[Federal Register Volume 81, Number 108 (Monday, June 6, 2016)]
[Notices]
[Pages 36367-36373]
[FR Doc No: 2016-13209]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77949; File No. SR-NYSEMKT-2016-56]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Implementing the
Quoting and Trading Provisions of the Plan To Implement a Tick Size
Pilot Program Submitted to the Commission Pursuant to Rule 608 of
Regulation NMS Under the Act

May 31, 2016.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on May 20, 2016, NYSE MKT LLC (the ``Exchange'' or ``NYSE
MKT'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
    \3\ 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 implement the quoting and trading
provisions of the Plan to Implement a Tick Size Pilot Program submitted
to the Commission pursuant to Rule 608 of Regulation NMS \4\ under the
Act (the ``Plan''). The proposed rule change is substantially similar
to proposed rule changes recently approved or published by the
Commission by New York Stock Exchange LLC to adopt NYSE Rules 67(a) and
67(c)-(e), which also implemented the quoting and trading provisions of
the Plan.\5\ Therefore, the Exchange has designated this proposal as
``non-controversial'' and provided the Commission with the notice
required by Rule 19b-4(f)(6)(iii) under the Act.\6\ The proposed rule
change is available on the Exchange's Web site at www.nyse.com, at the
principal office of the Exchange,

and at the Commission's Public Reference Room.
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    \4\ 17 CFR 242.608.
    \5\ See, Securities Exchange Act Release No. 76229 (October 22,
2015), 80 FR 66065 (October 28, 2015) (SR-NYSE-2015-46), as amended
by Partial Amendments No. 1 and No. 2 to the Quoting & Trading Rules
Proposal. See, Securities Exchange Act Release No. 77703 (April 25,
2016), 81 FR 25725 (April 29, 2016) (SR-NYSE-2015-46).
    \6\ 17 CFR 240.19b-4(f)(6)(iii).
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to establish rules to require its member
organizations to comply with the requirements of the Plan to Implement
a Tick Size Pilot Program (the ``Plan''),\7\ which is designed to study
and assess the impact of increment conventions on the liquidity and
trading of the common stocks of small capitalization companies. The
Exchange proposes changes to its rules for a two-year pilot period that
coincides with the pilot period for the Plan, which is currently
scheduled as a two year pilot to begin on October 3, 2016.
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    \7\ See Securities and Exchange Act Release No. 74892 (May 6,
2015), 80 FR 27513 (File No. 4-657) (``Tick Plan Approval Order'').
See, also, Securities and Exchange Act Release No. 76382 (November
6, 2015) (File No. 4-657), 80 FR 70284 (File No. 4-657) (November
13, 2015), which extended the pilot period commencement date from
May 6, 2015 to October 3, 2016.
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Background
    On August 25, 2014, NYSE Group, Inc., on behalf of Bats BZX
Exchange, Inc. (f/k/a BATS Exchange, Inc.), Bats BYX Exchange, Inc. (f/
k/a BATS Y-Exchange, Inc.), Chicago Stock Exchange, Inc., EDGA
Exchange, Inc., EDGX Exchange, Inc., Financial Industry Regulatory
Authority, Inc. (``FINRA''), NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC,
the Nasdaq Stock Market LLC, New York Stock Exchange LLC, the Exchange
and NYSE Arca, Inc. (collectively ``Participants''), filed with the
Commission, pursuant to Section 11A of the Act \8\ and Rule 608 of
Regulation NMS thereunder, the Plan to Implement a Tick Size Pilot
Program.\9\ The Participants filed the Plan to comply with an order
issued by the Commission on June 24, 2014 (the ``June 2014
Order'').\10\ The Plan \11\ was published for comment in the Federal
Register on November 7, 2014,\12\ and approved by the Commission, as
modified, on May 6, 2015.\13\
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    \8\ 15 U.S.C. 78k-1.
    \9\ See Letter from Brendon J. Weiss, Vice President,
Intercontinental Exchange, Inc., to Secretary, Commission, dated
August 25, 2014.
    \10\ See Securities Exchange Act Release No. 72460 (June 24,
2014), 79 FR 36840 (June 30, 2014).
    \11\ Unless otherwise specified, capitalized terms used in this
rule filing are based on the defined terms of the Plan.
    \12\ See Securities and Exchange Act Release No. 73511 (November
3, 2014), 79 FR 66423 (File No. 4-657) (Tick Plan Filing).
    \13\ See Tick Plan Approval Order, supra note 7. See, also,
Securities Exchange Act Release No. 77277 (March 3, 2016), 81 FR
12162 (March 8, 2016) (File No. 4-657), which amended the Plan to
add National Stock Exchange, Inc. as a Participant.
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    The Plan is designed to allow the Commission, market participants,
and the public to study and assess the impact of increment conventions
on the liquidity and trading of the common stocks of small
capitalization companies. The Commission plans to use the Tick Size
Pilot Program to assess whether wider tick sizes enhance the market
quality of Pilot Securities for the benefit of issuers and investors.
Each Participant is required to comply with, and to enforce compliance
by its member organizations, as applicable, with the provisions of the
Plan.
    On October 9, 2015, the Operating Committee approved the Exchange's
proposed rules as model Participant rules that would require compliance
by a Participant's members with the provisions of the Plan, as
applicable, and would establish written policies and procedures
reasonably designed to comply with applicable quoting and trading
requirements specified in the Plan.\14\ As described more fully below,
the proposed rules would require member organizations to comply with
the Plan and provide for the widening of quoting and trading increments
for Pilot Securities, consistent with the Plan.
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    \14\ The Operating Committee is required under Section III(C)(2)
of the Plan to ``monitor the procedures established pursuant to the
Plan and advise Participants with respect to any deficiencies,
problems, or recommendations as the Operating Committee may deem
appropriate.'' The Operating Committee is also required to
``establish specifications and procedures for the implementation and
operation of the Plan that are consistent with the provisions of the
Plan.''
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    The Tick Size Pilot Program will include stocks of companies with
$3 billion or less in market capitalization, an average daily trading
volume of one million shares or less, and a volume weighted average
price of at least $2.00 for every trading day. The Tick Pilot Program
will consist of a control group of approximately 1400 Pilot Securities
and three test groups with 400 Pilot Securities in each selected by a
stratified sampling.\15\ During the pilot, Pilot Securities in the
control group will be quoted at the current tick size increment of
$0.01 per share and will trade at the currently permitted increments.
Pilot Securities in the first test group (``Test Group One'') will be
quoted in $0.05 minimum increments but will continue to trade at any
price increment that is currently permitted.\16\ Pilot Securities in
the second test group (``Test Group Two'') will be quoted in $0.05
minimum increments and will trade at $0.05 minimum increments subject
to a midpoint exception, a retail investor exception, and a negotiated
trade exception.\17\ Pilot Securities in the third test group (``Test
Group Three'') will be subject to the same terms as Test Group Two and
also will be subject to the ``Trade-at'' requirement to prevent price
matching by a person not displaying at a price of a Trading Center's
``Best Protected Bid or ``Best Protected Offer,'' unless an enumerated
exception applies.\18\ In addition to the exceptions provided under
Test Group Two, an exception for Block Size orders and exceptions that
closely resemble those under Rule 611 of Regulation NMS \19\ will apply
to the Trade-at requirement.
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    \15\ See Section V of the Plan for identification of Pilot
Securities, including criteria for selection and grouping.
    \16\ See Section VI(B) of the Plan. Pilot Securities in Test
Group One will be subject to a midpoint exception and a retail
investor exception.
    \17\ See Section VI(C) of the Plan.
    \18\ See Section VI(D) of the Plan.
    \19\ 17 CFR 242.611.
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    The Tick Pilot Program also contains requirements for the
collection and transmission of data to the Commission and the public. A
variety of data generated during the Tick Pilot Program will be
released publicly on an aggregated basis to assist in analyzing the
impact of wider tick sizes on smaller capitalization stocks.\20\
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    \20\ See Section VII of the Plan.
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Proposed Rule 67--Equities
    The Plan requires the Exchange to establish, maintain, and enforce
written policies and procedures that are reasonably designed to comply
with applicable quoting and trading requirements specified in the
Plan.\21\

Accordingly, the Exchange is proposing new Rule 67--Equities to require
its member organizations to comply with the quoting and trading
provisions of the Plan. The proposed Rule is also designed to ensure
the Exchange's compliance with the Plan.
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    \21\ The Exchange was also required by the Plan to develop
appropriate policies and procedures that provide for data collection
and reporting to the Commission of data described in Appendixes B
and C of the Plan. See, Securities Exchange Act Release No. 77478
(March 30, 2016), 81 FR 19665 (April 5, 2016) (SR-NYSEMKT-2016-40.
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    Proposed paragraph (a)(1) of new Rule 67--Equities would establish
the following defined terms:
     ``Plan'' means the Tick Size Pilot Plan submitted to the
Commission pursuant to Rule 608(a)(3) of Regulation NMS under the Act;
     ``Pilot Test Groups'' means the three test groups
established under the Plan, consisting of 400 Pilot Securities each,
which satisfy the respective criteria established by the Plan for each
such test group.
     ``Retail Investor Order'' would mean an agency order or a
riskless principal order that meets the criteria of FINRA Rule 5320.03
that originates from a natural person and is submitted to the Exchange
by a retail member organization, provided that no change is made to the
terms of the order with respect to price or side of market and the
order does not originate from a trading algorithm or any other
computerized methodology. A Retail Investor Order may be an odd lot,
round lot, or partial round lot.\22\
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    \22\ This definition is the approved definition for ``Retail
Investor Order'' as contemplated by the Plan. It is also the same
definition as given to ``Retail Orders'' pursuant to the approved
rules of other national securities exchanges. See Rule 107C(a)(3)--
Equities. See also NYSE Rule 107C(a)(3), NYSE Arca, Inc. Rule
7.44(a)(3), BATS Y-Exchange, Inc. Rule 11.24(a)(2) and NASDAQ Stock
Market LLC Rule 4780(a)(2). The Retail Investor Order definition
includes any order originating from a natural person and is not
limited to orders submitted to the Exchange under the Exchange's
retail liquidity program rule (Rule 107C--Equities). Therefore, any
member organization that operates a Trading Center may execute
against a Retail Investor Order otherwise than on an exchange to
satisfy the retail investor order exception proposed in Rule 67--
Equities.
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     Trade-at Intermarket Sweep Order'' \23\ would mean a limit
order for a Pilot Security that meets the following requirements:
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    \23\ The Plan defines a Trade-at Intermarket Sweep Order
(``ISO'') as a limit order for a Pilot Security that, when routed to
a Trading Center, is identified as an ISO, and simultaneous with the
routing of the limit order identified as an ISO, one or more
additional limit orders, as necessary, are routed to execute against
the full displayed size of any protected bid (in the case of a limit
order to sell) or the full displayed size of any protected offer (in
the case of a limit order to buy) for the Pilot Security with a
price that is equal to the limit price of the limit order identified
as an ISO. These additional routed orders also must be marked as
ISOs. See Plan, Section I(MM). Since the Plan allows (i) an order
that is identified as an ISO to be executed at the price of a
Protected Quotation (see, Plan, Section VI(D)(8) and proposed Rule
67(a)(e)(4)(C)(ix)--Equities) and (ii) an order to execute at the
price of a Protected Quotation that ``is executed by a trading
center that simultaneously routed Trade-at ISO to execute against
the full displayed size of the Protected Quotation that was trade
at'' (see, Plan, Section VI(D)(9) and proposed Rule
67(a)(e)(4)(C)(x)--Equities), the Exchange proposes to clarify the
use of an ISO in connection with the Trade-at requirement by
adopting, as part of proposed Rule 67(a)(1)--Equities, a
comprehensive definition of ``Trade-at ISO.'' As set forth in the
Plan and as noted above, the definition of a Trade-at ISO used in
the Plan does not distinguish ISOs that are compliant with Rule 611
or Regulation NMS from ISOs that are compliant with Trade-at. The
Exchange therefore proposes the separate definition of Trade-at ISO
contained in proposed Rule 67(a)--Equities. The Exchange believes
that this proposed definition will further clarify to recipients of
ISOs in Test Group Three securities whether the ISO satisfies the
requirements of Rule 611 of Regulation NMS or Trade-at.
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    (i) When routed to a Trading Center, the limit order is identified
as a Trade-at Intermarket Sweep Order; and
    (ii) Simultaneously with the routing of the limit order identified
as a Trade-at Intermarket Sweep Order, one or more additional limit
orders, as necessary, are routed to execute against the full size of
any protected bid, in the case of a limit order to sell, or the full
displayed size of any protected offer, in the case of a limit order to
buy, for the Pilot Security with a price that is better than or equal
to the limit price of the limit order identified as a Trade-at
Intermarket Sweep Order. These additional routed orders also must be
marked as Trade-at Intermarket Sweep Orders.
     Paragraph (a)(1)(E) would provide that all capitalized
terms not otherwise defined in this rule shall have the meanings set
forth in the Plan, Regulation NMS under the Act, or Exchange rules, as
applicable.
    Proposed Paragraph (a)(2) would state that the Exchange is a
Participant in, and subject to the applicable requirements of, the
Plan; proposed Paragraph (a)(3) would require member organizations to
establish, maintain and enforce written policies and procedures that
are reasonably designed to comply with the applicable requirements of
the Plan, which would allow the Exchange to enforce compliance by its
member organizations with the provisions of the Plan, as required
pursuant to Section II(B) of the Plan.
    In addition, Paragraph (a)(4) would provide that Exchange systems
would not display, quote or trade in violation of the applicable
quoting and trading requirements for a Pilot Security specified in the
Plan and this proposed rule, unless such quotation or transaction is
specifically exempted under the Plan.\24\
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    \24\ The Exchange is still evaluating its internal policies and
procedures to ensure compliance with the Plan, and plans to
separately propose rules that would address violations of the Plan.
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    The Exchange also proposes to add Rule 67(a)(5)--Equities to
provide for the treatment of Pilot Securities that drop below a $1.00
value during the Pilot Period.\25\ The Exchange proposes that if the
price of a Pilot Security drops below $1.00 during regular trading on
any given business day, such Pilot Security would continue to be
subject to the Plan and the requirements described below that
necessitate member organizations to comply with the specific quoting
and trading obligations for each respective Pilot Test Group under the
Plan, and would continue to trade in accordance with the proposed rules
below as if the price of the Pilot Security had not dropped below
$1.00. However, if the Closing Price of a Pilot Security on any given
business day is below $1.00, such Pilot Security would be moved out of
its respective Pilot Test Group into the control group (which consists
of Pilot Securities not placed into a Pilot Test Group), and may then
be quoted and traded at any price increment that is currently permitted
by Exchange rules for the remainder of the Pilot Period.
Notwithstanding anything contained herein to the contrary, the Exchange
proposes that, at all times during the Pilot Period, Pilot Securities
(whether in the control group or any Pilot Test Group) would continue
to be subject to the data collection rules, which are enumerated in
Rule 67(b)--Equities.
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    \25\ New York Stock Exchange LLC, on behalf of the Participants,
submitted a letter to Commission requesting exemption from certain
provisions of the Plan related to quoting and trading. See letter
from Elizabeth K. King, NYSE, to Brent J. Fields, Secretary,
Commission, dated October 14, 2015 (the ``October Exemption
Request''). FINRA, also on behalf of the Plan Participants,
submitted a separate letter to Commission requesting additional
exemptions from certain provisions of the Plan related to quoting
and trading. See letter from Marcia E. Asquith, Senior Vice
President and Corporate Secretary, FINRA, to Robert W. Errett,
Deputy Secretary, Commission, dated February 23, 2016 (the
``February Exemption Request,'' and together with the October
Exemption Request, the ``Exemption Request Letters''). The
Commission, pursuant to its authority under Rule 608(e) of
Regulation NMS, granted New York Stock Exchange LLC a limited
exemption from the requirement to comply with certain provisions of
the Plan as specified in the Exemption Request Letters and noted
herein. See letter from David Shillman, Associate Director, Division
of Trading and Markets, Commission to Sherry Sandler, Associate
General Counsel, New York Stock Exchange LLC, dated April 25, 2016
(the ``Exemption Letter''). The Exchange is seeking the same
exemptions as requested in the Exemption Request Letters, including
without limitation, an exemption relating to proposed Rule
67(a)(5)--Equities.
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    The Exchange proposes Rules 67(c)-(e)--Equities, which would
require member organizations to comply with the specific quoting and
trading

obligations for each Pilot Test Group under the Plan. With regard to
Pilot Securities in Test Group One, proposed Rule 67(c)--Equities would
provide that no member organization may display, rank, or accept from
any person any displayable or non-displayable bids or offers, orders,
or indications of interest in increments other than $0.05. However,
orders priced to trade at the midpoint of the National Best Bid and
National Best Offer (``NBBO'') or Best Protected Bid and Best Protect
Offer (``PBBO'') and orders entered in the Exchange's Retail Liquidity
Program as Retail Price Improvement Orders (``Retail Price Improvement
Order'') \26\ may be ranked and accepted in increments of less than
$0.05. Pilot Securities in Test Group One may continue to trade at any
price increment that is currently permitted by Rule 62.10--
Equities.\27\
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    \26\ A Retail Price Improvement Order consists of non-displayed
interest in NYSE MKT-listed securities that is priced better than
the Best Protected Bid or Best Protected Offer, as such terms are
defined in Regulation NMS Rule 600(b)(57), by at least $0.001 and
that is identified as such. See Rule 107C(a)(4)--Equities.
    \27\ Rule 62.10--Equities describes the minimum price variation
for quoting and entry of orders in equity securities admitted to
dealings on the Exchange.
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    With regard to Pilot Securities in Test Group Two, proposed Rule
67(d)(1)--Equities would provide that such Pilot Securities would be
subject to all of the same quoting requirements as described above for
Pilot Securities in Test Group One, along with the applicable quoting
exceptions. In addition, proposed Rule 67(d)(2)--Equities would provide
that, absent one of the listed exceptions in proposed Rule 67(d)(3)--
Equities enumerated below, no member organization may execute orders in
any Pilot Security in Test Group Two in price increments other than
$0.05. The $0.05 trading increment would apply to all trades, including
Brokered Cross Trades.
    Paragraph (d)(3) would set forth further requirements for Pilot
Securities in Test Group Two. Specifically, member organizations
trading Pilot Securities in Test Group Two would be allowed to trade in
increments less than $0.05 under the following circumstances:
    (A) Trading may occur at the midpoint between the NBBO or PBBO;
    (B) Retail Investor Orders may be provided with price improvement
that is at least $0.005 better than the Best Protected Bid or the Best
Protected Offer;
    (C) Negotiated Trades may trade in increments less than $0.05; and
    (D) Execution of a customer order to comply with Rule 5320--
Equities \28\ following the execution of a proprietary trade by the
member organization at an increment other than $0.05, where such
proprietary trade was permissible pursuant to an exception under the
Plan.\29\
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    \28\ Rule 5320--Equities is the Exchange's Prohibition Against
Trading Ahead of Customer Orders rule and states:
     (a) Except as provided herein, a member organization that
accepts and holds an order in an equity security from its own
customer or a customer of another broker-dealer without immediately
executing the order is prohibited from trading that security on the
same side of the market for its own account at a price that would
satisfy the customer order, unless it immediately thereafter
executes the customer order up to the size and at the same or better
price at which it traded for its own account.
    (b) A member organization must have a written methodology in
place governing the execution and priority of all pending orders
that is consistent with the requirements of this Rule and NASD Rule
2320. A member organization also must ensure that this methodology
is consistently applied.
    \29\ The Exchange proposes to add this exemption to permit
member organizations to fill a customer order in a Pilot Security at
a non-nickel increment to comply with Rule 5320--Equities under
limited circumstances. Specifically, the exception would allow the
execution of a customer order following a proprietary trade by the
member organization at an increment other than $0.05 in the same
security, on the same side and at the same price as (or within the
prescribed amount of) a customer order owed a fill pursuant to Rule
5320--Equities, where the triggering proprietary trade was
permissible pursuant to an exception under the Plan. The Commission
granted New York Stock Exchange LLC an exemption from Rule 608(c)
related to this provision. See, the Exemption Letter, supra note 25.
The Exchange is seeking the same exemptions as requested in the
Exemption Request Letters. The Exchange believes such an exception
best facilitates the ability of member organizations to continue to
protect customer orders while retaining the flexibility to engage in
proprietary trades that comply with an exception to the Plan.
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    Paragraph (e)(1)-(e)(3) would set forth the requirements for Pilot
Securities in Test Group Three. Member organizations quoting or trading
such Pilot Securities would be subject to all of the same quoting and
trading requirements as described above for Pilot Securities in Test
Group Two, including the quoting and trading exceptions applicable to
Test Group Two Pilot Securities. In addition, proposed Paragraph (e)(4)
would provide for an additional prohibition on Pilot Securities in Test
Group Three referred to as the ``Trade-at Prohibition.'' \30\ Paragraph
(e)(4)(B)--Equities would provide that, absent one of the listed
exceptions in proposed Rule 67(e)(4)(C)--Equities enumerated below, no
member organization may execute a sell order for a Pilot Security in
Test Group Three at the price of a Protected Bid or execute a buy order
for a Pilot Security in Test Group Three at the price of a Protected
Offer.
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    \30\ Proposed Rule 67(e)(4)(A)--Equities would define the
``Trade-at Prohibition'' to mean the prohibition against executions
by a Trading Center of a sell order for a Pilot Security at the
price of a Protected Bid or the execution of a buy order for a Pilot
Security at the price of a Protected Offer during regular trading
hours.
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    Proposed Rule 67(e)(4)(C)--Equities would allow member
organizations to execute a sell order for a Pilot Security in Test
Group Three at the price of a Protected Bid or execute a buy order for
a Pilot Security in Test Group Three at the price of a Protected Offer
if any of the following circumstances exist:
    (i) The order is executed as agent or riskless principal by an
independent trading unit, as defined under Rule 200(f) of Regulation
SHO,\31\ of a Trading Center within a member organization that has a
displayed quotation as agent or riskless principal, via either a
processor or an SRO Quotation Feed, at a price equal to the traded-at
Protected Quotation, that was displayed before the order was
received,\32\ but only up to the full displayed size of that
independent trading unit's previously displayed quote; \33\
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    \31\ The Exchange is proposing that, for proposed Rules
67(e)(4)(C)(i) and (ii)--Equities, a Trading Center operated by a
broker-dealer would mean an independent trading unit, as defined
under Rule 200(f) of Regulation SHO, within such broker-dealer. See,
17 CFR 242.200.
    Independent trading unit aggregation is available if traders in
an aggregation unit pursue only the particular trading objective(s)
or strategy(s) of that aggregation unit and do not coordinate that
strategy with any other aggregation unit. Therefore, a Trading
Center cannot rely on quotations displayed by that broker dealer
from a different independent trading unit. As an example, an agency
desk of a broker-dealer cannot rely on the quotation of a
proprietary desk in a separate independent trading unit at that same
broker-dealer.
    \32\ The Exchange is proposing to adopt this limitation to
ensure that a Trading Center does not display a quotation after the
time of order receipt solely for the purpose of trading at the price
of a protected quotation without routing to that protected
quotation.
    \33\ This proposed exception to Trade-at would allow a Trading
Center to execute an order at the Protected Quotation in the same
capacity in which it has displayed a quotation at a price equal to
the Protected Quotation and up to the displayed size of such
displayed quotation.
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    (ii) The order is executed by an independent trading unit, as
defined under Rule 200(f) of Regulation SHO, of a Trading Center within
a member organization that has a displayed quotation for the account of
that Trading Center on a principal (excluding riskless principal \34\)
basis, via either a processor or an SRO Quotation Feed, at a price
equal to the traded-at Protected Quotation, that was displayed before
the

order was received, but only up to the full displayed size of that
independent unit's previously displayed quote; \35\
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    \34\ As described above, proposed Rule 67(e)(4)(C)(i)--Equities
would establish the circumstances in which a Trading Center
displaying an order as riskless principal would be permitted to
Trade-at the Protected Quotation. Accordingly, the Exchange proposes
that proposed Rule 67(e)(4)(C)(ii)--Equities would exclude such
circumstances.
    \35\ The display exceptions to Trade-at set forth in proposed
Rules 67(e)(4)(C)(i) and (ii)--Equities would not permit a broker-
dealer to trade on the basis of interest it is not responsible for
displaying. In particular, a broker-dealer that matches orders in
the over-the-counter market shall be deemed to have ``executed''
such orders as a Trading Center for purposes of proposed Rule 67--
Equities. Accordingly, if a broker-dealer is not displaying a
quotation at a price equal to the Protected Quotation, it could not
submit matched trades to an alternative trading center (``ATS'')
that was displaying on an agency basis the quotation of another ATS
subscriber. However, a broker-dealer that is displaying, as
principal, via either a processor or an SRO Quotation Feed, a buy
order at the protected bid, could internalize a customer sell order
up to its displayed size. The display exceptions would not permit a
non-displayed Trading Center to submit matched trades to an ATS that
was displaying on an agency basis the quotation of another ATS
subscriber and confirmed [sic] that a broker-dealer would not be
permitted to trade on the basis of interest that it is not
responsible for displaying.
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    (iii) The order is of Block Size \36\ at the time of origin and may
not be:
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    \36\ ``Block Size'' is defined in the Plan as an order (1) of at
least 5,000 shares or (2) for a quantity of stock having a market
value of at least $100,000.
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    A. An aggregation of non-block orders;
    B. broken into orders smaller than Block Size prior to submitting
the order to a Trading Center for execution; or
    C. executed on multiple Trading Centers; \37\
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    \37\ Once a Block Size order or portion of such Block Size order
is routed from one Trading Center to another Trading Center in
compliance with Rule 611 of Regulation NMS, the Block Size order
would lose the Trade-at exemption provided under proposed Rule
67(e)(4)(C)(iii)--Equities, unless the Block Size remaining after
the first route and execution meets the Block Size definition under
the Plan (see footnote 35). For example, if an exchange has a
Protected Bid of 3,000 shares, with 2,000 shares in reserve, and
receives a 5,000 share order to sell, the exchange would be able to
execute the entire 5,000 share order without having to route to an
away market at any other Protected Bid at the same price. If,
however, that exchange only has 1,000 shares in reserve, the entire
order would not be able to be executed on that exchange, and the
exchange would only be able to execute 3,000 shares and route the
rest to away markets at other Protected Bids at the same price,
before executing the 1,000 shares in reserve. The same analysis
would hold true at the next price point, if the size of the incoming
order would exceed all available shares at the first price, and the
remaining shares to be executed would be 5,000 shares or more.
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    (iv) The order is a Retail Investor Order executed with at least
$0.005 price improvement;
    (v) The order is executed when the Trading Center displaying the
Protected Quotation that was traded at was experiencing a failure,
material delay, or malfunction of its systems or equipment;
    (vi) The order is executed as part of a transaction that was not a
``regular way'' contract;
    (vii) The order is executed as part of a single-priced opening,
reopening, or closing transaction on the Exchange;
    (viii) The order is executed when a Protected Bid was priced higher
than a Protected Offer in the Pilot Security in Test Group Three;
    (ix) The order is identified as a Trade-at Intermarket Sweep Order;
\38\
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    \38\ In connection with the definition of a Trade-at ISO
proposed in Rule 67(a)(1)(D)--Equities, this exception refers to the
ISO that is received by a Trading Center.
    The Exchange proposed an exemption to the Trade-at Prohibition
for Trade-at ISOs to clarify that an ISO that is received by a
Trading Center (and which could form the basis of an execution at
the price of a Protected Quotation pursuant to Section VI(D)(8) of
the Plan), is identified as a Trade-at ISO. Depending on whether
Rule 611 of Regulation NMS or the Trade-at requirement applies, an
ISO may mean that the sender of the ISO has swept better-priced
Protected Quotations, so that the recipient of that ISO may trade
through the price of the Protected Quotation (Rule 611 of Regulation
NMS), or it could mean that the sender of the ISO has swept
Protected Quotations at the same price that it wishes to execute at
(in addition to any better-priced quotations), so the recipient of
that ISO may trade at the price of the Protected Quotation (Trade-
at). Given that the meaning of an ISO may differ under Rule 611 of
Regulation NMS and Trade-at, the Exchange proposed an exemption to
the Trade-at Prohibition for Trade-at ISOs so that the recipient of
an ISO in a Test Group Three security would know, upon receipt of
that ISO, that the Trading Center that sent the ISO had already
executed against the full size of displayed quotations at that
price, e.g., the recipient of that ISO could permissibly trade at
the price of the Protected Quotation.
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    (x) The order is executed by a Trading Center that simultaneously
routed Trade-at Intermarket Sweep Orders to execute against the full
displayed size of the Protected Quotation that was traded at; \39\
---------------------------------------------------------------------------

    \39\ In connection with the definition of a Trade-at ISO
proposed in Rule 67(a)(1)(D)--Equities, this exception refers to the
Trading Center that routed the ISO.
---------------------------------------------------------------------------

    (xi) The order is executed as part of a Negotiated Trade;
    (xii) The order is executed when the Trading Center displaying the
Protected Quotation that was traded at had displayed, within one second
prior to execution of the transaction that constituted the Trade-at, a
Best Protected Bid or Best Protected Offer, as applicable, for the
Pilot Security in Test Group Three with a price that was inferior to
the price of the Trade-at transaction;
    (xiii) The order is executed by a Trading Center which, at the time
of order receipt, the Trading Center had guaranteed an execution at no
worse than a specified price (a ``stopped order''), where:
    A. The stopped order was for the account of a customer;
    B. The customer agreed to the specified price on an order-by-order
basis; and
    C. The price of the Trade-at transaction was, for a stopped buy
order, equal to or less than the National Best Bid in the Pilot
Security in Test Group Three at the time of execution or, for a stopped
sell order, equal to or greater than the National Best Offer in the
Pilot Security in Test Group Three at the time of execution, as long as
such order is priced at an acceptable increment; \40\
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    \40\ The stopped order exemption in Rule 611 of Regulation NMS
applies where ``[t]he price of the trade-through transaction was,
for a stopped buy order, lower than the national best bid in the NMS
stock at the time of execution or, for a stopped sell order, higher
than the national best offer in the NMS stock at the time of
execution'' (see, 17 CFR 242.611(b)(9)). The Trade-at stopped order
exception applies where ``the price of the Trade-at transaction was,
for a stopped buy order, equal to the national best bid in the Pilot
Security at the time of execution or, for a stopped sell order,
equal to the national best offer in the Pilot Security at the time
of execution'' (see, Plan, Section VI(D)(12)).
    To illustrate the application of the stopped order exemption as
it currently operates under Rule 611 of Regulation NMS and as it is
currently proposed for Trade-at, assume the National Best Bid is
$10.00 and another protected quote is at $9.95. Under Rule 611 of
Regulation NMS, a stopped order to buy can be filled at $9.95 and
the firm does not have to send an ISO to access the protected quote
at $10.00 since the price of the stopped order must be lower than
the National Best Bid. For the stopped order to also be executed at
$9.95 and satisfy the Trade-at requirements, the Trade-at exception
would have to be revised to allow an order to execute at the price
of a protected quote which, in this case, could be $9.95.
    Based on the fact that a stopped order would be treated
differently under the Rule 611 of Regulation NMS exception than
under the Trade-at exception in the Plan, the Exchange believes that
it is appropriate to amend the Trade-at stopped order exception in
the Plan to ensure that the application of this exception would
produce a consistent result under both Regulation NMS and the Plan.
Therefore, the Exchange proposes in this proposed Rule
67(e)(4)(C)(xiii)--Equities to allow a transaction to satisfy the
Trade-at requirement if the stopped order price, for a stopped buy
order, is equal to or less than the National Best Bid, and for a
stopped sell order, is equal to or greater than the National Best
Offer, as long as such order is priced at an acceptable increment.
The Commission granted New York Stock Exchange LLC an exemption from
Rule 608(c) related to this provision. See, the Exemption Letter,
supra note 25. The Exchange is seeking the same exemptions as
requested in the Exemption Request Letters.
---------------------------------------------------------------------------

    (xiv) The order is for a fractional share of a Pilot Security in
Test Group Three, provided that such fractional share order was not the
result of breaking an order for one or more whole shares of a Pilot
Security in Test Group Three into orders for fractional shares or was
not otherwise effected to evade the requirements of the Trade-at
Prohibition or any other provisions of the Plan; or
    (xv) The order is to correct a bona fide error, which is recorded
by the Trading Center in its error account.\41\ A bond fide error is
defined as:
---------------------------------------------------------------------------

    \41\ The exceptions to the Trade-at requirement set forth in the
Plan and in the Exchange's proposed Rule 67(e)(4)(C)--Equities are,
in part, based on the exceptions to the trade-through requirement
set forth in Rule 611 of Regulation NMS, including exceptions for an
order that is executed as part of a transaction that was not a
``regular way'' contract, and an order that is executed as part of a
single-priced opening, reopening, or closing transaction by the
Trading Center (see, 17 CFR 242.611(b)(2) and (b)(3)). Following the
adoption of Rule 611 of Regulation NMS and its exceptions, the
Commission issued exemptive relief that created exceptions from Rule
611 of Regulation NMS for certain error correction transactions.
See, Securities Exchange Act Release No. 55884 (June 8, 2007), 72 FR
32926 (June 14, 2007); Securities Exchange Act Release No. 55883
(June 8, 2007), 72 FR 32927 (June 14, 2007). The Exchange has
determined that it is appropriate to incorporate this additional
exception to the Trade-at Prohibition, as this exception is equally
applicable in the Trade-at context.
    Accordingly, the Exchange is proposing to exempt certain
transactions to correct bona fide errors in the execution of
customer orders from the Trade-at Prohibition, subject to the
conditions set forth by the SEC's order exempting these transactions
from Rule 611 of Regulation NMS. The Commission granted New York
Stock Exchange LLC an exemption from Rule 608(c) related to this
provision. See, the Exemption Letter, supra note 25. The Exchange is
seeking the same exemptions as requested in the Exemption Request
Letters.
    As with the corresponding exception under Rule 611 of Regulation
NMS, the bona fide error would have to be evidenced by objective
facts and circumstances, the Trading Center would have to maintain
documentation of such facts and circumstances and record the
transaction in its error account. To avail itself of the exemption,
the Trading Center would have to establish, maintain, and enforce
written policies and procedures reasonably designed to address the
occurrence of errors and, in the event of an error, the use and
terms of a transaction to correct the error in compliance with this
exemption. Finally, the Trading Center would have to regularly
surveil to ascertain the effectiveness of its policies and
procedures to address errors and transactions to correct errors and
take prompt action to remedy deficiencies in such policies and
procedures. See, Securities Exchange Act Release No. 55884 (June 8,
2007), 72 FR 32926 (June 14, 2007).

---------------------------------------------------------------------------

    A. The inaccurate conveyance or execution of any term of an order
including, but not limited to, price, number of shares or other unit of
trading; identification of the security; identification of the account
for which securities are purchased or sold; lost or otherwise misplaced
order tickets; short sales that were instead sold long or vice versa;
or the execution of an order on the wrong side of a market;
    B. The unauthorized or unintended purchase, sale, or allocation of
securities, or the failure to follow specific client instructions;
    C. The incorrect entry of data into relevant systems, including
reliance on incorrect cash positions, withdrawals, or securities
positions reflected in an account; or
    D. A delay, outage, or failure of a communication system used to
transmit market data prices or to facilitate the delivery or execution
of an order.
    Finally, Proposed Rule 67(e)(4)(D)--Equities would prevent member
organizations from breaking an order into smaller orders or otherwise
effecting or executing an order to evade the requirements of the Trade-
at Prohibition or any other provisions of the Plan.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\42\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\43\ in particular, in that it is designed to
prevent fraudulent and manipulative acts and practices, 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. The
Exchange believes that the proposed rule change is consistent with the
Act because it ensures that the Exchange and its member organizations
would be in compliance with a Plan approved by the Commission pursuant
to an order issued by the Commission in reliance on Section 11A of the
Act.\44\ Such approved Plan gives the Exchange authority to establish,
maintain, and enforce written policies and procedures that are
reasonably designed to comply with applicable quoting and trading
requirements specified in the Plan. The Exchange believes that the
proposed rule change is consistent with the authority granted to it by
the Plan to establish specifications and procedures for the
implementation and operation of the Plan that are consistent with the
provisions of the Plan. Likewise, the Exchange believes that the
proposed rule change provides interpretations of the Plan that are
consistent with the Act, in general, and furthers the objectives of the
Act, in particular.
---------------------------------------------------------------------------

    \42\ 15 U.S.C. 78f(b).
    \43\ 15 U.S.C. 78f(b)(5).
    \44\ 15 U.S.C. 78k-1.
---------------------------------------------------------------------------

    Furthermore, the Exchange is a Participant under the Plan and
subject, itself, to the provisions of the Plan. The proposed rule
change ensures that the Exchange's systems would not display or execute
trading interests outside the requirements specified in such Plan. The
proposal would also help allow market participants to continue to trade
NMS Stocks within quoting and trading requirements that are in
compliance with the Plan, with certainty on how certain orders and
trading interests would be treated. This, in turn, will help encourage
market participants to continue to provide liquidity in the
marketplace.
    Because the Plan supports further examination and analysis on the
impact of tick sizes on the trading and liquidity of the securities of
small capitalization companies, and the Commission believes that
altering tick sizes could result in significant market-wide benefits
and improvements to liquidity and capital formation, adopting rules
that enforce compliance by its member organizations with the provisions
of the Plan would help promote liquidity in the marketplace and perfect
the mechanism of a free and open market and national market system.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed changes are
being made to establish, maintain, and enforce written policies and
procedures that are reasonably designed to comply with the trading and
quoting requirements specified in the Plan, of which other equities
exchanges are also Participants. Other competing national securities
exchanges are subject to the same trading and quoting requirements
specified in the Plan. Therefore, the proposed changes would not impose
any burden on competition, while providing certainty of treatment and
execution of trading interests on the Exchange to market participants
in NMS Stocks that are acting in compliance with the requirements
specified in the Plan.

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \45\ and Rule 19b-4(f)(6) thereunder.\46\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the

proposed rule change has become effective pursuant to Section
19(b)(3)(A) of the Act and Rule 19b-4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------

    \45\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \46\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \47\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\48\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.
---------------------------------------------------------------------------

    \47\ 17 CFR 240.19b-4(f)(6).
    \48\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \49\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \49\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-NYSEMKT-2016-56 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEMKT-2016-56. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the 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-NYSEMKT-2016-56 and should
be submitted on or before June 27, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\50\
---------------------------------------------------------------------------

    \50\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2016-13209 Filed 6-3-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: June 22, 2009 (Volume 74, Number 118)]
[Notices]
[Page 29518-29519]
[DOCID:fr22jn09-104]

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DEPARTMENT OF LABOR

Occupational Safety and Health Administration

[Docket No. OSHA-2009-0012]

National Advisory Committee on Occupational Safety and Health
(NACOSH); Announcement of Meeting

AGENCY: Occupational Safety and Health Administration (OSHA), Labor.

ACTION: Announcement of meeting.

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SUMMARY: The National Advisory Committee on Occupational Safety and
Health (NACOSH) will meet July 15, 2009, in Washington, DC.

DATES: NACOSH meeting: NACOSH will meet from 9 a.m. to 4 p.m.,
Wednesday, July 15, 2009.
    Submission of comments, requests to speak, and requests for special
accommodations: Comments, requests to speak at the NACOSH meeting, and
requests for special accommodations for the NACOSH meeting must be
submitted (postmarked, sent, transmitted) by July 3, 2009.

ADDRESSES: NACOSH meeting: NACOSH will meet in Room N-3437 A/B/C, U.S.
Department of Labor, 200 Constitution Avenue, NW., Washington, DC
20210.
    Submission of comments and requests to speak: You may submit
comments and requests to speak at the NACOSH meeting, identified by
docket number for this Federal Register notice (Docket No. OSHA-2009-
0012), by any one of the following methods:
    Electronically: You may submit materials, including attachments,
electronically at: http://www.regulations.gov, the Federal eRulemaking
Portal. Follow the online instructions for making submissions.
    Facsimile: If your submission, including attachments, does not
exceed 10 pages, you may fax it to the OSHA Docket Office at (202) 693-
1648.
    Mail, express delivery, hand delivery, messenger or courier
service: Submit three copies of your submissions to the OSHA Docket
Office, Room N-2625, U.S. Department of Labor, 200 Constitution Avenue,
NW., Washington, DC 20210, telephone:<PHONE_NUMBER> (TTY (877) 889-
5627). Deliveries (hand, express mail, messenger and courier service)
are accepted during the Department of Labor's and OSHA Docket Office's
normal business hours, 8:15 a.m. to 4:45 p.m., e.t.
    Requests for special accommodations: Submit requests for special
accommodations for the NACOSH meeting by hard copy, telephone, or e-
mail to Ms. Veneta Chatmon, OSHA, Office of Communications, Room N3647,
U.S. Department of Labor, 200 Constitution Avenue, NW., Washington, DC
20210; telephone<PHONE_NUMBER>; e-mail<EMAIL_ADDRESS>    Instructions: All submissions must include the Agency name and
docket number for this Federal Register notice (Docket No. OSHA-2009-
0012). Because of security-related procedures, submission by regular
mail may result in significant delay in their receipt. In addition,
please contact the OSHA Docket Office for information about security
procedures for making submissions by hand delivery, express delivery,
and messenger or courier

service. For additional information about submitting comments and
requests to speak, see the SUPPLEMENTARY INFORMATION section of this
notice.
    Comments and requests to speak, including personal information
provided, will be posted without change at http://www.regulations.gov.
Therefore, OSHA cautions interested parties about submitting personal
information such as social security numbers and birth dates.
    Docket: To read or download submissions in response to this notice,
go to http://www.regulations.gov. Although listed in the index, some
documents (e.g., copyrighted material) are not publicly available to
read or download through http://www.regulations.gov. All submissions,
including copyrighted material, are available for inspection and
copying at the OSHA Docket Office at the address above.

FOR FURTHER INFORMATION: For press inquiries: Ms. Jennifer Ashley,
OSHA, Office of Communications, U.S. Department of Labor, Room N-3647,
200 Constitution Avenue, NW., Washington, DC 20210; telephone (202)
693-1999.
    For general information: Ms. Deborah Crawford, OSHA, Directorate of
Evaluation and Analysis, U.S. Department of Labor, Room N-3641, 200
Constitution Avenue, NW., Washington, DC 20210; telephone (202) 693-
1932; e-mail<EMAIL_ADDRESS>    For special accommodations for the NACOSH meeting: Ms. Veneta
Chatmon, OSHA, Office of Communications, Room N-3647, U.S. Department
of Labor, 200 Constitution Avenue, NW., Washington, DC 20210; telephone
(202) 693-1999; e-mail<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:
    NACOSH will meet Wednesday, July 15, 2009, in Washington, DC. All
NACOSH meetings are open to the public.
    NACOSH is authorized by section 7(a) of the Occupational Safety and
Health Act of 1970 (OSH Act) (29 U.S.C. 651, 656) to advise the
Secretary of Labor and the Secretary of Health and Human Services on
matters relating to the administration of the OSH Act. NACOSH is a
continuing advisory body and operates in compliance with provisions in
the OSH Act, the Federal Advisory Committee Act (5 U.S.C. App.2), and
regulations issued pursuant to those laws (29 CFR 1912a, 41 CFR part
101-6 and 102-3).
    The tentative agenda for the NACOSH meeting will include: updates
on activities of the Occupational Safety and Health Administration
(OSHA) and the National Institute for Occupational Safety and Health
(NIOSH); OSHA's recordkeeping initiative; a presentation on the Small
Business Regulatory Fairness Act (SBREFA) report on occupational
exposure to diacetyl; a legislative update; and a briefing on ethics
rules.
    NACOSH meetings are transcribed and detailed minutes of the
meetings are prepared. Meeting transcripts and minutes are included in
the public record of this NACOSH meeting (Docket No. 2009-0012).

Public Participation

    Interested parties may submit a request to make an oral
presentation to NACOSH by any one of the methods listed in the
ADDRESSES section above. The request must state the amount of time
requested to speak, the interest represented (e.g., organization name),
of any and a brief outline of the presentation. Requests to address
NACOSH may be granted as time permits and at the discretion of the
NACOSH chair.
    Interested parties also may submit comments, including data and
other information using any one of the methods listed in the ADDRESSES
section above. OSHA will provide all submission to NACOSH member prior
to the meeting.
    Individuals who need special accommodations to attend the NACOSH
meeting should contact Ms. Chatmon by any one of the methods listed in
the ADDRESSES section.

Submissions and Access to Meeting Record

    You may submit comments and requests to speak (1) Electronically,
(2) by facsimile, or (3) by hard copy. All submissions, including
attachments and other materials, must identify the Agency name and the
docket number for this notice (Docket No. OSHA-2009-0012). You also may
supplement electronic submissions by uploading documents
electronically. If, instead, you wish to submit hard copies of
supplementary documents, you must submit three copies to the OSHA
Docket Office using the instructions in the ADDRESSES section above.
The additional materials must clearly identify your electronic
submission by name, date and docket number.
    Because of security-related procedures, the use of regular mail may
cause a significant delay in the receipt of submissions. For
information about security procedures concerning submissions by hand,
express delivery, messenger or courier service, please contact the OSHA
Docket Office at<PHONE_NUMBER> (TTY<PHONE_NUMBER>).
    Meeting transcripts and minutes as well as comments and requests to
speak at the NACOSH meeting are included in the public record of the
NACOSH meeting (Docket No. OSHA-2009-0012). Comments and requests to
speak are posted without change at http://www.regulations.gov.
Therefore, OSHA cautions interested parties about submitting personal
information such as social security numbers and birth dates. Although
all submissions are listed in the http://www.regulations.gov index,
some documents (e.g., copyrighted materials) are not publicly available
to read or download through http://www.regulations.gov. All
submissions, including copyrighted material, are available for
inspection and copying at the OSHA Docket Office.
    Information on using the http://www.regulations.gov Web site to
make submissions and to access the docket and exhibits is available at
the Web site's ``How to Use This Site'' link. Contact the OSHA Docket
Office for information about materials not available through the Web
site and for assistance in using the Internet to locate submissions and
other documents in the docket. Electronic copies of this Federal
Register notice are available at http://www.regulations.gov. This
notice, as well as news releases and other relevant information, is
also available on OSHA Webpage at http://www.osha.gov.

Authority and Signature

    Jordan Barab, Acting Assistant Secretary of Labor for Occupational
Safety and Health, directed the preparation of this notice under the
authority granted by section 7 of the Occupational Safety and Health
Act of 1970 (29 U.S.C. 656), 29 CFR part 1912a, the Federal Advisory
Committee Act (5 U.S.C. App. 2), and the Secretary of Labor's Order No.
5-2007 (72 FR 31160).

    Signed at Washington, DC this 17th day of June 2009.
Jordan Barab,
Acting Assistant Secretary of Labor for Occupational Safety and Health.
[FR Doc. E9-14576 Filed 6-19-09; 8:45 am]

BILLING CODE 4510-26-P


[Federal Register Volume 86, Number 53 (Monday, March 22, 2021)]
[Notices]
[Page 15231]
[FR Doc No: 2021-05801]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4584-DR; Docket ID FEMA-2021-0001]

Washington; Major Disaster and Related Determinations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: This is a notice of the Presidential declaration of a major
disaster for the State of Washington (FEMA-4584-DR), dated February 4,
2021, and related determinations.

DATES: The declaration was issued February 4, 2021.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Notice is hereby given that, in a letter
dated February 4, 2021, the President issued a major disaster
declaration under the authority of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq. (the
``Stafford Act''), as follows:

    I have determined that the damage in certain areas of the State
of Washington due to damage resulting from wildfires and straight-
line winds during the period of September 1 to September 19, 2020,
is of sufficient severity and magnitude to warrant a major disaster
declaration under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act, 42 U.S.C. 5121 et seq. (the ``Stafford
Act''). Therefore, I declare that such a major disaster exists in
the State of Washington.
    In order to provide Federal assistance, you are hereby
authorized to allocate from funds available for these purposes such
amounts as you find necessary for Federal disaster assistance and
administrative expenses.
    You are authorized to provide Public Assistance in the
designated areas and Hazard Mitigation throughout the State.
Consistent with the requirement that Federal assistance be
supplemental, any Federal funds provided under the Stafford Act for
Public Assistance and Hazard Mitigation will be limited to 75
percent of the total eligible costs.
    Further, you are authorized to make changes to this declaration
for the approved assistance to the extent allowable under the
Stafford Act.

    The Federal Emergency Management Agency (FEMA) hereby gives notice
that pursuant to the authority vested in the Administrator, under
Executive Order 12148, as amended, Timothy B. Manner, of FEMA is
appointed to act as the Federal Coordinating Officer for this major
disaster.
    The following areas of the State of Washington have been designated
as adversely affected by this major disaster:

    Douglas, Franklin, Kittitas, Lincoln, Okanogan, Pend Oreille,
Skamania, Whitman, and Yakima Counties and the Confederated Tribes
of the Colville Reservation and the Confederated Tribes and Bands of
the Yakama Nation for Public Assistance.
    All areas within the State of Washington are eligible for
assistance under the Hazard Mitigation Grant Program.

The following Catalog of Federal Domestic Assistance Numbers (CFDA)
are to be used for reporting and drawing funds: 97.030, Community
Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling;
97.033, Disaster Legal Services; 97.034, Disaster Unemployment
Assistance (DUA); 97.046, Fire Management Assistance Grant; 97.048,
Disaster Housing Assistance to Individuals and Households In
Presidentially Declared Disaster Areas; 97.049, Presidentially
Declared Disaster Assistance--Disaster Housing Operations for
Individuals and Households; 97.050, Presidentially Declared Disaster
Assistance to Individuals and Households--Other Needs; 97.036,
Disaster Grants--Public Assistance (Presidentially Declared
Disasters); 97.039, Hazard Mitigation Grant.

Robert J. Fenton,
Senior Official Performing the Duties of the Administrator, Federal
Emergency Management Agency.
[FR Doc. 2021-05801 Filed 3-19-21; 8:45 am]
BILLING CODE 9111-23-P


[Federal Register Volume 86, Number 180 (Tuesday, September 21, 2021)]
[Notices]
[Pages 52536-52539]
[FR Doc No: 2021-20325]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-92986; File No. SR-Phlx-2021-52]

Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Adopt Phlx
Options 10, Section 5, Branch Office, and Options 10, Section 17,
Profit Sharing Rules

September 15, 2021.
    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 September 3, 2021, Nasdaq 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. Phlx filed the proposal
as a ``non-controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 204.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to adopt new Phlx Options 10, Section 5,
Branch Office, and Options 10, Section 17, Profit Sharing. The Exchange
also proposes to amend General 9, Section 58, and Options 10, Section
6, Opening of Accounts.
    The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/phlx/rules, 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 Exchange proposes to adopt two new rules at Options 10, Section
5, Branch Office, and Options 10, Section 17, Profit Sharing. The
Exchange also proposes to amend General 9, Section 58 and Options 10,
Section 6, Opening of Accounts. Each change will be described below.
Options 10, Section 5
    The Exchange proposes to adopt a new Options 10, Section 5, titled
``Branch Offices.'' Options 10, Section 5 is currently reserved. The
proposed rule would be similar to Nasdaq BX, Inc. (``BX'') and The
Nasdaq Options Market LLC (``NOM'') Options 10, Section 5. The proposed
rule text would provide,

    (a) Every OEF approved to do options business with the public
under this Options 10 shall file with Phlx Regulation and keep
current a list of each of its branch offices showing the location of
each such office and the name of the manager of each such office.
    (b) No branch office of an OEF shall transact options business
with the public unless the manager of such branch office has been
qualified as a Options Principal or General Securities Sales
Supervisor; provided, that this requirement shall not apply to
branch offices in which not more than three (3) representatives are
located so long as the OEF can demonstrate to the satisfaction of
Phlx Regulation that the options activities of such branch offices
are appropriately supervised by a Options Principal or General
Securities Sales Supervisor.

Similar to BX and NOM, Phlx would require every Order Entry Firm or
``OEF'' \5\ that is approved to do business with the public pursuant to
Options 10 to file with Phlx Regulation a list of each branch office.
The list must include the location of the branch office and the name of
the manager of the office. The OEF must keep this list current.
Further, an OEF must ensure that the branch office manager is qualified
prior to transacting business with the public in the branch office. A
manager must be registered as an Options Principal or General
Securities Sales Supervisor, unless there are not more than three
representatives in that branch office and the OEF can demonstrate to
the satisfaction of Phlx Regulation that the options activities of such
branch offices are appropriately supervised by an Options Principal or
General Securities Sales Supervisor.
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    \5\ The term ``Order Entry Firm'' or ``OEF'' means a member
organization that submits orders, as agent or principal, on the
Exchange. See Phlx Options 1, Section 1(b)(32).
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    Currently, Phlx General 4,\6\ Section 1220(a)(8) \7\ and
Supplementary Material .04 of that rule \8\ require the manager to be
registered as an Options Principal or General Securities Sales
Supervisor. In

2018, NOM's and BX's registration requirements \9\ were updated to
mirror a similar change by FINRA.\10\ At that time, Phlx Options 10,
Section 5 should have been amended to update the registrations
applicable to a branch office manager to conform to the new General 4
registration requirements. The Exchange is proposing to make those
amendments at this time.
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    \6\ Phlx General 4 is incorporated by reference to the General 4
Rules of The Nasdaq Stock Market LLC.
    \7\ General 4, Rule 1220(a)(8) provides, in part, ``Each member
that is engaged in transactions in options with the public shall
have at least one Registered Options Principal. In addition, each
principal as defined in paragraph (a)(1) of this Rule who is
responsible for supervising a member's options sales practices with
the public shall be required to register with the Exchange as a
Registered Options Principal, subject to the following exception. If
a principal's options activities are limited solely to those
activities that may be supervised by a General Securities Sales
Supervisor, then such person may register as a General Securities
Sales Supervisor pursuant to paragraph (a)(10) of this Rule in lieu
of registering as a Registered Options Principal.''
    \8\ Supplementary Material .04 to General 4, Rule 1220 provides,
in part, ``Any person required to be registered as a principal who
supervises sales activities in corporate, municipal and option
securities, investment company products, variable contracts, direct
participation program securities and security futures may be
registered solely as a General Securities Sales Supervisor. In
addition to branch office managers, other persons such as regional
and national sales managers may also be registered solely as General
Securities Sales Supervisors as long as they supervise only sales
activities.''
    \9\ See Securities Exchange Act Nos. 84386 (October 9, 2018), 83
FR 51988 (October 15, 2018) (SR-NASDAQ-2018-078) (Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend,
Reorganize and Enhance Its Membership, Registration and
Qualification Rules); and 84353 (October 3, 2018), 83 FR 50999
(October 10, 2018) (SR-BX-2018-047) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change To Amend, Reorganize and
Enhance Membership, Registration and Qualification Rules, and To
Make Conforming Changes to Certain Other Rules).
    \10\ See Securities Exchange Act Release No. 81098 (July 7,
2017), 82 FR 32419 (July 13, 2017) (SR-FINRA-2017-007) (Order
Approving Proposed Rule Change To Adopt Consolidated Registration
Rules, Restructure the Representative-Level Qualification
Examination Program, Allow Permissive Registration, Establish Exam
Waiver Process for Persons Working for Financial Services Affiliate
of Member, and Amend the Continuing Education Requirements).
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    The Exchange proposes to relocate Supplementary Material .08 to
Options 10, Section 6 to proposed Supplementary Material .01 to Options
10, Section 5 and amend a citation within proposed Supplementary
Material .01(vi) of Options 10, Section 5 from ``(1)-(vii)'' to ``(i)
to (vii)'' to conform the numbering.
    The proposed rule would permit Phlx to better regulate branch
offices of member organizations \11\ by making clear within proposed
Options 10, Section 5, related to doing business with the public, that
an OEF that transacts business with the public must be qualified as a
Registered Options Principal or General Securities Sales Supervisor.
Further, the proposed rule explains that the requirement to be
qualified as a Registered Options Principal or General Securities Sales
Supervisor shall not apply to branch offices in which not more than
three representatives are located so long as the OEF can demonstrate to
the satisfaction of Phlx Regulation that the options activities of such
branch offices are appropriately supervised by a Registered Options
Principal or General Securities Sales Supervisor. This additional
specificity will assist member organizations in complying with branch
office requirements. Today, the Exchange has other rules to regulate
supervision of branch office such as General 9, Section 20,
Supervision. The addition of this rule, similar to NOM and BX, will
permit Phlx to enforce the rule in a manner similar to NOM and BX by
specifically requiring that members and member organizations that are
doing business with the public maintain certain qualifications similar
to NOM and BX. Members and member organizations that are required to
comply with Options 10, Section 5 now have transparent information to
determine if they have the appropriate manager qualifications. Also,
the proposed rule makes clear when the requirement to be qualified as a
Registered Options Principal or General Securities Sales Supervisor
does not apply. The specified qualifications for branch managers will
ensure branch offices are properly supervised by qualified individuals.
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    \11\ The term ``member organization'' means a corporation,
partnership (general or limited), limited liability partnership,
limited liability company, business trust or similar organization,
transacting business as a broker or a dealer in securities and which
has the status of a member organization by virtue of (i) admission
to membership given to it by the Membership Department pursuant to
the provisions of General 3, Sections 5 and 10 or the By-Laws or
(ii) the transitional rules adopted by the Exchange pursuant to
Section 6-4 of the By-Laws. References herein to officer or partner,
when used in the context of a member organization, shall include any
person holding a similar position in any organization other than a
corporation or partnership that has the status of a member
organization. See General 1, Section 1(17).
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Options 10, Section 17
    The Exchange proposes to adopt a new Options 10, Section 17, Profit
Sharing. Options 10, Section 17 is currently reserved. The Exchange's
rule is similar to FINRA Rule 2150(c),\12\ Sharing in Accounts; Extent
Permissible.\13\ For purposes of comparing Phlx's proposed rule to
FINRA's Rule 2150, the Exchange notes that the term ``member'' within
FINRA Rule 2150 is equivalent to Phlx's defined term ``member
organization.'' Phlx also utilizes an additional term, ``member'',\14\
to define its floor membership. Each ``member'' on Phlx's trading floor
is required to obtain a permit to conduct business on the trading
floor.\15\ FINRA does not have a similar trading floor concept.
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    \12\ FINRA and Phlx utilize different terminology to describe
members. Also, the rules are numbered differently and the rule
citations differ.
    \13\ Phlx has rule text similar to FINRA Rule 2150(a) within
General 9, Section 2(a). Also, Phlx has rule text similar to FINRA
Rule 2150(b) within General 9, Section 54.
    \14\ The term ``member'' means a permit holder which has not
been terminated in accordance with the By-Laws and these Rules of
the Exchange. A member is a natural person and must be a person
associated with a member organization. Any references in the rules
of the Exchange to the rights or obligations of an associated person
or person associated with a member organization also includes a
member. See General 1, Section 1(16).
    \15\ See Phlx General 3, Section 11.
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    Similar to FINRA Rule 2150(c), Phlx proposes to prohibit members,
member organizations, and associated persons from sharing directly or
indirectly in the profits or losses in any account of a customer,
however the rule does provide three circumstance within proposed
Options 10, Section 17(a)(1) through (3) wherein a member, member
organization, or person associated with a member organization may share
in the profits or losses in such an account.\16\ Specifically, proposed
Options 10, Section 17(a) permits a member, member organization, or
person associated with a member organization to share directly or
indirectly in the profits or losses in any account of a customer
carried by a member, member organization, or person associated with a
member organization, if prior written authorization is obtained as
described in proposed subparagraphs (1) and (2) and the member, member
organization, or person associated with a member organization shares in
the profits or losses in any account of such customer only in direct
proportion to the financial contributions made to such account by
either the member, member organization, or person associated with a
member organization as described in proposed subparagraph (3).
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    \16\ Proposed Options 10, Section 17(a)(1) through (3) provides
that a member, member organization, or person associated with a
member organization may share in the profits or losses in such an
account if (1) such member or person associated with a member
organization obtains prior written authorization from the member
organization employing the associated person; (2) such member,
member organization, or person associated with a member organization
obtains prior written authorization from the customer; and (3) such
member, member organization, or person associated with a member
organization shares in the profits or losses in any account of such
customer only in direct proportion to the financial contributions
made to such account by either the member, member organization, or
person associated with a member organization.
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    Proposed Options 10, Section 17(b) exempts from paragraph (a)(3)
the accounts of the immediate family of such member, member
organization, or person associated with a member organization. The rule
proposes to define ``immediate family'' to include parents, mother-in-
law or father-in-law, husband or wife, children or any relative to
whose support the member, member organization, or person associated
with a member organization otherwise contributes directly or
indirectly.
    Proposed Options 10, Section 17(c) permits a member, member
organization, or person associated with a member organization that is
acting as an investment adviser to receive compensation based on a
share in

profits or gains in an account provided certain conditions are met.
Specifically, the member or person associated with a member
organization seeking such compensation obtains prior written
authorization from the member or member organization employing the
associated person; and such member, member organization, or person
associated with a member organization seeking such compensation obtains
prior written authorization from the customer; and all of the
conditions in Rule 205-3 of the Investment Advisers Act of 1940 (as the
same may be amended from time to time) are satisfied.
    This proposal would enable Phlx to better regulate profit sharing
arrangements of member organizations, members, and persons associated
with member organizations by clearly specifying the manner in which a
member organization, member, or person associated with a member
organization may share in the profits or losses in such an account,
describing what activity is exempt from the direct proportionate share
limitation of proposed paragraph (a)(3), and delineating within
proposed paragraph (c) how a member organization, member, or person
associated with a member organization that is acting as an investment
adviser may receive compensation based on a share in profits or gains
in an account. Today, Phlx General 9, Section 7, Report of Financial
Arrangements, permits Phlx to learn of such arrangements. The proposed
rule would enable Phlx to restrict the ability to profit share to
certain limited circumstances, similar to FINRA.
General 9, Section 58
    The Exchange proposes to amend General 9, Section 58,
Advertisements, Market Letters, Research Reports and Sales Literature,
to amend the heading ``Supplementary Material'' to ``Supplementary
Material to General 9, Section 58'' so the format of the heading is the
same as other General 9 rules.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\17\ in general, and with
Section 6(b)(5) of the Act,\18\ 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.
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    \17\ 15 U.S.C. 78f.
    \18\ 15 U.S.C. 78f(b)(5).
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Options 10, Section 5
    The adoption of a new Options 10, Section 5, titled ``Branch
Offices,'' is consistent with the Act and will protect investors and
the public interest because the proposed rule explains the requirement
to be qualified as a Registered Options Principal or General Securities
Sales Supervisor and also explains when the requirement to be
registered as such does not apply.\19\ General 9, Section 20,
Supervision, does not offer the same specificity as proposed within
Options 10, Section 5 with respect to branch offices, and General 9,
Section 20 does not specifically apply only to members doing business
with the public. The addition of this rule, similar to NOM and BX
Options 10, Section 5, will permit Phlx to enforce the rule in a manner
similar to NOM and BX by requiring certain qualifications for members
doing business with the public. These qualifications for branch
managers will protect investors and the public interest by ensuring
branch offices are properly supervised by qualified individuals who
will ensure compliance with the Exchange's rules. Today, Phlx General 4
requires member organizations, members, and persons associated with a
member organization to have certain qualifications when conducting
certain activity. These qualifications are designed to ensure that
individuals have the necessary knowledge and experience to supervise
persons employed by the member organization at a branch office.
Proposed Options 10, Section 5 specifically requires that members and
member organizations that are doing business with the public maintain
certain qualifications. Members and member organizations that are
required to comply with Options 10, Section 5 now have transparent
information to determine which of the qualifications apply to a manager
of a branch office and when those qualification apply.
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    \19\ The qualification requirement shall not apply to branch
offices in which not more than three representatives are located so
long as the OEF can demonstrate to the satisfaction of Phlx
Regulation that the options activities of such branch offices are
appropriately supervised by a Registered Options Principal or
General Securities Sales Supervisor. See proposed Options 10,
Section 5(b).
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Options 10, Section 17
    Adopting a new Options 10, Section 17, Profit Sharing, similar to
FINRA Rule 2150(c), Sharing in Accounts; Extent Permissible, is
consistent with the Act. This proposal will protect investors and the
public interest because it will clearly specify the way a member,
member organization, or person associated with a member organization
may share in the profits or losses in such an account. The proposal
also will describe what activity is exempt from the direct
proportionate share limitation of proposed paragraph (a)(3). Finally,
the proposal will delineate within proposed paragraph (c) how a member,
member organization, or person associated with a member organization
that is acting as an investment adviser may receive compensation based
on a share in profits or gains in an account. Members, member
organizations, and persons associated with a member organization will
have clear guidance on when profit sharing is permissible. Today, Phlx
General 9, Section 7, Report of Financial Arrangements, permits Phlx to
learn of such arrangements, and Phlx General 1, Section 1(c) does not
permit members, member organizations, and persons associated with a
member organization to engage in conduct inconsistent with just and
equitable principles of trade. The proposed rule would enable Phlx to
further restrict the ability to profit share in certain limited
circumstances, similar to FINRA.
General 9, Section 58
    The Exchange's proposal to amend a heading within General 9,
Section 58, Advertisements, Market Letters, Research Reports and Sales
Literature, is a non-substantive rule change.

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, as amended.
Options 10, Section 5
    The Exchange's proposal to adopt a new Options 10, Section 5,
titled ``Branch Offices,'' does not impose an undue burden on
competition as all member organizations that conduct business with the
public would be subject to the proposed rule.
Options 10, Section 17
    The Exchange's proposal to adopt a new Options 10, Section 17,
Profit Sharing, similar to FINRA Rule 2150(c), Sharing in Accounts;
Extent

Permissible, does not impose an undue burden on competition as all
members, member organizations, and persons associated with member
organizations that conduct business with the public would be subject to
the proposed rule.
General 9, Section 58
    The Exchange's proposal to amend a heading within General 9,
Section 58, Advertisements, Market Letters, Research Reports and Sales
Literature, is a non-substantive rule change.

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)(iii) of the Act \20\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\21\
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    \20\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \21\ 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 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.

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-2021-52 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-2021-52. 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 website (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 website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-Phlx-2021-52 and should be submitted on
or before October 12, 2021.
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    \22\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-20325 Filed 9-20-21; 8:45 am]
BILLING CODE 8011-01-P