Also approved is an amendment to delete a section of Rule 1080(c) that states that orders of up to 100 contracts are eligible for AUTO-X for OTC Prime Index ("OTX") options, in order to eliminate any potential for confusion over the permissible parameters applicable to AUTO-X eligible orders for both equity and index options. The text of the rule change is set forth below. Questions and comments concerning the new rule may be addressed to Richard S. Rudolph, Counsel, at +1 215 496 5074.
Brackets indicate deletions; underlining indicates additions
Rule 1080. Philadelphia Stock Exchange Automated Options Market (AUTOM) and Automatic Execution System (AUTO-X)
(a)-(b) No change.
(c) AUTO-X - AUTO-X is a feature of AUTOM that automatically executes public customer market and marketable limit orders up to the number of contracts permitted by the Exchange for certain strike prices and expiration months in equity options and index options, unless the Options Committee determines otherwise. AUTO-X automatically executes eligible orders using the Exchange disseminated quotation and then automatically routes execution reports to the originating member organization. AUTOM orders not eligible for AUTO-X are executed manually in accordance with Exchange rules. Manual execution may also occur when AUTO-X is not engaged. An order may also be executed partially by AUTO-X and partially manually.
The Options Committee may for any period restrict the use of AUTO-X on the Exchange in any option or series. Currently, orders up to [75] 100 contracts, subject to the approval of the Options Committee, are eligible for AUTO-X. [With respect to OTC Prime Index ("OTX") options, orders of up to 100 contracts are eligible for AUTO-X.]
The Options Committee may, in its discretion, increase the size of orders in one or more classes of multiply-traded equity options eligible for AUTO-X to the extent necessary to match the size of orders in the same options eligible for entry into the automated execution system of any other options exchange, provided that the effectiveness of any such increase shall be conditioned upon its having been filed with the Securities and Exchange Commission pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934.
(c)(i)(A)-(E) No change.
(d)-(j) No Change.
Commentary. No Change.
