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Federal Register / Vol. 86, No. 26 / Wednesday, February 10, 2021 / Notices that this order type is not eligible for FBMS.
2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6b of the Act,27 in general, and furthers the objectives of Section 6b5 of the Act,28
in particular, in that it is designed to promote just and equitable principles of trade and to protect investors and the public interest.
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 are nonsubstantive.
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 is consistent with the Act 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 is a non-substantive 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, which conforms with a previously filed rule change,29 is consistent with the Act. The updates to change the names of the terms 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 are nonsubstantive amendments.
The Exchanges proposal to amend current Options 3, Section 6aiiB2givA4 is consistent with the Act. While processing an order that is working through Acceptable Trade Ranges, if that order encounters a situation where the Exchanges next available price is the ABBO that also equals the outer limit of the Acceptable Trade Range, the order is able to post at 27 15

U.S.C. 78fb.
U.S.C. 78fb5.
29 See note 3 above.

its limit price on the Order Book after routing after it is executed with quotes at the away exchange. Any unexecuted contracts which return to the Exchange may post at their original limit price with a new timestamp, subject to certain entry checks. Order entry checks are applied for new orders when they post to the Order Book as provided for in Phlx Options 3, Section 5a4. This proposed rule text protects investors and the general public because it will provide market participants with an expectation of how the System will handle orders that remain unexecuted in this scenario. 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.30 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 or cancel back an order after exhausting its potential to trade upon entry. Further, this amendment provides more liquidity on the Exchange with the order posting to the Order Book, instead of potentially being cancelled after a 10 second period.
The Exchanges proposal to amend current Options 3, Section 6aiiB4a, to replace the term cancelled immediately with rejected conforms the rule text to other uses of the word rejected within the Rulebook. This amendment is nonsubstantive.
Finally, the Exchanges proposal to amend Supplementary Material .02 to Options 3, Section 6 to remove the phrase, resulting in the dissemination of a locked quotation e.g., $1.00
bid1.00 offer is consistent with the Act. This phrase is out of date as under the current Locked and Crossed Market Plan, the Exchange would not disseminate a locked quotation. Rather, the Exchange would reprice its quote as described within Options 3, Section 4b6. The Exchange believes that this rule text existed prior to the Locked and Crossed Market Plan and was not updated since that plan came into existence. The amendment will protect investors and the general public by removing this inaccurate statement.

Options 3, Section 7
Similar to the changes proposed within Options 2, Section 6, the Exchanges proposal to replace the term Registered Options Traders or ROTs with Market Makers and replace Specialists with Lead Market Makers within Options 3, Section 7
conforms the usage of these terms within Phlxs Rulebook.31 These nonsubstantive amendments which update outdated terms within Options 3, Section 7 is consistent with the Act.
The Exchanges proposal to amend All-or-None Orders within Options 3, Section 7b5 to add more language to the description of an All-or-None Order is consistent with the Act because the proposed rule text will bring greater transparency to this order type. The Exchange today provides that All-orNone Orders are non-displayed and non-routable. To expand on this notion, the Exchange proposes to amend the sentence to provide, All-or-None Orders are non-routable. The Exchange does not disseminate bids or offers of All-or-None Orders to OPRA and the Top of PHLX Options feed, however All-or-None Orders are displayed in the PHLX Orders and PHLX Depth of Book feed. This additional rule text will make clear that these order types are not disseminated on OPRA. Further, the Exchange proposes to add, If an All-orNone Order contingency cannot be met, the All-or-None Order would be bypassed until such time as the contingency could be met. This language is intended to make clear that an All-or-None Order will not cause other orders to queue until such time as the All-or-None Order may execute.
Rather, the All-or-None Order will rest on the Order Book until the contingency will be met, at which time that Public Customer All-or-None Order will have priority over other orders on the Book.
The Exchange believes the addition of this rule text will bring greater transparency to the current System handling of All-or-None Orders.
The Exchanges proposal to amend Options 3, Section 7c3, Opening Only, to correct incorrect rule text, and also add a clarifying sentence, is consistent with the Act. Today, Options 3, Section 7c3 provides, An Opening Only OPG order is entered with a TIF of OPG. This order can only be executed in the Opening Process pursuant to Options 3, Section 8. This order type would continue to not be valid outside of the Opening Process.
This order type is not subject to any protections listed in Options 3, Section
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