60 Day Notice

Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices
limited. In this regard, even the largest
U.S. equities exchange by volume only
has 17–18% market share, which in
most markets could hardly be
categorized as having enough market
power to burden competition. Moreover,
as noted above, price competition
between exchanges is fierce, with
liquidity and market share moving
freely between exchanges in reaction to
fee and credit changes. This is in
addition to free flow of order flow to
and among off-exchange venues which
comprised more than 37% of industry
volume for the month of July 2019.
In sum, the Exchange intends for the
proposed fees and credits and modified
QMM Program to increase member
incentives to remove liquidity from the
Exchange and to contribute to market
quality, which is reflective of fierce
competition for order flow noted above;
however, if the proposed fees and
credits are unattractive to market
participants, it is likely that the
Exchange will either fail to increase its
market share or even lose market share
as a result. Accordingly, the Exchange
does not believe that the proposed new
fees and credits will impair the ability
of members or competing order
execution venues to maintain their
competitive standing in the financial
markets.

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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act.14
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
14 15

U.S.C. 78s(b)(3)(A)(ii).

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change is consistent with the Act.
Comments may be submitted by any of
the following methods:

SECURITIES AND EXCHANGE
COMMISSION

Electronic Comments

Proposed Collection; Comment
Request

• Use the Commission’s internet
comment form (http://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
Phlx–2019–35 on the subject line.

Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736

Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–Phlx–2019–35. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (http://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–Phlx–2019–35 and should
be submitted on or before October 21,
2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–21093 Filed 9–27–19; 8:45 am]
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Extension:
Rule 17Ab2–2, SEC File No. 270–617, OMB
Control No. 3235–0728

Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 17Ab2–2 (17 CFR
240.17Ab2–2) under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.). The Commission plans to submit
this existing collection of information to
the Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Exchange Act Rule 17Ab2–2
establishes procedures for the
Commission to make a determination,
either of its own initiative or upon
application by any clearing agency or
member of a clearing agency, whether a
covered clearing agency is systemically
important in multiple jurisdictions and
procedures to determine, if the
Commission deems appropriate,
whether any of the activities of a
clearing agency providing central
counterparty services, in addition to
clearing agencies registered with the
Commission for the purpose of clearing
security-based swaps, have a more
complex risk profile. In addition,
Exchange Act Rule 17Ab2–2 provides a
procedure for the Commission to
determine whether to rescind any such
determinations previously made by the
Commission.
Because determinations made by the
Commission pursuant to Exchange Act
Rule 17Ab2–2 may be made upon the
request of a clearing agency, respondent
clearing agencies have the burden of
preparing such requests for submission
to the Commission.
Commission staff estimates that Rule
17Ab2–2 imposes a PRA burden on
registered clearing agencies that seek a
determination from the Commission
regarding the covered clearing agency’s
status as systemically important in
multiple jurisdictions. Commission staff
estimates that two registered clearing
agencies or their members on their
behalf will apply for a Commission
determination, or may be subject to a
Commission-initiated determination,
regarding whether a registered clearing

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Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices

agency is involved in activities with a
more complex risk profile or whether a
covered clearing agency is systemically
important in multiple jurisdictions.
Commission staff estimates that each
respondent clearing agency incurs a
one-time burden of 10 hours and a onetime cost of $2,000 to draft and review
a determination request submitted to the
Commission, for a total of 20 hours and
$4,000 for all respondents. The total
annualized burden and cost for all
respondents are 6.66 hours and
$1,333.33.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information will have practical utility;
(b) the accuracy of the Commission
staff’s estimates of the burden of the
proposed collection of information; (c)
the ways to enhance the quality, utility,
and clarity of the information collected;
and (d) ways to minimize the burden of
the collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
Any agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a valid
OMB control number.
Please direct your written comments
to: Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Candace
Kenner, 100 F Street NE, Washington,
DC 20549, or send an email to: PRA_
[email protected].
Dated: September 24, 2019.
Jill M. Peterson,
Assistant Secretary.

I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Exchange’s transaction fees at Equity 7,
Section 3, as described further below.
The text of the proposed rule change
is available on the Exchange’s website at
http://nasdaqphlx.cchwallstreet.com/,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
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 Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose

[FR Doc. 2019–21082 Filed 9–27–19; 8:45 am]
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[Release No. 34–87094; File No. SR–Phlx–
2019–35]

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(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 12, 2019, Nasdaq PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III, below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.

Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the
Exchange’s Pricing Schedule, at
Equity 7, Section 3

Presently, the Exchange has a pricing
schedule, at Equity 7, Section 3, which
sets forth several different fees that it
charges for orders in securities priced at
$1 or more per share that remove
liquidity from the Exchange and several
different credits that it providers for
orders in such securities that add
liquidity on the Exchange. The pricing
schedule also provides a supplemental
credit to member organizations that
make significant contributions to
improving the market during each
month. The Exchange proposes to
amend this pricing schedule to increase
removal activity on the Exchange and to
improve overall market quality.

September 24, 2019.

Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934

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Changes To Remove Fees
The Exchange proposes to largely
restate its schedule of charges for
member organizations that enter orders
that execute on the Exchange. Presently,
the Exchange charges a fee of $0.0029
per share executed in securities in all
three Tapes entered by a member
organization that accesses 0.065% or
more of Consolidated Volume 3 during a
month. For all other member
organizations, the exchange presently
charges execution fees of $0.0030 per
share executed. The Exchange proposes
to eliminate the $0.0029 fee and replace
it with two tiers of fees. First, the
Exchange proposes to charge a fee of
$0.0024 per share executed in securities
entered by a member organization that
accesses 0.055% or more of
Consolidated Volume during a month
and that adds 0.025% or more of
Consolidated Volume during a month.
Second, the Exchange proposes to
charge a fee of $0.0025 per share
executed in securities entered by a
member organization that accesses
0.01% or more of Consolidated Volume
during the month and that adds 5,000
shares or more to the Exchange during
a month. The Exchange proposes to
maintain its existing $0.0030 per share
executed fee for all other member
organizations.
The purpose of these changes, which
will reduce the overall fees that the
Exchange charges to member
organizations that remove liquidity from
the Exchange, is to increase the extent
of member organizations’ removal
activity on the Exchange. Moreover, by
tying the availability of the two new,
reduced removal fees to the extent of
member organizations’ liquidity adding
activity on the Exchange, the Exchange
intends to incentivize member
organizations to maintain or increase
their liquidity adding activity on the
Exchange at the same time that they
increase their removal activity, which in
turn will help to improve overall market
quality.
Changes To Add Credits
Additionally, the Exchange proposes
to largely restate its schedule of credits
to member organizations that provide
displayed liquidity to the Exchange.
3 As used in Equity 7, Section 3, the term
‘‘Consolidated Volume’’ means the total
consolidated volume reported to all consolidated
transaction reporting plans by all exchanges and
trade reporting facilities during a month in equity
securities, excluding executed orders with a size of
less than one round lot. For purposes of calculating
Consolidated Volume and the extent of a member’s
trading activity, the date of the annual
reconstitution of the Russell Investments Indexes
are excluded from both total Consolidated Volume
and the member’s trading activity.

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