[Federal Register Volume 86, Number 26 (Wednesday, February 10, 2021)]
[Notices]
[Pages 8955-8966]
[FR Doc No: 2021-02710]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91060; File No. SR-Phlx-2021-05]

Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Phlx Rules

February 4, 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 January 26, 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 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 amend Phlx Rules at Options 1, Section 1,
``Applicability, Definitions and References''; Options 2, Section 4,
``Obligations of Market Makers''; Options 2, Section 6, ``Market Maker
Orders''; Options 3, Section 6, ``Firm Quotations''; Options 3, Section
7, ``Types of Orders and Order and Quote Protocols''; Options 3,
Section 10, ``Electronic Execution Priority and Processing in the
System''; Options 3, Section 13, ``Price Improvement XL (``PIXL'')'';
Options 3, Section 15, ``Simple Order Risk Protections''; Options 3,
Section 23, ``Data Feeds and Trade Information''; Options 5, Section 4,
``Order Routing''; Options 8, Section 2, ``Definitions''; and Options
8, Section 32, ``Types of Floor-Based (Non-System) Orders''.
    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 amend Phlx Rules at Options 1, Section 1,
``Applicability, Definitions and References''; Options 2, Section 4,
``Obligations of Market Makers''; Options 2, Section 6, ``Market Maker
Orders''; Options 3, Section 6, ``Firm Quotations''; Options 3, Section
7, ``Types of Orders and Order and Quote Protocols''; Options 3,
Section 10, ``Electronic Execution Priority and Processing in the
System''; Options 3, Section 13, ``Price Improvement XL (``PIXL'')'';
Options 3, Section 15, ``Simple Order Risk Protections''; Options 3,
Section 23, ``Data Feeds and Trade Information''; Options 5, Section 4,
``Order Routing''; Options 8, Section 2, ``Definitions''; and Options
8, Section 32, ``Types of Floor-Based (Non-System) Orders''. Each
change is described below.
Options 1, Section 1
    The Exchange proposes to update the cross reference within Options
1, Section 1(b)(46) to Options 1, Section 1(b)(45) and make other non-
substantive grammatical amendments within Options 1, Section 1.
Options 2, Section 4
    The Exchange proposes to add a title to Options 2, Section 4(c)(1)
to make clear that this section applies intra-day. The Exchange
proposes to add the title, ``Intra-Day Bid/Ask Differentials (Quote
Spread Parameters).''
    Additionally, the Exchange proposes to remove the phrase, ``or its
decimal equivalent rounded down to the nearest minimum increment''
within Options 2, Section 4(c)(1). This is a non-substantive amendment
because the bid/ask differentials may be as wide as the spread between
the national best bid and offer in the underlying security, if rounding
up it would cause the spread to be wider than the underlying spread, so
rounding is superfluous.
Options 2, Section 6
    The Exchange previously filed a rule change \3\ to replace the term
``Registered Options Traders'' or ``ROTs'' with ``Market Makers'' and
replace ``Specialists'' with ``Lead Market Makers.'' The Exchange is
updating this rule to conform to those prior changes.
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    \3\ See Securities Exchange Act Release No. 88213 (February 14,
2020), 85 FR 9859 (February 20, 2020) (SR-Phlx-2020-03) (``Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To
Relocate Rules From Its Current Rulebook Into Its New Rulebook
Shell'').
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Options 3, Section 6
    The Exchange proposes to amend Options 3, Section 6 to re-number
and re-letter the rule to conform to Phlx's rule structure, update rule
citations, and add spacing where necessary.
    The Exchange also proposes to amend current Options 3, Section
6(a)(ii)(B)(2)(g)(iv)(A)(4), which provides,
    (A) If the Best Price is the Exchange's next available price . . .

and is also equal to both the ABBO price and the Acceptable Range
price, any remainder order volume from the execution on the Exchange
will be routed away, and if after such routing, there still remain
unexecuted contracts, the remainder will be posted on the Phlx at the
Acceptable Range price for a period not to exceed ten seconds, and then
cancelled after this time has elapsed, unless the member that submitted
the original order has instructed the Exchange in writing to re-enter
the remaining size, in which case the remaining size will be
automatically submitted as a new order. During this up to ten second
period, the System will disseminate, on the opposite side of the market
from remaining unexecuted contracts: (i) A non-firm bid for the price
and size of the next available bid(s) on the Exchange if the remaining
size is a seller, or (ii) a non-firm offer for the price and size of
the next available offer(s) on the Exchange if the remaining size is a
buyer.

    The Exchange proposes to amend the sentence which provides,

    If the Best Price is the Exchange's next available price . . .
and is also equal to both the ABBO price and the Acceptable Trade
Range price, any remainder order volume from the execution on the
Exchange will be routed away, and if after such routing, there still
remain unexecuted contracts, the remainder will be posted on the
Phlx at the Acceptable Trade Range price for a period not to exceed
ten seconds, and then cancelled after this time has elapsed, unless
the member that submitted the original order has instructed the
Exchange in writing to re-enter the remaining size, in which case
the remaining size will be automatically submitted as a new order.

    This statement does not represent the current function of the
System. The Exchange proposes to amend the rule text to properly
represent system functionality. Today, in this scenario, if the
Exchange's next available price is the ABBO price (which equates to the
Acceptable Trade Range price) after the remaining order has routed away
and executed with quotes at the away exchange and the unexecuted
contracts are returned to the Exchange, the incoming order may post at
its original limit price, with a new timestamp and would be subject to
certain entry checks. The Exchange proposes to amend the sentence to
correctly provide,

    If the Best Price is the Exchange's next available price . . .
and is also equal to both the ABBO price and the Acceptable Trade
Range price, any remainder order volume from the execution on the
Exchange will be routed away, and if after such routing, there still
remain unexecuted contracts, the unexecuted contracts would post to
the Order Book at their Limit Order price, with a new timestamp,
subject to order entry price checks.

    The order entry checks are applied for new orders when they post to
the Order Book as provided for in Phlx Options 3, Section 5(a)(4). The
Exchange filed prior rule changes \4\ which established Phlx's System
as it exists today. As the new System was amended through a series of
rule changes, certain technology was automated to prevent any manual
intervention, and provide System-enforced functionalities. The Exchange
believes that this process was modified with certain enhancements which
further automated the System. The proposed amendment provides the
market participant with greater certainty as to the order. Further, the
Exchange offers market participants various options with respect to
routing. A market participant may elect to route as a FIND or SRCH
Order which provides the Exchange with instructions as to how an order
may route anew once posted on the Order Book.\5\ A market participant
may also choose to submit an order with varying TIF options (e.g., DAY,
IOC, GTC) that provide the Exchange instructions as to how to either
post an order on the Order Book

or cancel back an order after exhausting its potential to trade upon
entry.
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    \4\ See Securities Exchange Act Release Nos. 50100 (July 27,
2004), 69 FR 46612 (August 3, 2004) (SR-Phlx-2003-59); 55498 (March
20, 2007, 72 FR 14318 (March 27, 2007) (SR-Phlx-2007-15); 59995 (May
28, 2009), 74 FR 26750 (June 3, 2009) (SR-Phlx-2009-32); and 72152
(May 12, 2014), 79 FR 28561 (May 16, 2014) (SR-Phlx-2014-32).
    \5\ Options 5, Section 4 describes the various options routing
functionalities available on Phlx.
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    The final sentence of Options 3, Section
6(a)(ii)(B)(2)(g)(iv)(A)(4),\6\ which is being removed, is no longer
relevant in this scenario as the ten second period does not exist.
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    \6\ During this up to ten second period, the System will
disseminate, on the opposite side of the market from remaining
unexecuted contracts: (i) A non-firm bid for the price and size of
the next available bid(s) on the Exchange if the remaining size is a
seller, or (ii) a non-firm offer for the price and size of the next
available offer(s) on the Exchange if the remaining size is a buyer.
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    The Exchange proposes to amend current Options 3, Section
6(a)(ii)(B)(4)(a), which states, ``If there are no offers both on the
Exchange and on away markets in the affected series, Market Orders to
buy in the affected series will be cancelled immediately, and an
electronic report of such cancellation will be transmitted to the
sender.'' The Exchange proposes to replace ``cancelled immediately''
with the term ``rejected'' to conform the rule text to conform to other
uses of the word rejected in the Rulebook. The System would reject and
not accept the order in this case.
    Finally, the Exchange proposes to amend Supplementary Material .02
to Options 3, Section 6 which states, ``In the event that an SQT, RSQT,
and/or Lead Market Maker's electronically submitted quotations interact
with the electronically submitted quotations of other SQTs, RSQTs and/
or the Lead Market Maker, resulting in the dissemination of a
``locked'' quotation (e.g., $1.00 bid-1.00 offer), the locked
quotations will automatically execute against each other in accordance
with the allocation algorithm set forth in Options 3, Section 10.'' The
phrase, ``resulting in the dissemination of a ``locked'' quotation
(e.g., $1.00 bid-1.00 offer)'' is out of date as under the current
Options Order Protection and Locked/Crossed Market Plan,\7\ the
Exchange would not disseminate a locked quotation. Rather, the Exchange
would reprice its quote as described within Options 3, Section 4(b)(6).
As a result, the Exchange proposes to delete this rule text. The
Exchange believes that this rule text existed prior to the Locked and
Crossed Market Plan and was not updated when the new plan came into
existence.
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    \7\ See Securities Exchange Act Release No. 60405 (July 30,
2009), 74 FR 39362 (August 6, 2009) (File No. 4-546).
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Options 3, Section 7
    Similar to the changes proposed within Options 2, Section 6, the
Exchange proposes to replace the term ``Registered Options Traders'' or
``ROTs'' with ``Market Makers'' and replace ``Specialists'' with ``Lead
Market Makers'' within Options 3, Section 7 to conform to the remainder
of the Rulebook.\8\
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    \8\ See note 3 above.
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    The Exchange proposes to amend All-or-None Orders within Options 3,
Section 7(b)(5) to add more language to the description of an All-or-
None Order to bring greater transparency to this order type. Today, the
Exchange provides that All-or-None Orders are non-displayed and non-
routable. To expand on this notion, the Exchange proposes to amend the
sentence to provide, ``All-or-None Orders are non-routable. The
Exchange does not disseminate bids or offers of All-or-None Orders to
OPRA and the Top of PHLX Options feed, however All-or-None Orders are
displayed in the PHLX Orders \9\ and PHLX Depth of Book \10\ feed.''
This additional rule text will make clear that these order types are
not disseminated on OPRA or the Top of PHLX Options feed, however All-
or-None Orders are displayed in the PHLX Orders and PHLX Depth of Book
feed.\11\ Further, the Exchange proposes to add, ``If an All-or-None
Order contingency cannot be met, the All-or-None Order would be
bypassed until such time as the contingency could be met.'' This
language is intended to make clear that an All-or-None Order will not
cause other orders to queue until such time as the All-or-None Order
may execute. Rather, the All-or-None Order will rest on the Order Book
until the contingency will be met, at which time that Public Customer
All-or-None Order will have priority over other orders on the Book. The
Exchange believes the addition of this rule text will bring greater
transparency to the current System handling of All-or-None Orders.
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    \9\ See Phlx Options 3, Section 23(a)(2). PHLX Orders is a real-
time full Limit Order book data feed that provides pricing
information for orders on the PHLX Limit Order book. PHLX Orders is
currently provided as part of the TOPO Plus Orders data product.
PHLX Orders provides real-time information to enable users to keep
track of the single order book(s), single and Complex Orders, and
Complex Order Live Auction (``COLA'') for all symbols listed on
Phlx. The data provided for each options series includes the symbols
(series and underlying security), put or call indicator, expiration
date, the strike price of the series, leg information on complex
strategies and whether the option series is available for trading on
Phlx and identifies if the series is available for closing
transactions only.
    \10\ See Phlx Options 3, Section 23(a)(3). PHLX Depth of Market
is a data product that provides: (i) Order and quotation information
for individual quotes and orders on the PHLX book; (ii) last sale
information for trades executed on Phlx; (iii) auction; and (iv) an
Imbalance Message which includes the symbol, side of the market,
size of matched contracts, size of the imbalance, and price of the
affected series. The data provided for each options series includes
the symbols (series and underlying security), put or call indicator,
expiration date, the strike price of the series, and whether the
option series is available for trading on Phlx and identifies if the
series is available for closing transactions only.
    \11\ The Exchange discusses these data feeds in more detail
below.
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    The Exchange proposes to amend Options 3, Section 7(c)(3),
``Opening Only,'' to correct incorrect rule text, and also add a
clarifying sentence. Today, Options 3, Section 7(c)(3) provides, ``An
Opening Only (``OPG'') order is entered with a Time in Force (``TIF'')
of ``OPG''. This order can only be executed in the Opening Process
pursuant to Options 3, Section 8. This order type is not subject to any
protections listed in Options 3, Section 15, except for Automated
Quotation Adjustments.'' The Exchange proposes to remove the phrase
``except for Automated Quotation Adjustments'' because, today, an OPG
order is not subject to Automated Quotation Adjustments. As provided
for within Options 3, Section 15(c), Automated Quotation Adjustments
protections are available to Market Makers and Lead Market Makers only.
Any participant may enter an Opening Only Order. Typically Market
Makers and Lead Market Makers submit Valid Width Quotes,\12\ as
provided for within Options 3, Section 8, during the Opening Process.
Further, an Opening Sweep,\13\ which is utilized by Market

Makers and Lead Market Makers, is protected by Automation Quotation
Adjustments. The Exchange also proposes to note that OPG orders may not
route. Both of these amendments represent current System functionality.
This additional information is proposed to bring greater clarity to
this TIF.
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    \12\ A Valid Width Quote is a two-sided electronic quotation
submitted by a Phlx Electronic Market Maker that meets the following
requirements: Options on equities and index options bidding and/or
offering so as to create differences of no more than $.25 between
the bid and the offer for each option contract for which the
prevailing bid is less than $2; no more than $.40 where the
prevailing bid is $2 or more but less than $5; no more than $.50
where the prevailing bid is $5 or more but less than $10; no more
than $.80 where the prevailing bid is $10 or more but less than $20;
and no more than $1 where the prevailing bid is $20 or more,
provided that, in the case of equity options, the bid/ask
differentials stated above shall not apply to in-the-money series
where the market for the underlying security is wider than the
differentials set forth above. For such series, the bid/ask
differentials may be as wide as the quotation for the underlying
security on the primary market, or its decimal equivalent rounded
down to the nearest minimum increment. The Exchange may establish
differences other than the above for one or more series or classes
of options. See Options 3, Section 8(a)(ix).
    \13\ An Opening Sweep is a one-sided order entered by a
Specialist or ROT through SQF for execution against eligible
interest in the System during the Opening Process. This order type
is not subject to any protections listed in Options 3, Section 15,
except for Automated Quotation Adjustments. The Opening Sweep will
only participate in the Opening Process pursuant to Options 3,
Section 8 and will be cancelled upon the open if not executed. See
Options 3, Section 7(b)(6). This definition is being amended herein
to update the terms Specialist and ROT to Lead Market Maker and
Market Maker.
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Options 3, Section 10
    The Exchange proposes to make a grammatical correction to Options
3, Section 10 which is non-substantive.
Options 3, Section 13
    The Exchange proposes to update incorrect rule references within
Options 3, Section 13.
    The Exchange proposes to amend various references within Options 3,
Section 13 to make clear the manner in which All-Or-None Orders \14\
are treated within a PIXL Auction. Specifically, the Exchange proposes
to make clear that the term ``Reference BBO,'' as described within
Options 3, Section 13(a)(2), describes displayed and non-displayed
orders, however, All-Or-None Orders are not considered. The Exchange
does not consider All-Or-None Orders, until the order is being
allocated because the System is unable to determine whether an All-Or-
None Order can be satisfied until the System receives responses to the
PIXL Order and is able to allocate the PIXL Order. The Exchange
proposes to add rule text to make clear where the Reference BBO or the
Reference cPBBO \15\ is mentioned, whether All-Or-None Orders are
included or excluded. With respect to PIXL entry checks and,
thereafter, the treatment of auction responses, All-Or-None Orders are
not considered for price checks. The Exchange does consider All-Or-None
Orders for allocation purposes. Options 3, Section 13(a)(5)(B)(i),
which is not proposed to be amended, provides,
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    \14\ Options 3, Section 7(b)(5) provides, ``An All-or-None Order
is a Limit Order or Market Order that is to be executed in its
entirety or not at all. An All-or None Order may only be submitted
by a Public Customer. All-or-None Orders are non-displayed and non-
routable. All-or-None Orders are executed in price-time priority
among all Public Customer orders if the size contingency can be met.
The Acceptable Trade Range protection in Options 3, Section 15(a) is
not applied to All-Or-None Orders.'' The Exchange is proposing to
amend Options 3, Section 7(b)(5), please see discussion regarding
All-or-None Order on page 9.
    \15\ The term ``cPBBO'' means the best net debit or credit price
for a Complex Order Strategy based on the PBBO for the individual
options components of such Complex Order Strategy, and, where the
underlying security is a component of the Complex Order, the
National Best Bid and/or Offer for the underlying security. See
Options 3, Section 14(a)(iv).

    If the Initiating Member selected the single stop price option
of the PIXL Auction (except if it is a Complex Order), PIXL
executions will occur at prices that improve the stop price, and
then at the stop price with up to 40% of the remaining contracts
after Public Customer interest is satisfied being allocated to the
Initiating Member at the stop price. However, if only one other
participant matches the stop price, then the Initiating Member may
be allocated up to 50% of the contracts executed at such price.
Remaining contracts shall be allocated pursuant to the algorithm set
forth in Options 3, Section 10(a)(1)(G) among remaining quotes,
orders and PAN responses at the stop price. Thereafter, remaining
contracts, if any, shall be allocated to the Initiating Member. The
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allocation will account for Surrender, if applicable.

    Options 3, Section 10 considers All-Or-None Orders that can be
satisfied. This proposal clarifies the current System operation.
    The Exchange also proposes to add rule text, within Options 3,
Section 13(f), to provide that with respect to a PIXL Order for the
account of a Public Customer that is paired with an order for the
account of another Public Customer, that All-or-None Orders that can be
satisfied are included within the Reference BBO. The Exchange considers
All-Or-None Orders when checking the Order Book for other Public
Customer Orders. The proposed rule text within Options 3, Section 13(f)
clarifies the current System operation. The addition of ``including
Reference BBO'' is necessary with respect to Complex Orders because a
Complex Public Customer-to-Public Customer Cross Order cannot trade
equal to or through a non-displayed price. The Complex Public Customer-
to-Public Customer Cross Order would be rejected if the result were
that it would trade at a price equal to or through the cPBBO.
    The Exchange proposes to note ``including Reference BBO'' within
Options 3, Section 13(b)(2)(C) and 13(f) to conform the rule text
throughout the rule. These amendments represent current System
operation. The Reference BBO also pertains to Complex Orders because
the cPBBO is derived from displayed quotes for the individual legs.
    These amendments are intended to bring greater clarity to the
representation of All-Or-None Orders within this Rule.
    The Exchange proposes to amend Options 3, Section 13 in various
places to replace ``one minimum price improvement increment,'' with
``$0.01.'' This amendment is non-substantive.
    The Exchange proposes amendments to Options 3, Section 13(b)(7) and
(8) to clarify the rule text. The proposed amendments are non-
substantive and are similar to amendments recently made to BX Options
3, Section 13(ii)(I). The Exchange proposes to add some context to the
rule to better reflect the current System operation. First, the
Exchange purposes to add the word ``execution'' in the first sentences
of Options 3, Section 13 (b)(7) and (8). The execution price of the
PIXL Auction is utilized to compare to the price of an order on the
Limit Order book. The Exchange utilizes the execution price today on
Phlx. Adding the word ``execution'' makes clear to members that the
initial PIXL Order stop price is not utilized to compare the same side
of the market transactions at execution. If the potential execution
price of the PIXL Order would be the same or better than the price of
an order on the Limit Order book on the same side of the market as the
PIXL Order then, today, the PIXL Order would be executed at a price
$0.01 better than such limit order, regardless of whether such limit
was a Public or Non-Public Customer Order. Second, while the phrase
``or better'' is not clearly specified in the rule text, today, the
System captures cases where PAN responses provide price improvement for
the PIXL Order at prices that are crossed with the same side interest
mentioned above. Third, the remainder of the changes are grammatical
and technical in nature. The Exchange is creating two separate
sentences for readability.
    The remainder of the proposed changes within Options 3, Section 13
are grammatical or technical in nature and therefore non-substantive.
Options 3, Section 15
    The Exchange proposes to amend Options 3, Section 15(c)(1) to make
clear that the Anti-Internalization functionality does not apply during
the Opening Process described within Options 3, Section 8. A similar
change was recently made to BX's Rules.\16\ The Exchange proposes to
clarify that Anti-Internalization does not apply during an Opening
Process or reopening following a trading halt, pursuant to Options 3,
Section 8, to provide more specificity on how this functionality
currently operates. The same procedures used during an Opening Process
are used to reopen an option series after a trading halt, and therefore
proposes to specify that Anti-Internalization will not apply during the
Opening Process (i.e., the opening and halt reopening processes).
During the Opening Process, Lead Market Makers are able to observe the
primary market and then determine how they would like to submit a Valid
Width

Quote. AIQ is unnecessary during an Opening Process due to the high
level of control that Market Makers exercise over their quotes during
this process. This clarifying rule text reflects current System
functionality.
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    \16\ See Securities Exchange Act Release No. 89759 (September 3,
2020). 85 FR 55877 (September 10, 2020) (SR-BX-2020-023).
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    The Exchange also proposes to amend Options 3, Section 15 to note
that with Automated Quotation Adjustments all interest entered through
SQF will be automatically removed. As provided for within Options 3,
Section 7(a)(i)(B),

    Specialized Quote Feed'' or ``SQF'' is an interface that allows
Lead Market Makers, Streaming Quote Traders (``SQTs'') and Remote
Streaming Quote Traders (``RSQTs'') to connect, send, and receive
messages related to quotes, Immediate-or-Cancel Orders, and auction
responses into and from the Exchange. Features include the
following: (1) Options symbol directory messages (e.g., underlying
and complex instruments); (2) system event messages (e.g., start of
trading hours messages and start of opening); (3) trading action
messages (e.g., halts and resumes); (4) execution messages; (5)
quote messages; (6) Immediate-or-Cancel Order messages; (7) risk
protection triggers and purge notifications; (8) opening imbalance
messages; (9) auction notifications; and (10) auction responses. The
SQF Purge Interface only receives and notifies of purge request from
the Lead Market Maker, SQT or RSQT. Lead Market Makers, SQTs and
RSQTs may only enter interest into SQF in their assigned options
series.

    Today, Quotes and Immediate-or-Cancel Orders that may be entered
through SQF are removed when the Automated Quotation Adjustment risk
mechanism is triggered. The current rule text only considers quotes
entered through SQF. The amendment will update the rule text to
represent current System functionality, and will bring greater clarity
to Automated Quotation removals. Market Makers and Lead Market Makers
utilize the Immediate-or-Cancel Orders within SQF to respond to
auctions. The auction response requires the same protection afforded by
the Automation Quotation Adjustments which it affords the underlying
option in which the Market Maker or Lead Market Maker is quoting
continuously among its assigned options classes. The Automation
Quotation Adjustments protection removes both quotes and Immediate-or-
Cancel Orders submitted through SQF because Market Maker and Lead
Market Maker risk applies to all interest in the underlying option in
which the Market Maker or Lead Marker Maker is assigned to quote in
throughout the trading day. Market Makers and Lead Marker Makers
measure risk per underlying option. The System functionality for the
Automated Quotation Adjustment is not being amended.
Options 3, Section 23
    The Exchange proposes to amend Options 3, Section 23(a)(2) which
describes the PHLX Orders data feed. The proposed amendments represent
the current information contained in the PHLX Orders feed. The proposed
amendments are intended to better represent the information in the feed
by adding more description to the current rule text.
    The Exchange proposes to note in the first sentence of Options 3,
Section 23(a)(2) that PHLX Orders is a real-time full Limit Order book
data feed that provides pricing information for orders on the PHLX
Order book for displayed order types and All-or-None Orders,\17\ as
well as market participant capacity.
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    \17\ See note 14 above.
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    All-or-None Orders are non-displayed and non-routable. They are
executed in price-time priority among all Public Customer Orders if the
size contingency can be met. All-or-None Orders have a quantity
contingency requiring the full quantity of the order to execute in
order for any trade to take place which may cause the order to not
execute. If an All-or-None Order contingency cannot be met, the All-or-
None Order would be bypassed until such time as the contingency could
be met.\18\ The Exchange is proposing to amend the rule text within
Options 3, Section 7(b)(5) which describes All-or-None Orders to add
more clarity about the dissemination of All-or-None Orders and the
manner in which the System will bypass those orders if the contingency
cannot be met.\19\
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    \18\ Options 3, Section 7(b)(5)(i) provides, ``Non-Displayed
Contingency Orders. A Non-Displayed Contingency Order shall be
defined to include the following non-displayed order types: (1) Stop
Orders; and (2) All-or-None Orders.'' Unlike All-or-None Orders,
Stop Orders are not available for execution until such time as the
Stop Order's contingency has been met, therefore, Stop Orders are
not displayed on data feeds or OPRA until the Stop Order is
available for execution.
    \19\ See proposed Options 3, Section 7(b)(5).
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    The PHLX Orders data feed displays all orders on the Phlx Order
Book with original information, this is in contrast to the Top of PHLX
Options \20\ feed, which is not being amended by this proposal, that
only provides information as to the displayed Order Book. The Exchange
does not disseminate All-or-None Orders to either the Top of PHLX
Options feed or the OPRA data feed because All-or-None Orders may only
execute if the contingency can be met, otherwise the System would
bypass the All-or-None Order. As such, All-or-None Orders are non-
displayed to avoid locking or crossing away markets by displaying this
order type which may not execute because of the contingency attributed
to the order pursuant to the Options Order Protection and Locked/
Crossed Plan.\21\ The Exchange does display All-Or-None Orders on the
PHLX Orders data feed to inform market participants of orders that are
available for execution. Public Customers submitting All-or-None Orders
on Phlx desire their orders to be executed and the display of those
orders on the PHLX Orders data feed allows other member organizations
to see their orders are available to execute against those orders.
---------------------------------------------------------------------------

    \20\ Top of PHLX Options (``TOPO'') is a direct data feed
product that includes the Exchange's best bid and offer price, with
aggregate size, based on displayable order and quoting interest on
Phlx and last sale information for trades executed on Phlx. The data
contained in the TOPO data feed is identical to the data
simultaneously sent to the processor for the OPRA and subscribers of
the data feed. The data provided for each options series includes
the symbols (series and underlying security), put or call indicator,
expiration date, the strike price of the series, and whether the
option series is available for trading on Phlx and identifies if the
series is available for closing transactions only. See Options 3,
Section 23(a)(1).
    \21\ 17 CFR 242.608. The ``NBBO'' is the best Protected Bid and
Protected Offer as defined in the Options Order Protection and
Locked/Crossed Markets Plan; Protected Bids and Protected Offers
that are displayed at a price but available on the Exchange at a
better non-displayed price shall be included in the NBBO at their
better non-displayed price for purposes of this rule. See Reg. NMS
Rule 600(a)(42). Options 5, Section 1(o) defines a ``Protected Bid''
or ``Protected Offer'' as a Bid or Offer in an options series,
respectively, that: (i) Is disseminated pursuant to the OPRA Plan;
and (ii) is the Best Bid or Best Offer, respectively, displayed by
an Eligible Exchange.
---------------------------------------------------------------------------

    Similar to Phlx, Cboe permits all-or-none orders to rest in its
order book and does not disseminate all-or-none orders to OPRA.\22\
Similar to Phlx, Cboe displays all-or-none orders on its Orders and
Depth of Book feed.\23\
---------------------------------------------------------------------------

    \22\ Cboe Rule 5.6(b) provides, ``. . . An ``All-or-None'' or
``AON'' order is an order to be executed in its entirety or not at
all. An AON order may be a market or limit order. Users may not
designate an AON order as All Sessions. (1) The Exchange does not
disseminate bids or offers of AON orders to OPRA. (2) A User may not
designate an AON order as Post Only. (3) An AON limit order is
always subject to the Price Adjust process as set forth in Rule
5.32. (4) A User may apply MCN (as defined below), but no other MTP
Modifier (if a User applies any other MTP Modifier to an AON order,
the System handles it as an MCN), to an AON order. (5) The Exchange
may restrict the entry of AON orders in a series or class if the
Exchange deems it necessary or appropriate to maintain a fair and
orderly market. (6) A User may not designate a bulk message as
AON.''
    \23\ See Section 4.5 of this specification: https://cdn.cboe.com/resources/membership/US_EQUITIES_OPTIONS_MULTICAST_PITCH_SPECIFICATION.pdf.
---------------------------------------------------------------------------

    The Exchange proposes to remove the second use of the word
``Limit'', as it is redundant. The additional text makes clear that
both displayed and non-displayed orders types and market participant
capacity are available.

    The second sentence is being amended to add ``and complex'' in lieu
of ``single and Complex Orders, and Complex Order Live Auction
(``COLA'') for all symbols listed on Phlx. The sentence, as proposed,
would state, ``PHLX Orders is currently provided as part of the TOPO
Plus Orders data product. PHLX Orders provides real-time information to
enable users to keep track of the single and complex order book(s).''
The Exchange believes the proposed sentence is more succinct.
    Finally, the Exchange proposes to add a sentence to the end of the
description of PHLX Order feed that provides, ``The feed also provides
auction and exposure notifications and order imbalances on opening/
reopening (size of matched contracts and size of the imbalance).'' This
additional information will more clearly describe the PHLX Orders feed.
The Exchange also proposes to add the same sentence to the end of the
description for the PHLX Depth of Market feed within Options 3, Section
23(a)(3) to also add the same specificity to that feed. The additional
sentence reflects the current information provided in both the PHLX
Orders and PHLX Depth of Market feeds.
    The removal of the word ``PHLX'' within Options 3, Section 23(a)(3)
and addition of the word ``order'' are non-substantive technical
amendments.
Options 5, Section 4
    The Exchange proposes to amend the sixth sentence of Options 5,
Section 4(a) and make some technical amendments. As proposed, the
sentence would provide, ``For purposes of this rule, the Phlx's best
bid or offer or ``PBBO'' does not include All-or-None Orders or Stop
Orders which have not been triggered. The ``internal PBBO'' shall refer
to the actual better price of an order resting on Phlx's Order Book,
which is not displayed, but available for execution, excluding Stop
Orders which have not been triggered and All-or-None Orders which
cannot be satisfied.'' Stop Orders must be triggered to be included in
the internal PBBO. A Stop Order is not available until such time as its
contingency is trigged and then that Stop Order becomes available for
execution. Also, the Exchange inadvertently did not include the phrase,
``which cannot be satisfied'' when referencing All-or-None Orders
within Options 5, Section 4. The limitation is noted in other places
within this rule. An All-or-None Order contingency must be met for this
order type to execute, otherwise it will be executed at such time as
the contingency could be met. Unlike the Stop Order which is only
available once triggered,\24\ the All-or-None Order is available for
execution once the contingency is met. This proposed amendment reflects
current System operation.
---------------------------------------------------------------------------

    \24\ Stop orders are inactive until they are ``elected.'' Stop
orders are elected when either the bid (offer) is updated to a price
equal to or greater (less) than the stop price of a Buy (Sell) Stop
order or an execution on the Exchange occurs at a price equal to or
greater (less) than the stop price of a Buy(Sell) stop order. Stop
order election takes place at the end of the transaction that caused
the election and at that time the stop order enters the book as a
new market or limit order depending on the participant instructions.
Stop orders that are ``electable'' upon entry are rejected.
---------------------------------------------------------------------------

Options 8, Section 2
    The Exchange proposes to add a sentence within Options 8, Section
2(a) which provides ``The following terms as used in the Rules shall,
unless the context otherwise indicates, have the meanings herein
specified:''. The Exchange proposes this sentence for context to the
information which follows thereafter. This is a non-substantive change.
    The Exchange proposes to add a new defined term, ``Floor Lead
Market Maker.'' This defined term will bring greater clarity to the
Options 8 rules. The Exchange proposes to state, ``The term `Floor Lead
Market Maker' is a member who is registered as an options Lead Market
Maker pursuant to Options 2, Section 12(a) and has a physical presence
on the Exchange's trading floor.'' This term is currently utilized
within the Options 8 rules.
    The Exchange proposes to add the word ``Organization'' within
Options 8, Section 2(a)(5). The word was inadvertently left out. This
is not a substantive change. The term ``Member Organization'' is a
defined term within General 1, Section 1(17).
Options 8, Section 32
    The Exchange proposes to amend Options 8, Section 32 to add ``FLEX
Option'' to the list of order types that are available on Phlx. The
Exchange proposes to provide that a FLEX Option is as described within
Options 8, Section 34. Further, FLEX Options are not eligible for entry
by a member for execution through the Options Floor Based Management
System (``FBMS'').\25\ Phlx Options 8, Section 22 provides,
---------------------------------------------------------------------------

    \25\ FBMS, an order management system, is the gateway for the
electronic execution of equity, equity index and U.S. dollar-settled
foreign currency option orders represented by Floor Brokers on the
Exchange's Options Floor. Floor Brokers contemporaneously upon
receipt of an order and prior to the representation of such an order
in the trading crowd, record all options orders represented by such
Floor Broker into FBMS, which creates an electronic audit trail. The
execution of orders into Phlx's electronic trading system also
occurs via FBMS.

    (a) Options transactions on the Exchange's Trading Floor shall
be executed in one of the following ways:
    (1) automatically by the Exchange Trading System as provided in
applicable Exchange Rules;
    (2) through the Options Floor Based Management System. Members
authorized to operate on the floor are not permitted to execute
orders in the Exchange's options trading crowd, except as follows:
    (A) The Exchange may determine to permit executions otherwise
than in accordance with subparagraphs (1) and (2) above respecting
an option or all options in the event of a problem with Exchange
systems.
    (B) In addition, members can execute orders in the options
trading crowd pursuant to Options 8, Section 33, Accommodation
Transactions (cabinet trades), and Options 8, Section 34, FLEX
Equity, Index and Currency Options.
    (C) Multi-leg orders with more than 15 legs can be executed in
the trading crowd.
    (D) The following split price orders that, due to FBMS system
limitations, require manual calculation:
    (i) Simple orders not expressed in the applicable minimum
increment (``sub-MPV'') and that cannot be evenly split into two
whole numbers to create a price at the midpoint of the minimum
increment; and (ii) complex and multi-leg orders with at least one
option leg with an odd-numbered volume that must trade at a sub-MPV
price or one leg that qualifies under (i) above.
    (E) As set forth in Options 8, Section 29(e)(v), members may use
the Snapshot feature of the Options Floor Based Management System to
provisionally execute orders in the options trading crowd.
* * * * *
    Today, FLEX Options are executed in open outcry on the Trading
Floor and not through the Options Floor Broker Management System as
provided for within Options 8, Section 22(a)(1)(B).\26\ The Exchange
believes that the addition of FLEX Options within Options 8, Section 34
will make clear the order types that are available for execution on the
Trading Floor and also clearly note

that this order type is not eligible for FBMS.
---------------------------------------------------------------------------

    \26\ The Exchange has previously noted that FLEX may be executed
manually. See Securities and Exchange Act Release No. 69471 (April
29, 2013), 78 FR 26096 (May 3, 2013) (SR-Phlx-2013-09). The rule
change noted that FLEX orders will continue to be executable by
Floor Brokers in the trading crowd, rather than through FBMS because
FBMS will not be able to accept FLEX orders, which have varied and
complicated terms. Further, the Exchange requires floor brokers or
their employees to enter the certain data elements into the
Exchange's electronic audit trail in the same electronic format as
the required information for equity and index options. Floor brokers
or their employees must enter the required information for FLEX
Options into the electronic audit trail on the same business day
that a specific event surrounding the lifecycle of an order in FLEX
(including, without limitation, orders, price or size changes,
execution or cancellation) occurs. See Securities and Exchange Act
Release No. 50997 (January 7, 2005), 70 FR 2444 (January 3, 2013)
(SR-Phlx-2003-40). See also Options 8, Section 28(f).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\27\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\28\ in particular, in that it is designed to
promote just and equitable principles of trade and to protect investors
and the public interest.
---------------------------------------------------------------------------

    \27\ 15 U.S.C. 78f(b).
    \28\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

Options 1, Section 1
    The Exchange's proposal to update the cross reference within
Options 1, Section 1(b)(46), and make other grammatical amendments
within Options 1, Section 1 are non-substantive.
Options 2, Section 4
    The Exchange's proposal to add a title to Options 2, Section
4(c)(1) to make clear that this section applies intra-day is consistent
with the Act because it will bring greater clarity to the rule text.
    The Exchange's proposal to remove the phrase, ``or its decimal
equivalent rounded down to the nearest minimum increment'' within
Options 2, Section 4(c)(1) is a non-substantive amendment because the
bid/ask differentials may be as wide as the spread between the national
best bid and offer in the underlying security, if rounding up it would
cause the spread to be wider than the underlying spread, so rounding is
superfluous.
Options 2, Section 6
    The Exchange's proposal to update certain terms within Options 2,
Section 6, which conforms with a previously filed rule change,\29\ is
consistent with the Act. The updates to change the names of the terms
are non-substantive.
---------------------------------------------------------------------------

    \29\ See note 3 above.
---------------------------------------------------------------------------

Options 3, Section 6
    The Exchange's proposal to amend Options 3, Section 6 to re-number
and re-letter the rule to conform to Phlx's rule structure, update rule
citations, and add spacing where necessary are non-substantive
amendments.
    The Exchange's proposal to amend current Options 3, Section
6(a)(ii)(B)(2)(g)(iv)(A)(4) is consistent with the Act. While
processing an order that is working through Acceptable Trade Ranges, if
that order encounters a situation where the Exchange's next available
price is the ABBO that also equals the outer limit of the Acceptable
Trade Range, the order is able to post at its limit price on the Order
Book after routing after it is executed with quotes at the away
exchange. Any unexecuted contracts which return to the Exchange may
post at their original limit price with a new timestamp, subject to
certain entry checks. Order entry checks are applied for new orders
when they post to the Order Book as provided for in Phlx Options 3,
Section 5(a)(4). This proposed rule text protects investors and the
general public because it will provide market participants with an
expectation of how the System will handle orders that remain unexecuted
in this scenario. The proposed amendment provides the market
participant with greater certainty as to the order. Further, the
Exchange offers market participants various options with respect to
routing. A market participant may elect to route as a FIND or SRCH
Order which provides the Exchange with instructions as to how an order
may route anew once posted on the Order Book.\30\ A market participant
may also choose to submit an order with varying TIF options (e.g., DAY,
IOC, GTC) that provide the Exchange instructions as to how to either
post an order on the Order Book or cancel back an order after
exhausting its potential to trade upon entry. Further, this amendment
provides more liquidity on the Exchange with the order posting to the
Order Book, instead of potentially being cancelled after a 10 second
period.
---------------------------------------------------------------------------

    \30\ See note 5 above.
---------------------------------------------------------------------------

    The Exchange's proposal to amend current Options 3, Section
6(a)(ii)(B)(4)(a), to replace the term ``cancelled immediately'' with
``rejected'' conforms the rule text to other uses of the word rejected
within the Rulebook. This amendment is non-substantive.
    Finally, the Exchange's proposal to amend Supplementary Material
.02 to Options 3, Section 6 to remove the phrase, ``resulting in the
dissemination of a ``locked'' quotation (e.g., $1.00 bid--1.00 offer)''
is consistent with the Act. This phrase is out of date as under the
current Locked and Crossed Market Plan, the Exchange would not
disseminate a locked quotation. Rather, the Exchange would reprice its
quote as described within Options 3, Section 4(b)(6). The Exchange
believes that this rule text existed prior to the Locked and Crossed
Market Plan and was not updated since that plan came into existence.
The amendment will protect investors and the general public by removing
this inaccurate statement.
Options 3, Section 7
    Similar to the changes proposed within Options 2, Section 6, the
Exchange's proposal to replace the term ``Registered Options Traders''
or ``ROTs'' with ``Market Makers'' and replace ``Specialists'' with
``Lead Market Makers'' within Options 3, Section 7 conforms the usage
of these terms within Phlx's Rulebook.\31\ These non-substantive
amendments which update outdated terms within Options 3, Section 7 is
consistent with the Act.
---------------------------------------------------------------------------

    \31\ Id.
---------------------------------------------------------------------------

    The Exchange's proposal to amend All-or-None Orders within Options
3, Section 7(b)(5) to add more language to the description of an All-
or-None Order is consistent with the Act because the proposed rule text
will bring greater transparency to this order type. The Exchange today
provides that All-or-None Orders are non-displayed and non-routable. To
expand on this notion, the Exchange proposes to amend the sentence to
provide, ``All-or-None Orders are non-routable. The Exchange does not
disseminate bids or offers of All-or-None Orders to OPRA and the Top of
PHLX Options feed, however All-or-None Orders are displayed in the PHLX
Orders and PHLX Depth of Book feed.'' This additional rule text will
make clear that these order types are not disseminated on OPRA.
Further, the Exchange proposes to add, ``If an All-or-None Order
contingency cannot be met, the All-or-None Order would be bypassed
until such time as the contingency could be met.'' This language is
intended to make clear that an All-or-None Order will not cause other
orders to queue until such time as the All-or-None Order may execute.
Rather, the All-or-None Order will rest on the Order Book until the
contingency will be met, at which time that Public Customer All-or-None
Order will have priority over other orders on the Book. The Exchange
believes the addition of this rule text will bring greater transparency
to the current System handling of All-or-None Orders.
    The Exchange's proposal to amend Options 3, Section 7(c)(3),
``Opening Only,'' to correct incorrect rule text, and also add a
clarifying sentence, is consistent with the Act. Today, Options 3,
Section 7(c)(3) provides, ``An Opening Only (``OPG'') order is entered
with a TIF of ``OPG''. This order can only be executed in the Opening
Process pursuant to Options 3, Section 8. This order type would
continue to not be valid outside of the Opening Process. This order
type is not subject to any protections listed in Options 3, Section

15, except for Automated Quotation Adjustments.'' The Exchange proposes
to remove the phrase ``except for Automated Quotation Adjustments''
because, today, an OPG order is not subject to Automated Quotation
Adjustments. The Exchange believes that it is consistent with the Act
to not apply any risk protections during the Opening Process as the
Opening Process itself has boundaries within which orders will be
executed. As provided for within Options 3, Section 15(c), Automated
Quotation Adjustments protections are available to Market Makers and
Lead Market Makers only. Any participant may enter an Opening Only
Order. Typically Market Makers and Lead Market Makers submit Valid
Width Quotes, as provided for within Options 3, Section 8, during the
Opening Process. Further, an Opening Sweep,\32\ which is utilized by
Market Makers and Lead Market Makers, is protected by Automation
Quotation Adjustments. The Exchange's proposal to note that OPG orders
may not route will bring greater transparency to the rule.
---------------------------------------------------------------------------

    \32\ An Opening Sweep is a one-sided order entered by a
Specialist or ROT through SQF for execution against eligible
interest in the System during the Opening Process. This order type
is not subject to any protections listed in Options 3, Section 15,
except for Automated Quotation Adjustments. The Opening Sweep will
only participate in the Opening Process pursuant to Options 3,
Section 8 and will be cancelled upon the open if not executed. See
Options 3, Section 7(b)(6). This definition is being amended herein
to update the terms Specialist and ROT to Lead Market Maker and
Market Maker.
---------------------------------------------------------------------------

Options 3, Section 10
    The Exchange's proposal to make a grammatical correction to Options
3, Section 10 is non-substantive.
Options 3, Section 13
    The Exchange's proposal to update certain rule references within
Options 3, Section 13 is non-substantive.
    The Exchange's proposal to amend various references within Options
3, Section 13 to make clear the manner in which All-Or-None Orders are
treated within a PIXL Auction is consistent with the Act as this rule
text will bring greater clarity to the current System operation. All-or
None Orders are Limit Orders or Market Orders that are to be executed
in their entirety or not at all, and are non-displayed.\33\ The term
``Reference BBO,'' as described within Options 3, Section 13(a)(2),
describes displayed and non-displayed orders, however, All-Or-None
Orders are not considered. Today, the System does not consider All-Or-
None Orders, until the order is being allocated because the System is
unable to determine whether an All-Or-None Order can be satisfied until
the System receives responses to the PIXL Order and is able to allocate
the PIXL Order. The Exchange proposes to add rule text to make clear
where the Reference BBO or the Reference cPBBO is mentioned, whether
All-Or-None Orders are included or excluded. With respect to PIXL entry
checks and, thereafter, the treatment of auction responses, All-Or-None
Orders are not considered for price checks. The Exchange's proposal
protects investors and the general public by considering the
contingency associated with an All-Or-None Order when it can be
determined if the All-Or-None Order can be satisfied based on
allocation priority and responses received to the PIXL Order.
---------------------------------------------------------------------------

    \33\ See Options 3, Section 7(b)(5).
---------------------------------------------------------------------------

    The Exchange's proposal to add rule text, within Options 3, Section
13(f), to provide that with respect to a PIXL Order for the account of
a Public Customer that is paired with an order for the account of
another Public Customer, that All-Or-None Orders that can be satisfied
are included within the Reference BBO is consistent with the Act.
Today, Phlx does consider All-Or-None Orders when checking the Order
Book for other Public Customer Orders. The proposed rule text within
Options 3, Section 13(f) clarifies the current System operation.
Specifically, the addition of ``including Reference BBO'' is necessary
with respect to Complex Orders because a Complex Public Customer-to-
Public Customer Cross Order cannot trade equal to or through a non-
displayed price. The Complex Public Customer-to-Public Customer Cross
Order would be rejected if the result were that it would trade at a
price equal to or through the cPBBO.
    The Exchange's proposal to amend Options 3, Section 13 in various
places to replace ``one minimum price improvement increment,'' with
``$0.01'' is a non-substantive amendment.
    The Exchange's proposed amendments to Options 3, Section 13(b)(7)
and (8) are consistent with the Act because they clarify the current
rule text by adding ``or better'' to make clear that the execution
price may be better than an order on the Limit Order Book. Today, this
is the case. This context reflects the current System operation.
Similar amendments were made recently made to BX Options 3, Section
13(ii)(I).
    The remainder of the proposed changes within Options 3, Section 13
are grammatical or technical in nature and therefore non-substantive.
Options 3, Section 15
    The Exchange's proposal to amend Options 3, Section 7(c)(3),
``Opening Only,'' to correct incorrect rule text, and also add a
clarifying sentence is consistent with the Act. The Exchange's proposal
to remove the phrase ``except for Automated Quotation Adjustments''
because, today, an OPG order is not subject to Automated Quotation
Adjustments. As provided for within Options 3, Section 15(c), Automated
Quotation Adjustments protections are available to Market Makers and
Lead Market Makers only. Any participant may enter an Opening Only
Order. Typically Market Makers and Lead Market Makers submit Valid
Width Quotes, as provided for within Options 3, Section 8, during the
Opening Process. Further, an Opening Sweep, which is utilized by Market
Makers and Lead Market Makers, is protected by Automation Quotation
Adjustments. Nasdaq BX, Inc. recently adopted a similar rule.\34\ This
proposal represent current System functionality.
---------------------------------------------------------------------------

    \34\ See Securities Exchange Act Release No. 89731 (September 1,
2020), 85 FR 55524 (September 8, 2020) (SR-BX-2020-016) (Order
Approving Proposed Rule Change To Amend BX's Opening Process in
Connection With a Technology Migration).
---------------------------------------------------------------------------

    The Exchange's proposal to note that OPG orders may not route is
consistent with the Act. This additional information will bring greater
clarity to this TIF. This proposal represent current System
functionality.
    The Exchange's proposal to amend Options 3, Section 15(c)(1) to
make clear that the Anti-Internalization functionality does not apply
during the Opening Process described within Options 3, Section 8 is
consistent with the Act. Anti-Internalization will not apply during an
Opening Process is consistent with the Act as it would provide more
specificity on how this functionality currently operates. During the
Opening Process, Lead Market Makers are able to observe the primary
market and then determine how they would like to quote. Anti-
Internalization is unnecessary during an Opening Process due to the
high level of control that Lead Market Makers exercise over their
quotes during this process. A similar change was recently made to BX's
Rules.\35\
---------------------------------------------------------------------------

    \35\ See note 16 above.
---------------------------------------------------------------------------

Options 3, Section 23
    The Exchange's proposal to amend Options 3, Section 23(a)(2), which
describes the PHLX Orders data feed, is consistent with the Act. All-
or-None Orders are non-displayed and non-routable. They are executed in
price-

time priority among all Public Customer Orders if the size contingency
can be met. All-or-None Orders have a quantity contingency requiring
the full quantity of the order to execute in order for any trade to
take place which may cause the order to not execute. If an All-or-None
Order contingency cannot be met, the All-or-None Order would be
bypassed until such time as the contingency could be met.
    The PHLX Orders data feed displays all orders on the Phlx Order
Book with original information, this is in contrast to the Top of PHLX
Options feed, which is not being amended by this proposal, that only
provides information as to the displayed Order Book. The Exchange does
not disseminate All-or-None Orders to either the Top of PHLX Options
feed or the OPRA data feed because All-or-None Orders may only execute
if the contingency can be met, otherwise the System would bypass the
All-or-None Order. As such, All-or-None Orders are non-displayed to
avoid locking or crossing away markets by displaying this order type
which may not execute because of the contingency attributed to the
order pursuant to the Options Order Protection and Locked/Crossed
Plan.\36\ The Exchange does display All-Or-None Orders on the PHLX
Orders data feed to inform market participants of orders that are
available for execution. Public Customers submitting All-or-None Orders
on Phlx desire their orders to be executed and the display of those
orders on the PHLX Orders data feed allows other member organizations
to see their orders are available to execute against those orders.
---------------------------------------------------------------------------

    \36\ 17 CFR 242.608. Pursuant to Section 6 of the Plan, Locked
and Crossed Markets, The Participants agree that they shall
establish, maintain and enforce written rules that: (a) Require
their members reasonably to avoid displaying Locked and Crossed
Markets; (b) Are reasonably designed to assure the reconciliation of
Locked and Crossed Markets; and (c) Prohibit its members from
engaging in a pattern or practice of displaying Locked and Crossed
Markets; in all cases subject to such exceptions as may be contained
in the rules of a Participant approved by the Commission.
---------------------------------------------------------------------------

    Similar to Phlx, Cboe permits all-or-none orders to rest in its
order book and does not disseminate all-or-none orders to OPRA.\37\
Similar to Phlx, Cboe displays all-or-none orders on its Depth of Book
feed.\38\ The proposed amendments represent the current information
contained in the PHLX Orders feed. The proposed amendments are intended
to add more description and bring greater clarity to the rule text.
---------------------------------------------------------------------------

    \37\ Cboe Rule 5.6(b) provides, ``. . . An ``All-or-None'' or
``AON'' order is an order to be executed in its entirety or not at
all. An AON order may be a market or limit order. Users may not
designate an AON order as All Sessions. (1) The Exchange does not
disseminate bids or offers of AON orders to OPRA. (2) A User may not
designate an AON order as Post Only. (3) An AON limit order is
always subject to the Price Adjust process as set forth in Rule
5.32. (4) A User may apply MCN (as defined below), but no other MTP
Modifier (if a User applies any other MTP Modifier to an AON order,
the System handles it as an MCN), to an AON order. (5) The Exchange
may restrict the entry of AON orders in a series or class if the
Exchange deems it necessary or appropriate to maintain a fair and
orderly market. (6) A User may not designate a bulk message as
AON.''
    \38\ See Section 4.5 of this specification. https://cdn.cboe.com/resources/membership/US_EQUITIES_OPTIONS_MULTICAST_PITCH_SPECIFICATION.pdf.
---------------------------------------------------------------------------

Options 5, Section 4
    The Exchange's proposal to amend Options 5, Section 4(a) is
consistent with the Act as the proposal clarifies the definition of
internal PBBO. Stop Orders must be triggered to be included in the
internal PBBO. A Stop Order is not available until such time as its
contingency is trigged and then that Stop Order becomes available for
execution. Also, the Exchange inadvertently did not include the phrase,
``which cannot be satisfied'' when referencing All-or-None Orders
within Options 5, Section 4. The limitation is noted in other places
within this rule. An All-or-None Order contingency must be met for this
order type to execute, otherwise it will be executed at such time as
the contingency could be met. Unlike the Stop Order which is only
available once triggered,\39\ the All-or-None Order is available for
execution once the contingency is met. This proposed amendment reflects
current System operation.
---------------------------------------------------------------------------

    \39\ See note 24 above.
---------------------------------------------------------------------------

Options 8, Section 2
    The Exchange's proposal to add a new defined term, ``Floor Lead
Market Maker'' is consistent with the Act and will bring greater
clarity to the Options 8 rules. This term is currently utilized within
the Options 8 rules.
    The Exchange's proposal to add an introductory sentence within
Options 8, Section 2(a) is a non-substantive amendment which will bring
greater clarity to the rule text. The addition of the word
``Organization'' within Options 8, Section 2(a)(5) will correct the
rule text to provide for a defined term.
Options 8, Section 32
    The Exchange's proposal to amend Options 8, Section 32 to add
``FLEX Option'' to the list of order types that are available on Phlx
is consistent with the Act because the addition of FLEX Options within
Options 8, Section 34 will make clear the order types that are
available for execution on the Trading Floor. Today, FLEX Options are
executed in open outcry on the Trading Floor and not through the
Options Floor Broker Management System as provided for within Options
8, Section 22B.\40\
---------------------------------------------------------------------------

    \40\ See note 25 above.
---------------------------------------------------------------------------

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.
Options 1, Section 1
    The Exchange's proposal to update the cross reference within
Options 1, Section 1(b)(46) and make other grammatical amendments
within Options 1, Section 1 does not impose an undue burden on
competition as these amendments are non-substantive.
Options 2, Section 4
    The Exchange's proposal to add a title to Options 2, Section
4(c)(1) to make clear that this section applies intra-day does not
impose an undue burden on competition because it will bring greater
clarity to the rule text.
    The Exchange's proposal to remove the phrase, ``or its decimal
equivalent rounded down to the nearest minimum increment'' within
Options 2, Section 4(c)(1) does not impose an undue burden on
competition. This is a non-substantive amendment because the bid/ask
differentials may be as wide as the spread between the national best
bid and offer in the underlying security, if rounding up it would cause
the spread to be wider than the underlying spread, so rounding is
superfluous.
Options 2, Section 6
    The Exchange's proposal to update certain terms within Options 2,
Section 6 conform the rule with the use of terms in the Rulebook \41\
and does not impose an undue burden on competition. These changes are
non-substantive.
---------------------------------------------------------------------------

    \41\ See note 3 above.
---------------------------------------------------------------------------

Options 3, Section 6
    The Exchange's proposal to amend Options 3, Section 6 to re-number
and re-letter the rule to conform to Phlx's rule structure, update rule
citations, and add spacing where necessary does not impose an undue
burden on competition as these amendments are non-substantive.
    The Exchange's proposal to amend current Options 3, Section
6(a)(ii)(B)(2)(g)(iv)(A)(4) does not

impose an undue burden on competition as this proposal will correct the
rule text within Options 3, Section 6, and provide market participants
with the expected outcome in this scenario. The proposed amendment
provides the market participant with greater certainty as to the order.
Further, the Exchange offers market participants various options with
respect to routing and time in force. A market participant may elect to
route as a FIND or SRCH Order which provides the Exchange with
instructions as to how an order may route anew once posted on the Order
Book.\42\ A market participant may also choose to submit an order with
varying TIF options (e.g., DAY, IOC, GTC) that provide the Exchange
instructions as to how to either post an order on the Order Book or
cancel back an order after exhausting its potential to trade upon
entry.
---------------------------------------------------------------------------

    \42\ See note 5 above.
---------------------------------------------------------------------------

    The Exchange's proposal to amend current Options 3, Section
6(a)(ii)(B)(4)(a), to replace ``cancelled immediately'' with the term
``rejected'' conforms the rule text to other uses of the word rejected
within the Rulebook. This amendment is non-substantive.
    The Exchange's proposal to amend Supplementary Material .02 to
Options 3, Section 6 does not impose an undue burden on competition as
this amendment corrects out of date rule text. The System does not
disseminate locked quotations, rather the System re-prices orders. The
amendment will remove an inaccurate statement and bring greater clarity
to the Rulebook.
Options 3, Section 7
    The Exchange's proposal to update certain terms within Options 3,
Section 7 to conform to a prior rule change \43\ does not impose an
undue burden on competition. These changes are non-substantive.
---------------------------------------------------------------------------

    \43\ Id.
---------------------------------------------------------------------------

    The Exchange's proposal to amend All-or-None Orders within Options
3, Section 7(b)(5) to add more language to the description of an All-
or-None Order does not impose an undue burden on competition because
the proposed rule text will bring greater transparency to this order
type. The Exchange today provides that All-or-None Orders are non-
displayed and non-routable. To expand on this notion, the Exchange
proposes to amend the sentence to provide, ``All-or-None Orders are
non-routable. The Exchange does not disseminate bids or offers of All-
or-None Orders to OPRA and the Top of PHLX Options feed, however All-
or-None Orders are displayed in the PHLX Orders and PHLX Depth of Book
feed.'' This additional rule text will make clear that these order
types are not disseminated on OPRA. Further, the Exchange proposes to
add, ``If an All-or-None Order contingency cannot be met, the All-or-
None Order would be bypassed until such time as the contingency could
be met.'' This language is intended to make clear that an All-or-None
Order will not cause other orders to queue until such time as the All-
or-None Order may execute. Rather, the All-or-None Order will rest on
the Order Book until the contingency will be met, at which time that
Public Customer All-or-None Order will have priority over other orders
on the Book. The Exchange believes the addition of this rule text will
bring greater transparency to the current System handling of All-or-
None Orders.
    The Exchange's proposal to amend Options 3, Section 7(c)(3),
``Opening Only,'' to amend incorrect rule text, and also add a
clarifying sentence does not impose an undue burden on competition. An
OPG Only Order may be executed by any market participant in the Opening
Process pursuant to Options 3, Section 8. This order type would
continue to not be not valid outside of the Opening Process.
    Removing the phrase ``except for Automated Quotation Adjustments''
does not impose an undue burden on competition because, today, an OPG
Order is not subject to Automated Quotation Adjustments. The Opening
Process itself has boundaries within which orders will be executed. Any
participant may enter an Opening Only Order. Typically Market Makers
and Lead Market Makers submit Valid Width Quotes, as provided for
within Options 3, Section 8, during the Opening Process. Further, an
Opening Sweep which is utilized by Market Makers and Lead Market
Makers, is protected by Automation Quotation Adjustments. The
Exchange's proposal to note that OPG orders may not route will bring
greater transparency to the rule.
Options 3, Section 10
    The Exchange's proposal to make a grammatical correction to Options
3, Section 10 is non-substantive.
Options 3, Section 13
    The Exchange's proposal to update certain rule references within
Options 3, Section 13 is non-substantive.
    The Exchange's proposal to amend various references within Options
3, Section 13 to make clear the manner in which All-Or-None Orders are
treated by the System within a PIXL Auction does not impose an undue
burden on competition as this rule text will bring greater clarity to
the current System operation. All market participants will be treated
in a uniform manner when they enter an All-Or-None Order into PIXL.
    The Exchange's proposal to add rule text, within Options 3, Section
13(f), to provide that with respect to a PIXL Order for the account of
a Public Customer that is paired with an order for the account of
another Public Customer, that All-Or-None Orders that can be satisfied
are included within the Reference BBO does not impose an undue burden
on competition. The proposed rule text within Options 3, Section 13(f)
clarifies the current System operation. The Reference BBO also pertains
to Complex Orders because the cPBBO is derived from displayed quotes
for the individual legs.
    The Exchange's proposal to make clear where the Reference BBO is
specified within this rule, or the Reference cPBBO, that All-or-None
Orders are excluded does not impose an undue burden on competition. The
Exchange proposes to note ``including Reference BBO'' within Options 3,
Section 13(b)(2)(C) and 13(f) to conform the rule text. The Reference
BBO also pertains to Complex Orders because the cPBBO is derived from
displayed quotes for the individual legs. This represents current
System operation.
    The Exchange's proposal to amend Options 3, Section 13 in various
places to replace ``one minimum price improvement increment,'' with
``$0.01'' is a non-substantive amendment.
    The Exchange's proposed amendments to Options 3, Section 13(b)(7)
and (8) do not impose an undue burden on competition because they
clarify current rule text without any substantive amendment.
    The remainder of the proposed changes within Options 3, Section 13
are grammatical or technical in nature and therefore non-substantive.
Options 3, Section 15
    The Exchange's proposal to note that the Automated Quotation
Adjustments protection removes both quotes and Immediate-or-Cancel
Orders does not impose an undue burden on competition. Market Makers
and Lead Market Makers utilize the Immediate-or-Cancel Orders within
SQF to respond to auctions. The auction response requires the same
protection afforded by the Automation Quotation Adjustments which it
affords the underlying option in which the Market Maker or Lead Market
Maker is quoting continuously among its assigned options classes. The
Automation Quotation Adjustments

protection removes both quotes and Immediate-or-Cancel Orders submitted
through SQF because Market Maker and Lead Market Maker risk applies to
all interest in the underlying option in which the Market Maker or Lead
Marker Maker is assigned to quote in throughout the trading day. Market
Makers and Lead Marker Makers measure risk per underlying option. The
System functionality for the Automated Quotation Adjustment is not
being amended.
    The Exchange believes its proposal to clarify that Anti-
Internalization will not apply during an Opening Process does not
impose an undue burden on competition as it would provide more
specificity on how this functionality currently operates. During the
opening, Market Makers are able to observe the primary market and then
determine how they would like to quote. Market Makers are sophisticated
market participants that have their own tools and other protections to
manage risk during the Opening Process.
Options 3, Section 23
    The Exchange's proposal to amend Options 3, Section 23(a)(2), which
describes the PHLX Orders data feed, does not impose an undue burden on
competition. The proposed amendments represent current information
contained in the PHLX Orders feed. This proprietary data feed displays
all orders on the Order Book with original information, whereas the
Exchange's the Top of PHLX Options feed, which is not being amended by
this proposal, only provides information as to the displayed order
book. The Exchange does not disseminate non-displayed order information
to the OPRA data feed, rather only non-displayed prices are submitted.
The Exchange does display All-Or-None Orders on the PHLX Orders data
feed to inform market participants of orders that are available for
execution. Public Customers submitting All-or-None Orders on Phlx
desire their orders to be executed and the display of those orders on
the PHLX Orders data feed allows other member organizations to see
their orders are available to execute against those orders. The
proposed amendments are simply clarifying in nature and intended to add
more description to the rule.
Options 5, Section 4
    The Exchange's proposal to amend Options 5, Section 4(a), and make
some technical amendments, does not impose an undue burden on
competition. Stop Orders must be triggered to be included in the
internal PBBO. A Stop Order is not available until such time as its
contingency is triggered and then that Stop Order becomes available for
execution. Also, the Exchange inadvertently did not include the phrase,
``which cannot be satisfied'' when referencing All-or-None Orders
within Options 5, Section 4. The limitation is noted in other places
within this rule. An All-or-None Order contingency must be met for this
order type to execute, otherwise it will be executed at such time as
the contingency could be met. Unlike the Stop Order which is only
available once triggered,\44\ the All-or-None Order is available for
execution once the contingency is met. This proposed amendment reflects
current System operation and will bring greater clarity to the rule.
---------------------------------------------------------------------------

    \44\ See note 24 above.
---------------------------------------------------------------------------

Options 8, Section 2
    The Exchange's proposal to add a new defined term, ``Floor Lead
Market Maker'' does not impose an undue burden on competition. This
defined term, which is currently utilized within the Options 8 rules,
will bring greater clarity to the Options 8 rules.
    The Exchange's proposal to add an introductory sentence within
Options 8, Section 2(a) that provides context to the information that
follows is a non-substantive amendment. The addition of the word
``Organization'' within Options 8, Section 2(a)(5) will make clear the
reference to the defined term ``member organization.''
Options 8, Section 32
    The Exchange's proposal to amend Options 8, Section 32 to add
``FLEX Option'' to the list of order types that are available on Phlx
does not impose an undue burden on competition because the addition of
FLEX Options within Options 8, Section 34 will make clear the order
types that are available for execution on the Trading Floor. Today,
FLEX Options are executed in open outcry on the Trading Floor and not
through the Options Floor Broker Management System as provided for
within Options 8, Section 22B.\45\
---------------------------------------------------------------------------

    \45\ See note 23 above.
---------------------------------------------------------------------------

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 \46\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\47\
---------------------------------------------------------------------------

    \46\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \47\ 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.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \48\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\49\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange requests
that the Commission waive the 30-day operative delay so that the
proposal may become operative immediately upon filing. The Exchange
asserts that waiver of the 30-day operative delay would be consistent
with the protection of investors and the general public by permitting
the Exchange to immediately remove the two incorrect and contradictory
sentences in the Phlx routing rule to bring greater clarity and
transparency to its rules. The Commission believes that waiving the 30-
day operative delay is consistent with the protection of investors and
the public interest as it will bring greater transparency to the rules
of the Exchange. Accordingly, the Commission waives the 30-day
operative delay and designates the proposed rule change operative upon
filing.\50\
---------------------------------------------------------------------------

    \48\ 17 CFR 240.19b-4(f)(6).
    \49\ 17 CFR 240.19b-4(f)(6)(iii).
    \50\ For purposes only of waiving the 30-day operative delay,
the Commission 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 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-2021-05 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-Phlx-2021-05. 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-2021-05 and should be submitted on
or before March 3, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\51\
---------------------------------------------------------------------------

    \51\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-02710 Filed 2-9-21; 8:45 am]
BILLING CODE 8011-01-P


PAPERWORK REDUCTION ACT SUBMISSION Please read the instructions before completing this form. For additional forms or assistance in completing this form, contact your agency's Paperwork Clearance Officer. Send two copies of this form, the collection instrument to be reviewed, the Supporting Statement and any additional documentation to: Office of Information and Regulatory Affairs, Office of Management and Budget, Docket Library, Room 10102, 725 17th Street NW Washington, DC 20503.

1. Agency/ Subagency originating request U. S. Environmental Protection Agency, Office of Solid Waste and Emergency Response, Office of Emergency Management 2.

OMB control number b.

None a. 2050  0021 3. Type of information collection ( check one) a.

New collection b.

Revision of a currently approved collection c.

Extension of a currently approved collection d.

Reinstatement, without change, of a previously approved collection for which approval has expired e.

Reinstatement, with change, of a previously approved collection for which approval has expired f.

Existing collection in use without an OMB control number 4. Type of review requested ( check one) a.

Regular b.

Emergency  Approval requested by: / / c.

Delegated 5. Small entities Will this information collection have a significant economic impact on a substantial number of small entities?

Yes

No For b f, note item A2 of Supporting Statement Instructions 6. Requested expiration date a.

Three years from approval date b.

Other Specify: / /__

7. Title Spill Prevention, Control and Countermeasure ( SPCC) Plans ( Revision)

8. Agency form number( s) ( If applicable) 0328.12 9. Keywords Oil, oil spill 10. Abstract The Oil Pollution Prevention regulation requires certain regulated facilities to prepare and maintain SPCC Plans in order to prevent oil discharges.

11. Affected public ( Mark primary with " P" and all others that apply with " X") a. Individuals or households d. X Farms b. P Business or other for profit e. X Federal Government c. X Not for profit institutions f. X State, Local or Tribal Government 12. Obligation to respond ( Mark primary with " P" and all others that apply with " X") a.

Voluntary b.

Required to obtain or retain benefits c. P Mandatory 13. Annual reporting and recordkeeping hour burden a. Number of respondents 479,000 b. Total annual responses 479,000 1. Percentage of these responses collected electronically 0 % c. Total hours requested 1 d. Current OMB inventory 1 e. Difference 1 f. Explanation of difference 1. Program Change 1 2. Adjustment 0 14. Annual reporting and recordkeeping cost burden ( in thousands of dollars) a. Total annualized capital/ startup costs 1 b. Total annual costs ( O& M) 1 c. Total annualized cost requested 1 d. Current OMB inventory 1 e. Difference 1 f. Explanation of difference 1. Program change 1 2. Adjustment 0 15. Purpose of information collection ( Mark Primary With " P" and all others that apply with " X") a. __ Application for benefits e. __ Program planning or management b. __ Program evaluation f. __ Research c. __ General purpose statistics g. P Regulatory or compliance d. __ Audit 16. Frequency of recordkeeping or reporting ( check all that apply) a.

Recordkeeping b.

Third party disclosure c.

Reporting 1.

On occasion 2.

Weekly 3.

Monthly 4.

Quarterly 5.

Semi annually 6.

Annually 7.

Biannually 8.

Other ( describe)

17. Statistical methods Does this information collection employ statistical methods?

Yes

No 18. Agency contact ( person who can best answer questions regarding the content of this submission) Name: Hugo Fleischman Phone: 202 564 1968 OMB 83 I 10/ 95 19. Certification for Paperwork Reduction Act Submissions On behalf of this Federal agency, 1 certify that the collection of information encompassed by this request complies with' 5 CFR 1320.9.

NOTE: The text of 5 CFR 1320.9, and the related provisions of 5 CFR 1320.8( b)( 3), appear at the end of the instructions. The certification is to be made with reference to those regulatory provisions as set forth in the instructions.

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

( a) It is necessary for the proper performance of agency functions;

( b) It avoids unnecessary duplication;

( c) It reduces burden on small entities;

( d) It uses plain, coherent, and unambiguous terminology that is understandable to respondents;

( e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

( f) It indicates the retention periods for recordkeeping requirements;

( g) It informs respondents of the information called for under 5 CFR 1320.8( b)( 3): ( I) Why the information is being collected' ( ii) Use of information; ( iii) Burden estimate; ( iv) Nature of response ( voluntary, required for a benefit, or mandatory); ( v) Nature and extent of confidentiality; and ( vi) Need to display currently valid OMB control number;

( h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected ( see note in Item 19 of the instructions);

( I) It uses effective and efficient statistical survey methodology; and ( j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item below and explain the reason in Item 18 of the Supporting Statement.

Signature of Program Official Deborah Y. Dietrich, Director Office of Emergency Management Date Signature of Senior Official or designee Oscar Morales, Director Collection Strategies Division Office of Environmental Information Date OMB 83 I 10/ 95