[Federal Register Volume 88, Number 221 (Friday, November 17, 2023)]
[Notices]
[Pages 80363-80364]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25386]



[[Page 80363]]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-98919; File No. SR-PHLX-2023-48]


Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Delay the 
Implementation of the FLEX and Cabinet Automation

November 13, 2023.
    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 November 9, 2023, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to delay the implementation of SR-Phlx-2023-
22.\3\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 97658 (June 7, 
2023), 88 FR 38562 (June 13, 2023) (SR-Phlx-2023-22) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Various Options 8 Rules) (``SR-Phlx-2023-22'').
---------------------------------------------------------------------------

    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 delay the implementation of a rule change 
to automate FLEX and Cabinet Orders. The Exchange previously filed SR-
Phlx-2023-22, a rule change that amended several Phlx Options 8 rules 
related to Phlx's trading floor.
FLEX Orders
    With respect to FLEX Orders, SR-Phlx-2023-22 amended FLEX Orders in 
3 ways. First, the Exchange amended the rules to require FLEX Orders to 
be reported into Phlx's Options Floor Based Management System or 
``FBMS,'' thereby further automating the execution and reporting of 
FLEX Options. All executed FLEX contracts will be reported to OPRA and 
sent to The Options Clearing Corporation (``OCC'') for clearing, 
similar to all other equity, equity index and U.S. dollar-settled 
foreign currency options orders executed on the Exchange's trading 
floor. Second, the Exchange removed its RFQ process including the BBO 
Improvement Interval Process, with the rule change. Third, the Exchange 
reorganized Options 8, Section 34 to restructure the rule to include 
additional information which describes current FLEX trading on Phlx.
Cabinet Options
    With respect to Cabinet Orders, SR-Phlx-2023-22 amended Options 8, 
Section 33 to require Cabinet Orders to be reported into FBMS. With 
this change, members and member organizations will be required to 
record all Cabinet Orders represented in the trading crowd into FBMS. 
All executed contracts will be reported to OPRA and sent to OCC for 
clearing similar to all other equity, equity index and U.S. dollar-
settled foreign currency options orders executed on the Exchange's 
trading floor.
    SR-Phlx-2023-22 stated that the rule change would be implemented on 
or before March 29, 2024. At this time, the Exchange proposes to delay 
the implementation of SR-Phlx-2023-22 to on or before August 30, 2024 
to permit the Exchange additional time to code and test the 
functionality. The Exchange would issue an Options Trader Alert 
announcing the exact implementation date to members and member 
organizations.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\4\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\5\ 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. 
The Exchange's proposal to delay the implementation of SR-Phlx-2023-22 
to on or before August 30, 2024 is consistent with the Act and the 
protection of investors and the general public as it will permit the 
Exchange additional time to code and test the functionality.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act. The Exchange's proposal to delay the implementation of SR-
Phlx-2023-22 to on or before August 30, 2024 does not impose any burden 
on competition as it will permit the Exchange additional time to code 
and test the functionality.

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 \6\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\7\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \7\ 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.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the

[[Page 80364]]

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 (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-PHLX-2023-48 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-2023-48. 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 (https://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 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of the Exchange. Do not 
include personal identifiable information in submissions; you should 
submit only information that you wish to make available publicly. We 
may redact in part or withhold entirely from publication submitted 
material that is obscene or subject to copyright protection. All 
submissions should refer to file number SR-PHLX-2023-48 and should be 
submitted on or before December 8, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-25386 Filed 11-16-23; 8:45 am]
BILLING CODE 8011-01-P