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Federal Register / Vol. 86, No. 26 / Wednesday, February 10, 2021 / Notices time priority among all Public Customer Orders if the size contingency can be met. All-or-None Orders have a quantity contingency requiring the full quantity of the order to execute in order for any trade to take place which may cause the order to not execute. If an Allor-None Order contingency cannot be met, the All-or-None Order would be bypassed until such time as the contingency could be met.
The PHLX Orders data feed displays all orders on the Phlx Order Book with original information, this is in contrast to the Top of PHLX Options feed, which is not being amended by this proposal, that only provides information as to the displayed Order Book. The Exchange does not disseminate All-or-None Orders to either the Top of PHLX
Options feed or the OPRA data feed because All-or-None Orders may only execute if the contingency can be met, otherwise the System would bypass the All-or-None Order. As such, All-orNone Orders are non-displayed to avoid locking or crossing away markets by displaying this order type which may not execute because of the contingency attributed to the order pursuant to the Options Order Protection and Locked/
Crossed Plan.36 The Exchange does display All-Or-None Orders on the PHLX Orders data feed to inform market participants of orders that are available for execution. Public Customers submitting All-or-None Orders on Phlx desire their orders to be executed and the display of those orders on the PHLX
Orders data feed allows other member organizations to see their orders are available to execute against those orders.
Similar to Phlx, Cboe permits all-ornone orders to rest in its order book and does not disseminate all-or-none orders to OPRA.37 Similar to Phlx, Cboe 36 17 CFR 242.608. Pursuant to Section 6 of the Plan, Locked and Crossed Markets, The Participants agree that they shall establish, maintain and enforce written rules that: a Require their members reasonably to avoid displaying Locked and Crossed Markets; b Are reasonably designed to assure the reconciliation of Locked and Crossed Markets; and c Prohibit its members from engaging in a pattern or practice of displaying Locked and Crossed Markets; in all cases subject to such exceptions as may be contained in the rules of a Participant approved by the Commission.
37 Cboe Rule 5.6b provides, . . . An All-orNone or AON order is an order to be executed in its entirety or not at all. An AON order may be a market or limit order. Users may not designate an AON order as All Sessions. 1 The Exchange does not disseminate bids or offers of AON orders to OPRA. 2 A User may not designate an AON order as Post Only. 3 An AON limit order is always subject to the Price Adjust process as set forth in Rule 5.32. 4 A User may apply MCN as defined below, but no other MTP Modifier if a User applies any other MTP Modifier to an AON order, the System handles it as an MCN, to an AON order.

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displays all-or-none orders on its Depth of Book feed.38 The proposed amendments represent the current information contained in the PHLX
Orders feed. The proposed amendments are intended to add more description and bring greater clarity to the rule text.

will make clear the order types that are available for execution on the Trading Floor. Today, FLEX Options are executed in open outcry on the Trading Floor and not through the Options Floor Broker Management System as provided for within Options 8, Section 22B.40

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

B. Self-Regulatory Organizations Statement on Burden on Competition
Options 8, Section 2
The Exchanges proposal to add a new defined term, Floor Lead Market Maker is consistent with the Act and will bring greater clarity to the Options 8 rules. This term is currently utilized within the Options 8 rules.
The Exchanges proposal to add an introductory sentence within Options 8, Section 2a is a non-substantive amendment which will bring greater clarity to the rule text. The addition of the word Organization within Options 8, Section 2a5 will correct the rule text to provide for a defined term.
Options 8, Section 32
The Exchanges proposal to amend Options 8, Section 32 to add FLEX
Option to the list of order types that are available on Phlx is consistent with the Act because the addition of FLEX
Options within Options 8, Section 34
5 The Exchange may restrict the entry of AON
orders in a series or class if the Exchange deems it necessary or appropriate to maintain a fair and orderly market. 6 A User may not designate a bulk message as AON.
38 See Section 4.5 of this specification. https
cdn.cboe.com/resources/membership/US_
EQUITIES_OPTIONS_MULTICAST_PITCH_
SPECIFICATION.pdf.
39 See note 24 above.

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The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.
Options 1, Section 1
The Exchanges proposal to update the cross reference within Options 1, Section 1b46 and make other grammatical amendments within Options 1, Section 1 does not impose an undue burden on competition as these amendments are non-substantive.
Options 2, Section 4
The Exchanges proposal to add a title to Options 2, Section 4c1 to make clear that this section applies intra-day does not impose an undue burden on competition because it will bring greater clarity to the rule text.
The Exchanges proposal to remove the phrase, or its decimal equivalent rounded down to the nearest minimum increment within Options 2, Section 4c1 does not impose an undue burden on competition. This is a nonsubstantive amendment because the bid/ask differentials may be as wide as the spread between the national best bid and offer in the underlying security, if rounding up it would cause the spread to be wider than the underlying spread, so rounding is superfluous.
Options 2, Section 6
The Exchanges proposal to update certain terms within Options 2, Section 6 conform the rule with the use of terms in the Rulebook 41 and does not impose an undue burden on competition. These changes are non-substantive.
Options 3, Section 6
The Exchanges proposal to amend Options 3, Section 6 to re-number and re-letter the rule to conform to Phlxs rule structure, update rule citations, and add spacing where necessary does not impose an undue burden on competition as these amendments are non-substantive.
The Exchanges proposal to amend current Options 3, Section 6aiiB2givA4 does not 40 See 41 See
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note 25 above.
note 3 above.

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