[Federal Register Volume 84, Number 243 (Wednesday, December 18, 2019)]
[Notices]
[Pages 69405-69412]
[FR Doc No: 2019-27204]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87728; File No. SR-Phlx-2019-51]

Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Relating to
Securities Traded Pursuant to Unlisted Trading Privileges

December 12, 2019.
    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 December 3, 2019, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to delete Phlx Rules 800-853, 867 and 868,
under the title ``Standards for Trading Securities Pursuant to Unlisted
Trading Privileges.'' Phlx Rules 860-866 are being relocated to new PSX
Rules 3236-3242, respectively. The Exchange proposes to amend Phlx Rule
1000, titled ``Applicability, Definitions and References,'' PSX Rule
3100, titled ``Limit Up-Limit Down Plan and Trading Halts on PSX,'' and
Rule 3202, titled ``Application of Other Rules of the Exchange.'' The
Exchange proposes to adopt a new PSX Rule 3204, titled ``Securities
Traded under Unlisted Trading Privileges,'' PSX Rule 3232, titled
``Advertising Practices,'' PSX Rule 3233, titled ``Prevention of the
Misuse of Material, Nonpublic Information'' and PSX Rule 3234, titled
``Additional Requirements for Securities Issued by Nasdaq or its
Affiliates.'' Phlx Rule 136, titled ``Trading Halts in Certain Exchange
Traded Funds,'' is being deleted and replaced with new proposed rules.
PSX Rule 3234 is being added to the PSX Rules to specify that equity
Affiliate Securities will not be listed on the Exchange. Finally, the
Exchange is amending Phlx Rule 990, ``Additional Requirements for
Securities Listed on the Exchange Issued by Nasdaq or its Affiliates''
to make clear the rule is applicable to equities and options.
    The text of the proposed rule change is available on the Exchange's
website at http://nasdaqphlx.cchwallstreet.com/, at the principal
office of the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to delete Phlx Rules 800-853, 867 and 868,
under the title ``Standards for Trading Securities Pursuant to Unlisted
Trading Privileges.'' Phlx Rules 860-866 are being relocated to new PSX
Rules 3236-3242, respectively. The Exchange proposes to amend Phlx Rule
1000, titled ``Applicability, Definitions and References,'' PSX Rule
3100, titled ``Limit Up-Limit Down Plan and Trading Halts on PSX,'' and
Rule 3202, titled ``Application of Other Rules of the Exchange.'' The
Exchange proposes to adopt a new PSX Rule 3204, titled ``Securities
Traded under Unlisted Trading Privileges,'' PSX Rule 3232, titled
``Advertising Practices,'' PSX Rule 3233, titled ``Prevention of the
Misuse of Material, Nonpublic Information'' and PSX Rule 3234, titled
``Additional Requirements for Securities Issued by Nasdaq or its
Affiliates.'' Phlx Rule 136, titled ``Trading Halts in Certain Exchange
Traded Funds,'' is being deleted and replaced with new proposed rules.
PSX Rule 3234 is being added to the PSX Rules to specify that equity
Affiliate Securities will not be listed on the Exchange. Finally, the
Exchange is amending Phlx Rule 990, ``Additional Requirements for
Securities Listed on the Exchange Issued by Nasdaq or its Affiliates''
to make clear the rule is applicable to equities and options.
    Today, Nasdaq PSX (``PSX'') does not list equity securities.
Rather, PSX trades NMS stocks listed on other exchanges on an unlisted
trading privileges basis. PSX Rule 3202 notes that Phlx Rule 803,
titled ``Listing Standards for Unlisted Trading Privileges,'' is
applicable to market participants trading on PSX. Phlx Rule 803
supports unlisted trading privileges for NMS stocks on PSX, but it also
contains listing standards that are not currently applicable because
PSX does not list equity securities. The Exchange proposes to delete
Phlx Rule 803 and remove cross-references to this Rule within Phlx Rule
1000 and PSX Rule 3202. The Exchange notes that it is retaining the
rule text within Phlx Rule 803(o)(2) and relocating that rule text
within PSX Rule 3204(a)(3) as described below in greater detail.
    In addition to deleting Rule 803 and the cross-reference to Rule
803 from PSX Rule 1000 and 3202, the Exchange proposes to delete Phlx
Rules 800, 802, 804-853,\3\ 867 and 868 which contain listing standards
for equity securities. The Exchange's proposal to adopt proposed PSX
Rule 3204 will provide for the trading of equity securities pursuant to
unlisted trading privileges. If at a later date PSX determines to list
equity securities, it would file a proposed rule change with the
Commission.
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    \3\ The Exchange notes that Phlx Rules 800-868 do not apply to
the options market. The rule text of Phlx Rules 801, 803(o)(2) and
860-866 are being relocated within the new rule text.
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Proposed Rule 3204
    PSX proposes to adopt a new PSX Rule 3204, titled ``Securities
Traded under Unlisted Trading Privileges'' to describe the manner in
which PSX will trade securities pursuant to unlisted trading
privileges. As noted above, while today Phlx Rule 803 permits the
trading of securities pursuant to unlisted trading privileges, proposed
new PSX Rule 3204 will make clear the applicability of PSX's unlisted
trading privileges to any security that is an NMS Stock (as defined in
Rule 600 of Regulation NMS under the Act) that is listed on another
national securities exchange. Proposed Rule 3204 is similar to NYSE
National, Inc. (``NYSE National'') Rule 5.1.
    Proposed PSX Rule 3204(a) provides ``Only such securities admitted
pursuant to unlisted trading privileges shall be dealt in on the
Exchange. The Exchange will not list equity securities pursuant to any
Rule until the Exchange files a proposed rule change under Section
19(b)(2) under the Exchange Act to amend its Rules to make any changes
needed to comply with Rules 10A-3 and 10C-1 under the Exchange Act and
to incorporate additional qualitative and other listing criteria, and
such proposed rule change is approved by the Commission. Therefore, the
provisions of the Exchange's Rules are not effective to permit the
listing of equity securities.'' This is the case today and this
proposed new rule text, which replaces current Phlx Rule 803, makes
clear that PSX is not a listing venue. The rule would further specify
in proposed Rule 3204(a)(1) that the Exchange may extend unlisted
trading privileges to any security that is an NMS Stock that is listed
on another national securities exchange or with respect to which
unlisted trading privileges may otherwise be extended in accordance
with Section 12(f) of the Exchange Act and any such security shall be
subject to all Exchange rules applicable to trading on the Exchange,
unless otherwise noted.
    This proposed rule text states the Exchange's authority to trade
securities on an UTP basis and provides that the Exchange may extend
UTP to any security that is an NMS Stock that is listed on another
national securities exchange or with respect to which UTP may otherwise
be extended in accordance with Section 12(f) of the Exchange Act.\4\
This proposed text is based on NYSE National Rule 5.1.
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    \4\ 15 U.S.C. 78l(f).
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    The proposed rule defines a UTP Security within proposed Rule
3100(b)(7) as a security that is listed on a national securities
exchange other than the Exchange and that trades on the Exchange
pursuant to unlisted trading privileges. The Exchange describes the
manner in which it distributes an information circular prior to the
commencement of trading in each UTP Exchange Traded Product within Rule
3204(a)(2). The circular would generally include the same information
as is contained in the information circular provided by the listing
exchange, including (a) the special risks of trading the new Exchange
Traded Product, (b) the Exchange Rules that will apply to the new
Exchange Traded Product, and (c) information about the dissemination of
value of the underlying assets or indices.
    Proposed Rule 3204(a)(2)(B) also sets forth member organization
prospectus delivery requirements. In addition, the Exchange requires
that member organizations provide each purchaser of UTP Exchange Traded
Products a written description of the terms and characteristics of
those securities, in a form approved by the Exchange or prepared by the
open-ended management company issuing such securities, not later than
the time a confirmation of the first transaction in such securities is
delivered to such purchaser. A member organization carrying an omnibus
account for a non-member organization is required to inform such non-
member organization that execution of an order to purchase UTP Exchange
Traded Products for such omnibus account will be deemed to constitute
an agreement by the non- member organization to make such written
description available to its customers on the same terms as are
directly applicable to the member organization under this Rule. Upon
request of a customer, a member organization will also provide a
prospectus for the particular UTP Exchange Traded Product.
    Proposed Rule 3204(a)(2)(C) indicates that trading halts for UTP
Exchange Traded Products will be pursuant to

PSX Rule 3100, which is described below. Proposed Rule 3204(a)(2)(D)
provides for certain Market Maker restrictions that exist today for
market makers. Proposed Rule 3204(a)(2)(D) requires certain
restrictions for any member organization registered as a market maker
in an UTP Exchange Traded Product that derives its value from one or
more currencies, commodities, or derivatives based on one or more
currencies or commodities, or is based on a basket or index composed of
currencies or commodities (collectively, ``Reference Assets'').
Specifically, such a Market Maker must file with the Exchange and keep
current a list identifying all accounts for trading the underlying
physical asset or commodity, related futures or options on futures, or
any other related derivatives (collectively with Reference Assets,
``Related Instruments''), which the member organization acting as
registered market maker may have or over which it may exercise
investment discretion.\5\ As noted above, these restrictions are
applicable today.
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    \5\ The proposed rule would also, more specifically, require a
market maker to file with the Exchange and keep current a list
identifying any accounts (``Related Instrument Trading Accounts'')
for which related instruments are traded (1) in which the market
maker holds an interest, (2) over which it has investment
discretion, or (3) in which it shares in the profits and/or losses.
In addition, a market maker would not be permitted to have an
interest in, exercise investment discretion over, or share in the
profits and/or losses of a Related Instrument Trading Account that
has not been reported to the Exchange as required by the proposed
rule.
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    Proposed Rule 3204(a)(2)(E) provides that the Exchange will enter
into comprehensive surveillance sharing agreements with markets that
trade components of the index or portfolio on which the UTP Exchange
Traded Product is based to the same extent as the listing exchange's
rules require the listing exchange to enter into comprehensive
surveillance sharing agreements with such markets.
    The Exchange proposes to relocate rule text from Phlx Rule
803(o)(2) into proposed new PSX Rule 3204(a)(3). This rule text
provides that prior to the commencement of trading of contingent value
rights (``CVRs'') on the Exchange, the Exchange will distribute a
circular providing guidance to its member organizations regarding
compliance responsibilities (including suitability recommendations and
account approval) when handling transactions in CVRs.
PSX Rule 3100
    The Exchange proposes to amend Rule 3100, ``Limit Up-Limit Down
Plan and Trading Halts on PSX''. The Exchange proposes to amend PSX
Rule 3100(a)(1) to remove the following provision, ``(A) during a
trading halt imposed by such exchange to permit the dissemination of
material news; or (B).'' A provision regarding dissemination of
material news is included in proposed Rule 3100(d). Further, the
Exchange proposes to amend the next sentence to clarify the sentence by
stating, ``In the event that the Exchange initiates a trading halt
based on another exchange's operational trading halt, PSX may resume
trading and permit PSX Participants to commence entry of orders and
quotations and trading at any time following initiation of the other
exchange's operational trading halt.'' The Exchange is not
substantively amending this rule text, rather the rule text is being
clarified. The Exchange proposes to remove the ``without regard to
procedures for resuming trading set forth in paragraph (c),'' because
the Exchange would follow the procedure in subparagraph (c) in the
event that a trading halt were initiated.
    The Exchange proposes to eliminate the rule text within Rule
3100(a)(2) \6\ and (4).\7\ The rule text within Rule 3100(a)(2) applies
to listed securities which are no longer applicable. The rule text
within Rule 3100(a)(4) is outdated.
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    \6\ PSX Rule 3100(a)(2) provides, ``The Exchange may halt
trading in an index warrant on PSX whenever Exchange staff shall
conclude that such action is appropriate in the interests of a fair
and orderly market and to protect investors. Among the factors that
may be considered are the following: (A) Trading has been halted or
suspended in underlying stocks whose weighted value represents 20%
or more of the index value; (B) the current calculation of the index
derived from the current market prices of the stocks is not
available; (C) other unusual conditions or circumstances detrimental
to the maintenance of a fair and orderly market are present; or''
    \7\ PSX Rule 3100(a)(4) provides, ``If a primary listing market
issues an individual stock trading pause in any of the Circuit
Breaker Securities, as defined herein, the Exchange will pause
trading in that security until trading has resumed on the primary
listing market. If, however, trading has not resumed on the primary
listing market and ten minutes have passed since the individual
stock trading pause message has been received from the responsible
single plan processor, the Exchange may resume trading in such
stock. The provisions of this paragraph (a)(4) shall be in effect
during a pilot set to end on February 4, 2014. During the pilot, the
term ``Circuit Breaker Securities'' shall mean all NMS stocks other
than NMS stocks subject to the Regulation NMS Plan to Address
Extraordinary Market Volatility.''
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    Halting of securities is covered by Rule 3100(a)(1) and (2) as well
as proposed rule text within 3100(d) through (f). The Exchange proposes
to eliminate the rule text within Rule 3100(a)(3) \8\ because that rule
is being replaced by Rule 3100(f) which is substantially similar to
NYSE National Rule 7.18(c) and describes the halting of trading in a
UTP Exchange Traded Product. Removing repetitive and outdated rule text
will bring greater clarity to the manner in which PSX may halt pursuant
to Rule 3100. The Exchange proposes to renumber PSX Rule 3100(a)(5) as
(a)(2).
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    \8\ PSX Rule 3100(a)(3) provides, ``The Exchange shall halt
trading in Derivative Securities Products (as defined in Rule
3100(b)(4)(A)) for which a net asset value (``NAV'') (and in the
case of Managed Fund Shares or actively managed exchange-traded
funds, a Disclosed Portfolio, as defined in Rule 803(n)) is
disseminated if the Exchange becomes aware that the NAV (or, if
applicable, the Disclosed Portfolio) is not being disseminated to
all market participants at the same time. The Exchange will maintain
the trading halt until such time as trading resumes in the listing
market.''
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    The Exchange proposes to delete the text currently in Rule
3100(b)(1)-(3) and retain the text currently in Rule 3100(b)(4) as new
``(b)'' as the new proposed rule text within Rule 3100(f) is generally
duplicative of the rule text within Rule 3100(b)(1)-(3) as explained
below. The Exchange is replacing references to ``Trust Shares,''
``Index Fund Shares,'' ``Managed Fund Shares,'' and ``Trust Issued
Receipts'' within Rule 803(i), (j), (l), and (n), with definitions of
those terms,\9\ which are proposed to be added to Rule 3100(b)(1)(A)-
(D). Further, the definition of ``Required Value'' is being removed as
this definition is obsolete and is not utilized within the PSX Rules
with the addition and deletion of rule text as proposed herein. The
Exchange proposes to define the term ``UTP Listing Market'' the same as
NYSE National Rule 1.1(jj) within Rule 3100(b)(5). The Exchange
proposes to define the term ``UTP Regulatory Halt'' the same as NYSE
National 1.1(kk) within Rule 3100(b)(6). Also, the Exchange proposes to
define the term ``UTP Security'' the same as NYSE National 1.1(ii)
within Rule 3100(b)(7).\10\
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    \9\ The definitions are unchanged from the rules which are being
deleted.
    \10\ While the definitions of ``UTP Listing Market,'' ``UTP
Regulatory Halt,'' and ``UTP Security'' are new, these concepts are
contained within existing PSX Rules.
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    The Exchange proposes to add a new Rule 3100(d) which provides for
UTP Regulatory Halts. Substantially identical to NYSE National Rule
7.18, the Exchange proposes that if the UTP Listing Market declares a
UTP Regulatory Halt, the Exchange will halt trading in that security
until it receives notification from the UTP Listing Market that the
halt or suspension is no longer in effect or as provided for in Rule
3100(a)(2) and Phlx Rule 133 provided that, during Regular Market
Session, the Exchange will halt trading

until it receives the first Price Band \11\ in that security. If a UTP
Regulatory Halt was issued for the purpose of dissemination of material
news, the Exchange will assume that adequate publication or
dissemination has occurred upon the expiration of one hour after
initial publication in a national news dissemination service of the
information that gave rise to an UTP Regulatory Halt and may, at its
discretion, reopen trading at that time, notwithstanding notification
from the UTP Listing Market that the halt or suspension is no longer in
effect.
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    \11\ Price Band shall mean the Price Band as described within
PSX Rule 3100(a)(2).
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    The Exchange proposes new rule text at Rule 3100(e) to provide that
there would be no halt cross or re-opening cross in a UTP Security.
NYSE National Rule 7.18 provides for detail concerning orders'
acceptance and cancellations following a UTP Regulatory Halt. PSX
similarly proposes a rule to describe the manner in which its system
will handle interest in the event of a trading halt. PSX's rules differ
from NYSE National in that each market has different order types and
system handling related to each respective equity market. The Exchange
proposes herein to provide similar information with respect to the
manner in which PSX would conduct a re-opening in a UTP Security. The
Exchange will process new and existing orders in a UTP Security during
a trading halt as follows:
    (1) Cancel any unexecuted portion of Midpoint Peg and Midpoint Peg
Post-Only Orders;
    (2) maintain all other resting Orders in the Exchange Book at their
last ranked price and displayed price;
    (3) accept and process all cancellations; and
    (4) Orders, including Order modifications, entered during the
trading halt or pause will not be accepted.
    The Exchange believes that providing this detail will bring greater
transparency to the Exchange's Rules with respect to trading halts and
the handling of Orders.
    Today, the Exchange does not cancel Midpoint Peg \12\ and Midpoint
Peg Post-Only \13\ Orders during a trading halt. At this time, the
Exchange proposes to begin to cancel Midpoint Peg and Midpoint Peg
Post-Only Orders in conjunction with a trading halt similar to The
Nasdaq Stock Market LLC (``Nasdaq'').\14\ Midpoint Peg and Midpoint Peg
Post-Only Orders are pegged to the midpoint of the NBBO, relying on
current market conditions. During a trading halt, there is no updated
NBBO and therefore information becomes stale. Today Nasdaq does not
accept these Orders when there is no NBBO.\15\ Further, today PSX
rejects these Orders if there is no NBBO.\16\ Once a trading halt
occurs, and some time has passed, market conditions can change and
expose a market participant to risk. The Exchange believes that
cancelling Midpoint Peg and Midpoint Peg Post-Only Orders after a
trading halt will reduce risk for market participants as it does today
on Nasdaq.
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    \12\ See PSX Rule 3301B(d) which provides, ``Pegging is an Order
Attribute that allows an Order to have its price automatically set
with reference to the NBBO; provided, however, that if PSX is the
sole market center at the Best Bid or Best Offer (as applicable),
then the price of any Displayed Order with Primary Pegging (as
defined below) will be set with reference to the highest bid or
lowest offer disseminated by a market center other than PSX. An
Order with a Pegging Order Attribute may be referred to as a
``Pegged Order.'' For purposes of this rule, the price to which an
Order is pegged will be referred to as the Inside Quotation, the
Inside Bid, or the Inside Offer, as appropriate.'' Further, PSX Rule
3301B(d) provides, ``Midpoint Pegging means Pegging with reference
to the midpoint between the Inside Bid and the Inside Offer (the
``Midpoint'').''
    \13\ See PSX Rule 3301A(b)(6)(A) which provides, ``A ``Midpoint
Peg Post-Only Order'' is an Order Type with a Non-Display Order
Attribute that is priced at the midpoint between the NBBO and that
will execute upon entry only in circumstances where economically
beneficial to the party entering the Order. The Midpoint Peg Post-
Only Order is available during the Regular Market Session only.''
    \14\ See Nasdaq Rule 4702(b)(5)(C), which provides that Midpoint
Peg Post-Only Orders will be cancelled by the System when a trading
halt is declared, and any Midpoint Peg Post-Only Orders entered
during a trading halt will be rejected. See also Nasdaq Rule
4703(d).
    \15\ See Nasdaq Rule 4702(b)(5)(A), which provides, ``A Midpoint
Peg Post-Only Order must be assigned a limit price. When a Midpoint
Peg Post-Only Order is entered, it will be priced at the midpoint
between the NBBO, unless such midpoint is higher than (lower than)
the limit price of an Order to buy (sell), in which case the Order
will be priced at its limit price. If the NBBO is locked, the
Midpoint Peg Post-Only Order will be priced at the locking price, if
the NBBO is crossed or if there is no NBBO, the Order will not be
accepted.'' See also Nasdaq Rule 4703(d).
    \16\ See PSX Rule 3301A(b)(6), which states, ``When a Midpoint
Peg Post-Only Order is entered, it will be priced at the midpoint
between the NBBO, unless such midpoint is higher than (lower than)
the limit price of an Order to buy (sell), in which case the Order
will be priced at its limit price. If the NBBO is locked, the
Midpoint Peg Post-Only Order will be priced at the locking price, if
the NBBO is crossed, it will nevertheless be priced at the midpoint
between the NBBO (provided, however, that the Order may execute as
described below), and if there is no NBBO, the Order will be
rejected.'' See also PSX Rule 3301(B)(d).
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    With respect to the remainder of proposed Rule 3100(e), the
Exchange notes that today resting Orders are maintained in the Exchange
Book, cancellations are processed and Orders, including Order
modifications, are not accepted. The Exchange is memorializing this
system behavior within Rule 3100(e).
    Finally, the Exchange proposes new rule text within Rule 3100(f)
which describes trading halts for UTP Exchange Traded Products, which
the Exchange has defined within the Rule similar to NYSE National
1.1(m).\17\ Rules proposed within the provisions of 3100(f) are similar
to NYSE National Rule 7.18(c). The Exchange provides in Rule
3100(f)(1), ``If a UTP Exchange Traded Product begins trading on the
Exchange in the Pre-Market Session and subsequently a temporary
interruption occurs in the calculation or wide dissemination of the
Intraday Indicative Value (``IIV'') or the value of the underlying
index, as applicable, to such UTP Exchange Traded Product, by a major
market data vendor, the Exchange may continue to trade the UTP Exchange
Traded Product for the remainder of the Pre-Market Session.'' The
Exchange provides in Rule 3100(f)(2), ``Regular Market Session. During
the Regular Market Session, if a temporary interruption occurs in the
calculation or wide dissemination of the applicable IIV or value of the
underlying index by a major market data vendor and the listing market
halts trading in the UTP Exchange Traded Product, the Exchange, upon
notification by the primary listing market of such halt due to such
temporary interruption, also shall immediately halt trading in the UTP
Exchange Traded Product on the Exchange.''
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    \17\ The proposed definition of UTP Exchange-Traded Products is
substantially similar to NYSE National Rule 1.1(m), except that it
also includes Index Fund Shares and NextShares within its definition
of a UTP Exchange Traded Product because these are also ETPs that
the Exchange can trade on a UTP basis.
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    The Exchange also proposes to adopt Post-Market Session and Pre-
Market Session rules which provide if the IIV or the value of the
underlying index continues not to be calculated or widely available
after the close of the Regular Market Session, the Exchange may trade
the UTP Exchange Traded Product in the Post-Market Session only if the
listing market traded such securities until the close of its regular
trading session without a halt. Further, if the IIV or the value of the
underlying index continues not to be calculated or widely available as
of the commencement of the Pre-Market Session on the next business day,
the Exchange shall not commence trading of the UTP Exchange Traded
Product in the Pre-Market Session that day. If an interruption in the
calculation or wide dissemination of the IIV or the value of the
underlying index continues, the Exchange may resume trading in the

UTP Exchange Traded Product only if calculation and wide dissemination
of the IIV or the value of the underlying index resumes or trading in
the UTP Exchange Traded Product resumes in the primary listing market.
The Exchange believes that adopting new rule text and eliminating
obsolete and redundant rule text within PSX Rule 3100 will bring
greater transparency to UTP trading on the Exchange.
PSX Rule 3232
    The Exchange also proposes to adopt new PSX Rule 3232 to govern
advertising practices, which is substantively identical to NYSE
National Rule 11.3.5. The rule provides that no member organization
either directly or indirectly, in connection with the purchase or sale
of any security that has listed or unlisted trading privileges on the
Exchange, may publish, circulate or distribute any advertisement, sales
literature or market letter or make oral statements or presentations
which the member organization knows, or in the exercise of reasonable
care should know, contain any untrue statement of material fact or
which is otherwise false or misleading. Exaggerated or misleading
statements or claims are prohibited.
    Advertisements, sales literature and market letters shall contain
the name of the member organization, the person or firm preparing the
material, if other than the member organization, and the date on which
it was first published, circulated or distributed (except that in
advertisements only the name of the member organization need be
stated). No cautionary statements or caveats, often called hedge
clauses, may be used if they could mislead the reader or are
inconsistent with the content of the material. Advertising, sales
literature, and market letter must be approved by a designated officer,
partner or other official of the member organization. A file of the
advertising, sales literature, and market letter and the preparer and
approver need to be retained for 3 years. Member organizations must
file with the Exchange, or the designated self-regulatory organization,
within 5 business days after initial use, each advertisement unless
such advertisement may be published under the rules of another self-
regulatory organization regulating the member organization under the
Act. Testimonial material based on experience with the member
organization or concerning any advice, analysis, report or other
investment related service rendered by the member organization must
make clear that such testimony is not necessarily indicative of future
performance or results obtained by others. Testimonials also shall
state whether any compensation has been paid to the maker, directly or
indirectly, and if the material implies special experience or expert
opinion, the qualifications of the maker of the testimonial should be
given. Any statement to the effect that a report or analysis or other
service will be furnished free or without any charge shall not be made
unless it will be furnished entirely free and without condition or
obligation. Finally, no claim or implication may be made for research
or other facilities beyond those which the member organization actually
possesses or has reasonable capacity to provide.
    The Exchange believes that this Rule will guide member
organizations as to the manner in which they may advertise, including
specifically with respect to UTP Securities. The rule is intended to
prevent misleading, confusing or untrue statements from enticing sales
of products. The Exchange would bring action against a member
organization that violated this rule pursuant to the Exchange's
disciplinary rules within the Phlx 8000 and 9000 series.
PSX Rule 3233
    The Exchange also proposes to adopt new PSX Rule 3233, titled
``Prevention of the Misuse of Material, Nonpublic Information,'' which
is substantively identical to NYSE National Rule 11.5.5. Proposed PSX
Rule 3233 would require every member organization to establish,
maintain, and enforce written policies and procedures reasonably
designed to prevent the misuse of material, non-public information by
such member or member organizations. For purposes of this requirement,
the misuse of material, nonpublic information would include, without
limitation, the following: (a) Trading in any securities issued by a
corporation, or in any related securities or related options or other
derivatives securities while in possession of material, non-public
information concerning that issuer; or (b) trading in a security or
related options or other derivatives securities, while in possession of
material, non-public information concerning imminent transactions in
the security or related securities; or (c) disclosing to another person
or entity any material, non-public information involving a corporation
whose shares are publicly traded or an imminent transaction in an
underlying security or related securities for the purpose of
facilitating the possible misuse of such material, non-public
information.
    Further, the Rule provides that each member organization for which
the Exchange is the DEA should establish, maintain, and enforce written
policies and procedures similar to the following, as applicable: All
members must be advised in writing of the prohibition against the
misuse of material, non-public information; and all members must sign
attestations affirming their awareness of, and agreement to abide by
the aforementioned prohibitions. These signed attestations must be
maintained for at least three years, the first two years in an easily
accessible place; and each member organization must receive and retain
copies of trade confirmations and monthly account statements for each
account in which a member: Has a direct or indirect financial interest
or makes investment decisions. The activity in such brokerage accounts
should be reviewed at least quarterly by the member organization for
the express purpose of detecting the possible misuse of material, non-
public information; and all members must disclose to the member
organization whether they, or any person in whose account they have a
direct or indirect financial interest, or make investment decisions,
are an officer, director or 10% shareholder in a company whose shares
are publicly traded. Any transaction in the stock (or option thereon)
of such company shall be reviewed to determine whether the transaction
may have involved a misuse of material non-public information.
    Finally, the Exchange notes that member organizations acting as a
registered Market Maker in UTP Exchange Traded Products, and their
affiliates, shall also establish, maintain and enforce written policies
and procedures reasonably designed to prevent the misuse of any
material nonpublic information with respect to such products, any
components of the related products, any physical asset or commodity
underlying the product, applicable currencies, underlying indexes,
related futures or options on futures, and any related derivative
instruments.
    This rule is intended to prevent misuse of material information by
member organizations, including specifically with respect to UTP
Exchange Traded Products. The Exchange would bring action against a
member organization that violated this rule pursuant to the Exchange's
disciplinary rules within the Phlx 8000 and 9000 series.
PSX Rule 3234
    The Exchange proposes to replicate the term ``Nasdaq Affiliate''
from Phlx Rule 990(a)(1) into PSX Rule 3234(a)(1)

and replicate and amend the term ``Affiliate Security'' from Rule
990(a)(2) into PSX Rule 3234(a)(2). The Exchange proposes to not
include the exception for Trust Shares and Index Fund Shares in the
proposed definition of Affiliate Security. The Exchange also proposes
to add new PSX Rule 3234(b) to specify that equity Affiliate Securities
will not be listed on the Exchange. Finally, the Exchange proposes to
add rule text to PSX Rule 3234(c) to note that throughout the trading
of the Affiliate Security on the Exchange, the Exchange will prepare a
quarterly report on the Affiliate Security for the Exchange's
Regulatory Oversight Committee that describes Exchange regulatory
staff's monitoring of the trading of the Affiliate Security including
summaries of all related surveillance alerts, complaints, regulatory
referrals, adjusted trades, investigations, examinations, formal and
informal disciplinary actions, exception reports and trading data used
to ensure the Affiliate Security's compliance with the Exchange's
trading rules. This proposed rule is substantively identical to NYSE
National Rule 3.1.
    The Exchange will retain current Phlx Rule 990 with some amendments
to reflect that Phlx Rule 990 is applicable to both equities and
options. In addition, references to Rule 803(i) and (l) are being
replaced with definitions for Trust Shares and Index Fund Shares from
those portions of the rule. Finally, references to the 800 series are
removed from the rule text.
Rulebook Reorganization
    The Exchange has undertaken a Rulebook reorganization. As part of
this reorganization, the Exchange has filed a new Rulebook shell that
clearly identifies rules associated with its equity product separate
from rules applicable to options products. The Exchange proposes to
relocate rules applicable to PSX within the equity portions of the
Rules. The relocation of the new rules into PSX Rules will make clear
the applicability of these rules to the equity product.
Deletions and Cross-References
    The Exchange proposes to delete Phlx Rule 136, titled ``Trading
Halts in Certain Exchange Traded Funds,'' which is obsolete as it
applies to listed securities.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\18\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\19\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest, by adopting a new PSX Rule that governs UTP trading.
Currently, Phlx Rule 803 governs PSX's trading of securities pursuant
to unlisted trading privileges but also includes listing standards that
are not applicable to PSX because PSX does not list equity
securities.\20\ The Exchange's proposal to adopt proposed PSX Rule 3204
will more concisely provide for UTP trading. The Exchange believes that
adopting proposed PSX Rule 3204 is consistent with the Act because the
proposed rule will provide greater transparency as to the manner in
which PSX will trade securities pursuant to unlisted trading privileges
and the type of information that will be provided to Members. In
addition, the rule provides information as to other relevant
requirements that Members must abide by when trading in securities
pursuant to unlisted trading privileges. Finally, the Exchange's
obligation with respect to surveillance is specified.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f(b).
    \19\ 15 U.S.C. 78f(b)(5).
    \20\ Current Phlx Rule 803 provides for certain initial and
continued listing requirements which do not apply today.
---------------------------------------------------------------------------

    The Exchange's proposal to delete Phlx Rules 800-853, 867 and 868
is consistent with the Act because these rules do not currently reflect
PSX's practice of trading securities pursuant to unlisted trading
privileges, with the exception of Phlx Rule 801 which rule text is
being retained and relocated within the proposed rules. The Exchange's
proposal to relocate Phlx Rules 860-866 into PSX Rules 3236-3242,
respectively, will bring greater transparency to these equity rules
which would now be located within the PSX Rules. The Exchange's
proposal to amend PSX Rules 1000 and 3202 to remove the cross-reference
to Phlx Rule 803 is a conforming change because the Exchange is
deleting Phlx Rule 803, except for the text within Rule 803(o)(2) which
is being relocated to PSX Rule 3204(a)(3).
    The Exchange has undertaken a Rulebook reorganization. As part of
this reorganization, the Exchange has filed a new Rulebook shell that
clearly identifies rules associated with its equity product separate
from rules applicable to options products. The Exchange proposes to
delete obsolete text and adopt new PSX Rule 3204 for trading securities
pursuant to unlisted trading privileges in the PSX portion of the
Rulebook to clarify the applicability of these rules to equity trading
thereby protecting investors and the public interest. The Exchange
notes that if at a later date PSX determines to list securities, it
would file a proposed rule change with the Commission.
    The Exchange's proposal to amend Rule 3100 to remove obsolete rule
text and add rule text to describe UTP Regulatory Halts, the processing
of new and existing orders in a UTP Security during a trading halt, and
halts in UTP Exchange Traded Products will provide Members with greater
transparency in each of these circumstances. Phlx Rule 136 is no longer
necessary as the Rule applies to listed securities. This rule is being
deleted and replaced with new proposed rules. The rule text within
proposed Rule 3100(e) proposes a change to the treatment of Midpoint
Peg and Midpoint Peg Post-Only Orders during a trading halt. Today, the
Exchange does not cancel Midpoint Peg and Midpoint Peg Post-Only Orders
during a trading halt. With this proposal, the Exchange proposes to
begin to cancel Midpoint Peg and Midpoint Peg Post-Only Orders in
conjunction with a trading halt similar to Nasdaq.\21\ Midpoint Peg and
Midpoint Peg Post-Only Orders are pegged to the midpoint of the NBBO.
These Orders rely on current market conditions. During a trading halt,
there is no updated NBBO and therefore information becomes stale. Today
Nasdaq does not accept these orders when there is no NBBO.\22\ Further,
today PSX rejects these Orders if there is no NBBO.\23\ Once a trading
halt occurs, and some time has passed, market conditions can change and
expose a market participant to risk. The Exchange believes that
cancelling Midpoint Peg and Midpoint Peg Post Only Orders after a
trading halt is consistent with the Act and the protection of investors
and the public interest because it will reduce risk for market
participants as it does today on Nasdaq.
---------------------------------------------------------------------------

    \21\ See note 14 above.
    \22\ See note 15 above.
    \23\ See note 16 above.
---------------------------------------------------------------------------

    With respect to the remainder of proposed Rule 3100(e), the
Exchange notes that today resting Orders are maintained in the Exchange
Book, cancellations are processed and Orders, including Order
modifications,\24\ are not accepted. The Exchange's proposal
memorializes current system behavior

within Rule 3100(e). While the Exchange does not cancel all Orders it
does allow a market participant to elect which Orders to cancel.
Providing this information within proposed PSX Rule 3100(e) is
consistent with the Act and the protection of investors and the public
interest because all market participants will have more transparency as
to the expected system behavior during a trading halt. This information
will allow market participants to make informed decisions about their
Orders on PSX.
---------------------------------------------------------------------------

    \24\ Order modifications are comprised of a cancellation and
resubmission of a new Order.
---------------------------------------------------------------------------

    The adoption of new PSX Rules 3232 (Advertising Practices) and PSX
Rule 3233 (Prevention of the Misuse of Material, Nonpublic Information)
will provide clear guidance within PSX Rules for Members with respect
to advertising practices and utilization of non-public information for
the protection of investors and the general public who are harmed by
such behavior.
PSX Rule 3234
    The Exchange's proposal to adopt a new PSX Rule 3234 to define the
terms ``Nasdaq Affiliate'' and ``Affiliate Security'' similar to Phlx
Rule 990(a)(1) and (2) and not include the exception for Trust Shares
and Index Fund Shares in the relocated definition of Affiliate Security
will bring greater transparency to the proposed new rule which seeks to
specify that equity Affiliate Securities (including any Trust Shares
and Index Fund Shares) will not be listed on the Exchange.
    The amendments to current Phlx Rule 990 are consistent with the Act
because they properly reflect the applicability of the rule to both
equities and options. The remainder of the rule changes to Phlx Rule
990 are non-substantive.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. Specifically, the Exchange
believes that clarifying the Phlx Rules that are applicable to the
equity product and removing obsolete rules will bring greater
transparency to the Rulebook. The rules regarding unlisted trading
privileges, advertising practices and use of non-public information
apply equally to all PSX Members. Further, updating PSX Rule 3100 will
bring greater information to the manner in which the system handles
trading halts for all PSX Members.

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) of the Act \25\ and Rule 19b-
4(f)(6) thereunder.\26\
---------------------------------------------------------------------------

    \25\ 15 U.S.C. 78s(b)(3)(A).
    \26\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \27\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \28\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay so
that the Exchange may immediately adopt rules that govern UTP trading,
delete obsolete rules in its rulebook, and reorganize its rules for
greater clarity. The Commission also notes that, as discussed above,
certain proposed rules are substantially similar to NYSE National Rules
1.1, 3.1, 5.1, 7.18, 11.3.5 and 11.5.5, and NYSE National is similar to
PSX in that it trades securities only pursuant to unlisted trading
privileges. Moreover, as discussed above, the proposal to cancel
Midpoint Peg and Midpoint Peg Post-Only Orders during a trading halt is
based on current Nasdaq functionality. The Commission believes that the
proposal does not raise any new or novel regulatory issues. For these
reasons, the Commission believes that waiver of the 30-day operative
delay is consistent with the protection of investors and the public
interest. Accordingly, the Commission hereby waives the operative delay
and designates the proposed rule change operative upon filing.\29\
---------------------------------------------------------------------------

    \27\ 17 CFR 240.19b-4(f)(6).
    \28\ 17 CFR 240.19b-4(f)(6)(iii).
    \29\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    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 change 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-2019-51 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-2019-51. 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-2019-51, and should be submitted on or before January 8, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
---------------------------------------------------------------------------

    \30\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-27204 Filed 12-17-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 6 (Monday, January 11, 2021)]
[Notices]
[Page 1964]
[FR Doc No: 2021-00243]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OECA-2013-0351; FRL-10018-85-OMS]

Information Collection Request Submitted to OMB for Review and
Approval; Comment Request; NESHAP for Solvent Extraction for Vegetable
Oil Production (Renewal)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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

SUMMARY: The Environmental Protection Agency (EPA) has submitted an
information collection request (ICR), NESHAP for Solvent Extraction for
Vegetable Oil Production (40 CFR part 63, subpart GGGG) (EPA ICR Number
1947.10, OMB Control Number 2060-0471), to the Office of Management and
Budget (OMB) for review and approval in accordance with the Paperwork
Reduction Act. This is a proposed extension of the ICR, which is
currently approved through February 28, 2021. Public comments were
previously requested, via the Federal Register on May 12, 2020, during
a 60-day comment period. This notice allows for an additional 30 days
for public comments. A fuller description of the ICR is given below,
including its estimated burden and cost to the public. An agency may
neither conduct nor sponsor, and a person is not required to respond
to, a collection of information unless it displays a currently valid
OMB control number.

DATES: Additional comments may be submitted on or before February 10,
2021.

ADDRESSES: Submit your comments to EPA, referencing Docket ID No. EPA-
HQ-OECA-2013-0351, online using www.regulations.gov (our preferred
method), by email to<EMAIL_ADDRESS>or by mail to: EPA Docket
Center, Environmental Protection Agency, Mail Code 28221T, 1200
Pennsylvania Ave. NW, Washington, DC 20460. EPA's policy is that all
comments received will be included in the public docket without change
including any personal information provided, unless the comment
includes profanity, threats, information claimed to be Confidential
Business Information (CBI), or other information whose disclosure is
restricted by statute.
    Submit written comments and recommendations to OMB for the proposed
information collection within 30 days of publication of this notice to
www.reginfo.gov/public/do/PRAMain. Find this particular information
collection by selecting ``Currently under 30-day Review--Open for
Public Comments'' or by using the search function.

FOR FURTHER INFORMATION CONTACT: Patrick Yellin, Monitoring,
Assistance, and Media Programs Division, Office of Compliance, Mail
Code 2227A, Environmental Protection Agency, 1200 Pennsylvania Ave. NW,
Washington, DC 20460; telephone number:<PHONE_NUMBER>; fax number:
(202) 564-0050; email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Supporting documents, which explain in
detail the information that the EPA will be collecting, are available
in the public docket for this ICR. The docket can be viewed online at
www.regulations.gov, or in person at the EPA Docket Center, WJC West,
Room 3334, 1301 Constitution Ave. NW, Washington, DC. The telephone
number for the Docket Center is<PHONE_NUMBER>. For additional
information about EPA's public docket, visit: http://www.epa.gov/dockets.
    Abstract: Owners and operators of affected facilities are required
to comply with reporting and recordkeeping requirements for the General
Provisions (40 CFR part 63, subpart A), as well as for the applicable
specific standards. This includes submitting initial notifications,
performance tests and periodic reports and results, and maintaining
records of the occurrence and duration of any startup, shutdown, or
malfunction in the operation of an affected facility, or any period
during which the monitoring system is inoperative. These reports are
used by the EPA to determine compliance with these standards.
    Form Numbers: None.
    Respondents/affected entities: Facilities with a vegetable oil
production process.
    Respondent's obligation to respond: Mandatory (40 CFR part 63,
subpart GGGG).
    Estimated number of respondents: 92 (total).
    Frequency of response: Initially, occasionally, and annually.
    Total estimated burden: 34,800 hours (per year). Burden is defined
at 5 CFR 1320.3(b).
    Total estimated cost: $4,090,000 (per year), which includes $0 in
annualized capital/startup and operation & maintenance costs.
    Changes in the Estimates: There is an increase in burden from the
most-recently approved ICR as currently identified in the OMB Inventory
of Approved Burdens. This increase is not due to any program changes.
There is an increase in the number of respondents subject to the rule
since the publication of the final rule in 2020. This increase is due
to an assumption of a continued growth rate of one new respondent per
year in the industry.

Courtney Kerwin,
Director, Regulatory Support Division.
[FR Doc. 2021-00243 Filed 1-8-21; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 77, Number 130 (Friday, July 6, 2012)]
[Notices]
[Pages 40139-40140]
[FR Doc No: 2012-16518]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67314; File No. SR-NYSEAmex- 2012-23]

Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of
Amendment No. 1 and Order Granting Accelerated Approval of a Proposed
Rule Change, as Modified by Amendment No. 1, Amending NYSE Amex Options
Rule 928NY Specifying That the Potential Range for the Settings
Applicable to the Market Maker Risk Limitation Mechanism Will Be
Between One and 100 Executions Per Second, To Eliminate the Current
Reference to the Default Setting and, in the Future, To Specify the
Applicable Minimum, Maximum and Default Settings via Regulatory
Bulletin

June 29, 2012.

I. Introduction

    On April 12, 2012, NYSE Amex LLC (the ``Exchange'' or ``NYSE
Amex'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to: (i) Specify the potential range for the
settings applicable to the Market Maker Risk Limitation Mechanism
(``Mechanism'') will be between one and 100 executions per second; (ii)
eliminate the current reference to the default setting; and (iii)
specify that the Exchange may set the applicable minimum, maximum, and
default settings via Regulatory Bulletin. The proposed rule change was
published for comment in the Federal Register on May 1, 2012.\3\ The
Commission received no comment letters on the proposal. On June 26,
2012, the Exchange filed Amendment No. 1 to the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 66857 (April 25, 2012),
77 FR 25770 (``Notice'').
---------------------------------------------------------------------------

    The Commission is publishing this notice to solicit comments on
Amendment No. 1 from interested persons and is approving the proposed
rule change, as modified by Amendment No. 1, on an accelerated basis.

II. Description of the Proposal

    The Exchange adopted the Mechanism as a way to protect Market
Makers from the risk associated with an excessive number of nearly
simultaneous executions in a single option class.\4\ It functions as
follows: If ``n'' executions occur within one second against the Market
Maker's quotes in an appointed class, the NYSE Amex System
automatically cancels all quotes posted by the Market Maker in that
class. The Mechanism currently defaults the ``n'' number of executions
to 50 executions per second.\5\ However, a Market Maker may instead set
the ``n'' number of executions between five and 100 executions per
second.\6\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 59472 (February 27,
2009), 74 FR 9843 (March 6, 2009) (SR-NYSEALTR-2008-14).
    \5\ See NYSE Amex Options Rule 928NY(b)(1).
    \6\ See NYSE Amex Options Rule 928NY(b)(2).
---------------------------------------------------------------------------

    The Exchange now proposes to decrease the low end of this range
from five to one, while the high end of the range would remain
unchanged at 100 executions per second. The Exchange also proposes to
eliminate the reference to the default setting that is applicable to
the Mechanism. In addition, the Exchange proposes that, in the future,
it will specify the applicable minimum, maximum and default settings
for the Mechanism via Regulatory Bulletin, all of which would be within
the proposed range of one to 100 executions per second.\7\
---------------------------------------------------------------------------

    \7\ See proposed NYSE Amex Options Rule 928NY(b)(1). The
Exchange proposes to designate NYSE Amex Options Rule 928NY(b)(2) as
``reserved.''
---------------------------------------------------------------------------

    The Exchange has noted that it anticipates announcing via
Regulatory Bulletin that the applicable minimum, maximum and default
settings for the Mechanism will be decreased to 2, 50, and 5 executions
per second, respectively.\8\
---------------------------------------------------------------------------

    \8\ See Notice, supra note 3, at 25771.
---------------------------------------------------------------------------

    In addition, on June 26, 2012, the Exchange submitted Amendment No.
1 to the proposed rule change, which added additional information about
the Regulatory Bulletin that the Exchange would provide to Market
Makers in the event the Exchange makes any changes to the Mechanism's
minimum, maximum, or default settings. The Exchange specified that,
when announcing changes to the Mechanism via Regulatory Bulletin, the
Exchange will issue the bulletin at least one trading day in advance of
the effective date of the change. The Exchange also specified that such
bulletins will include: (1) Information regarding the changes to the
risk settings in the Mechanism; (2) the effective date of the changes;
and (3) contact information of Exchange staff who can provide
additional information.

III. Discussion

    The Commission finds that the proposed rule change, as modified by
Amendment No. 1, is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\9\ Specifically, the Commission finds that the proposal, as
modified by Amendment No. 1, is consistent with Section 6(b)(5) of the
Act,\10\ in that it is designed to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transaction in securities, to remove
impediments and perfect the mechanisms of a free and open market, and,
in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \9\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange noted its belief that decreasing the minimum settings
in the Mechanism would provide Market Makers with greater control and
flexibility with respect to managing their risk and the manner in which
they enter quotes on the Exchange. The Exchange also notes that the
proposed rule change allowing the Exchange to modify Mechanism settings
by Regulatory Bulletin is consistent with the Act because it would
permit the Exchange to increase or decrease the Mechanism settings to
accommodate system capacity concerns. The Exchange has also represented
that it believes providing at least one day of advance notice via
Regulatory Bulletin prior to making adjustments to the Mechanism would
afford Market Makers sufficient time to review their settings and make
any necessary operational or technological changes to accommodate such
adjustments. Finally, the Commission notes that the proposal would not
relieve Market Makers of their quoting obligations on the Exchange
under the Exchange's rules.\11\ For these reasons, the Commission
believes that the proposed rule change, as modified by Amendment No. 1,
is consistent with the Act.
---------------------------------------------------------------------------

    \11\ See NYSE Amex Options Rule 925NY.
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether Amendment No. 1
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-NYSEAmex-2012-23 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEAmex-2012-23. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make publicly available. All
submissions should refer to File Number SR-NYSEAmex-2012-23 and should
be submitted on or before July 27, 2012.

V. Accelerated Approval of Proposed Rule Change, as Modified by
Amendment No. 1

    As discussed above, Amendment No. 1 revised the proposed rule
change to specify that, when announcing changes to the Mechanism via
Regulatory Bulletin, the Exchange will issue the bulletin at least one
trading day in advance of the effective date of the change. The
Exchange also specified that such bulletins will include: (1)
Information regarding the changes to the risk settings in the
Mechanism; (2) the effective date of the changes; and (3) contact
information of Exchange staff who can provide additional information.
The Exchange also stated its belief that providing at least one day of
advance notice prior to making adjustments would afford Market Makers
sufficient time to review their settings and make any necessary
operational or technological changes to accommodate such adjustments to
their own settings in the Mechanism or to their own proprietary
systems. The Commission believes that the amendment addresses potential
concerns about when the Exchange would provide notice of changes to the
Mechanism settings, the form of such notice, and whether such notice
would afford Market Makers sufficient time to adjust their settings in
the Mechanism or their proprietary systems. Accordingly, the Commission
also finds good cause, pursuant to Section 19(b)(2) of the Act,\12\ for
approving the proposed rule change, as modified by Amendment No. 1,
prior to the 30th day after the date of publication of notice in the
Federal Register.
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    \12\ 15 U.S.C. 78s(b)(2).
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VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\13\ that the proposed rule change (SR-NYSEAmex-2012-23), as
modified by Amendment No. 1, be, and hereby is, approved on an
accelerated basis.
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    \13\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-16518 Filed 7-5-12; 8:45 am]
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[Federal Register: December 23, 2009 (Volume 74, Number 245)]
[Notices]
[Page 68263-68264]
[DOCID:fr23de09-55]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. ER10-228-000; ER10-228-001]

Star Point Wind Project LLC; Notice of Filing

December 15, 2009.
    Take notice that on December 9, 2009, Star Point Wind Project LLC
submitted an application requesting acceptance of FERC Electric Tariff,
Original Volume No. 1 and grant a blanket authorization to make
wholesale sales of electric energy, capacity, and ancillary services at
market-based rates.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211, 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. Such notices,
motions, or

protests must be filed on or before the comment date. Anyone filing a
motion to intervene or protest must serve a copy of that document on
the Applicant and all the parties in this proceeding.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://
www.ferc.gov. Persons unable to file electronically should submit an
original and 14 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426.
    This filing is accessible on-line at http://www.ferc.gov, using the
``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For
TTY, call<PHONE_NUMBER>.
    Comment Date: 5 p.m. Eastern Time on December 30, 2009.

Kimberly D. Bose,
Secretary.
[FR Doc. E9-30453 Filed 12-22-09; 8:45 am]

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