[Federal Register Volume 89, Number 147 (Wednesday, July 31, 2024)]
[Notices]
[Pages 61550-61554]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-16805]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-100599; File No. SR-Phlx-2024-26]


Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Options 2, 
Sections 5 and 10 and Options 3, Section 15

July 25, 2024.
    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 July 16, 2024, 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 amend Options 2, Sections 5 and 10 and 
Options 3, Section 15.
    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
    Phlx proposes to amend: (1) Directed Market Maker quoting 
obligations in Options 2, Section 5, Electronic Market Maker 
Obligations and Quoting Requirements; (2) a reference to ``Exchange's 
best price'' in Options 2, Section 10, Directed Orders; and (3) rule 
text related to the Acceptable Trade Range in Options 3, Section 15, 
Simple Order Risk Protections. Each change will be discussed below.
Options 2, Section 5
    The Exchange proposes to amend the rule text within Options 2, 
Section 5(c)(2)(C) related to the quoting obligations applicable to a 
Directed Market Maker.
    The current rule text states that Directed SQTs and Directed RSQTs, 
associated with the same member organization, are collectively required 
to provide two-sided quotations in 90% of the cumulative number of 
seconds, or such higher percentage as Phlx may announce in advance, for 
which that member organization's assigned options series are open for 
trading. With respect to a Directed Market Maker, Phlx currently 
requires that the Directed Market Maker provide two-sided quotations in 
90% of the cumulative number of seconds, or such higher percentage as 
Phlx may announce in advance, in any options series in which the 
Directed Market Maker has executed a Directed Order on a daily basis. 
Phlx requires the Market Maker to fulfill this requirement in addition 
to its

[[Page 61551]]

requirement to quote as a Market Maker or a Lead Market Maker.
    Below the Exchange presents examples of how the new rule text would 
operate.
Example 1
    [ssquf] Assume a Market Maker was assigned in options overlying 
AAPL, SPY, NFLX, ORCL and ADBE.
    [ssquf] Assume this Market Maker had previously executed a Directed 
Order and executes a Directed Order in NFLX and ADBE on February 27, 
2024.
    [ssquf] The Directed Market Maker obligation is a daily obligation 
once triggered and continues until the Directed Market Maker notifies 
the Exchange that it no longer desires to be a part of the Directed 
Order program.
    [ssquf] Moreover, on February 28, 2024 and each day thereafter the 
Directed Market Maker is required to provide two-sided quotations in 
90% of the cumulative number of seconds among all options series in 
which the Directed Market Maker has executed a Directed Order on a 
daily basis until a Directed Market Maker notifies the Exchange that it 
is no longer directed. Therefore, the Directed Market Maker would be 
required to quote at 90% of the cumulative number of seconds among all 
options series in which the Directed Market Maker has executed a 
Directed Order each day, regardless of whether the Directed Market 
Maker executed a Directed Order that day.
Obligations
    This Market Maker is required to provide two-sided quotations in 
60% of the cumulative number of seconds, or such higher percentage as 
Phlx may announce in advance, for which that member's assigned options 
series are open for trading among AAPL, SPY, and ORCL to fulfill its 
Market Maker obligation.
    Separately, this Market Maker would be obligated, separate and 
apart from its Market Maker obligations described in this example, to 
provide two-sided quotations in 90% of the cumulative number of 
seconds, or such higher percentage as Phlx may announce in advance, 
among NFLX and ADBE to fulfill its Directed Market Maker Obligation.
    This Market Maker would not be required to make two-sided markets 
in any Quarterly Option Series, any Adjusted Option Series, and any 
option series with an expiration of nine months or greater for options 
on equities and ETFs or with an expiration of twelve months or greater 
for index options in AAPL, SPY, NFLX, ORCL and ADBE when meeting its 
Market Maker or Directed Market Maker requirements.
Example 2
    [ssquf] Assume a Lead Market Maker was assigned in options 
overlying AAPL, SPY, NFLX, ORCL and ADBE.
    [ssquf] Assume this Lead Market Maker had previously executed a 
Directed Order and executes a Directed Order in NFLX and ADBE on 
February 27, 2024. The Directed Market Maker obligation is a daily 
obligation once triggered and continues until the Directed Market Maker 
notifies the Exchange that it no longer desires to be a part of the 
Directed Order program.
    [ssquf] The Directed Market Maker obligation is a daily obligation 
once triggered and continues until the Directed Market Maker notifies 
the Exchange that it no longer desires to be a part of the Directed 
Order program.
    [ssquf] Moreover, on February 28, 2024 and each day thereafter the 
Directed Market Maker is required to provide two-sided quotations in 
90% of the cumulative number of seconds among all options series in 
which the Directed Market Maker has executed a Directed Order on a 
daily basis until a Directed Market Maker notifies the Exchange that it 
is no longer directed. Therefore, the Directed Market Maker would be 
required to quote at 90% of the cumulative number of seconds among all 
options series in which the Directed Market Maker has executed a 
Directed Order each day, regardless of whether the Directed Market 
Maker executed a Directed Order that day.
Obligations
    This Lead Market Maker, associated with the same member, is 
collectively required to provide two-sided quotations in 90% of the 
cumulative number of seconds, or such higher percentage as Phlx may 
announce in advance, among AAPL, SPY, and ORCL to fulfill its Lead 
Market Maker obligation.\3\
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    \3\ See Options 2, Section 4(j)(1).
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    Separately, this Lead Market Maker would be obligated, separate and 
apart from its Lead Market Maker obligations described in this example, 
to provide two-sided quotations in 90% of the cumulative number of 
seconds, or such higher percentage as Phlx may announce in advance, 
among NFLX and ADBE to fulfill its Directed Market Maker obligation.
    This Market Maker would not be required to make two-sided markets 
in any Quarterly Option Series, any Adjusted Option Series, and any 
option series with an expiration of nine months or greater for options 
on equities and ETFs or with an expiration of twelve months or greater 
for index options in AAPL, SPY, NFLX, ORCL and ADBE when meeting its 
Lead Market Maker or Directed Market Maker requirements.
    The Exchange proposes to amend the rule text in Options 2, Section 
5(c)(2)(C) to require Directed Lead Market Makers, Directed SQTs and 
Directed RSQTs (collectively ``Directed Market Makers''),\4\ associated 
with the same member organization, collectively, to provide two-sided 
quotations in 90% of the cumulative number of seconds, or such higher 
percentage as Phlx may announce in advance, among all option series in 
which the Directed Market Maker has executed a Directed Order on a 
daily basis, except that a Directed Market Maker shall not be required 
to make two-sided markets in any Quarterly Option Series, any Adjusted 
Option Series, and any option series with an expiration of nine months 
or greater for options on equities and exchange-traded funds (``ETFs'') 
or with an expiration of twelve months or greater for index options. 
The Exchange notes that the proposed requirements are similar to 
requirements imposed by other options exchanges. NYSE Arca, Inc. 
(``NYSE Arca'') and NYSE American LLC (``NYSE American'') require that 
their lead market makers and market makers provide continuous two-sided 
quotations throughout the trading day in issues for which it receives 
Directed Orders for 90% of the time the Exchange is open for trading in 
each issue.\5\
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    \4\ The Exchange will utilize the term ``Directed Market 
Makers'' throughout to refer to Directed Lead Market Makers, 
Directed SQTs and Directed RSQTs. The Exchange will also utilize the 
term ``Market Maker'' in this 19b4 to refer to a Lead Market Maker, 
SQT and an RSQT. See Options 7, Section 1(b)(28), ``A `Market Maker' 
means a Streaming Quote Trader or a Remote Streaming Quote Trader 
who enters quotations for his own account electronically into the 
System.'' Further, see Options 7, Section 1(b)(27), ``A `Lead Market 
Maker' means a member who is registered as an options Lead Market 
Maker pursuant to Options 2, Section 12(a). A Lead Market Maker 
includes a Remote Lead Market Maker which is defined as a Lead 
Market Maker in one or more classes that does not have a physical 
presence on the Exchange's Trading Floor and is approved by the 
Exchange pursuant to Options 2, Section 11.''
    \5\ See NYSE Arca Rule 6.88-O and NYSE American Rule 964.1NY. 
NYSE Arca Rule 6.88-O(iv) states that these obligations will apply 
collectively to all series in all of the issues for which the 
Directed Order Market Maker receives Directed Orders, rather than on 
an issue-by-issue basis.
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    The Exchange also proposes to relocate certain rule text within 
Options 2, Section 5(c)(2)(C) to make clear the requirements applicable 
to a Directed Market Maker and make other amendments as well. The 
Exchange

[[Page 61552]]

proposes to amend the timeframe in which a Directed Market Maker is 
obligated to commence complying with the quoting obligations of Options 
2, Section 5(c)(2)(C).\6\ Today, a Directed Market Maker must commence 
complying with the quoting obligations specified in Options 2, Section 
5(c)(2)(C) when a Directed Market Maker receives a Directed Order in 
any option in which they are assigned until such time as the Directed 
Market Maker notifies the Exchange that they are no longer directed. 
Pursuant to Options 2, Section 10(a)(ii), ``[w]hen the Exchange's 
disseminated price is the NBBO at the time of receipt of the Directed 
Order, and the Directed Lead Market Maker, SQT or RSQT is quoting at 
the Exchange's best price, the Directed Order shall be automatically 
executed and allocated in accordance with Options 3, Section 
10(a)(1).'' The Exchange proposes to amend Options 2, Section 
5(c)(2)(C) to instead begin requiring a Directed Market Maker to comply 
with the Directed Market Maker quoting obligations in Options 2, 
Section 5(c)(2)(C) when the Directed Market Maker executes its first 
Directed Order in any option in which they are assigned. A Directed 
Market Maker has the ongoing quoting obligation from the time a 
Directed Market Maker executes its first Directed Order in the options 
in which the Directed Market Maker is assigned until a Directed Market 
Maker notifies the Exchange that the Directed Market Maker is no longer 
directed. Because Directed Market Makers are unaware if an order is 
directed to them until such time as they execute the Directed Order and 
receive an allocation pursuant to Options 3, Section 10, the Exchange 
believes that starting the quoting obligation once a Directed Order is 
executed is a practical approach to ensuring that Directed Market 
Makers comply with their quoting obligations.
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    \6\ Options 2, Section 5(c)(2)(C) provides that a member 
organization shall be considered directed in all assigned options 
once the member organization receives a Directed Order in any option 
in which they are assigned and shall be considered a Directed SQT or 
Directed RSQT until such time as the member organization notifies 
the Exchange that they are no longer directed.
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    The proposed rule text would provide,

    Directed Lead Market Makers, Directed SQTs and Directed RSQTs 
(``Directed Market Makers''), associated with the same member 
organization, are collectively required to provide two-sided 
quotations in 90% of the cumulative number of seconds, or such 
higher percentage as Phlx may announce in advance, among all options 
series in which the Directed Market Maker has executed a Directed 
Order on a daily basis, except that a Directed Market Maker shall 
not be required to make two-sided markets in any Quarterly Options 
Series, any Adjusted Options Series, and any options series with an 
expiration of nine months or greater for options on equities and 
ETFs or with an expiration of twelve months or greater for index 
options. A Directed Market Maker has the ongoing quoting obligation 
from the time a Directed Market Maker executes its first Directed 
Order in the options in which the Directed Market Maker is assigned 
until a Directed Market Maker notifies the Exchange that the 
Directed Market Maker is no longer directed.
    A Directed Market Maker shall not be required to make two-sided 
markets in any Quarterly Options Series, any Adjusted Options 
Series, and any options series with an expiration of nine months or 
greater for options on equities and ETFs or with an expiration of 
twelve months or greater for index options and would receive a 
participation entitlement in the Quarterly Options Series, the 
Adjusted Options Series, and an options series with an expiration of 
nine months or greater for options on equities and ETFs or with an 
expiration of twelve months or greater for index options for the 
Directed Order, only if it complies with the heightened 90% quoting 
requirement.

    As is the case today, a Directed Market Maker must be quoting at 
the Exchange's best price \7\ at the time of receipt of the Directed 
Order to be entitled to the allocation in accordance with Options 3, 
Section 10. The Exchange notes that the amendment adds clarity to the 
Exchange's current practice \8\ and harmonizes the rules of Phlx with 
those of other Nasdaq affiliated markets.
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    \7\ As part of this proposed rule change the Exchange is 
amending Options 2, Section 10(a)(ii) to replace the words 
``Exchange's best price'' with ``better of the internal PBBO or the 
NBBO.'' The ``internal PBBO'' is comprised of non-displayed and 
displayed orders on the Exchange's order book.
    \8\ Phlx noted in a 2018 rule change that if a member desired to 
become a Directed SQT that the quoting obligations specified in Rule 
1081(c)(ii)(C) (now Options 2, Section 5) would commence when that 
Directed SQT executed an order directed to the Directed SQT. See 
Securities Exchange Act Release No. 82975 (March 30, 2018), 83 FR 
14690, 14694 (April 5, 2018) (SR-Phlx-2018-22) (Notice of Filing of 
Proposed Rule Change To Create a New Rule 1081, To Amend Electronic 
Market Maker Obligations and Quoting Requirements for Electronic 
ROTs, Which Will Be Defined To Include SQTs, RSQTs, Directed SQTs, 
Directed RSQTs, Specialists, and Remote Specialists).
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Options 2, Section 10
    The Exchange proposes to amend Options 2, Section 10, Directed 
Orders. Specifically, Options 2, Section 10(a)(ii) provides, ``When the 
Exchange's disseminated price is the NBBO at the time of receipt of the 
Directed Order, and the Directed Lead Market Maker, SQT or RSQT is 
quoting at the Exchange's best price, the Directed Order shall be 
automatically executed and allocated in accordance with Options 3, 
Section 10(a)(1).'' The Exchange proposes to amend this sentence to 
replace the words ``Exchange's best price'' with ``better of the 
internal PBBO or the NBBO.'' The Exchange proposes this amendment to 
conform the rule text with language throughout the Options 3 trading 
rules that describe the Exchange's best price with references to the 
internal PBBO and NBBO. Pursuant to Options 3, Section 5, the System 
automatically executes eligible orders using the Exchange's displayed 
best bid and offer (``PBBO'') or the Exchange's non-displayed order 
book (``internal PBBO'') if there are non-displayed orders on the order 
book or the best bid and/or offer on the Exchange has been repriced 
pursuant to Options 3, Section 5(d) or Options 3, Section 4(b)(6) which 
describes trade-through compliance and locked and crossed markets. The 
Exchange also proposes to amend the citation to ``Options 3, Section 
10(a)(1)'' to the more precise citation ``Options 3, Section 
10(a)(1)(C)'' which describes the Directed Market Maker Priority 
allocation. The Exchange's amendment will bring additional clarity to 
current rule text and harmonize the rule text with Options 3 language.
Options 3, Section 15
    Today, Options 3, Section 15(b)(1)(A) provides that, ``Upon receipt 
of a new order/quote, the Reference Price is the better of the National 
Best Bid (``NBB'') or internal best bid for sell orders/quotes and the 
National Best Offer (``NBO'') or internal best offer for buy orders/
quotes, excluding All-or-None Orders which cannot be satisfied, or the 
last price at which the order/quote is posted whichever is higher for a 
buy order/quote or lower for a sell order/quote.'' The Exchange 
proposes to remove the phrase ``excluding All-or-None Orders which 
cannot be satisfied'' from the rule text. The Exchange previously filed 
a rule change \9\ to amend All-or-None Orders so that they may only be 
submitted by a Public Customer as an Immediate-or-Cancel Order. As a 
result of this rule change, All-or-None Orders no longer rest on the 
order book. Upon entry, an All-or-None Order is executed in its 
entirety or cancelled if it cannot execute. The Exchange inadvertently 
did not remove the aforementioned rule text which would require an All-
or-None Order to

[[Page 61553]]

rest to be applicable. At this time, the Exchange proposes to also 
remove this rule text reference to All-or-None Orders in Options 3, 
Section 15(b)(1)(A), similar to the other rule text rule references 
that were removed in SR-Phlx-2023-34.
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    \9\ See Securities Exchange Act Release No. 98142 (August 16, 
2023), 88 FR 57140 (August 22, 2023) (SR-Phlx-2023-34) (Nasdaq PHLX 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change To Amend Phlx's All-or-None Order) (``SR-Phlx-2023-34'').
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\10\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\11\ 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.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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Options 2, Section 5
    The Exchange's proposal to amend the Directed Market Maker quoting 
obligations in Options 2, Section 5(c)(2)(C) is consistent with the 
Act. Other options exchanges today require Directed Market Makers, 
collectively, to provide two-sided quotations in 90% of the cumulative 
number of seconds among all options series in which the Directed Market 
Maker has received a Directed Order on a daily basis. The proposed 
Directed Market Maker quoting obligations would require Directed Market 
Makers, collectively, to provide two-sided quotations in 90% of the 
cumulative number of seconds or such higher percentage as Phlx may 
announce in advance, among all options series in which the Directed 
Market Maker has executed a Directed Order on a daily basis in addition 
to their quoting requirements as Market Makers and Lead Market Makers.
    The Exchange believes that these quoting requirements create a 
direct nexus between the allocation that would be received by a 
Directed Market Maker pursuant to Options 3, Section 10 and the 
liquidity that the Directed Market Maker would be required to provide 
to the market in that particular options series. The Exchange notes 
that any Directed Market Maker quoting at the NBBO would need to 
provide two-sided quotations in 90% of the cumulative number of seconds 
among all options series in which the Directed Market Maker has 
executed a Directed Order for the entire day in which the Directed 
Market Maker received the Directed Order and each day thereafter, on a 
daily basis, until a Directed Market Maker notifies the Exchange that 
it is no longer directed. The Exchange believes that this quoting 
obligation is designed to promote just and equitable principles of 
trade by ensuring that Directed Market Makers quote competitively in as 
many series as possible to attract Directed Orders so that they may 
receive an enhanced allocation as a Directed Market Maker.
    The proposed rule text would harmonize the Directed Market Maker's 
quoting obligations with other options exchanges, such as NYSE Arca and 
NYSE American which require that their lead market makers and market 
makers provide continuous two-sided quotations throughout the trading 
day in issues for which it receives Directed Orders for 90% of the time 
the Exchange is open for trading in each issue.\12\
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    \12\ See supra note 5.
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    The Exchange's proposal to amend Options 2, Section 5(c)(2)(C) to 
require a Directed Market Maker to commence complying with the Options 
2, Section 5(c)(2)(C) quoting obligations when the Directed Market 
Maker executes its first Directed Order in any option in which they are 
assigned is a practical approach to ensuring that Directed Market 
Makers comply with their quoting obligations. Directed Market Makers 
are unaware if an order is directed to them until such time as they 
execute the Directed Order and receive an allocation pursuant to 
Options 3, Section 10. Further, the Exchange notes that a Directed 
Market Maker must be quoting at the Exchange's best price \13\ at the 
time of receipt of the Directed Order to be entitled to the allocation 
in accordance with Options 3, Section 10.
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    \13\ See supra note 7.
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Options 2, Section 10
    The Exchange's proposal to amend Options 2, Section 10, Directed 
Orders, to replace the words ``Exchange's best price'' with ``better of 
the internal PBBO or the NBBO'' is consistent with the Act. The 
proposed amendment will conform the rule text with language throughout 
the Options 3 trading rules that describe the Exchange's best price 
with references to the internal PBBO and NBBO. Additionally, the 
Exchange's amendment will protect investors and the general public by 
adding clarity to current rule text as well as harmonizing the rule 
text with Options 3 language.
Options 3, Section 15
    The Exchange's proposal to remove rule text within Options 3, 
Section 15(b)(1)(A), related to the Acceptable Trade Range, is 
consistent with the Act as SR-Phlx-2023-34 amended All-or-None Orders 
such that they may only be submitted by a Public Customer as an 
Immediate-or-Cancel Order. An All-Or-None Order will either execute 
immediately or be cancelled back to the member or member organization. 
The Exchange inadvertently did not remove the aforementioned rule text 
which would require an All-or-None Order to rest to be applicable. This 
change will remove the incorrect rule text and bring greater clarity to 
the rules.

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 2, Section 5
    The Exchange's proposal to amend the Directed Market Maker quoting 
obligations in Options 2, Section 5(c)(2)(C) does not impose an undue 
burden on competition as every Directed Market Maker would be required, 
collectively, to provide two-sided quotations in 90% of the cumulative 
number of seconds or such higher percentage as Phlx may announce in 
advance, among all options series in which the Directed Market Maker 
has executed a Directed Order for the entire day in which the Directed 
Market Maker received the Directed Order, on a daily basis, until a 
Directed Market Maker notifies the Exchange that it is no longer 
directed. The proposal does not impose a burden on inter-market 
competition as other options markets today impose similar quoting 
obligations.
    The Exchange's proposal to amend Options 2, Section 5(c)(2)(C) to 
require a Directed Market Maker to commence complying with the Options 
2, Section 5(c)(2)(C) quoting obligations when the Directed Market 
Maker executes its first Directed Order in any option in which they are 
assigned does not impose an undue burden on competition because all 
Directed Market Makers will be required to commence complying with 
Options 2, Section 5(c)(2)(C) when the Directed Market Maker executes 
its first Directed Order in any option in which they are assigned. The 
proposal does not impose a burden on inter-market competition as other 
options markets today impose similar quoting obligations and may amend 
their rules to mirror those of Phlx.
Options 2, Section 10
    The Exchange's proposal to amend Options 2, Section 10, Directed 
Orders, to replace the words ``Exchange's best price'' with ``better of 
the internal PBBO or the NBBO'' does not impose an

[[Page 61554]]

undue burden on competition because the amendment more specifically 
describes the Exchange's best price with references to the internal 
PBBO and NBBO. The Exchange's amendment will add clarity to current 
rule text.
Options 3, Section 15
    The Exchange's proposal to remove rule text within Options 3, 
Section 15(b)(1)(A), related to the Acceptable Trade Range, does not 
impose an undue burden on competition as All-or-None Orders may only be 
submitted by a Public Customer as an Immediate-or-Cancel Order. An All-
Or-None Order will either execute immediately or be cancelled back to 
the member or member organization. Removing the incorrect rule text 
will bring greater clarity to the rules.

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 \14\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\15\
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    \14\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \15\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-Phlx-2024-26 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-2024-26. 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-2024-26 and should be 
submitted on or before August 21, 2024.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-16805 Filed 7-30-24; 8:45 am]
BILLING CODE 8011-01-P