Voglio sapere a riguardo di…

8956

Federal Register / Vol. 86, No. 26 / Wednesday, February 10, 2021 / Notices
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 Organizations Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Phlx Rules at Options 1, Section 1, Applicability, Definitions and References; Options 2, Section 4, Obligations of Market Makers;
Options 2, Section 6, Market Maker Orders; Options 3, Section 6, Firm Quotations; Options 3, Section 7, Types of Orders and Order and Quote Protocols; Options 3, Section 10, Electronic Execution Priority and Processing in the System; Options 3, Section 13, Price Improvement XL
PIXL; Options 3, Section 15, Simple Order Risk Protections;
Options 3, Section 23, Data Feeds and Trade Information; Options 5, Section 4, Order Routing; Options 8, Section 2, Definitions; and Options 8, Section 32, Types of Floor-Based Non-System Orders. Each change is described below.
Options 1, Section 1
The Exchange proposes to update the cross reference within Options 1, Section 1b46 to Options 1, Section 1b45 and make other non-substantive grammatical amendments within Options 1, Section 1.
Options 2, Section 4
The Exchange proposes to add a title to Options 2, Section 4c1 to make clear that this section applies intra-day.
The Exchange proposes to add the title, Intra-Day Bid/Ask Differentials Quote Spread Parameters.
Additionally, the Exchange proposes to remove the phrase, or its decimal equivalent rounded down to the nearest minimum increment within Options 2, Section 4c1. 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.

VerDate Sep<11>2014

18:53 Feb 09, 2021

Jkt 253001

Options 2, Section 6
The Exchange previously filed a rule change 3 to replace the term Registered Options Traders or ROTs with Market Makers and replace Specialists with Lead Market Makers. The Exchange is updating this rule to conform to those prior changes.
Options 3, Section 6
The Exchange proposes 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.
The Exchange also proposes to amend current Options 3, Section 6aiiB2givA4, which provides, A If the Best Price is the Exchanges next available price . . .
and is also equal to both the ABBO price and the Acceptable Range price, any remainder order volume from the execution on the Exchange will be routed away, and if after such routing, there still remain unexecuted contracts, the remainder will be posted on the Phlx at the Acceptable Range price for a period not to exceed ten seconds, and then cancelled after this time has elapsed, unless the member that submitted the original order has instructed the Exchange in writing to reenter the remaining size, in which case the remaining size will be automatically submitted as a new order. During this up to ten second period, the System will disseminate, on the opposite side of the market from remaining unexecuted contracts: i A non-firm bid for the price and size of the next available bids on the Exchange if the remaining size is a seller, or ii a non-firm offer for the price and size of the next available offers on the Exchange if the remaining size is a buyer.
The Exchange proposes to amend the sentence which provides, If the Best Price is the Exchanges next available price . . . and is also equal to both the ABBO price and the Acceptable Trade Range price, any remainder order volume from the execution on the Exchange will be routed away, and if after such routing, there still remain unexecuted contracts, the remainder will be posted on the Phlx at the Acceptable Trade Range price for a period not to exceed ten seconds, and then cancelled after this time has elapsed, unless the member that submitted the original order has instructed the Exchange in writing to reenter the remaining size, in which case the 3 See Securities Exchange Act Release No. 88213
February 14, 2020, 85 FR 9859 February 20, 2020
SRPhlx202003 Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Relocate Rules From Its Current Rulebook Into Its New Rulebook Shell.

PO 00000

Frm 00075

Fmt 4703

Sfmt 4703

remaining size will be automatically submitted as a new order.

This statement does not represent the current function of the System. The Exchange proposes to amend the rule text to properly represent system functionality. Today, in this scenario, if the Exchanges next available price is the ABBO price which equates to the Acceptable Trade Range price after the remaining order has routed away and executed with quotes at the away exchange and the unexecuted contracts are returned to the Exchange, the incoming order may post at its original limit price, with a new timestamp and would be subject to certain entry checks. The Exchange proposes to amend the sentence to correctly provide, If the Best Price is the Exchanges next available price . . . and is also equal to both the ABBO price and the Acceptable Trade Range price, any remainder order volume from the execution on the Exchange will be routed away, and if after such routing, there still remain unexecuted contracts, the unexecuted contracts would post to the Order Book at their Limit Order price, with a new timestamp, subject to order entry price checks.

The order entry checks are applied for new orders when they post to the Order Book as provided for in Phlx Options 3, Section 5a4. The Exchange filed prior rule changes 4 which established Phlxs System as it exists today. As the new System was amended through a series of rule changes, certain technology was automated to prevent any manual intervention, and provide Systemenforced functionalities. The Exchange believes that this process was modified with certain enhancements which further automated the System. The proposed amendment provides the market participant with greater certainty as to the order. Further, the Exchange offers market participants various options with respect to routing. A
market participant may elect to route as a FIND or SRCH Order which provides the Exchange with instructions as to how an order may route anew once posted on the Order Book.5 A market participant may also choose to submit an order with varying TIF options e.g., DAY, IOC, GTC that provide the Exchange instructions as to how to either post an order on the Order Book 4 See Securities Exchange Act Release Nos. 50100
July 27, 2004, 69 FR 46612 August 3, 2004 SR
Phlx200359; 55498 March 20, 2007, 72 FR
14318 March 27, 2007 SRPhlx200715; 59995
May 28, 2009, 74 FR 26750 June 3, 2009 SR
Phlx200932; and 72152 May 12, 2014, 79 FR
28561 May 16, 2014 SRPhlx201432.
5 Options 5, Section 4 describes the various options routing functionalities available on Phlx.

E:FRFM10FEN1.SGM

10FEN1