[Federal Register Volume 84, Number 131 (Tuesday, July 9, 2019)]
[Notices]
[Pages 32794-32802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14494]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86286; File No. SR-Phlx-2019-25]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 1019,
Adopt a New Rule 1073, Adopt a New Rule 1074, Rule 1080, Adopt a New
Rule 1096, and Adopt a New Rule 1097
July 2, 2019.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 20, 2019, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed with
the Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change as described in Items I, II, and III, below, which
Items have been prepared by the Exchange. 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 a proposal to amend Rule 1019,
``Acceptance of Bid and Offer,'' adopt a new Rule 1073, ``Kill
Switch,'' adopt a new Rule 1074 ``Detection of Loss of Communication,''
Rule 1080, ``Electronic Acceptance of Quotes and Orders,'' adopt a new
Rule 1096, ``Entry and Display of Orders'' and adopt a new Rule 1097,
``Limitations on Order Entry.''
The text of the proposed rule change is available on the Exchange's
website at http://nasdaqphlx.cchwallstreet.com/, at the principal
office of the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
[[Page 32795]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes several amendments within this rule change:
(i) Amend Rule 1019, ``Acceptance of Bid and Offer''; (ii) adopt a new
Rule 1073, ``Kill Switch,'' and Rule 1074 ``Detection of Loss of
Communication,'' from relocated rule text from Rule 1080, ``Electronic
Acceptance of Quotes and Orders,''; (iii) adopt a new Rule 1096,
``Entry and Display of Orders''; and (iv) adopt a new Rule 1097,
``Limitations on Order Entry.'' With this proposal, the Exchange
intends to create a rule that concerns the requirements for submitting
a quote and a separate rule that concerns the requirements for
submitting an order. The Exchange also is proposing to relocate rules
to reorganize its Rulebook and conform certain rule text within Rule
1097 to rules of other Nasdaq markets.\3\
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\3\ The Exchange intends to file a separate rule change for each
Nasdaq market to amend rules as described herein.
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Rule 1019, Acceptance of Bid or Offer
Currently, Rule 1019 is titled ``Acceptance of Bid or Offer.'' The
Exchange proposes to retitle Rule 1019 as ``Entry and Display of
Quotes.'' The Exchange proposes to amend Rule 1019(a) to revise the
text of (a) from ``All bids or offers for option contracts dealt in on
the Exchange made and accepted in accordance with these Rules shall
constitute binding contracts between the parties thereto but shall be
subjected to the exercise by the Board of Directors of the powers in
respect thereto vested in said Board by the By-Laws, and to the Rules
of the Exchange, and said contracts shall also be subject to the rules
of The Options Clearing Corporation and to the exercise by The Options
Clearing Corporation of the powers reserved to it in its by-laws and
rules'' to more simply ``All bids or offers for option contracts dealt
in on the Exchange made and accepted in accordance with these Rules
shall constitute binding contracts between the parties thereto but
shall be subjected to applicable requirements and the rules of the
Clearing Corporation. The Exchange is proposing to removing the
requirement for the Board of Directors to Act and retain the
applicability of the rules of the Clearing Corporation.
The Exchange proposes to add a new Rule 1019(b) to describe the
current requirements and conditions for submitting quotes. These
requirements reflect the current System operation today. The Exchange
proposes to memorialize the various requirements for the submission of
quotes into the System for greater transparency. The Exchange proposes
to provide at new Rule 1019(b), ``Quotes are subject to the following
requirements and conditions:''. The Exchange proposes to add at Rule
1019(b)(1) that ``RSQTs or Remote Specialists may generate and submit
option quotations.'' Current Rule 1080(k) provides,
Electronic Streaming Quotations. SQTs may generate and submit
option quotations if such SQT is physically present on the Exchange
floor, and RSQTs may generate and submit option quotations from off
the floor of the Exchange, electronically.
Respecting options trading on Phlx XL II, specialists, SQTs and
RSQTs who are quoting in an option may also submit Sweeps, which are
defined in and governed by Rule 1082.
The Exchange proposes removing this rule text within Rule 1080(k)
and memorializing the quoting requirements within Rule 1019. The first
paragraph within Rule 1080(k) describes SQTs and RSQTs that stream
quotations. These participants are currently defined within Rule
1014(b). This language in the first paragraph of Rule 1080(k) is
redundant and unnecessary. The second paragraph of Rule 1080(k)
references Sweeps within Phlx Rule 1082, ``Firm Quotations,'' which
describes sweeps within that rule in relation to Quote Exhaust. The
Exchange proposes to provide at proposed new Rule 1019(b)(2) that ``The
System shall time-stamp a quote which shall determine the time ranking
of the quote for purposes of processing the quote.'' The Exchange notes
that all quotes today are time-stamped for purposes of processing
quotes. Proposed Rule 1019(b)(3) states that ``Specialists, Remote
Specialists and ROTs may enter bids and/or offers in the form of a two-
sided quote. Only one quote may be submitted at a time for an option
series.'' The Exchange believes that this information will provide
Specialists, Remote Specialists and ROTs with information on submitting
a quote. The Exchange notes that bid or offer size may be a ``0,''
however a price is required to be entered for both the bid and offer to
be entered into the System. Further, the Exchange proposes at Rule
1019(b)(4) to provide clarity for entering quotes and proposes to
specify, ``The System accepts quotes for the Opening Process as
specified in Rule 1017.'' \4\ The Exchange believes that this
information will bring greater transparency to the Rulebook with
respect to limitations for submitting quotations into the System.
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\4\ Rule 1017(d) provides, ``Phlx Electronic Market Maker Valid
Width Quotes and Opening Sweeps received starting at 9:25 a.m. are
included in the Opening Process. Orders entered at any time before
an option series opens are included in the Opening Process.''
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The Exchange proposes a provision regarding firm quote within
proposed Rule 1019(b)(5):
Firm Quote. When quotes in options on another market or markets
are subject to relief from the firm quote requirement set forth in
the SEC Quote Rule,\5\ orders and quotes will receive an automatic
execution at or better than the NBBO based on the best bid or offer
in markets whose quotes are not subject to such relief. Such
determination may be made by way of notification from another market
that its quotes are not firm or are unreliable; administrative
message from the Option Price Reporting Authority (``OPRA''); quotes
received from another market designated as ``not firm'' using the
appropriate indicator; and/or telephonic or electronic inquiry to,
and verification from, another market that its quotes are not firm.
The Exchange shall maintain a record of each instance in which
another exchange's quotes are excluded from the Exchange's
calculation of NBBO, and shall notify such other exchange that its
quotes have been so excluded. Where quotes in options on another
market or markets previously subject to relief from the firm quote
requirement set forth in the Quote Rule are no longer subject to
such relief, such quotations will be included in the calculation of
NBBO for such options. Such determination may be made by way of
notification from another market that its quotes are firm;
administrative message from OPRA; and/or telephonic or electronic
inquiry to, and verification from, another market that its quotes
are firm.
\5\ The term ``SEC Quote rule'' shall mean rule 602 of
Regulation NMS under the Securities Exchange Act of 1934, as
amended. See Phlx Rule 1082(a)(iii).
Phlx Rule 1082 describes Firm Quote for purposes of quote
submission. The Exchange proposes to memorialize within its Rules the
requirement for the dissemination of quotations pursuant to Reg NMS.\6\
The Exchange is proposing to add the above rule text to provide context
as to this restriction for submitting quotes. The Exchange proposes to
make clear the manner in which quote relief will occur. Specifically,
this proposed rule text indicates the manner in which a determination
for quote relief is made. Further, the rule notes the Exchange shall
maintain a record of each instance in which another exchange's quotes
are excluded from the Exchange's calculation of NBBO, and shall notify
such other exchange that its quotes have been so excluded. Also, when
relief is no longer available, such quotations will be included in the
calculation of NBBO for such options. The Exchange notes
[[Page 32796]]
how the determination is made that relief is no longer available. The
proposed rule text adds greater context to the manner in which Firm
Quote relief is applied. This rule text represents the current
practice.
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\6\ 17 CFR 242.602.
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Similarly, the Exchange proposes to provide the following at
proposed new Rule 1019(b)(6):
Trade-Through Compliance and Locked or Crossed Markets. A quote
will not be executed at a price that trades through another market
or displayed at a price that would lock or cross another market. If,
at the time of entry, a quote would cause a locked or crossed market
violation or would cause a trade-through violation, it will be re-
priced to the current national best offer (for bids) or the current
national best bid (for offers) and displayed at one minimum price
variance above (for offers) or below (for bids) the national best
price.
Today, quotations may not be executed against prices that trade-
through an away market as provided for in the Options Order Protection
and Locked/Crossed Market Plan which is also described within Phlx
Rules 1083, 1084 and 1086. Also, quotations may not lock or cross an
away market. The repricing is provided for today within Phlx Rule
1093.\7\ By stating this limitation in the rule, Specialists and ROTs
will have greater clarity as to this limitation. Further, the Exchange
is making clear that a quote that would cause a locked or crossed
market violation or would cause a trade-through violation will be re-
priced. The Exchange would display the quote at one minimum price
variation (``MPV'') above (for offers) or below (for bids) the national
best price. Repricing quotes is consistent with the Act because the
Exchange is not permitted to lock or cross an away market's quote or
order. The Exchange reprices the quotes one MPV inferior to cause the
displayed price to reflect the available market on Phlx.
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\7\ Phlx Rule 1093(a)(iii)(A) provides that a DNR Order may
execute on the Exchange at a price equal to or better than, but not
inferior to, the best away market price but, if that best away
market remains, the DNR Order will remain in the Phlx Order Book and
be displayed at a price one minimum price variation (``MPV'')
inferior to that away best bid/offer. If the DNR Order is locking or
crossing the ABBO, the DNR Order shall be entered into the Order
Book at the ABBO price and displayed one MPV away from the ABBO.
Similar language is provided for with respect to the routable orders
(FIND and SRCH). Phlx Rule 1093(a)(iii)(B)(4) provides ``A FIND
Order received after an Opening Process that is marketable against
the internal PBBO when the ABBO is inferior to the internal PBBO
will be traded at the Exchange at or better than the PBBO price. If
the FIND Order has size remaining after exhausting the PBBO, it may:
(1) Trade at the next PBBO price (or prices) if the order price is
locking or crossing that price (or prices) up to and including the
ABBO price, (2) be entered into the Order Book at its limit price,
or (3) if locking or crossing the ABBO, be entered into the Order
Book at the ABBO price and displayed one MPV away from the ABBO.''
This is also the case for a SRCH Order. See Phlx Rule
1093(a)(iii)(C)(4).
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Finally, the Exchange proposes at Rule 1019(b)(7) to provide,
``Quotes submitted to the System are subject to the following: minimum
increments provided for in Rule 1034, risk protections provided for in
Rule 1099 and Quote Exhaust provided for in Rule 1082.'' The Exchange
is noting herein the manner in which a quote may be rejected by the
System to provide market participants with expectations as to the
interplay among the various Phlx Rules. Specifically, if the Specialist
or ROT does not submit a quotation compliant with Rule 1034, the quote
will not be accepted by the System because market participants are
required to abide by Rule 1034 which describes the increments with
which options series are to be quoted. Rule 1099 provides a list of all
protections applicable to quotes that may be rejected. Finally,
Specialists and ROTs are subject to the Exchange's rule regarding quote
exhaust within Rule 1082(a)(ii)(B)(3). The Exchange believes that this
rule will provide Members with requirements and conditions for
submitting quotations and provide transparency as to limitations that
cause a quote to be rejected.
The Exchange proposes to provide at Rule 1019(c), ``Quotes will be
displayed in the System as described in Rule 1070.'' Rule 1070, titled
``Data Fees and Trade Information'' provides for the available feeds
that Members may access on the Exchange. This list represents the
available data feeds and the content of those data feeds which are
offered today by Phlx.
The amendment to Phlx Rule 1019 to create a list of all the
requirements and conditions for submitting quotes on Phlx within one
rule is consistent with the Act because it will provide greater
transparency to market participants of the applicable requirements.
Further, this proposal will make the current rule clear and
understandable for market participants thereby protecting investors and
the general public. The Exchange notes that while some of these
requirements appear in other rules, for ease of reference the
requirements are located within a single rule with this proposal. The
proposal reflects the Exchange's current practice with respect to
quoting requirements. This proposal will conform this Rule to other
Nasdaq affiliated markets filing similar rules.\8\ The Exchange's
proposal is intended to provide greater information with respect to
Firm Quote within new Rule 1019(b)(5) and regarding trade-through and
locked and crossed markets 1019(b)(6). The addition rule text is
consistent with the Act because the Exchange is adding detail regarding
the method in which orders which are firm or locked and crossed will be
handled in the System. The notifications for Firm Quote are made clear
with the proposed rule text. The Exchange believes that it is
consistent with the Act to specify when quotes are firm and the
handling of such quotes by the System for the protection of investors
and the general public. The clarity is designed to promote just and
equitable principles of trade by notifying all participants engaged in
market making of potential outcomes. Today, quotations may not be
executed against at prices that trade-through an away market. Also,
quotations may not lock or cross an away market. The repricing of
quotations is consistent with the Act because repricing prevents the
Exchange from disseminating a price which locks or crosses another
market. Phlx is required avoiding displaying a quotation that would
lock or cross a quotation of another market center at the time it is
displayed. Preventing inferior prices from displaying perfects the
mechanism of a free and open market and a national market system, and,
in general to protect investors and the public interest.
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\8\ Nasdaq ISE, LLC, Nasdaq GEMX, LLC, Nasdaq MRX, LLC, Nasdaq
BX, Inc. and Nasdaq Stock Market LLC intend to file similar rules to
proposed Phlx Rule 1019.
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Relocation of Kill Switch and Detection of Loss of Communication
The Exchange also proposes to relocate the rule text at Rule
1019(b), Kill Switch, and (c), Detection of Loss of Communication, to
new Rules 1073 and 1074, respectively. The relocations are consistent
with the Act because the proposed changes are intended to provide
greater transparency to these rules by making them easier to locate
which benefits investors and the public interest. The Exchange is not
proposing to amend the Kill Switch or Detection of Loss of
Communication rules; this rule change is non-substantive. The Exchange
proposes to update internal cross-references.
Rule 1080, Electronic Acceptance of Quotes and Orders
The Exchange proposes to amend Rule 1080(a)(i)(B) to add the
following sentence to Specialized Quote Feed (``SQF''), ``Specialists,
SQTs and RSQTs may only enter interest into SQF in their
[[Page 32797]]
assigned options series.'' The Exchange notes that today these
participants may utilize SQF to quote only in their assigned options
series.\9\ This proposed rule text is consistent with the Act because
it will add greater clarity to the current rule for the protection of
investors and the public interest.
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\9\ Rules 501, ``Specialist Appointment'' and 507 ``Application
for Approval as an SQT, RSQT, or RSQTO and Assignment in Options''
govern option assignments.
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The Exchange proposes to delete certain rule text within Rule
1080(c)(ii)(C) and 1080(j) and relocate that language to new Rule 1097,
as described below.
The Exchange also proposes to delete Rule 1080(k), as discussed
above, and Rule 1080(l) which is currently reserved. These proposed
amendments are consistent with the Act because they are simply
administrative and non-substantive.
Rule 1096, Entry and Display of Orders
Similar to Rule 1019, which describes requirements for quotes, the
Exchange proposes to adopt a new Rule 1096, ``Entry and Display of
Orders'' and describe the current requirements and conditions for
entering orders. The Exchange notes that the requirements provided for
within this rule represent the current practice. The purpose of Rule
1096 is to memorialize this information within a single rule.
The Exchange proposes to state within new Rule 1096(a), ``Members
can enter orders into the System, subject to the following requirements
and conditions:''. The Exchange proposes within new Rule 1096(a)(1),
``Members shall be permitted to transmit to the System multiple orders
at a single as well as multiple price levels.'' The Exchange's new rule
text at 1096(a) proposes to make clear that multiple orders may be
transmitted to the System as single or multiple price levels. This is
the case today. The Exchange proposes to memorialize the manner in
which orders may be submitted to the System to add more detail to its
rules. The Exchange proposes at new Rule 1096(a)(2), ``The System
accepts orders beginning at a time specified by the Exchange and
communicated on the Exchange's website.'' The System accepts orders
beginning at a time specified by the Exchange and communicated on the
Exchange's website.\10\
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\10\ The Exchange's website makes the timeframes in which orders
may be submitted to the System: http://www.nasdaqtrader.com/content/phlx/phlx_systemtime.pdf.
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The Exchange proposes new Rule 1096(a)(3), ``The System shall time-
stamp an order which shall determine the time ranking of the order for
purposes of processing the order.'' Further, all orders are time-
stamped to determine the time ranking of the order for purposes of
processing the order within the System. This is also the case today and
the Exchange is adding this detail to its rules to describe the time-
stamp.
The Exchange proposes to add new Rule 1096(a)(4), ``Orders
submitted to the System are subject to the following: minimum
increments provided for in Rule 1034, risk protections provided for in
Rule 1099, and the restrictions of any order type as provided for in
Rule 1080(b). Orders may execute at multiple prices.'' All orders must
adhere to other rule requirements such as minimum increments, risk
protection rules and order types. Similar to the rule text for quotes,
order are currently subject the minimum increment requirements in Rule
1034 and also the risk protections for orders which are listed within
current Rule 1099. This rule provides a list of other requirements
which may impact the execution of an order. Finally, orders may execute
at multiple prices.
The Exchange proposes to add new Rule 1096(a)(5) the following,
``Nullification by Mutual Agreement. Trades may be nullified if all
parties participating in the trade agree to the nullification. In such
case, one party must notify the Exchange and the Exchange promptly will
disseminate the nullification to OPRA. It is considered conduct
inconsistent with just and equitable principles of trade for a party to
use the mutual adjustment process to circumvent any applicable Exchange
rule, the Act or any of the rules and regulations thereunder.'' The
rule text of new Rule 1096(a)(5) is similar to Nasdaq ISE, LLC
(``ISE'') Options 3, Section 4(b). Trades may be nullified today by
agreement of the parties. The Exchange believes that it is consistent
with the Act to permit parties to agree to a nullification provided the
nullification does not violate other exchange rules. The Exchange notes
that parties may not agree to a mutual agreement for purposes that
would cause another rule to be violated. The Exchange believes that it
is consistent with the Act and protection of investors and general
public to make clear the expected behavior with respect to
nullifications.
Proposed Rule 1096(b) is similar to ISE Options 3, Section 15(a).
This proposed rule provides,
NBBO Price Protection. Orders, other than Intermarket Sweep
Orders (as defined in Rule 1083(h)), will not be automatically
executed by the System at prices inferior to the NBBO (as defined in
Rule 1083(j)). There is no NBBO price protection with respect to any
other market whose quotations are Non-Firm (as defined in Rule
1083(k)).
The Exchange believes that although Phlx Rule 1084 \11\ makes clear
that simple orders may not execute at prices inferior to the NBBO, this
rule text will provide that limitation in this proposed list of
limitations for ease of reference. The Exchange notes that this NBBO
Protection applies to orders and therefore is being discussed within
proposed Rule 1096, which applies to all market participants. In
contrast, Rule 1019, which applies to quotes entered by those members
that conduct market marking, Specialists and ROTs, describes the Firm
Quote protections and the interplay of NBBO with respect to quotes.
Trade-Through is described in both Rules 1019 and 1096.
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\11\ Phlx Rule 1084 describes the avoidance of trade-through and
Rule 1083(h) described ISOs.
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Proposed Rule 1096(c) seeks to define the Exchange's best bid and
offer as the ``PBBO'' and distinguish the displayed book from the non-
displayed book for reference. The Exchange provides that the System
automatically executes eligible orders using the Exchange's displayed
best bid and offer (``PBBO''). Phlx also permits members to enter non-
displayed orders. The non-displayed orders are available on the
Exchange's order book (``internal PBBO''). The Phlx contingency orders,
which are non-displayed are exclusively: (i) All-or-None Orders; \12\
and (ii) stop orders \13\ (collectively ``Non-Displayed Contingency
Orders''). Finally, Phlx reprices orders to avoid locking or crossing
another market as explained below. Therefore, on Phlx, eligible orders
will execute at the best price available, the PBBO or the internal
PBBO. The Exchange believes that this information will provide Members
with additional information to how the Exchange describes its displayed
and non-displayed orders. Further the proposal to add information
related to NBBO Protection and define the Exchange's best bid and offer
as the
[[Page 32798]]
``PBBO'' and distinguish the displayed book from the non-displayed book
for reference will bring greater transparency and clarity to the
Exchange's rules. The Exchange disseminates its PBBO which does not
contain non-displayed information. The Exchange believes that
describing the ``internal PBBO'' will bring greater transparency to the
rule as the Order Book may contain non-displayed orders which may offer
better prices than the PBBO. The Exchange believes describing the
displayed and non-displayed order book will inform members as to
availability of orders on the Order Book and protect investors and the
general public by providing additional information about non-displayed
order types.
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\12\ An All-or-None Order is a limit 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
Rule 1099(a) is not applied to All-Or-None Orders. See Phlx Rule
1078.
\13\ A stop order is a limit or market order to buy or sell at a
limit price when a trade or quote on the Exchange for a particular
option contract reaches a specified price. A stop-market or stop-
limit order shall not be triggered by a trade that is reported late
or out of sequence or by a complex order trading with another
complex order. See Phlx Rule 1080(b).
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Similar to Rule 1019(b)(6), the Exchange proposes to note at new
Rule 1096(d),
Trade-Through Compliance and Locked or Crossed Markets. An order
will not be executed at a price that trades through another market
or displayed at a price that would lock or cross another market. An
order that is designated by the member as routable will be routed in
compliance with applicable Trade-Through and Locked and Crossed
Markets restrictions. An order that is designated by a member as
non-routable will be re-priced in order to comply with applicable
Trade-Through and Locked and Crossed Markets restrictions. If, at
the time of entry, an order that the entering party has elected not
to make eligible for routing would cause a locked or crossed market
violation or would cause a trade-through violation, it will be re-
priced to the current national best offer (for bids) or the current
national best bid (for offers) and displayed at one minimum price
variance above (for offers) or below (for bids) the national best
price.
Today, orders may not be executed at a price that trades through an
away market. Also, orders may not lock or cross an away market.
Routable orders must comply with Trade-Through and Locked and Crossed
Markets restrictions. The Exchange reprices orders that are non-
routable. The Exchange proposes to make clear the manner in which
orders are repriced on the order book. This repricing is described
today within Rule 1093(a)(iii)(A), (B) and (C) which describes routing.
This rule text is similar to rule text within BX Chapter VI, Section
7(b)(3)(C). Today, orders may not be executed at prices that trades
through an away market. Also, orders may not lock or cross an away
market. Routable orders must comply with Trade-Through and Locked and
Crossed Markets restrictions within Phlx Rule 1084. The Exchange
reprices orders that are non-routable. The Exchange's proposal to
memorialize rule text related to trade-throughs will make clear the
manner in which orders are repriced on the order book and protect
investors and general public by further describing this restriction
with respect to orders specifically. This repricing is described today
within Rule 1093(a)(iii)(A), (B) and (C) which describes routing. The
Exchange would re-price an order to the current national best offer
(for bids) or the current national best bid (for offers) and displayed
at one MPV above (for offers) or below (for bids) the national best
price. The Exchange reprices orders one MPV inferior to cause the
displayed price to reflect the available market on Phlx.\14\ The
repricing of orders is consistent with the Act because repricing
prevents the Exchange from disseminating a price which locks or crosses
another market. Phlx is required avoiding displaying an order that
would lock or cross a quotation of another market center at the time it
is displayed. Preventing inferior prices from displaying perfects the
mechanism of a free and open market and a national market system, and,
in general to protect investors and the public interest.
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\14\ See Phlx Rule 1086.
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Finally, the Exchange proposes to provide at new Rule 1096(e),
similar to Rule 1019(c) which states, ``Orders will be displayed in the
System as described in Rule 1099.''
The Exchange's proposal to adopt a new Rule 1096, ``Entry and
Display of Orders'' and describe the current requirements and
conditions for entering orders, similar to proposed changes to Rule
1019 for quotes is consistent with the Act because it will provide
transparency as to manner in which orders may be submitted to the
System. The Exchange's new rule reflects the current requirements for
submitting orders into the System. Similar to proposed Rule 1019, the
Exchange proposes to memorialize requirements and limitations within
one rule for ease of reference.
Rule 1097, Limitations on Order Entry
The Exchange proposes to adopt a new Rule 1097, titled
``Limitations on Order Entry,'' and relocate rule text from Rule 1080.
The Exchange proposes to adopt rule text within new Rule 1097(a) which
rule is similar to ISE Options 3, Section 22(b) as follows:
Limit Orders. Members shall not enter public customer limit
orders into the System in the same options series, for the account
or accounts of the same or related beneficial owners, in such a
manner that the beneficial owner(s) effectively is operating as a
market maker by holding itself out as willing to buy and sell such
options contract on a regular or continuous basis. In determining
whether a beneficial owner effectively is operating as a market
maker, the Exchange will consider, among other things: The
simultaneous or near-simultaneous entry of limit orders to buy and
sell the same options contract and the entry of multiple limit
orders at different prices in the same options series.
Specifically, Phlx Rule 1080(j) is similar to ISE Options 3,
Section 22(b) in that it prohibits public customers,\15\ which are
equivalent to ISE Priority Customers, from entering limit orders into
the Order Book in the same option series in a manner where the public
customer is effectively operating as a market maker by holding itself
out as willing to buy and sell such options contract on a regular or
continuous basis. Both rules are [sic] extend to beneficial owners.
Phlx rule [sic] 1080(j) provides, ``[i]n determining whether an off
floor member or beneficial owner effectively is operating as a market
maker, the Exchange will consider, among other things: The simultaneous
or near-simultaneous entry of limit orders to buy and sell the same
options contract; the multiple acquisition and liquidation of positions
in the same options series during the same day; and the entry of
multiple limit orders at different prices in the same options series.''
This language is the same as ISE's Options 3, Section 22(b). Because
Phlx has a trading floor, the ``off floor'' references are in Phlx Rule
1080(j) and no such references are in the ISE Rules. Further, Phlx's
Rule 1080(j) provides, ``The limitation set forth in this Rule 1080(j)
does not apply to the accounts of off-floor broker dealers or
Professionals as the term is defined in Rule 1000(b)(14).'' Phlx Rule
1080(j) therefore would apply to accounts for public customers, and
prevent public customers from conducting business as a market maker.
ISE Options 3, Section 22(b) was adopted to limit the ability of
Electronic Access Members that are not market makers to compete on
preferential terms within ISE's automated systems,\16\ including
Priority Customers, who are provided with certain benefits, such as
priority of bids and offers. ISE's Prior Rule Change noted that it did
not believe it was necessary to impose Options 3, Section 22
restrictions on the entry of Professional or broker-dealer orders
because the same priority does not exist.
[[Page 32799]]
Both rules therefore apply to same market participants. The Exchange
notes that the Phlx and ISE Rules are substantively the same, despite
the difference in the rule text.
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\15\ For purposes of this rule change, the term ``public
customer'' shall mean a person or entity that is not a broker or
dealer in securities and is not a Professional, as that term is
defined within Phlx Rule 1000(b)(14).
\16\ See Securities Exchange Act Release No. 63017 (September
29, 2010), 75 FR 61795 (October 6, 2010) (SR-ISE-2010-95) (``Prior
Rule Change'').
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On Phlx, ROTs (as well as Specialists) are required to register
with the Exchange.\17\ On Phlx, ROTs are entitled to certain
allocations \18\ and preferential pricing \19\ and are obligated to
submit Valid Width Quotes during the opening \20\ and quotes intra-
day.\21\ The Exchange believes that public customers that desire to
make markets on Phlx should register with the Exchange. The Exchange
also notes that ROTs are restricted from entering orders on Phlx as
described within Rule 1080(b). The Exchange also proposes to amend the
title from ``Limitations on Orders'' to ``Limit Orders.'' The Exchange
notes that the term ``Phlx XL'' is the same as the defined term
``System.'' \22\ Finally, the Exchange proposes to remove the final
sentence, ``Notwithstanding the foregoing, the limitation in Rule
1080(j) above will continue to apply to all-or-none orders submitted by
Professionals to the Exchange.'' Rule 1078 notes that All-or-None
Orders may be only be entered by Public Customers. This order type was
recently amended and therefore this limitation is unnecessary.\23\
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\17\ See Phlx Rule 507.
\18\ See Rule 100(g)(vi).
\19\ See Phlx's Pricing Schedule at Options 8.
\20\ See Phlx Rule 1017.
\21\ See Phlx Rule 1081.
\22\ The term ``System'' shall mean the automated system for
order execution and trade reporting owned and operated by the
Exchange which comprises: (A) An order execution service that
enables members to automatically execute transactions in System
Securities; and provides members with sufficient monitoring and
updating capability to participate in an automated execution
environment; (B) a trade reporting service that submits ``locked-
in'' trades for clearing to a registered clearing agency for
clearance and settlement; transmits last-sale reports of
transactions automatically to the Options Price Reporting Authority
(``OPRA'') for dissemination to the public and industry; and
provides participants with monitoring and risk management
capabilities to facilitate participation in a ``locked-in'' trading
environment; and (C) the data feeds described at Rule 1070. See Phlx
Rule 1000(b)(45).
\23\ See Securities Exchange Act Release No. 85262 (March 7,
2019), 84 FR 9192 (March 13, 2019) (SR-Phlx-2019-03).
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The Exchange proposes to relocate rule text from current Rule
1080(c)(ii)(C)(2) to proposed Rule 1097(b). Current Rule
1080(c)(ii)(C)(2) provides,
Principal Transactions: Order Entry Firms may not execute as
principal against orders on the limit order book they represent as
agent unless: (a) Agency orders are first exposed on the limit order
book for at least one (1) second, (b) the Order Entry Firm has been
bidding or offering on the Exchange for at least one (1) second
prior to receiving an agency order that is executable against such
order, (c) the Order Entry Firm proceeds in accordance with the
crossing rules contained in Rule 1064, (d) the orders are entered
into Price Improvement XL or ``PIXL'' pursuant to Rule 1087, (e) the
orders are entered into the Complex Order Live Auction or ``COLA''
pursuant to Rule 1080, Commentary .02(c)(ii)(e), or (f) orders
entered into the Qualified Contingent Cross or ``QCC'' mechanism
pursuant to Rules 1080(o).
This rule provides for the exposure of orders entered on Phlx.
Specifically, with respect to orders entered as where a Phlx member is
acting as agent and principal on an order, the order must be exposed
for one second prior to execution to allow an opportunity for price
improvement. The Exchange has filed for certain functionalities which
are exceptions to the general standard of one second exposure. These
functionalities have provisions which describe the manner in which
orders can be entered into the Price Improvement XL or ``PIXL''
mechanism \24\ the Complex Order Live Auction or ``COLA'' \25\ pursuant
to Rule 1098(e); or the Qualified Contingent Cross or ``QCC''
mechanism.\26\ Further, Phlx Rule 1064 permits members to cross orders
provided certain contingencies are met. This rule is intended to
encourage price discovery and price improvement of all orders entered
on Phlx. The Exchange proposes to utilize the broader term ``members''
instead of the specific term ``Order Entry Firms'' \27\ as this rule
applies to all members. The Exchange has updated the current rule
references.
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\24\ See Phlx Rule 1087.
\25\ See Rule 1098(e) or (f).
\26\ See Rule 1088.
\27\ The term ``Order Entry Firms'' is described in Rule
1080(c)(ii) as a member organization of the Exchange that is able to
route orders to AUTOM. Replacing the term ``Order Entry Firm'' with
``member'' does not change the meaning on the sentence.
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The Exchange proposes to delete the rule text from current Rule
1080(c)(ii)(C)(2) and (3) which provides,
Solicitation Orders. Order Entry Firms must expose orders they
represent as agent for at least one (1) second before such orders
may be automatically executed, in whole or in part, against orders
solicited from members and non-member broker-dealers to transact
with such orders, except for: (a) Orders entered into PIXL pursuant
to Rule 1087, (b) orders entered into COLA pursuant to Rule 1080,
Commentary .02(c)(ii)(e), or (c) orders entered into the QCC
mechanism pursuant to Rules 1080(o).
(3) It shall be a violation of Rule 1080(c)(ii)(C) for any
Exchange member or member organization to be a party to any
arrangement designed to circumvent Rule 1080(c)(ii)(C) by providing
an opportunity for a customer, member, member organization, or non-
member broker-dealer to execute immediately against agency orders
delivered to the Exchange, whether such orders are delivered via
AUTOM or represented in the trading crowd by a member or a member
organization, except for: (a) Orders entered into PIXL pursuant to
Rule 1087, (b) orders entered into COLA pursuant to Rule 1080,
Commentary .02(c)(ii)(e), or (c) orders entered into the QCC
mechanism pursuant to Rules 1080(o).
This language is repetitive of language currently within current
Rule 1080(c)(ii)(C)(1). Current Rule 1080(c)(ii)(C)(1) requires
exposure similar to of one second and describes the same behavior as
current Rule 1080(c)(ii)(C)(2) and (3) and lists the same exceptions.
The Exchange does not believe that this rule text is necessary or
covers a scenario that is not contemplated by current Rule
1080(c)(ii)(C)(2) and (3). The Exchange believes that this rule was
merely the inverse of the rule for principal transactions.
The Exchange proposes new rule text at proposed Rule 1097(c)(1)
which is the same rule text within ISE Options 3, Section 22 at
Supplementary Material .01 and is similar to rule text at Phlx Rule
1087(f), related to PIXL. Rule 1097(b)(1) would provide,
This Rule prevents a member from executing agency orders to
increase its economic gain from trading against the order without
first giving other trading interest on the Exchange an opportunity
to either trade with the agency order or to trade at the execution
price when the Member was already bidding or offering on the book.
However, the Exchange recognizes that it may be possible for an
member to establish a relationship with a customer or other person
(including affiliates) to deny agency orders the opportunity to
interact on the Exchange and to realize similar economic benefits as
it would achieve by executing agency orders as principal. It will be
a violation of this Rule for a member to be a party to any
arrangement designed to circumvent this Rule by providing an
opportunity for a customer or other person (including affiliates) to
regularly execute against agency orders handled by the member
immediately upon their entry into the System.
The Exchange believes that specifically noting this prohibition
within the proposed rule will assist members in understanding the type
of behavior that would violate Exchange rules when executing agency
orders. Specifically, today pursuant to Phlx Rule 707, ``Conduct
Inconsistent with Just and Equitable Principles of Trade,'' it would be
violative for members to execute agency orders to increase its economic
gain from trading against the order without first giving other trading
[[Page 32800]]
interest on Phlx an opportunity to either trade with the agency order
or to trade at the execution price when the member was already bidding
or offering on the book. The Exchange proposes to make clear with this
Rule that members may not gain by failing to expose orders submitted on
an agency basis. The Exchange is promoting transparency of orders to
prevent members from seeking price discovery and potentially preventing
price improvement which may result from exposing an order.
The Exchange proposes to add a new rule at 1097(c) which provides,
``Prior to or after submitting an order to Phlx, a member cannot inform
another member or any other third party of any of the terms of the
order for purposes of violating Rule 1095.'' Similar rule text is
contained in The Nasdaq Options Market LLC (``NOM'') Rules.\28\ The
Exchange believes that adding this language will better information
participants that Rule 1097 prohibits such behavior. The Exchange
desires to conform the language in this rule to that of affiliated
Nasdaq markets.
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\28\ See NOM Rules at Chapter VII, Section 12 at Commentary .04.
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The Exchange's proposal to adopt a new Rule 1097 will conform
proposed Rule 1097 to other Nasdaq affiliated markets filing similar
rules.\29\ The Exchange's proposal to add rule text to describe
potential violations of this rule will bring greater clarity to current
limitations that exist when entering orders. Proposed Rule 1097 is
consistent with the Act because it provides one rule for ease of
reference which list the current limitations within Rule 1080 and some
additional limitations. The Exchange believes the proposed rule will
promote just and equitable principles of trade and remove impediments
to and perfect the mechanism of a free and open market and a national
market system because it will continue to make clear the requirement to
expose orders as well as present more specific limitations on order
entry which would violate Phlx Rules. Providing members with more
information as to the type of behavior that is violative with respect
to order exposure will prevent inadvertent violations of Exchange rules
and ensure that orders are subject to appropriate price discovery.
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\29\ Nasdaq ISE, LLC, Nasdaq GEMX, LLC, Nasdaq MRX, LLC, Nasdaq
BX, Inc. and Nasdaq Stock Market LLC are adopting similar rules to
proposed Phlx Rule 1097.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\30\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\31\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest as provided for within the purpose section.
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\30\ 15 U.S.C. 78f(b).
\31\ 15 U.S.C. 78f(b)(5).
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Phlx proposes amendments to Phlx Rule 1019 to create a list of all
the requirements and conditions for submitting quotes on Phlx within
one rule is consistent with the Act because it will provide greater
transparency to market participants of the applicable requirements. The
Exchange's proposal is intended to provide greater information with
respect to Firm Quote within new Rule 1019(b)(5) and regarding trade-
through and locked and crossed markets 1019(b)(6). The addition rule
text is consistent with the Act because the Exchange is adding detail
regarding the method in which orders which are firm or locked and
crossed will be handled in the System. The notifications for Firm Quote
are made clear with the proposed rule text. The Exchange believes that
it is consistent with the Act to specify when quotes are firm and the
handling of such quotes by the System for the protection of investors
and the general public. The clarity is designed to promote just and
equitable principles of trade by notifying all participants engaged in
market making of potential outcomes. Today, quotations may not be
executed against at prices that trade-through an away market. Also,
quotations may not lock or cross an away market. The repricing of
quotations is consistent with the Act because repricing prevents the
Exchange from disseminating a price which locks or crosses another
market. Phlx is required avoiding displaying a quotation that would
lock or cross a quotation of another market center at the time it is
displayed. Preventing inferior prices from displaying perfects the
mechanism of a free and open market and a national market system, and,
in general to protect investors and the public interest.
Similar to Rule 1019, which describes requirements for quotes, the
Exchange proposes to adopt a new Rule 1096, ``Entry and Display of
Orders'' and describe the current requirements and conditions for
entering orders. The Exchange notes that the requirements provided for
within this rule represent the current practice. The purpose of Rule
1096 is to memorialize this information within a single rule to provide
a list of other requirements which may impact the execution of an
order. Trades may be nullified today by agreement of the parties. The
Exchange believes that it is consistent with the Act to permit parties
to agree to a nullification provided the nullification does not violate
other exchange rules. The Exchange notes that parties may not agree to
a mutual agreement for purposes that would cause another rule to be
violated. The Exchange believes that it is consistent with the Act and
protection of investors and general public to make clear the expected
behavior with respect to nullifications.
Today, orders may not be executed at a price that trades through an
away market. Also, orders may not lock or cross an away market.
Routable orders must comply with Trade-Through and Locked and Crossed
Markets restrictions. The repricing of orders is consistent with the
Act because repricing prevents the Exchange from disseminating a price
which locks or crosses another market. Phlx is required avoiding
displaying an order that would lock or cross a quotation of another
market center at the time it is displayed. Preventing inferior prices
from displaying perfects the mechanism of a free and open market and a
national market system, and, in general to protect investors and the
public interest. The Exchange's proposal to adopt a new Rule 1096,
``Entry and Display of Orders'' and describe the current requirements
and conditions for entering orders, similar to proposed changes to Rule
1019 for quotes is consistent with the Act because it will provide
transparency as to manner in which orders may be submitted to the
System. The Exchange's new rule reflects the current requirements for
submitting orders into the System. Similar to proposed Rule 1019, the
Exchange proposes to memorialize requirements and limitations within
one rule for ease of reference.
The Exchange's proposal to adopt a new Rule 1097 will conform
proposed Rule 1097 to other Nasdaq affiliated markets filing similar
rules.\32\ The Exchange's proposal to add rule text to describe
potential violations of this rule will bring greater clarity to current
limitations that exist when entering orders. Proposed Rule 1097 is
consistent with the Act because it provides one rule for ease of
reference which list the current limitations within Rule 1080
[[Page 32801]]
and some additional limitations. The Exchange believes the proposed
rule will promote just and equitable principles of trade and remove
impediments to and perfect the mechanism of a free and open market and
a national market system because it will continue to make clear the
requirement to expose orders as well as present more specific
limitations on order entry which would violate Phlx Rules. Providing
members with more information as to the type of behavior that is
violative with respect to order exposure will prevent inadvertent
violations of Exchange rules and ensure that orders are subject to
appropriate price discovery.
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\32\ Nasdaq ISE, LLC, Nasdaq GEMX, LLC, Nasdaq MRX, LLC, Nasdaq
BX, Inc. and Nasdaq Stock Market LLC are adopting similar rules to
proposed Phlx Rule 1097.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange notes that
other options markets have similar rules with respect to order and
quote entry and the requirements to expose orders. The implementation
of such rules may vary across options markets. Despite the variation in
implementation, the Exchange does not believe this proposal creates an
undue burden on inter-market competition because the requirements for
order exposure are consistent with respect to all markets as well as
the ability to submit quotes and orders on all options markets.
Rule 1019, Acceptance of Quote and Orders
The Exchange's proposal to add Rule 1019(b) to describe the current
requirements and conditions for submitting quotes does not impose an
undue burden on competition and all Specialists and ROTs are subject to
these requirements today. The Exchange is memorializing its current
practice by reflecting the various requirements and limitations for
quote entry in one rule for ease of reference and clarity. The Exchange
is also proposing to conform this rule to similar rules across other
Nasdaq affiliated exchanges.
Rule 1080, Electronic Acceptance of Quotes and Orders
The Exchange's proposal to amend Rule 1080(a)(i)(B) to add the
following sentence to Specialized Quote Feed (``SQF''), ``Specialists,
SQTs and RSQTs may only enter interest into SQF in their assigned
options series'' is consistent with the Act because it will make clear
the manner in which quotes may be submitted to the System.
The Exchange's proposal to remove rule text within Rule 1080(k) and
memorializing the quoting requirements within Rule 1019 does not impose
an undue burden on competition and all Specialists and ROTs are subject
to these requirements today.
Rule 1096, Entry and Display of Orders
The Exchange's proposal to adopt a new Rule 1096, ``Entry and
Display of Orders'' and describe the current requirements and
conditions for entering orders, similar to proposed changes to Rule
1019 for quotes does not impose an undue burden on competition because
it applies uniformly to all members. This rule memorializes the manner
in which orders may be submitted to the System and provides
transparency as to manner in which orders may be submitted to the
System. The Exchange's new rule text memorializes the current
requirements for submitting orders into the System. Similar to proposed
Rule 1019, the Exchange proposes to memorialize requirements and
limitations within one rule for ease of reference. The Exchange is also
proposing to conform this rule to similar rules across other Nasdaq
affiliated exchanges.
Adding new rules for ``Nullification by Mutual Agreement and new
Rule 1096(a)(5) does not impose an undue burden on competition as these
rules apply to all members today and would be considered conduct
violate of Rule 707, ``Conduct Inconsistent with Just and Equitable
Principles of Trade.''
Rule 1097, Limitations on Order Entry
The Exchange's proposal to adopt a new Rule 1097, titled
``Limitations on Orders,'' and relocate rule text from current Rule
1080 will conform proposed Rule 1097 to other Nasdaq affiliated markets
filing similar rules.\33\ This rule will apply uniformly to all
members. The Exchange' proposal add new rule text at proposed Rule
1097(c)(1) which is the same rule text within ISE Options 3, Section 22
at Supplementary Material .01 and is similar to rule text at Rule
1087(f) related to PIXL will provide members greater transparency as to
the type of behavior that would violate Exchange rules when executing
agency orders. Additionally, adding a new rule at 1097(d), similar to
rule text is contained in NOM Rules,\34\ will better inform
participants that Rule 1097 prohibits such behavior. The Exchange
desires to conform the language in this rule to that of affiliated
Nasdaq markets.
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\33\ Nasdaq ISE, LLC, Nasdaq GEMX, LLC, Nasdaq MRX, LLC, Nasdaq
BX, Inc. and Nasdaq Stock Market LLC intend to adopt similar rules
to proposed Phlx Rule 1097.
\34\ See NOM Rules at Chapter VII, Section 12 at Commentary .04.
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Relocation of Kill Switch and Detection of Loss of Communication
The Exchange's proposal to relocate the rule text at Rule 1019(b),
Kill Switch, and (c), Detection of Loss of Communication, to new Rules
1073 and 1074, respectively does not impose an undue burden on
competition. The relocations are non-substantive and intended to
provide greater transparency to these rules by making them easier to
locate.
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 \35\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\36\
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\35\ 15 U.S.C. 78s(b)(3)(A)(iii).
\36\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
[[Page 32802]]
Electronic Comments
Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-Phlx-2019-25 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-Phlx-2019-25. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-Phlx-2019-25, and should be submitted on
or before July 30, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\37\
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\37\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-14494 Filed 7-8-19; 8:45 am]
BILLING CODE 8011-01-P