Voglio sapere a riguardo di…

Federal Register / Vol. 86, No. 136 / Tuesday, July 20, 2021 / Notices Options 8, Sections 8 and 12
The Exchange proposes to update cross citations to General 4 Rules within Options 8, Section 8, Trading Floor Registration and Options 8, Section 12, Clerks to reflect The Nasdaq Stock Market LLCs Nasdaq General 4 rule numbering that was amended.9 These amendments are non-substantive.
The Exchange proposes to amend Options 8, Section 12, Clerks, at subparagraph c to remove the phrase or assigned to their employers clearing firm. Previously, Clearing Members operated posts on the Trading Floor.
Member organizations were able to assign clerks to operate from those posts. Clearing Member posts no longer exist on the Trading Floor and therefore this language is obsolete.
Options 8, Section 22
The Exchange proposes to update a citation to Options 8, Section 22a3.
The citation is incorrect and should instead refer to Options 8, Section 22a2. There is no Options 8, Section 22a3. Similar changes are also proposed for Options 8, Section 28e2
and Options 8, Section 39 at C2 to correct improper citations.

khammond on DSKJM1Z7X2PROD with NOTICES

Options 8, Section 28
The Exchange proposes to amend Options 8, Section 28, Responsibilities of Floor Brokers, at subsection g to replace the word limit with electronic before the term order book. The term electronic order book makes clear the order book is being described. Also, the Exchange notes that, today, Floor Brokers may enter limit,10 market,11 stop-limit or stop orders 12 into the electronic order book.
9 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.
10 A Limit Order is an order to buy or sell a stated number of option contracts at a specified price, or better. See Options 8, Section 32a2.
11 A Market Order is an order to buy or sell a stated number of option contracts and is to be executed at the best price obtainable when the order reaches the post. See Options 8, Section 32a1.
12 A Stop-Limit Order is a contingency order to buy or sell at a limited price when a trade or quote on the Exchange for a particular option contract reaches a specified price. A Stop-Limit Order to buy becomes a Limit Order executable at the limit price or better when the option contract trades or is bid on the Exchange at or above the stop-limit price. A
Stop-Limit Order to sell becomes a Limit Order executable at the limit price or better when the option contract trades or is offered on the Exchange at or below the stop-limit price.
A Stop Order is a contingency order to buy or sell when a trade or quote on the Exchange for a particular option contract reaches a specified price.
A Stop Order to buy becomes a Market Order when
VerDate Sep<11>2014

17:00 Jul 19, 2021

Jkt 253001

Options 8, Section 28g only refers to limit orders when it should have also noted market, stop-limit and stop orders. With respect to remotely entering limit orders into the electronic order book through FBMS, the Prior Rule Change stated that this capability exists to enable Floor Brokers to access electronic liquidity and/or to clear priority orders on the limit order book prior to transacting an order in the trading crowd through FBMS.13 Placing limit orders on the electronic order book does not require exposure in open outcry and allows Floor Brokers the ability to clear resting Customer orders from the limit order book for their customers in the event that a Customer order had priority on the limit order book that would otherwise prevent a Floor Qualified Contingent Cross Order from being entered in compliance with Options 8, Section 30e.14 The Exchange notes that Floor Brokers may also utilize market, stop-limit and stop orders to clear resting Customers orders from the electronic order book. Also, placing market, stop-limit and stop orders on the electronic order book does not require exposure in open outcry today.
Options 10, Section 20
The Exchange proposes to update a reference to Phx Rule 1049 within Options 10, Section 20, Options Communications. Phlx Rule 1049 was the prior reference to Options 10, the option contract trades or is bid on the Exchange at or above the stop price. A Stop Order to sell becomes a Market Order when the option contract trades or is offered on the Exchange at or below the stop price.
Notwithstanding the foregoing, a Stop or StopLimit Order shall not be elected by a trade that is reported late or out of sequence. See Options 8, Section 32b1 and 2.
13 See Securities Exchange Act Release No. 68960
February 20, 2013, 78 FR 13132, 13134 February 26, 2013 SRPhlx201309 Notice of Filing of Proposed Rule Change To Enhance the Functionality Offered on Its Options Floor Broker Management System FBMS by, Among Other Things, Automating Functions Currently Performed by Floor Brokers. This filing provided the following explanation, For example, if a Floor Broker enters a two-sided order through the new FBMS and there is an order on the book at a price that prevents the Floor Brokers order from executing, FBMS will indicate to the Floor Broker how many contracts need to be satisfied before the Floor Brokers order can execute at the agreed-upon price. If the Floor Broker agrees to satisfy that order, consistent with the order placed in his care, he can cause FBMS to send a portion of one of his orders to Phlx XL to trade against the order on the book, thereby clearing it and permitting the remainder of the Floor Brokers order to trade. This functionality is optional in the sense that the Floor Broker can decide not to trade against the book, consistent with order instructions he has been given, and therefore not execute his two-sided order at that particular price. Phlx XL refers to the electronic order book.
14 See supra note 5.

PO 00000

Frm 00116

Fmt 4703

Sfmt 4703

38379

Section 20.15 At this time the Exchange proposes to replace Nasdaq PHLX Rule 1049 with Options 10, Section 20. In addition the Exchange proposes to replace Nasdaq PHLX throughout this rule with Phlx to conform the reference to the Exchange to the remainder of the Rulebook.
2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6b of the Act,16 in general, and furthers the objectives of Section 6b5 of the Act,17
in particular, in that it is designed to promote just and equitable principles of trade and to protect investors and the public interest.
Options 8, Section 2
The Exchanges proposal to alphabetize the existing definitions within Options 8, Section 2 is consistent with the Act as the definitions will become easier to locate. Amending the definition of a Presiding Exchange Official at current Options 8, Section 2a4 to add /her next to his in two places is a non-substantive rule change. These amendments are intended to bring greater clarity to the Options 8 Rules.
The proposal to define Floor Transaction as a transaction that is effected in open outcry on the Exchanges Trading Floor is consistent with the Act. This term is currently defined within Phlx Options 7, Section 1 for the purposes of pricing. The defined term is consistent with the use of that term in the current rules. This defined term will bring greater clarity to the Options 8 Rules.
The Exchanges proposal to define Remote FBMS Transaction is consistent with the Act. The Exchange recently amended Options 8, Section 28, Responsibilities of Floor Brokers at subsection g and Section 30, Crossing, Facilitation and Solicited Orders at subsection e to permit Floor Brokers to utilize the FBMS remotely,18
to enter certain orders that do not require exposure in open outcry.19 The proposed term Remote FBMS
Transaction would serve to provide members and member organizations a description of the manner in which a Floor Broker may remotely transact 15 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.
16 15 U.S.C. 78fb.
17 15 U.S.C. 78fb5.
18 See supra note 4.
19 See supra note 5.

E:FRFM20JYN1.SGM

20JYN1