a Customer will continue to be
assessed $0.00 per contract in Penny and Non-Penny Pilot Options.
Despite the increases in certain PIXL fees, the Exchange believes that
its fee remain competitive.
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    \22\ Today, these market participants are assessed a $0.30 per
contract Penny Pilot Option fee and a $0.38 per contract Non-Penny
Pilot Option fee.
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    The Exchange is also proposing to capitalize certain terms for
consistency within the text of the Pricing Schedule and utilize the
term ``Non-Customer''.
Section IV, Part B--FLEX Transaction Fees
    The Exchange proposes to amend its FLEX Multiply Listed Options
pricing in Section IV, Part B, entitled ``FLEX Transaction Fees'' of
the Pricing Schedule. Customers will continue to be assessed no fee for
transacting FLEX Options.\23\ Today, all other market participants,
Professionals, Specialists, Market Makers, Broker-Dealers and Firms, or
``Non-Customers,'' are assessed a fee of $0.15 per contract when
transacting FLEX Options.\24\ The Exchange is proposing to increase
this fee from $0.15 to $0.25 contract. The Exchange will continue to
apply the Monthly Firm Fee Cap,\25\ Monthly Market Maker Cap, and the
Options Surcharge in PHLX/KBW Bank Index (``BKX''), options on the one-
tenth value of the Nasdaq 100 Index traded under the symbol MNX
(``MNX'') and options on the Nasdaq 100 Index traded under the symbol
NDX (``NDX'') described in Section II.\26\ No other fees described in
Section II apply to Section IV, B of the Pricing Schedule. The Exchange
will continue to waive FLEX transaction fees for a Firm executing
facilitation orders pursuant to Exchange Rule 1064 when such members
are trading in their own proprietary account. The pricing in Section
III, entitled ``Singly Listed Options'' will continue to apply to FLEX
Singly Listed Options, as is the case today.\27\
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    \23\ FLEX options are only executed on the Exchange's trading
floor and are not executed electronically on the Exchange.
    \24\ FLEX Option fees today are not in addition to Options
Transaction Charges.
    \25\ Firms are subject to a maximum fee of $75,000 (``Monthly
Firm Fee Cap''). Firm Floor Option Transaction Charges and QCC
Transaction Fees, as defined in this section above, in the
aggregate, for one billing month may not exceed the Monthly Firm Fee
Cap per member organization when such members are trading in their
own proprietary account. All dividend, merger, and short stock
interest strategy executions (as defined in Section II) are excluded
from the Monthly Firm Fee Cap. Reversal and conversion strategy
executions (as defined in Section II) are included in the Monthly
Firm Fee Cap. QCC Transaction Fees are included in the calculation
of the Monthly Firm Fee Cap. See Section II Pricing.
    \26\ Today, the Exchange pays an Options Surcharge in BKX of
$0.10 per contract for all market participants, except Customers.
Also, the Exchange pays an Options Surcharge in MNX and NDX of $0.20
per contract for all market participants, except Customers. See
Section II of the Pricing Schedule.
    \27\ Section III pricing includes options overlying currencies,
equities, ETFs, ETNs treasury securities and indexes not listed on
another exchange.
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2. Statutory Basis
    The Exchange believes that its proposal to amend the Pricing
Schedule is consistent with Section 6(b) of the Act \28\ in general,
and furthers the objectives of Section 6(b)(4) and (b)(5) of the Act
\29\ in particular, in that it provides for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system which Phlx operates or
controls, and is not designed to permit unfair discrimination between
market participants to whom the Exchange's fees and rebates are
applicable.
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    \28\ 15 U.S.C. 78f(b).
    \29\ 15 U.S.C. 78f(b)(4), (5).
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Preface
    The Exchange's proposal to amend the Preface of the Pricing
Schedule to add a defined term, ``Non-Customer'' is reasonable because
it makes clear what is meant by the term ``Non-Customer,'' which refers
to transactions for the accounts of Specialists, Market Makers, Firms,
Professionals, Broker-Dealers and JBOs.
    The Exchange's proposal to amend the Preface of the Pricing
Schedule to add a defined term, ``Non-Customer'' is equitable and not
unfairly discriminatory because the addition of the term ``Non-
Customer'' to the Preface

will provide consistency to the meaning of the term as utilized
throughout the Pricing Schedule.
Section I--Rebates and Fees for Adding and Removing Liquidity in SPY
    The Exchange's proposal to amend the Customer SPY Simple Order Fees
for Removing Liquidity in Section I of the Pricing Schedule to increase
the fee from $0.43 to $0.44 per contract is reasonable because, despite
the increase, the Exchange believes the fee will continue to encourage
a greater number of market participants to remove Customer liquidity in
SPY on Phlx because the proposed rate of $0.44 per contract is lower
than transactions in SPY at some competitor or affiliated options
exchanges.\30\ Customer orders bring valuable liquidity to the market
which liquidity benefits other market participants.
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    \30\ See the NASDAQ Options Market LLC's (``NOM'') pricing at
Chapter XV of NOM's Rulebook.
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    The Exchange's proposal to amend the Customer SPY Simple Order Fees
for Removing Liquidity in Section I of the Pricing Schedule to increase
the fee from $0.43 to $0.44 per contract is equitable and not unfairly
discriminatory because Customers will continue to be assessed the
lowest Fees for Removing Liquidity in SPY Simple Orders.\31\ Customer
liquidity benefits all market participants by providing more trading
opportunities, which attracts Specialists and Market Makers. An
increase in the activity of these market participants in turn
facilitates tighter spreads, which may cause an additional
corresponding increase in order flow from other market participants.
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    \31\ Other market participants are assessed a $0.49 per contract
Fees for Removing Liquidity in SPY Simple Orders.
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    The Exchange's proposal to amend PIXL fees in SPY to increase the
amount that all other Non-Customer contra parties to the PIXL Order,
other than the Initiating Order, will be assessed to remove liquidity
from $0.38 to $0.42 per contract is reasonable because despite the
increase in the fee, the Exchange believes this pricing will continue
to incentivize market participants to transact a greater number of SPY
options. The Exchange will continue to assess no fee when a PIXL Order
is contra to other than an Initiating Order in SPY. Customers will
continue to receive a rebate of $0.38 per contract when the PIXL Order
is contra to other than the Initiating Order. The Exchange is
increasing the Fee for Removing Liquidity for Non-Customer contra-
parties to the PIXL Order in SPY, other than the Initiating Order, to
$0.42 per contract, which is still lower than the $0.49 per contract
Fee for Removing Liquidity that is assessed for Simple Orders in
SPY.\32\ SPY options are currently the most actively traded options
class and therefore the Exchange believes that incentivizing Non-
Customers (Professionals, Firms, Broker-Dealers, Specialists and Market
Makers) to remove liquidity in SPY options by offering a lower rate as
compared to the $0.49 per contract Simple Order Fee for Removing
Liquidity in SPY will benefit all market participants by providing
incentives for price improvement, such as this reduction in the Fee for
Removing Liquidity.
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    \32\ See Section I of the Pricing Schedule.
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    The Exchange's proposal to amend PIXL fees in SPY to increase the
amount that all other contra parties to the PIXL Order, other than the
Initiating Order, will be assessed to remove liquidity from $0.38 to
$0.42 per contract is equitable and not unfairly discriminatory because
the Exchange will be assessing the same Fees for Removing Liquidity for
SPY PIXL options to all Non-Customer market participants provided they
meet the aforementioned criteria. Customer liquidity benefits all
market participants by providing more trading opportunities, which
attracts Specialists and Market Makers. Creating incentives for Non-
Customer market participants to remove liquidity benefits all market
participants through increased liquidity at the Exchange. A higher
percentage of SPY Orders in PIXL leads to increased auctions and better
opportunities for price improvement.
    The Exchange believes that it is reasonable, equitable and not
unfairly discriminatory to add clarifying rule text to the Pricing
Schedule with respect to identifying Non-Customers.
Section II--Multiply Listed Options
    The Exchange's proposal to increase the Firm electronic Simple
Order fee in AAPL, BAC, EEM, FB, FXI, IWM, QQQ, TWTR, VXX and XLF from
$0.27 to $0.34 per contract is reasonable because it will continue to
incentivize Firms to send electronic Simple Orders in these symbols to
the Exchange by offering a rate lower than at other options
exchanges.\33\ Today Firms pay a discounted fee ($0.27 per contract
compared to the Firm electronic Multiply Listed Options $0.48 per
contract fee). Pricing by symbol is a common practice on many U.S.
options exchanges as a means to incentive order flow to be sent to an
exchange for execution.\34\
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    \33\ See the NASDAQ Options Market LLC's (``NOM'') pricing at
Chapter XV of NOM's Rulebook. See also NYSE Arca, Inc. (``NYSE
Arca'') Fees and Charges. The non-customer remove fee for Penny
Pilot issues is $0.49 per contract.
    \34\ See International Securities Exchange LLC's (``ISE'')
Schedule of Fees.
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    The Exchange's proposal to increase the Firm electronic Simple
Order fee in AAPL, BAC, EEM, FB, FXI, IWM, QQQ, TWTR, VXX and XLF from
$0.27 to $0.34 per contract is equitable and not unfairly
discriminatory. The Exchange will continue to assess Firms higher fees
as compared to Customers.\35\ Customer order flow enhances liquidity on
the Exchange for the benefit of all market participants and benefits
all market participants by providing more trading opportunities, which
attracts Specialists and Market Makers. An increase in the activity of
these market participants in turn facilitates tighter spreads, which
may cause an additional corresponding increase in order flow from other
market participants. Firms will continue to assessed higher Options
Transaction Charges as compared to Specialists and Market Makers,\36\
because Specialists and Market Makers have obligations to the market
and regulatory requirements, which normally do not apply to other
market participants.\37\ They have obligations to make continuous
markets, engage in a course of dealings reasonably calculated to
contribute to the maintenance of a fair and orderly market, and not
make bids or offers or enter into transactions that are inconsistent
with a course of dealings.
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    \35\ Customers do not pay Options Transaction Charges in
Multiply Listed Options. See Section II of the Pricing Schedule.
    \36\ Specialists and Market Makers are assessed an electronic
Penny Pilot Options Transaction Charge of $0.22 per contract. See
Section II of the Pricing Schedule.
    \37\ See Rule 1014 titled ``Obligations and Restrictions
Applicable to Specialists and Registered Options Traders.''
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    Finally, as proposed, Firms will be assessed a $0.34 per contract
electronic fee for electronic Simple Orders in these symbols, which is
a lower fee as compared to Professionals and Broker-Dealers.\38\ The
Exchange believes that the proposed fee differential between Firms and
Professionals and Broker-Dealers is equitable and not unfairly
discriminatory because it is similar to the pricing offered by another
options exchange.\39\ Moreover, the proposed

differential does not misalign pricing, in that Firms already benefit
from certain pricing advantages that Professionals and Broker-Dealers
do not also enjoy (for example, the Firm Monthly Fee Cap).\40\ The
proposed fee reduction, which will apply to Firms, but not to
Professionals and Broker-Dealers, is equitable and not unfairly
discriminatory for the same reasons that the Firm Monthly Fee Cap which
applies to Firms and not to Professionals and Broker-Dealers is
equitable and not unfairly discriminatory. The fee reduction proposed
herein, like the Monthly Firm Fee Cap, provides an incentive for Firms
to transact order flow on the Exchange, which order flow brings
increased liquidity to the Exchange for the benefit of all Exchange
participants. To the extent the purpose of the proposed Firm fee
reduction is achieved, all the Exchange's market participants,
including Professionals and Broker-Dealers, should benefit from the
improved market liquidity. Further, competitive forces are influencing
the price reduction in these symbols for Firm orders.
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    \38\ Professionals and Broker-Dealers are assessed a $0.48 per
contract electronic Penny Pilot Options Transaction Charge, except
for electronic Complex Orders, which are assessed $0.35 per
contract. See Section II of the Pricing Schedule.
    \39\ MIAX Options Exchange (``MIAX'') assesses non-member
Broker-Dealers a $0.45 [sic] per contract standard options
transaction fee and a Firm is assessed a $0.37 per contract standard
options transaction fee. See MIAX's Fee Schedule.
    \40\ Firms are subject to a maximum fee of $75,000 (``Monthly
Firm Fee Cap''). Firm Floor Option Transaction Charges and QCC
Transaction Fees, in the aggregate, for one billing month may not
exceed the Monthly Firm Fee Cap per member organization when such
members are trading in their own proprietary account. All dividend,
merger, and short stock interest strategy executions (as defined in
Section II of the Pricing Schedule) are excluded from the Monthly
Firm Fee Cap. Reversal and conversion, jelly roll and box spread
strategy executions (as defined in Section II) are included in the
Monthly Firm Fee Cap. QCC Transaction Fees are included in the
calculation of the Monthly Firm Fee Cap. See Section II of the
Pricing Schedule.
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    The Exchange desires to incentivize Firms that receive reduced
rates at other options exchanges to select Phlx as a venue by offering
competitive pricing to these market participants. Such competitive,
differentiated pricing exists today on other options exchanges.\41\ The
Chicago Board Options Exchange, Incorporated (``CBOE'') has a
differential as between Clearing Trading Permit Holder Proprietary
participants (the equivalent of Firm on Phlx) and other non-Customer,
non-market maker participants of $0.10 per contract in electronic Penny
Pilot Options and $0.25 [sic] per contract in Non-Penny Pilot
Options.\42\ Further, CBOE assesses Broker-Dealers/Professionals/Non-
Trading Permit Holder Market Makers between $0.35-$0.44 per contract
for SPX executions (a singly listed CBOE proprietary product) versus
the Clearing Trading Permit Holder Proprietary (the equivalent of Firm
on Phlx) who is assessed between $0.25-$0.01 per contract in SPX for a
maximum differential of $0.43 per contract in a CBOE proprietary
product.\43\ Phlx's differential as between a Firm on the one hand and
other non-Customer, non-Specialist/Market Makers on the other is not as
wide as CBOE's pricing and moreover a competitive offering given
current pricing differentials on other options exchange such as the
MIAX \44\ and CBOE.
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    \41\ CBOE assesses a reduced fee to Clearing Trading Permit
Holder Proprietary (Clearing Trading Permit Holder Proprietary
clears in the Firm range at The Options Clearing Corporation
(``OCC'')) participants of $0.35 per contract for electronic Penny
and Non-Penny Pilot options. CBOE assesses Broker-Dealers/
Professionals/Non-Trading Permit Holder Market Makers a $0.45 per
contact fee for electronic Penny Pilot Options and a $0.65 per
contract fee for electronic Non-Penny Pilot Options classes. See
CBOE's Fee Schedule. Specifically, see note 11 for clearing
explanation and also Regulatory Circular RG13-038.
    \42\ See CBOE's Fees Schedule.
    \43\ Id.
    \44\ See note 39 above.
---------------------------------------------------------------------------

    The Exchange believes there is nothing impermissible about Phlx
offering a discount solely to a Firm, this practice is consistent with
the above examples and longstanding differentials between Firms, other
Broker-Dealers and Professionals. The options exchanges have
differentiated between: Retail customers and professional customers;
broker/dealers clearing in the ``Firm'' range at OCC and broker/dealers
registered as market makers and away market makers; early-adopting
market makers; and many others. The Commission has also permitted price
differentiation based on whether an order is processed manually versus
electronically. The proposal is consistent with previously established
pricing proposals accepted by the Commission.
    The Exchange believes that amending the fees assessed to
Specialists and Market Makers that are on the contra-side of an
electronically-delivered and executed Customer order, excluding
responses to a PIXL auction, and have reached the Monthly Market Maker
Cap is reasonable because the Exchange desires to continue to
incentivize Specialists and Market Makers by offering a discount once
these conditions are met. While the Exchange is increasing the
transaction fees which Specialists and Market Makers must pay if they
are on the contra-side of an electronically-delivered and executed
Customer order, excluding responses to a PIXL auction and have reached
the Monthly Market Maker Cap from $0.17 to $0.18 per contract for
removing liquidity in Penny Pilot Options, Non-Penny Pilot Options and
in non-Complex electronic auctions, including the Quote Exhaust auction
and the opening process, the Exchange continues to offer these market
participants the ability to obtain these lower fees as compared to
other market participants.
    The Exchange believes that amending the fees assessed to
Specialists and Market Makers that are on the contra-side of an
electronically-delivered and executed Customer order, excluding
responses to a PIXL auction; and have reached the Monthly Market Maker
Cap is equitable and not unfairly discriminatory because Specialists
and Market Makers serve an important role on the Exchange with regard
to order interaction and they provide liquidity in the marketplace.
Specialists and Market Makers have obligations to the market and
regulatory requirements, which normally do not apply to other market
participants.\45\ In addition, the proposed fees would apply only in
certain circumstances where the Market Maker or Specialist is not
otherwise subject to transaction fees, because the Monthly Market Maker
Cap has been reached, and specifically on the contra-side of an
electronically-delivered Customer order.
---------------------------------------------------------------------------

    \45\ See note 37.
---------------------------------------------------------------------------

Section IV, Part A--PIXL Pricing
    The Exchange believes it is reasonable, equitable and not unfairly
discriminatory to amend the PIXL Fees in Section IV, Part A, when
responding to a PIXL auction for the below reasons.
    First, with respect to Penny Pilot Options, Specialists and Market
Makers Responders will continue to be assessed a $0.30 per contract fee
in Penny Pilot Options. The Exchange is proposing to increase the fee
from $0.30 to $0.48 per contract for other Non-Customers (Firms,
Professionals and Broker-Dealers) transacting Penny Pilot Options. The
differential as between Specialists and Market Makers and other Non-
Customers is reasonable because Specialists and Market Makers are
assessed a $0.30 per contract Responder fee for Penny Pilot Options
electronic transactions plus the Payment for Order Flow \46\ for a
total of fee of $0.55 per contract for responding to auctions involving
a Customer. PFOF fees are not paid by other market participants. In
addition, Specialists and Market Makers comprise the majority of PIXL
Responders on Phlx. Other Non-Customer Responders (Firms, Professionals
and Broker-Dealers) will

now be assessed an increased fee of $0.48 per contract rate in Penny
Pilot Options (today they pay a $0.38 per contract fee) when contra to
a PIXL Order. The Exchange believes that market participants will
continue to be encouraged to respond to PIXL auctions, despite the
increased fees, because the Exchange's Penny Pilot Options fees for
Responders remain competitive. The proposed Non-Customer fees are lower
than fees assessed to Non-Customers by other options exchanges.\47\
---------------------------------------------------------------------------

    \46\ The Payment for Order Flow (``PFOF'') Program assesses fees
to Specialists and Market Makers resulting from Customer orders.
Specialists and Market Makers pat [sic] a $0.25 per contract PFOF
for Customer Penny Pilot Options orders.
    \47\ See NYSE MKT Inc. (``NYSE Amex'') Fees and Charges.
Specifically, the RFR Response Penny Pilot Option Fee (Non-Customer)
is $0.55 per contract for the CUBE auction. CUBE is NYSE Amex's
electronic price improvement auction for options. This mechanism is
similar to the PIXL auction. MIAX assesses a Responder to the Prime
Auction a per contract Penny Pilot fee of $0.45 per contract to all
market participants (including priority customer). PRIME is MIAX's
electronic price improvement auction for options. This mechanism is
similar to the PIXL auction.
---------------------------------------------------------------------------

    The proposed increase of $0.18 per contract (current $0.30 fee,
which is proposed to be increased to $0.48 per contract) for the Penny
Pilot Option fee to respond to a PIXL auction for Firms, Professionals
and Broker-Dealers is equitable and not unfairly discriminatory because
all Firms, Professionals and Broker-Dealers are treated in a uniform
manner. These participants will all be subject to this fee of $0.48 per
contract. Customers will continue to be assessed no fee, as is the case
today and Specialists and Market Makers will receive lower prices
because they have obligations to the market and regulatory
requirements, which normally do not apply to other market participants
in the continuous market, and as such the Exchange continues to believe
these market participants (Specialists and Market Makers) should
receive certain discounts in auctions.\48\
---------------------------------------------------------------------------

    \48\ See note 37.
---------------------------------------------------------------------------

    Second, with respect to Non-Penny Pilot Options fees, while
Specialists and Market Makers Responders will be assessed an increased
fee of $0.40 per contract in Non-Penny Pilot Options (today the fee is
$0.38 per contract), this $0.40 per contract fee will continue to be
lower as compared to the proposed Non-Penny Pilot Options fee of $0.70
per contract for other Non-Customer market participants (Firms,
Professionals and Broker-Dealers). The differential as between
Specialist and Market Makers and other Non-Customers is reasonable
because Specialists and Market Makers are assessed the $0.40 per
contract Responder fee for electronic Non-Penny Pilot Options
transactions plus the PFOF \49\ for a total fee of $1.10 for responding
to auctions involving a Customer order. PFOF fees are not paid by other
market participants. In addition, Specialists and Market Makers
comprise the majority of PIXL Responders on Phlx. Other Non-Customer
Responders (Firms, Professionals and Broker-Dealers) will now be
assessed an increased fee of $0.70 per contract fee in Non-Penny Pilot
Options (today they pay $0.38 per contract fee) when contra to a PIXL
Order. These are the same fees that these market participants
(Professionals, Firms and Broker-Dealers) are assessed today for
transacting electronic orders in Multiply Listed Non-Penny Pilot
Options.\50\ In addition, other options exchanges have much higher fees
for auctions.\51\
---------------------------------------------------------------------------

    \49\ Specialists and Market Makers pay PFOF of $0.70 per
contract for Non-Penny Pilot Options electronic Customer orders. See
Section II of the Pricing Schedule.
    \50\ See Section II in the Pricing Schedule.
    \51\ See NYSE MKT Inc. (``NYSE Amex'') Fees and Charges.
Specifically, the RFR Response Non-Penny Pilot Option Fee (Non-
Customer) is $0.90 per contract for the CUBE auction. CUBE is NYSE
Amex's electronic price improvement auction for options. This
mechanism is similar to the PIXL auction. MIAX assesses a Responder
to the Prime Auction a per contract Non-Penny Pilot fee of $0.90 per
contract to all market participants (including priority customer).
PRIME is MIAX's electronic price improvement auction for options.
This mechanism is similar to the PIXL auction.
---------------------------------------------------------------------------

    The proposed increase of $0.32 per contract (current $0.38 fee,
which is proposed to be $0.70 per contract) for the Non-Penny Pilot
Option fee to respond to a PIXL auction for Firms, Professionals and
Broker-Dealers is equitable and not unfairly discriminatory because all
Firms, Professionals and Broker-Dealers are treated in a uniform
manner. These market participants will all be subject to this fee of
$0.70 per contract. Customers will continue to be assessed no fee, as
is the case today and Specialists and Market Makers have obligations to
the market and regulatory requirements, which normally do not apply to
other market participants in the continuous market and as such the
Exchange continues to believe these market participants (Specialists
and Market Makers) should receive certain discounts in auctions.\52\
The proposed increased fee from $0.38 to $0.40 per contract for
Specialists and Market Makers in Non-Penny Pilot Options when
responding to a PIXL auction is equitable and not unfairly
discriminatory because as noted these market participants have
obligations to the marketplace.\53\
---------------------------------------------------------------------------

    \52\ See note 37.
    \53\ Id.
---------------------------------------------------------------------------

    The Exchange believes that widening the differential as between the
Initiating Order Fee and the Specialist or Market Maker contra party to
the PIXL Order ($0.07 (presuming no discount) vs. $0.40 per contract
for Non-Penny Pilot Options) as compared to the cost to transact a PIXL
Order today for a Specialist or Market Maker ($0.07 vs. $0.38 per
contract) is equitable and not unfairly discriminatory for the reasons
below. Similarly, the Exchange believes that widening the differential
as between the Initiating Order Fee and the Professional, Firm or
Broker-Dealer contra party to the PIXL Order ($0.07 (presuming no
discount) vs. $0.48 per contract for Penny Pilot Options and $0.70 per
contract for Non-Penny Pilot Options) as compared to the cost to
transact a PIXL Order today for a Specialist or Market Maker ($0.07 per
contract vs. $0.38 per contract) [sic] is equitable and not unfairly
discriminatory for the reasons below.
    Today, MIAX assesses a Responder to the Prime Auction a per
contract Penny Pilot fee of $0.45 per contract to all market
participants (including priority customer) and a Non-Penny Pilot fee of
$0.90 per contract to all market participants (including priority
customer). PRIME is MIAX's electronic price improvement auction for
options.\54\ This mechanism is similar to the PIXL auction. The
differential for transactions on MIAX today is $0.05 for a Prime Order
(similar to the Phlx Initiating Order) versus $0.45/$0.90 per contract
for Penny/Non-Penny Pilot Options. MIAX's differential is equal to or
substantially greater than Phlx's proposed differential in PIXL.
---------------------------------------------------------------------------

    \54\ See Securities Exchange Act Release No. 72943 (August 28,
2014), 79 FR 52785 (September 4, 2014) (SR-MIAX-2014-45).
---------------------------------------------------------------------------

    While the proposed fees would increase the differential between
Non-Customer market participants that initiated the PIXL auction and
Non-Customer market participants responding to the PIXL auction, the
Exchange believes that despite the fee differential market participants
will continue to be encouraged to transact a greater number of PIXL
Orders because the fees are competitive with or similar to those
offered at competing options exchanges. The Exchange believes that it
is reasonable, equitable and not unfairly discriminatory to add
clarifying rule text to the Pricing Schedule with respect to
identifying Non-Customers.
Section IV, Part B--FLEX Transaction Fees
    The Exchange's proposal to increase the FLEX Transaction Fees for
Multiply

Listed Options for Professionals, Specialists, Market Makers, Broker-
Dealers and Firms from $0.15 to $0.25 per contract is reasonable
because the proposed per contract fee would be the same as other fees
assessed to Non-Customers, except Specialists and Market Makers, for
transaction executed on the trading floor.\55\ FLEX Options are
transacted on the Exchange's trading floor and the process is not
automated. Exchange staff processes requests for FLEX Orders and the
costs associated with the Exchange's trading floor have risen over the
years. The Exchange believes that this increase will assist the
Exchange in offsetting costs while keeping such costs competitive with
other markets. Customers will continue to not be assessed a Flex
Transaction Fee for transactions in Multiply Listed Options.
---------------------------------------------------------------------------

    \55\ Specialists and Market Makers are assessed $0.30 per
contract for transactions executed on the trading floor, except in
FLEX Options. Professionals, Broker-Dealers and Firms pay $0.25 per
contract floor Options Transaction Charges. See Section II of the
Pricing Schedule.
---------------------------------------------------------------------------

    The Exchange's proposal to increase the FLEX Transaction Fees for
Multiply Listed Options for Professionals, Specialists, Market Makers,
Broker-Dealers and Firms from $0.15 to $0.25 per contract is equitable
and not unfairly discriminatory because the Exchange is assessing the
same fees for FLEX transactions in Multiply Listed Options to all
market participants, except Customers. Customers traditionally are not
assessed transaction fees because Customer orders bring valuable
liquidity to the market. The Exchange believes that the cost to
transact FLEX Options remains competitive with costs at other options
Exchanges.\56\
---------------------------------------------------------------------------

    \56\ See CBOE's Fees Schedule.
---------------------------------------------------------------------------

    The Exchange believes that utilizing the new term ``Non-Customer''
in the FLEX pricing as opposed to Professionals Specialists, Market
Makers, Broker-Dealers and Firms is reasonable, equitable and not
unfairly discriminatory because it adds greater clarity to the Pricing
Schedule.

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 Exchange's proposal to add
the term ``Non-Customer'' to the Preface of the Pricing Schedule does
not impose an undue burden on competition.
    The Exchange's proposal to increase the Simple Order Customer Fee
for Removing Liquidity in SPY does not misalign the fees related to
Customer as compared to Non-Customer orders. Today, Customers have
lower fees because Customer liquidity benefits all market participants
by providing more trading opportunities, which attracts Specialists and
Market Makers. An increase in the activity of these market participants
in turn facilitates tighter spreads, which may cause an additional
corresponding increase in order flow from other market participants.
    The Exchange's proposal to amend the SPY PIXL fees to increase the
fees applicable to Non-Customers that are contra to a PIXL Order, other
than the Initiating Order, when removing liquidity does not impose any
undue burden on competition as all market participants, except
Customers will be assessed the same increased fee. Customer orders
bring valuable liquidity to the market.
    The Exchange's proposal to increase the Firm electronic Simple
Order fee from $0.27 to $0.34 per contract in AAPL, BAC, EEM, FB, FXI,
IWM, QQQ, TWTR, VXX and XLF will not impose an unnecessary or
inappropriate burden on competition because the proposed $0.34 per
contract fee assessed to Firms, which is lower than fees assessed
Professionals and Broker-Dealers, is similar to rates offered by other
options exchanges.\57\ Firms will continue to pay higher Options
Transaction Charges as compared to Customers, who bring liquidity to
the market, and Specialists and Market Makers, who have
obligations.\58\ Finally, as proposed, Firms will be assessed a $0.34
per contract electronic fee for electronic Simple Orders in these
symbols, which is a lower fee as compared to Professionals and Broker-
Dealers.\59\ The Exchange believes that the proposed fee differential
between Firms and Professionals and Broker-Dealers is equitable and not
unfairly discriminatory because it is similar to the pricing offered by
another options exchange.\60\ Moreover, the proposed differential does
not misalign pricing with respect to Professionals and Broker-Dealers
because Firms already benefit from certain pricing advantages that
Professionals and Broker-Dealers do not also enjoy (for example, the
Firm Monthly Fee Cap).\61\ The proposed fee reduction, which will apply
to Firms, but not to Professionals and Broker-Dealers, does not impose
an undue burden on competition because the fee reduction provides an
incentive for Firms to transact order flow on the Exchange, which order
flow brings increased liquidity to the Exchange for the benefit of all
Exchange participants. To the extent the purpose of the proposed Firm
fee reduction is achieved, all the Exchange's market participants,
including Professionals and Broker-Dealers, should benefit from the
improved market liquidity. Further, competitive forces are influencing
the price reduction in these symbols for Firm orders.
---------------------------------------------------------------------------

    \57\ See the NASDAQ Options Market LLC's (``NOM'') pricing at
Chapter XV of NOM's Rulebook.
    \58\ See note 37.
    \59\ Professionals and Broker-Dealers are assessed a $0.48 per
contract electronic Penny Pilot Options Transaction Charge, except
for electronic Complex Orders, which are assessed $0.35 per
contract. See Section II of the Pricing Schedule.
    \60\ See note 39.
    \61\ See Section II of the Pricing Schedule.
---------------------------------------------------------------------------

    The Exchange's proposal for Specialists and Market Makers to pay
certain reduced fees after they have satisfied the obligations related
to the Monthly Market Maker Cap, in all Penny Pilot Options, provided
they have added liquidity, if they are on the contra-side of an
electronically-delivered and executed Customer order, excluding
responses to a PIXL auction does not provide an undue burden on
competition. As noted above Specialists and Market Makers have
burdensome quoting obligations to the market that do not apply to
Customers, Professionals, Firms and Broker-Dealers.\62\ Specialists and
Market Makers serve an important role on the Exchange with regard to
order interaction and they provide liquidity in the marketplace. The
proposed differentiation as between Specialists and Market Makers as
compared to other market participants recognizes the differing
contributions made to the trading environment on the Exchange by these
market participants. For these reasons noted above, the Exchange does
not believe that offering Specialists and Market Makers the opportunity
to cap fees in certain symbols imposes an undue burden on competition.
---------------------------------------------------------------------------

    \62\ See note 37.
---------------------------------------------------------------------------

    The Exchange's proposal to increase PIXL Auction Responder fees for
Specialists and Market Makers from $0.38 to $0.40 per contract in Non-
Penny Pilot Options and for Professionals, Firms and Broker-Dealers
from $0.30 to $0.48 per contract in Penny Pilot Options and from $0.38
to $0.70 per contract in Non-Penny Pilot Options does not create an
undue burden on competition because all Professionals, Broker-Dealers
and Firms are being treated in a uniform manner and the proposed rates
are lower than the fees assessed at MIAX and NYSE

Amex when responding to a price improvement auction.\63\ With respect
to Specialists and Market Makers, these market participants are
assessed PFOF when contra to an electronically-delivered Customer
order, while other market participants are not assessed such fees.\64\
The Exchange does not believe the pricing changes will provide a
competitive advantage for Specialists and Market Makers as compared to
other Non-Customer market participants (i.e., Professionals, Broker-
Dealers and Firms), with respect to intra-market competition.
Specialists and Markets would continue to be assessed lower rates as
compared to these market participants. Further, with respect to inter-
market competition, the Exchange believes that the proposed change will
enhance the competiveness of the Exchange relative to other exchanges
that offer their own electronic crossing mechanism. Other market
participants will pay the same Options Transaction Charges as they pay
today for all other Multiply Listed Options transactions that are not
transacted within the PIXL auction.
---------------------------------------------------------------------------

    \63\ See notes 47 and 51.
    \64\ See Section II of the Pricing Schedule.
---------------------------------------------------------------------------

    The Exchange's proposal to increase the FLEX Transaction Fees for
Multiply Listed Options for Professionals, Specialists, Market Makers,
Broker-Dealers and Firms from $0.15 to $0.25 per contract does not
create an undue burden on competition because the Exchange is assessing
the same fees for FLEX transactions in Multiply Listed Options on all
market participants, except Customers. Customers traditionally are not
assessed transaction fees because Customer orders bring valuable
liquidity to the market.
    The Exchange operates in a highly competitive market, comprised of
twelve exchanges, in which market participants can easily and readily
direct order flow to competing venues if they deem fee levels at a
particular venue to be excessive or rebates to be inadequate.
Accordingly, the fees that are assessed and the rebates paid by the
Exchange, as described in the proposal, are influenced by these robust
market forces and therefore must remain competitive with fees charged
and rebates paid by other venues and therefore must continue to be
reasonable and equitably allocated to those members that opt to direct
orders to the Exchange rather than competing venues.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\65\ At any time within 60 days of the
filing of the proposed rule change, the Commission summarily may
temporarily suspend such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
---------------------------------------------------------------------------

    \65\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

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<EMAIL_ADDRESS>Please include
File Number SR-Phlx-2015-25 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-Phlx-2015-25. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-2015-25, and should be
submitted on or before April 15, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\66\
---------------------------------------------------------------------------

    \66\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-06710 Filed 3-24-15; 8:45 am]
 BILLING CODE 8011-01-P