80 FR 11252 - Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Concerning the Use of Market Data Feeds by the Exchange
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 40 (March 2, 2015)
Federal Register Volume 80, Issue 40 (March 2, 2015)
| Page Range | 11252-11254 | |
| FR Document | 2015-04181 |
[Federal Register Volume 80, Number 40 (Monday, March 2, 2015)] [Notices] [Pages 11252-11254] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-04181] [[Page 11252]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74357; File No. SR-CHX-2015-01] Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Concerning the Use of Market Data Feeds by the Exchange February 24, 2015. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given that, on February 12, 2015, the Chicago Stock Exchange, Inc. (``CHX'' or the ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change CHX proposes to clarify for Participants and non-Participants the Exchange's use of data feeds for order handling and execution, order routing and regulatory compliance.\3\ On July 16, 2014, the Exchange filed a proposed rule change that described its use of the consolidated market data disseminated by the securities information processors (``SIP data feeds'') for all operational and regulatory compliance purposes (the ``initial rule filing'') with the Securities and Exchange Commission (the ``Commission'').\4\ The Exchange now submits this supplemental filing.\5\ The Exchange has designated this proposed rule change as non-controversial and provided the Commission with the notice required by Rule 19b-4(f)(6)(iii) under the Act.\6\ --------------------------------------------------------------------------- \3\ CHX Article 1, Rule 1(s) defines ``Participant,'' in pertinent part, as ``any Participant Firm that holds a valid Trading Permit and any person associated with a Participant Firm who is registered with the Exchange under Articles 16 and 17 as a Market Maker Trader or Institutional Broker Representative, respectively. A Participant shall be considered a `member' of the Exchange for purposes of the Exchange Act.'' \4\ See Securities Exchange Act Release No. 72711 (July 29, 2014), 79 FR 45570 (August 5, 2014) (SR-CHX-2014-10). Other national securities exchanges filed similar proposals. See e.g., Securities Exchange Act Release Nos. 72710 (July 29, 2014), 79 FR 45511 (August 5, 2014) (SR-NYSE-2014-38), and 72684 (July 28, 2014), 79 FR 44956 (August 1, 2014) (SR-NASDAQ-2014-072). \5\ The Exchange understands that other national securities exchanges will file similar proposed rule changes with the Commission to further describe their use of data feeds for order handling and execution, order routing and regulatory compliance. \6\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- The text of this proposed rule change is available on the Exchange's Web site at (www.chx.com) and in 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 CHX included statements concerning the purpose of and basis for the proposed rule changes 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 CHX 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 On June 5, 2014, Chair White requested that all national securities exchanges develop proposed rule changes to disclose their use of data feeds to execute and route orders and comply with regulatory requirements.\7\ In addition, on June 20, 2014, the Commission's Division of Trading and Markets requested that the Exchange file proposed rule changes that disclose its usage of particular market data feeds, among other things.\8\ In response to these requests, the Exchange filed an initial rule filing with the Commission on July 16, 2014.\9\ The Exchange now submits this supplemental filing concerning the use of SIP data feeds for the CHX Routing Services,\10\ which is not yet operational, and the pricing of cross orders marked Midpoint Cross.\11\ --------------------------------------------------------------------------- \7\ See Mary Jo White, Chair, Securities and Exchange Commission, Speech at Sandler O'Neil & Partners L.P. Global Exchange and Brokerage Conference (June 5, 2014). \8\ See letter from Stephen Luparello, Division of Trading and Markets, Securities and Exchange Commission, to John K. Kerin, Chief Executive Officer and President, Chicago Stock Exchange, Inc., dated June 20, 2014. \9\ See supra note 4. \10\ See Exchange Act Release No. 73150 (September 19, 2014), 79 FR 57603 (September 25, 2014) (SR-CHX-2014-15). \11\ CHX Article 1, Rule 2(b)(2)(D) defines ``Midpoint Cross'' as follows: a cross order modifier with an instruction to execute it at the midpoint between the NBBO. If the NBBO is locked at the time a Midpoint Cross is received, the Midpoint Cross will execute at the locked NBBO. If the NBBO is crossed at the time a Midpoint Cross is received, the Midpoint Cross will be automatically cancelled. A Midpoint Cross order may only be executed in an increment permitted by Article 20, Rule 4(a)(7)(b). --------------------------------------------------------------------------- Initial Rule Filing Under the initial rule filing, the Exchange adopted Article 1, Rule 4, which provides that the consolidated market data disseminated by the securities information processors shall be the only market data feed utilized by the Exchange for all operational and regulatory compliance purposes.\12\ The Exchange also noted the following: --------------------------------------------------------------------------- \12\ At the time SR-CHX-2014-10 was filed, the SIP data feeds were the only data feeds utilized by the Exchange for operational and regulatory compliance purposes. ---------------------------------------------------------------------------The SIP data feeds are the only data feeds utilized by the Exchange to calculate the National Best Bid and Offer (``NBBO'') for the purposes of compliance with Regulation NMS and Regulation SHO. The Exchange does not utilize direct feeds from away markets for such purposes. In addition to the SIP data feeds, the Exchange uses its own internal data for operational and regulatory compliance purposes. The Exchange does not ignore or modify SIP quote data for the purposes of establishing the NBBO under any circumstances where the SIP data feed shows an uncrossed market.\13\ --------------------------------------------------------------------------- \13\ Where the SIP data feeds show a crossed NBBO, the Exchange's NBBO calculation protocol ignores crossing quotes and executes orders up to the first uncrossed NBBO. See paragraph .01(d) of CHX Article 20, Rule 5 --------------------------------------------------------------------------- The Exchange does not offer outbound routing of orders, but that if the Exchange were to adopt such functionality in the future, the Exchange would only utilize the SIP data feeds for routing purposes. The Exchange does not offer pegged orders that have limit prices that track the NBBO. The Exchange continues to utilize the SIP data feeds for all operational and regulatory compliance purposes, as described under initial filing, and submits the following updates and points of clarification. CHX Routing Services On September 8, 2014, the Exchange filed SR-CHX-2014-15, through which the Exchange adopted rules concerning the CHX Routing Services, an outbound order routing service that is not yet operational.\14\ As described in the initial rule filing, the CHX Routing Services will only utilize the SIP data feeds for order routing purposes. --------------------------------------------------------------------------- \14\ See supra note 10. --------------------------------------------------------------------------- Thus, the Exchange proposes to amend Article 1, Rule 4(a) to explicitly provide that the consolidated market [[Page 11253]] data disseminated by the securities information processor shall be the only market data feeds utilized by the Exchange for the handling, execution and routing of orders, as well as for the regulatory compliance processes related to those functions.\15\ --------------------------------------------------------------------------- \15\ The Exchange may utilize other data feeds in conducting manual reviews of Matching System activity. --------------------------------------------------------------------------- Midpoint Cross Under the initial rule filing, the Exchange noted that it does not offer pegged orders that have limit prices that track the NBBO. To clarify, the Exchange has never offered single-sided orders that are continuously repriced to follow changes to the NBBO (``single-sided pegged orders''). The Exchange does, however, offer Midpoint Cross, which is a cross order (i.e., two-sided order) modifier that instructs the Matching System to execute the order at the midpoint of the NBBO.\16\ Unlike single-sided pegged orders, cross orders marked Midpoint Cross are not continuously repriced to follow changes to the NBBO because cross orders are always handled Immediate Or Cancel (``IOC'').\17\ --------------------------------------------------------------------------- \16\ See supra note 11. \17\ See CHX Article 1, Rule 2(a)(2). --------------------------------------------------------------------------- Mechanically, upon receipt of a cross order marked Midpoint Cross, the Matching System will utilize the NBBO calculated from the SIP data feed and internal CHX book data in the subject security to identify the NBBO midpoint price. The Matching System utilizes the internal CHX book data in the subject security, in addition to the SIP data feed, because the internal CHX book data always reflects the most recent CHX quote(s) in the subject security, which may not yet be reflected in the SIP data feed. Assuming that the order is otherwise executable within the CHX book, the Matching System will immediately execute the order at the NBBO midpoint. Incidentally, the Exchange clarifies that it does not ignore or modify SIP quote data concerning away market quotes under any circumstances where the SIP data feed shows an uncrossed market. The Exchange may, however, ignore SIP quote data regarding its own market if the Exchange's internal data in the subject security is different from what is received from the SIP, such as when pricing the Midpoint Cross order. 2. Statutory Basis The Exchange believes that its proposal is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.\18\ In particular, the proposal is consistent with Section 6(b)(5) of the Act,\19\ because it would promote just and equitable principles of trade, remove impediments to, and perfect the mechanism of, a free and open market and a national market system. Specifically, the Exchange believes that the proposed update and clarifications concerning the Exchange's use of the SIP data feeds in the context of the CHX Routing Services and the Midpoint Cross order modifier will enhance transparency concerning the operation of the Exchange. This will, in turn, promote the public confidence and strengthen the national market system. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78f(b). \19\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change implicates any competitive issues. To the contrary, the Exchange anticipates that other national securities exchanges will also make similar clarifications concerning their respective use of data feeds and this proposed rule will ensure consistent treatment of this subject matter in the respective rulebooks. 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 Because the proposed rule change does not (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \20\ and Rule 19b-4(f)(6) thereunder.\21\ --------------------------------------------------------------------------- \20\ 15 U.S.C. 78s(b)(3)(A). \21\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- 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 necessary or appropriate in the public interest, for the protection of investors, or 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 change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-CHX-2015-01 on the subject line. 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-CHX-2015-01. 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 Web site (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 Web site 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; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-CHX- [[Page 11254]] 2015-01 and should be submitted on or before March 23, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Jill M. Peterson, Assistant Secretary. [FR Doc. 2015-04181 Filed 2-27-15; 8:45 am] BILLING CODE 8011-01-P
![11252 Federal Register / Vol. 80, No. 40 / Monday, March 2, 2015 / Notices
SECURITIES AND EXCHANGE controversial and provided the Initial Rule Filing
COMMISSION Commission with the notice required by Under the initial rule filing, the
Rule 19b–4(f)(6)(iii) under the Act.6 Exchange adopted Article 1, Rule 4,
[Release No. 34–74357; File No. SR–CHX– The text of this proposed rule change
2015–01] which provides that the consolidated
is available on the Exchange’s Web site market data disseminated by the
Self-Regulatory Organizations; at (www.chx.com) and in the securities information processors shall
Chicago Stock Exchange, Inc.; Notice Commission’s Public Reference Room. be the only market data feed utilized by
of Filing and Immediate Effectiveness II. Self-Regulatory Organization’s the Exchange for all operational and
of Proposed Rule Change Concerning Statement of the Purpose of, and regulatory compliance purposes.12 The
the Use of Market Data Feeds by the Statutory Basis for, the Proposed Rule Exchange also noted the following:
Exchange Change • The SIP data feeds are the only data
feeds utilized by the Exchange to
February 24, 2015. In its filing with the Commission, the
calculate the National Best Bid and
Pursuant to Section 19(b)(1) of the CHX included statements concerning
Offer (‘‘NBBO’’) for the purposes of
Securities Exchange Act of 1934 the purpose of and basis for the
compliance with Regulation NMS and
(‘‘Act’’),1 and Rule 19b–4 2 thereunder, proposed rule changes and discussed
Regulation SHO. The Exchange does not
notice is hereby given that, on February any comments it received on the
utilize direct feeds from away markets
12, 2015, the Chicago Stock Exchange, proposed rule change. The text of these
for such purposes.
Inc. (‘‘CHX’’ or the ‘‘Exchange’’) filed statements may be examined at the • In addition to the SIP data feeds,
with the Securities and Exchange places specified in Item IV below. The the Exchange uses its own internal data
Commission (‘‘Commission’’) the CHX has prepared summaries, set forth for operational and regulatory
proposed rule change as described in in sections A, B and C below, of the compliance purposes.
Items I and II below, which Items have most significant aspects of such • The Exchange does not ignore or
been prepared by the Exchange. The statements. modify SIP quote data for the purposes
Commission is publishing this notice to A. Self-Regulatory Organization’s of establishing the NBBO under any
solicit comments on the proposed rule Statement of the Purpose of, and circumstances where the SIP data feed
change from interested persons. Statutory Basis for, the Proposed Rule shows an uncrossed market.13
I. Self-Regulatory Organization’s Change • The Exchange does not offer
Statement of the Terms of Substance of outbound routing of orders, but that if
1. Purpose the Exchange were to adopt such
the Proposed Rule Change
On June 5, 2014, Chair White functionality in the future, the Exchange
CHX proposes to clarify for requested that all national securities would only utilize the SIP data feeds for
Participants and non-Participants the exchanges develop proposed rule routing purposes.
Exchange’s use of data feeds for order changes to disclose their use of data • The Exchange does not offer pegged
handling and execution, order routing feeds to execute and route orders and orders that have limit prices that track
and regulatory compliance.3 On July 16, comply with regulatory requirements.7 the NBBO.
2014, the Exchange filed a proposed In addition, on June 20, 2014, the The Exchange continues to utilize the
rule change that described its use of the Commission’s Division of Trading and SIP data feeds for all operational and
consolidated market data disseminated Markets requested that the Exchange file regulatory compliance purposes, as
by the securities information processors proposed rule changes that disclose its described under initial filing, and
(‘‘SIP data feeds’’) for all operational usage of particular market data feeds, submits the following updates and
and regulatory compliance purposes among other things.8 In response to points of clarification.
(the ‘‘initial rule filing’’) with the these requests, the Exchange filed an
Securities and Exchange Commission initial rule filing with the Commission CHX Routing Services
(the ‘‘Commission’’).4 The Exchange on July 16, 2014.9 The Exchange now On September 8, 2014, the Exchange
now submits this supplemental filing.5 submits this supplemental filing filed SR–CHX–2014–15, through which
The Exchange has designated this concerning the use of SIP data feeds for the Exchange adopted rules concerning
proposed rule change as non- the CHX Routing Services,10 which is the CHX Routing Services, an outbound
not yet operational, and the pricing of order routing service that is not yet
1 15 U.S.C. 78s(b)(1). cross orders marked Midpoint Cross.11 operational.14 As described in the initial
2 17 CFR 240.19b–4.
3 CHX Article 1, Rule 1(s) defines ‘‘Participant,’’
rule filing, the CHX Routing Services
in pertinent part, as ‘‘any Participant Firm that
6 17 CFR 240.19b–4(f)(6)(iii). will only utilize the SIP data feeds for
holds a valid Trading Permit and any person
7 See Mary Jo White, Chair, Securities and order routing purposes.
associated with a Participant Firm who is registered Exchange Commission, Speech at Sandler O’Neil & Thus, the Exchange proposes to
with the Exchange under Articles 16 and 17 as a Partners L.P. Global Exchange and Brokerage
Conference (June 5, 2014). amend Article 1, Rule 4(a) to explicitly
Market Maker Trader or Institutional Broker
Representative, respectively. A Participant shall be
8 See letter from Stephen Luparello, Division of provide that the consolidated market
considered a ‘member’ of the Exchange for purposes Trading and Markets, Securities and Exchange
of the Exchange Act.’’ Commission, to John K. Kerin, Chief Executive a Midpoint Cross is received, the Midpoint Cross
4 See Securities Exchange Act Release No. 72711 Officer and President, Chicago Stock Exchange, will be automatically cancelled. A Midpoint Cross
(July 29, 2014), 79 FR 45570 (August 5, 2014) (SR– Inc., dated June 20, 2014. order may only be executed in an increment
9 See supra note 4. permitted by Article 20, Rule 4(a)(7)(b).
CHX–2014–10). Other national securities exchanges
asabaliauskas on DSK5VPTVN1PROD with NOTICES
10 See Exchange Act Release No. 73150 12 At the time SR–CHX–2014–10 was filed, the
filed similar proposals. See e.g., Securities
Exchange Act Release Nos. 72710 (July 29, 2014), (September 19, 2014), 79 FR 57603 (September 25, SIP data feeds were the only data feeds utilized by
79 FR 45511 (August 5, 2014) (SR–NYSE–2014–38), 2014) (SR–CHX–2014–15). the Exchange for operational and regulatory
and 72684 (July 28, 2014), 79 FR 44956 (August 1, 11 CHX Article 1, Rule 2(b)(2)(D) defines compliance purposes.
2014) (SR–NASDAQ–2014–072). ‘‘Midpoint Cross’’ as follows: 13 Where the SIP data feeds show a crossed
5 The Exchange understands that other national a cross order modifier with an instruction to NBBO, the Exchange’s NBBO calculation protocol
securities exchanges will file similar proposed rule execute it at the midpoint between the NBBO. If the ignores crossing quotes and executes orders up to
changes with the Commission to further describe NBBO is locked at the time a Midpoint Cross is the first uncrossed NBBO. See paragraph .01(d) of
their use of data feeds for order handling and received, the Midpoint Cross will execute at the CHX Article 20, Rule 5
execution, order routing and regulatory compliance. locked NBBO. If the NBBO is crossed at the time 14 See supra note 10.
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![11254 Federal Register / Vol. 80, No. 40 / Monday, March 2, 2015 / Notices
2015–01 and should be submitted on or proposed rule change. The text of these member. It may differ from a customer’s
before March 23, 2015. statements may be examined at the limit price because of the order type
For the Commission, by the Division of places specified in Item IV below. The (e.g., pegging and post only orders) or
Trading and Markets, pursuant to delegated Exchange has prepared summaries, set for regulatory reasons (e.g., Reg SHO,
authority.22 forth in sections A, B, and C below, of Reg NMS compliance or other
Jill M. Peterson, the most significant aspects of such regulatory restrictions). The accepted
Assistant Secretary. statements. price of an order will not be more
[FR Doc. 2015–04181 Filed 2–27–15; 8:45 am] A. Self-Regulatory Organization’s aggressive than the customer’s limit
BILLING CODE 8011–01–P Statement of the Purpose of, and price, and is often the same as the
Statutory Basis for, the Proposed Rule customer’s submitted limit price. An
Change order can execute up to its accepted
SECURITIES AND EXCHANGE price and this is the least advantageous
COMMISSION 1. Purpose price at which an order can execute.
The Exchange is proposing to amend Any execution price that is different
[Release No. 34–74363; File No. SR–BX– than the accepted price must be more
2015–013] BX Rule 7018(a) and (e) to modify the
fees and rebates assessed under the rule advantageous than the accepted price.
Self-Regulatory Organizations; applicable to transactions in securities Thus, executions where the accepted
NASDAQ OMX BX, Inc.; Notice of Filing priced at $1 or more. Specifically, the price does not equal the execution price
and Immediate Effectiveness of Exchange proposes to clarify and make are situations when the order is
Proposed Rule Change To Amend the uniform throughout BX Rule 7018(a) the receiving price improvement versus its
Fee Schedule Under Exchange Rule term ‘‘Midpoint pegging’’, as well as in accepted price.
7018(a) and (e) With Respect to BX Rule 7018(e) regarding credits for The Exchange also proposes to change
Transactions in Securities Priced at $1 retail orders. The Exchange also the fee assessed for BTFY and BCRT
per Share or More proposes to include within BX Rule orders in securities listed on The
7018(a) a specific line item for a credit NASDAQ Stock Market LLC
February 24, 2015. for an ‘‘Order with Midpoint pegging (‘‘NASDAQ’’) (‘‘Tape C’’), the New York
Pursuant to Section 19(b)(1) of the that removes liquidity’’ of $0.0005 per Stock Exchange (‘‘NYSE’’) (‘‘Tape A’’)
Securities Exchange Act of 1934 share executed. The Exchange believes and on exchanges other than NASDAQ
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 that these proposed changes increase and the NYSE (‘‘Tape B’’) (collectively,
notice is hereby given that on February transparency as to how a member’s the ‘‘Tapes’’).
11, 2015, NASDAQ OMX BX, Inc. (‘‘BX’’ credit is determined, clarify the fee BTFY 4 is a routing option under
or ‘‘Exchange’’) filed with the Securities schedule, and do not change the overall which orders check the order execution
and Exchange Commission (‘‘SEC’’ or current rate for such credits except for and trade reporting system owned and
‘‘Commission’’) the proposed rule the one minor change noted above.3 operated by BX (the ‘‘System’’) for
change as described in Items I, II, and Changing the language for non- available shares only if so instructed by
III, below, which Items have been displayed orders entered by a member the entering firm and are thereafter
prepared by the Exchange. The that provides an average daily volume of routed to destinations on the System
Commission is publishing this notice to 3.5 million or more shares (but less than routing table. If shares remain
solicit comments on the proposed rule 5 million shares) of non-displayed unexecuted after routing, they are
change from interested persons. liquidity to include ‘‘other than orders posted to the System book. Once on the
I. Self-Regulatory Organization’s with Midpoint pegging’’ instead of System book, should the order
Statement of the Terms of Substance of ‘‘including those pegged to the subsequently be locked or crossed by
the Proposed Rule Change midpoint’’ results in no actual change. another market center, the System will
Currently, a member would never not route the order to the locking or
The Exchange proposes to amend the receive the $0.0024 per share executed crossing market center.
fee schedule under Exchange Rule 7018 charge for an order with Midpoint
with respect to transactions in securities BCRT 5 is a routing option under
pegging because instead the member which orders check the System and then
priced at $1 or more per share. would have qualified for the $0.0005
The text of the proposed rule change route to PSX and NASDAQ. If shares
per share executed charge for an order remain unexecuted, they are posted to
is also available on the Exchange’s Web
with Midpoint pegging entered by a the System book or cancelled. Once on
site at http://
member that provides an average daily the System book, should the order
nasdaqomxbx.cchwallstreet.com, at the
volume of 2 million or more shares of subsequently be locked or crossed by
principal office of the Exchange, and at
non-displayed liquidity during the another market center, the System will
the Commission’s Public Reference
month. not route the order to the locking or
Room. Additionally, the Exchange proposes crossing market center.
II. Self-Regulatory Organization’s to define ‘‘price improvement’’ to mean
For BTFY and BCRT orders, the
Statement of the Purpose of, and instances when the accepted price of an
Exchange currently passes through all
Statutory Basis for, the Proposed Rule order differs from the executed price of
fees and rebates for orders that execute
Change an order and incorporate it where
on PSX or NASDAQ. BTFY and BCRT
applicable in BX Rule 7018(a) and (e).
asabaliauskas on DSK5VPTVN1PROD with NOTICES
In its filing with the Commission, the orders executed on BX result in a pass
Exchange included statements The accepted price is the price the
through charge of $0.0025 or $0.0026
concerning the purpose of and basis for matching engine assigns an order based
per share executed on PSX 6 and
the proposed rule change and discussed on the instructions submitted by the
$0.0030 per share executed on
any comments it received on the 3 The addition of the language concerning price
4 See BX Rule 4758(a)(v).
improvement to BX Rule 7018 merely reflects how
22 17 CFR 200.30–3(a)(12). 5 See
the system for credits and fees already currently BX Rule 4758(a)(vii).
1 15 U.S.C. 78s(b)(1).
operates, which is why this new language does not 6 See NASDAQ OMX PHLX LLC Pricing
2 17 CFR 240.19b–4. change the overall current rates for such credits. Schedule, Section VIII(a)(1).
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Document Created: 2015-12-18 12:07:44
Document Modified: 2015-12-18 12:07:44
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 11252 |
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