
[Federal Register Volume 78, Number 126 (Monday, July 1, 2013)]
[Notices]
[Pages 39429-39432]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-15623]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69845; File No. SR-Phlx-2013-46]


Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order 
Granting Approval To Proposed Rule Change, as Modified by Amendment No. 
1, Regarding Complex Order PIXL

June 25, 2013.

I. Introduction

    On April 30, 2013, NASDAQ OMX PHLX LLC (the ``Exchange'' or 
``Phlx'') filed with the Securities and Exchange Commission 
(``Commission'') pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to amend Phlx Rule 1080 to accommodate Complex 
Orders in Phlx's price-improving electronic auction (``PIXL,'' ``PIXL 
Auction,'' or ``Auction''). On May 8, 2013, the Exchange filed 
Amendment No. 1 to the proposed rule change. The proposed rule change, 
as amended, was published for comment in the Federal Register on May 
15, 2013.\3\ The Commission received no comments on the proposal. This 
order approves the proposed rule change, as amended.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 69550 (May 9, 2013), 
78 FR 28654 (May 15, 2013) (``Notice'').
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II. Description of the Proposal

    Phlx proposes to amend Rule 1080 to accommodate Complex Orders in 
PIXL. Specifically, current Phlx Rule 1080(n) provides that a Phlx 
member (an ``Initiating Member'') may electronically submit for 
execution an order it represents as agent on behalf of a public 
customer, broker-dealer, or any other entity (a ``PIXL Order'') against 
principal interest or against any other order it represents as agent 
(an ``Initiating Order'').\4\ The submitted orders are then stopped at 
a price and entered into a PIXL Auction seeking price improvement. Phlx 
Rule 1080(n) currently does not permit Complex Orders to be entered 
into the PIXL. This proposed rule change would permit Phlx members to 
send Complex Orders to the PIXL.\5\
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    \4\ See Phlx Rule 1080(n); see also Securities Exchange Act 
Release No. 63027 (October 1, 2010), 75 FR 62160 (October 7, 2010) 
(approving rules establishing the PIXL Auction for simple orders).
    \5\ A Complex Order is defined as ``an order involving the 
simultaneous purchase and/or sale of two or more different options 
series in the same underlying security, priced as a net debit or 
credit based on the relative prices of the individual components, 
for the same account, for the purpose of executing a particular 
investment strategy.'' See Phlx Rule 1080 Commentary .08(a)(i).
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A. Auction Eligibility and Auction Process

    In order for a Complex Order to initiate a PIXL Auction, the 
Complex Order must be of a conforming ratio \6\ and must be stopped at 
a price that is better than the best net price (debit or credit) that 
is (1) available on the Complex Order book regardless of the Complex 
Order book size; and (2) achievable from the best Phlx bids and offers 
for the individual options (an ``improved net price''), provided in 
either case that such price is equal to or better than the PIXL Order's 
limit price.\7\ The Exchange notes that requiring a Complex Order to be 
stopped at a net debit/credit price that improves upon the stated 
markets present for the individual components of the Complex Order 
ensures that at least one option leg will be executed at a better price 
than the established bid or offer for such leg.\8\
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    \6\ Conforming ratios for Complex Orders are defined in 
Commentary .08(a)(i) and (a)(ix) to Phlx Rule 1080. Complex Orders 
consisting of a ratio other than a conforming ratio will not be 
accepted. See Notice, 78 FR at 28657.
    \7\ See proposed Phlx Rule 1080(n)(i)(C); see also Notice, 78 FR 
at 28657 for an example of an eligible Complex Order on PIXL. This 
provision, as applied to Complex Orders whose smallest leg is less 
than 50 contracts, is effective for a pilot period scheduled to 
expire on July 18, 2013.
    \8\ See Notice, 78 FR at 28657.
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    In order to initiate a PIXL Auction for a Complex Order (``Complex 
Order PIXL Auction''), the Initiating Member must mark the Complex PIXL 
Order for Auction processing, and specify either: (1) a single price at 
which it seeks to execute the PIXL Order (a ``stop price''); or (2) 
that it is willing to either: (a) stop the entire order at a single 
stop price and auto-match responses to the Complex Order PIXL Auction 
(``PAN responses'' or ``Complex Order PAN responses'') and trading 
interest at a price or prices that improve the stop price to a 
specified price (a ``Not Worse Than'' or ``NWT'' price); or (b) stop 
the entire order at a single stop price and auto-match all PAN 
responses and trading interest at or better than the stop

[[Page 39430]]

price.\9\ As with the simple order PIXL Auction, once the Initiating 
Member has submitted a Complex Order into PIXL, such order may not be 
modified or cancelled.\10\ However, the stop price or NWT price may be 
improved to the benefit of the PIXL Order during the Complex Order PIXL 
Auction.\11\
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    \9\ See proposed Phlx Rule 1080(n)(ii)(A)(2); see also Notice, 
78 FR at 28657 for a description of how the initiation of PIXL 
Complex Order Auction differs from a PIXL Auction for orders that 
are not complex.
    \10\ See proposed Phlx Rule 1080(n)(ii)(A)(2).
    \11\ See id.
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    Like PIXL Auctions for simple orders, Complex Order PIXL Auctions 
will last for one second, unless the Complex Order PIXL Auction 
terminates early.\12\ Complex Order PAN responses may be submitted by 
any member.\13\ The minimum price increment for PAN responses and an 
Initiating Member's stop price and/or NWT price for a Complex Order 
PIXL Auction will be $0.01.\14\ A Complex Order PAN response must be 
equal to or better than the cPBBO \15\ at the time of receipt of the 
Complex Order PAN response.\16\
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    \12\ See proposed Phlx Rule 1080(n)(ii)(A)(4). For a description 
of the circumstances in which the Complex Order PIXL Auction 
terminates early, see text accompanying notes 17 to 19, infra.
    \13\ See proposed Phlx Rule 1080(n)(ii)(A)(5). PAN responses, 
among other things, must be properly marked specifying price, size 
and side of the market; will not be visible to PIXL Auction 
participants; will not be disseminated to the Options Price 
Reporting Authority (``OPRA''); and may not exceed the size of the 
PIXL Order at any given price point. See proposed Phlx Rule 
1080(n)(ii)(A)(5)-(7).
    \14\ See proposed Phlx Rule 1080(n)(ii)(A)(7)(b). For a simple 
order PIXL Auction, the minimum price increment for a PAN response 
and for an Initiating Member's stop and/or NWT price is the minimum 
price increment established in Phlx Rule 1080(n)(ii)(A)(1). See Phlx 
Rule 1080(n)(ii)(A)(6), renumbered as proposed Phlx Rule 
1080(n)(ii)(A)(7)(a).
    \15\ See proposed Phlx Rule 1080(n)(ii)(A)(9). The term 
``cPBBO'' means the best net debit or credit price for a Complex 
Order Strategy based on the PBBO for the individual options 
components of such Complex Order Strategy, and, where the underlying 
security is a component of the Complex Order, the National Best Bid 
and/or Offer for the underlying security. See Phlx Rule 1080 
Commentary .08(a)(iv).
    \16\ See proposed Phlx Rule 1080(n)(ii)(A)(9). A Complex Order 
PAN response submitted with a price that is outside the cPBBO will 
be rejected as will a PAN response submitted with a price inferior 
to the stop price of the PIXL Order. See id.
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    As with a simple order PIXL Auction, a Complex Order PIXL Auction 
will conclude at the earlier of the end of the Auction period \17\ or 
any time there is a trading halt on the Exchange in the affected 
series.\18\ In addition, a Complex Order PIXL Auction will conclude any 
time the cPBBO or the Complex Order book cross the Complex PIXL Order 
stop price on the same side of the market as the Complex PIXL 
Order.\19\
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    \17\ See Phlx Rule 1080(n)(ii)(B)(1).
    \18\ See proposed Phlx Rule 1080(n)(ii)(B)(4). This provision is 
effective for a pilot period set to expire July 18, 2013. See 
proposed Phlx Rule 1080(n)(ii)(B)(5). Additionally, Phlx proposes 
that an unrelated market or marketable limit Complex Order on the 
opposite side of the market from the Complex PIXL Order as well as 
orders for the individual components of the Complex Order received 
during the Auction will not cause the Auction to end early and will 
execute against interest outside of the Auction. If contracts remain 
from such unrelated order at the time the Complex Order PIXL Auction 
ends, they will be considered for participation in the order 
allocation process described in Section II.B infra, and in proposed 
Phlx Rule 1080(n)(ii)(E). See proposed Phlx Rule 1080(n)(ii)(D).
    \19\ See proposed Phlx Rule 1080(n)(ii)(B)(3). This provision is 
effective for a pilot period set to expire July 18, 2013. See 
proposed Phlx Rule 1080(n)(ii)(B)(5). See also infra notes 29-30 and 
accompanying text.
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    The Exchange also proposes to modify its existing rules to provide 
that all PIXL Orders submitted during the final two seconds of the 
trading session will not be eligible to initiate an Auction and will be 
rejected.\20\
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    \20\ See proposed Phlx Rule 1080(n)(i)(F).
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B. Complex PIXL Order Execution and Allocation

    Order execution and allocation in a Complex PIXL Auction is similar 
to order execution and allocation in a simple order PIXL Auction.\21\ 
If the Initiating Member selected the single stop price option of the 
Complex Order PIXL Auction, the Complex PIXL Order will be executed at 
prices that improve the stop price and then at the stop price, with up 
to 40% of the remaining contracts after public customer complex 
interest is satisfied being allocated to the Initiating Member at the 
stop price.\22\ If only one other participant matches the stop price, 
then the Initiating Member may be allocated up to 50% of the contracts 
remaining after public customer complex interest is satisfied at such 
price.\23\ Complex Orders on the PHLX Complex Order Book, PAN 
responses, and quotes and orders which comprise the cPBBO at the end of 
the Auction will be considered for allocation against the Complex PIXL 
Order at a given price point in the following order: (1) Public 
customer Complex Orders and PAN responses in time priority; (2) SQT, 
RSQT, and non-SQT ROT Complex Orders and PAN responses on a size pro-
rata basis; (3) non-market maker off-floor broker-dealer Complex Orders 
and PAN responses on a size pro-rata basis, and (4) quotes and orders 
which comprise the cPBBO at the end of the PIXL Auction, with public 
customer interest at that price being satisfied first in time priority, 
followed by SQT, RSQT, and non-SQT ROT interest satisfied on a size 
pro-rata basis, and then non-market maker off-floor broker-dealers on a 
size pro-rata basis (collectively (1)-(4), the ``Allocation 
Algorithm'').\24\ Thereafter, any remaining contracts, if any, will be 
allocated to the Initiating Member, after public customer Complex 
Orders and PAN responses have been satisfied.\25\
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    \21\ See 1080(n)(ii)(E)(2)(a)-(c) for a detailed description of 
order allocation for a simple PIXL Auction.
    \22\ See proposed Phlx Rule 1080(n)(ii)(E)(2)(d). See also 
Notice, 78 FR at 28658-59 for examples illustrating the execution 
and allocation of a Complex PIXL Order where the Initiating Member 
selected the single stop price option.
    \23\ See proposed Phlx Rule 1080(n)(ii)(E)(2)(d).
    \24\ See id.
    \25\ See id.
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    If the Initiating Member selected the ``stop and NWT'' price option 
of the Complex Order PIXL Auction, the Complex PIXL Order will be 
executed in the following order: (i) First to Complex Orders and PAN 
responses at prices better than the NWT price, as well as to quotes and 
orders which comprise the cPBBO if such cPBBO is better than the NWT 
price, pursuant to the Allocation Algorithm and (ii) next, to Complex 
Orders and PAN responses, as well as to quotes and orders which 
comprise the cPBBO at the end of the Auction, at the Initiating 
Member's NWT price and at prices better than or equal to the Initiating 
Member's stop price, beginning with the NWT price.\26\ The Initiating 
Member will be allocated an equal number of contracts as the aggregate 
size of all other interest at each price point, except that the 
Initiating Member shall be entitled to receive up to 40% (or 50% if 
matching only one other participant) of the contracts remaining at the 
final price point (including situations where the final price is the 
stop price), after public customer Complex Orders and PAN responses 
have been satisfied.\27\ If there is other interest at the final price 
point the contracts will be allocated to such interest pursuant to the 
Allocation Algorithm, and any remaining contracts shall be allocated to 
the Initiating Member.\28\
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    \26\ See proposed Phlx Rule 1080(n)(ii)(E)(2)(e)(i). See also 
Notice, 78 FR at 28660 for an example illustrating the execution and 
allocation of a Complex PIXL Order where the Initiating Member 
selected the ``stop and NWT'' option.
    \27\ See proposed Phlx Rule 1080(n)(ii)(E)(2)(e)(ii). In the 
case of an Initiating Order with a NWT price at the market, the 
Initiating Member shall be allocated an equal number of contracts as 
the aggregate size of all other interest at all price points, except 
that the Initiating Member shall be entitled to receive up to 40% 
(or 50% if matching only one other participant) of the contracts 
remaining at the final price point (including situations where the 
final price is the stop price), after public customer Complex Orders 
and PAN responses have been satisfied. See id.
    \28\ See proposed Phlx Rule 1080(n)(ii)(E)(2)(e)(ii).

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[[Page 39431]]

    If a Complex Order PIXL Auction concludes due to the cPBBO or the 
Complex Order book crossing the Complex PIXL Order stop price,\29\ the 
entire Complex PIXL Order will be executed at the stop price against 
executable PAN responses and executable Complex Orders pursuant to the 
Allocation Algorithm.\30\ In addition if Complex Order PAN responses 
cross the then-existing cPBBO at the time of the conclusion of the 
Auction, such PAN responses will be executed, if possible, at their 
limit prices.\31\
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    \29\ See, supra note 19 and accompanying text.
    \30\ See proposed Phlx Rule 1080(n)(ii)(C), and supra note 24 
and accompanying text. See also Notice, 78 FR at 28658 for an 
example of Complex PIXL Order execution and allocation when the 
cPBBO or the Complex Order book crosses the Complex Order PIXL stop 
price on the same side as the Complex PIXL Order.
    \31\ See proposed Phlx Rule 1080(n)(ii)(F).
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    Finally, the proposed rule change provides for the execution of a 
Complex PIXL Order when the Complex Order PIXL Auction price matches a 
Complex Order book price on the same side of the market as the Complex 
PIXL Order. Specifically, the proposal provides that if the Complex 
Order PIXL Auction price is the same as that of a Complex Order on the 
Complex Order Book on the same side of the market as the Complex PIXL 
Order, the PIXL Order may only be executed at a price that is at least 
one minimum price improvement increment better than the resting order's 
limit price; or if such resting order's limit price is equal to or 
crosses the stop price, then the entire PIXL Order will trade at the 
stop price with all better priced interest being considered for 
execution at the stop price.\32\
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    \32\ See proposed Phlx Rule 1080(n)(ii)(H). See also Notice, 78 
FR at 28658 for an example of Complex PIXL Order execution pursuant 
to this provision. This rule is similar to existing Phlx Rule 
1080(n)(ii)(G), which includes a parallel provision for simple order 
PIXL Auctions. Phlx also proposes modifying Phlx Rule 1080(n)(ii)(G) 
such that, if there is an order on the limit order book, on the same 
side of the market as the PIXL Order, which is ``equal to or 
crosses'' the stop price, then the entire PIXL Order will trade at 
the stop price with all better priced interest being considered for 
execution at the stop price. Currently, this rule provides that the 
entire PIXL Order will trade at the stop price with all better 
priced interest being considered for execution at the stop price 
only if there is an order on the limit order book on the same side 
of the market as the PIXL Order which crosses the stop price. See 
Phlx Rule 1080(n)(ii)(G).
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    The Exchange believes that that the proposed execution and 
allocation of Complex PIXL Orders ensures and maintains the priority of 
established interest as Complex PIXL Orders must be stopped at a price 
which improves upon all interest in the Phlx XL system at the time of 
receipt.\33\ The Exchange also notes that the proposed allocation 
system for Complex Order PIXL Auctions ensures that public customer 
Complex Order interest will maintain priority over non-public customer 
Complex Order interest, and public customer interest comprising the 
cPBBO will be afforded priority over non-public customer interest 
comprising the cPBBO.\34\ However, public customer interest comprising 
the cPBBO will not have priority over Complex Order or PAN response 
interest.\35\ The Exchange believes that because all participant types, 
including public customers, may respond to an Auction notification, 
public customer interest comprising the cPBBO that choose not to avail 
themselves of the opportunity to participate in the Auction should not 
be afforded priority over participants offering contra-side interest to 
a Complex PIXL Order for all of its components at the same price point 
in the Complex Order PIXL Auction.\36\
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    \33\ See Notice, 78 FR at 28659. The Exchange notes that, in the 
event that the individual components of the Complex PIXL Order 
independently improve during the Auction and new interest is 
received during the Auction, Complex Orders and PAN responses will 
be afforded priority over individual component interest comprising 
the cPBBO at a given price point just as Auction responses and 
Complex Orders are afforded priority over individual components of a 
Complex Order that independently improve during a Complex Order Live 
Auction (``COLA''). See id.
    \34\ See Notice, 78 FR at 28659.
    \35\ See id.
    \36\ See id.
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C. Complex PIXL Orders With Stock/ETF Components

    The Exchange proposes that Complex PIXL Orders may consist of a 
stock/ETF component, but such Complex PIXL Orders will only execute 
against Complex Orders or PAN responses that also include the stock/ETF 
component,\37\ and will not execute against interest comprising the 
cPBBO at the end of the Auction.\38\ The proposal further specifies 
that member organizations may only submit Complex PIXL Orders, 
Initiating Orders, Complex Orders, and/or PAN responses with a stock/
ETF component if such orders/responses comply with the Qualified 
Contingent Trade Exemption from Rule 611(a) \39\ of Regulation NMS 
pursuant to the Act.\40\ The proposal also provides that where one 
component of a Complex PIXL Order, Initiating Order, Complex Order, or 
PAN response is the underlying security, the Exchange shall 
electronically communicate the underlying security component of a 
Complex PIXL Order (together with the Initiating Order, Complex Order, 
or PAN response, as applicable) to NOS, the Exchange's designated 
broker-dealer, for immediate execution.\41\
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    \37\ See id. at 28660.
    \38\ See proposed Phlx Rule 1080(n)(ii)(E)(2)(g).
    \39\ See 17 CFR 242.611(a).
    \40\ See proposed Phlx Rule 1080(n)(ii)(J)(1). The Exchange 
further provides that member organizations submitting such orders 
with a stock/ETF component represent that such orders comply with 
the Qualified Contingent Trade Exemption. See id. Members of FINRA 
or the NASDAQ Stock Market (``NASDAQ'') are required to have a 
Uniform Service Bureau/Executing Broker Agreement (``AGU'') with 
Nasdaq Options Services LLC in order to trade orders containing a 
stock/ETF component; firms that are not members of FINRA or NASDAQ 
are required to have a Qualified Special Representative (``QSR'') 
arrangement with Nasdaq Options Services LLC (``NOS'') in order to 
trade orders containing a stock/ETF component. See id.
    \41\ See proposed Phlx Rule 1080(n)(ii)(J)(2).
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    In addition, the Exchange proposes to provide that when the short 
sale price test in Rule 201 of Regulation SHO \42\ is triggered for a 
covered security,\43\ NOS will not execute a short sale order in the 
underlying covered security component of a Complex PIXL Order, 
Initiating Order, Complex Order, or PAN response if the price is equal 
to or below the current national best bid.\44\ However, NOS will 
execute a short sale order in the underlying covered security component 
of a Complex PIXL Order, Initiating Order Complex Order, or PAN 
response if such order is marked ``short exempt,'' regardless of 
whether it is at a price that is equal to or below the current national 
best bid.\45\ If NOS cannot execute the underlying covered security 
component of a Complex PIXL Order, Initiating Order, Complex Order, or 
PAN Response in accordance with Rule 201 of Regulation SHO, the 
Exchange will cancel back the Complex PIXL Order, Initiating Order, 
Complex Order, or PAN Response to the member organization that 
submitted it.\46\
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    \42\ 17 CFR 242.201.
    \43\ For the purposes of the Exchange's proposed rule change, 
the term ``covered security'' has the same meaning as in Rule 
201(a)(1) of Regulation SHO. See 17 CFR 242.201(a).
    \44\ See proposed Phlx Rule 1080(n)(ii)(J)(3).
    \45\ See id. See also Notice, 78 FR at 28661.
    \46\ See proposed Phlx Rule 1080(n)(ii)(J)(3).
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III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities 
exchange.\47\ In particular, the Commission finds that the proposed 
rule change is consistent with Section

[[Page 39432]]

6(b)(5) of the Act,\48\ which requires, among other things, that the 
rules of a national securities exchange be designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in regulating, clearing, settling, processing 
information with respect to, and facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and, in general, to 
protect investors and the public interest; and not be designed to 
permit unfair discrimination between customers, issuers, brokers or 
dealers.
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    \47\ In approving this proposal, the Commission has considered 
the proposed rule's impact on efficiency, competition, and capital 
formation. See 15 U.S.C. 78c(f).
    \48\ 15 U.S.C. 78f(b)(5).
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    By allowing Phlx members to enter complex orders into the PIXL 
Auction, the Commission believes that the proposal could provide 
opportunities for complex orders to receive price improvement. Under 
the proposal, a complex order entered into the PIXL Auction must be of 
a conforming ratio and must be stopped at a price that is better than 
the best net price (debit or credit) (1) available on Phlx's Complex 
Order book regardless of the Complex Order book size; and (2) 
achievable from the best Phlx bids and offers for the individual 
options (an ``improved net price''), provided in either case that such 
price is equal to or better than the PIXL Order's limit price.\49\ As 
noted above, an Initiating Members enters a PIXL Order in the Complex 
Order PIXL Auction with an Initiating Order for the full size of the 
PIXL Order.\50\ At the conclusion of the PIXL Auction, the PIXL Order 
is executed in full at the best prices available, taking into 
consideration orders and quotes in the Phlx market, PAN responses, and 
the Initiating Order. Thus, a complex order entered into a Complex 
Order PIXL Auction would receive an execution at the best price 
available at the conclusion of the Auction and, at a minimum, would be 
executed in full at the improved net price. In addition, if an improved 
net price for a complex order entered in a Complex Order PIXL Auction 
could be achieved from bids and offers for the individual legs of the 
complex order in the Phlx's market, the complex order would be executed 
at the better net price.
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    \49\ See proposed Phlx Rule 1080(n)(i)(C); see also Notice, 78 
FR at 28657 for an example of an eligible Complex Order on PIXL.
    \50\ Phlx Rule 1080(n)(i) and 1080(n)(ii)(A).
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    The Commission notes that the complex order spread priority rules 
contained in Phlx Rule 1080, Commentary .08(c)(iii), will continue to 
apply to Complex PIXL Orders.\51\ By requiring that a Complex PIXL 
Order be stopped at a net debit/credit price which improves upon the 
stated markets present for the individual components of the Complex 
PIXL Order, the Exchange ensures that at least one option leg will be 
executed at a better price than the established bid or offer for such 
leg.
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    \51\ See Notice, 78 FR at 28657.
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    As described more fully above, the Exchange's proposal provides 
specific rules for Complex PIXL Orders which have a stock or ETF 
component.\52\ The Commission believes that proposed Phlx Rule 
1080(n)(ii)(J) is similar to the rules related to complex orders with 
stock/ETF components previously adopted by the Exchange in connection 
with Phlx's COLA.\53\ The Commission notes that proposed Phlx Rule 
1080(n)(ii)(J)(3) is designed to ensure compliance with Rule 201 of 
Regulation SHO, in particular with respect to the obligations of 
trading centers, such as the Exchange and NOS, under Regulation 
SHO.\54\
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    \52\ See generally Section II.C.
    \53\ See e.g., Phlx Rule 1080.08(h) and proposed Phlx Rule 
1080(n)(ii)(J)(3). See also Securities Exchange Act Release No. 
63777 (January 26, 2011), 76 FR 5630 (February 1, 2011) (approving 
complex orders with stock/ETF components for trading on Phlx's 
COLA).
    \54\ See supra notes 39-46.
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\55\ that the proposed rule change (SR-Phlx-2013-46), as amended, 
be, and hereby is, approved.
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    \55\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\56\
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    \56\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-15623 Filed 6-28-13; 8:45 am]
BILLING CODE 8011-01-P


