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Federal Register / Vol. 86, No. 26 / Wednesday, February 10, 2021 / Notices proposes to update several rule citations to rules which were previously relocated in the Prior Relocation Rule Change. Accordingly, rule citations to the following rules are being updated with this proposal: Rule 133 now Rule 3101; Rule 703 now Options 6D, Section 1; Rule 707 currently PSX Rule 3503; 4 Rule 765 now General 9, Section 1a; Rule 910 now General 3, Section 1; Rule 911 now General 3, Section 12; Rule 985 now General 2, Section 4; and Rule 1092 now Options 3, Section 20.
General 1
The Exchange proposes to add a title under General 1 General Provisions which states Section 1 Definitions.
Also, the Exchange proposes to update rule citations to relocated rules as well as rule citations to rules which were previously relocated in the Prior Relocation Rule Change. The Exchange notes that The Nasdaq Stock Market LLC Nasdaq recently amended certain rule citations which also impact proposed changes herein, particularly with respect to General 4 rule numbering.5

General 2
The Exchange proposes to relocate Rule 3600. Regulatory Services Agreements to General 2, Section 5, which was reserved. The Exchange proposes to update rule citations to rules which were previously relocated in the Prior Relocation Rule Change.
General 4
The Exchange proposes to re-title General 4 as Registration Requirements. The rule is currently titled Regulation. The Exchange proposes to add a period at the end of General 4, Section 1. The Exchange also proposes to amend rule numbering to conform with a recent Nasdaq rule change.6
General 5
The Exchange proposes to relocate the text of Minor Rule Violations rules into General 5. Today, the Minor Rule Violations, except for violations of General 7, are delineated within General 5. The Exchange proposes to relocate the rule text of each Minor Rule violation rule from the PSX Rulebook into General 5 and remove the
duplicative list of Minor Rule Violations from the PSX Rulebook. With respect to violations of General 7, the Exchange proposes to add General 7, Failure to Comply with the Consolidated Audit Trail Compliance Rule requirements, into the list of Equity Floor Procedure Advices within General 5, Section 3, Code of Procedure. General 7 was recently added to The Equity Minor Rule Violations.7 The Exchange also proposes to remove the reference in General 5 to A5 Training as there is no corresponding Minor Rule Plan for A
5.
The Exchange proposes to remove Floor from the title Equity Floor Procedure Advices as PSX is an electronic only market.
The Exchange proposes to delete the title A. Miscellaneous, E. Staffing, F. Miscellaneous, and S. PreOpening Procedures, Rule 60
Regulations including Regulation 1
Regulations 7 from the PSX Rulebook.
General 9
The Exchange proposes to relocate the below rules into General 9.

Shell rule
Current rule
General 9, Section 1c

3503. Conduct Inconsistent with Just and Equitable Principles of Trade.
3504. Acts Detrimental to the Interest or Welfare of the Exchange
3507. Telemarketing
3506. Anti-Money Laundering Compliance Program

General 9, Section 1d
General 9, Section 5
General 9, Section 37

Deleted options rule
Today, the Rulebook contains both an equity and option rule, which are identical, for Conduct Inconsistent with Just and Equitable Principles of Trade, Acts Detrimental to the Interest or Welfare of the Exchange, Telemarketing, and Anti-Money Laundering Compliance Program. The Exchange is relocating a version of each of these rules to General 9 and eliminating the corresponding options and equity rules.
The General 9 rules apply to both the equity and options markets.
The Exchange also proposes a number of corrective changes to Disruptive Quoting and Trading Activity Prohibited which was relocated to General 9, Section 53 in the Prior Relocation Rule Change. First, in Section 53a, the Exchange proposes to update the references to subsections i
and ii to subsections 1 and 2.
Second, the Exchange proposes in Section 53a1Bii to update the reference to paragraph bi to paragraph Bi. The Exchange proposes to reserve Section 71 to harmonize Phlxs rule numbers with Nasdaq.

4 PSX Rule 3503 is being relocated to General 9, Section 1c as proposed herein.
5 See Securities Exchange Act Release No. 90577
December 7, 2020, 85 FR 80202 December 11, 2020 SRNASDAQ2020079 Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Relocate Its Equity and General Rules
From Its Current Rulebook Into Its New Rulebook Shell.
6 Id.
7 See Securities Exchange Act Release No. 89667
August 25, 2020, 85 FR 53876 August 31, 2020
SRPhlx202040 Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Add the Consolidated Audit Trail
VerDate Sep<11>2014

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Equity 1
The Exchange proposes to relocate Rule 3301, Equity Definitions, into new Equity 1, Section 1. The Exchange is amending the first sentence of new Equity 1, Section 1 to provide, The following definitions apply to the Equity Rules for the trading of securities on PSX. While Rule 3301 currently provides that the definitions apply to the Rule 3200 and 3300 Series, the Exchange notes that the definitions
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Options 9, Section 1.
Options 9, Section 5.
Options 10, Section 23.
Options 9, Section 21.

apply to all rules under the heading Equity Rules and therefore proposes to amend the current text further to apply the relocated definitions to the entire section related to the equity market.
The definition for PSX Participant currently is defined to mean, . . . an entity that fulfills the obligations contained in Rule 3211 regarding participation in the System, and shall include: . . .. PSX Rule 3211 was previously deleted.8 Phlx Rule 1094
became applicable to the market participants trading on PSX with the Rule 3211 Removal Rule Change. Phlx Rule 1094 was relocated to General 2, Section 22 in the Prior Phlx Relocation Rule Change.

Industry Member Compliance Rules to the List of Minor Rule Violations.
8 See Securities Exchange Act Release No. 76452
November 17, 2015, 80 FR 73019 November 23, 2015 SRPhlx201593 Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Sponsored Access Rule 3211 Removal Rule Change.

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