80 FR 18907 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Postpone Implementation of Changes to Rule 4751(h)(5)

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 67 (April 8, 2015)

Page Range		18907-18909
FR Document		2015-07965
Federal Register, Volume 80 Issue 67 (Wednesday, April 8, 2015)
[Federal Register Volume 80, Number 67 (Wednesday, April 8, 2015)]
[Notices]
[Pages 18907-18909]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-07965]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74637; File No. SR-NASDAQ-2015-028]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Postpone Implementation of Changes to Rule 4751(h)(5)

April 2, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on March 25, 2015, The NASDAQ Stock Market LLC (``NASDAQ'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to postpone implementation of changes to Rule 
4751(h)(5).
    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaq.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
    NASDAQ is proposing to delay implementation of changes to Rule 
4751(h)(5) relating to processing of Market Hours IOC (``MIOC'') orders 
and to make clarifying changes to the rule, which are effective but not 
yet implemented. On March 6, 2015, the Exchange filed an immediately 
effective filing \3\ to amend the processing of MIOC orders under Rule 
4751(h)(5). MIOC is a Time in Force \4\ characteristic of an

[[Page 18908]]

order that will cause it (or unexecuted portion thereof) to be canceled 
if, after entry into the System the order (or unexecuted portion 
thereof) becomes non-marketable during the Regular Market Session, 9:30 
a.m. until 4:00 p.m. Eastern Time.\5\ Currently, MIOC orders entered 
from 4 a.m. Eastern Time to immediately prior to 9:30 a.m. Eastern Time 
are held by the System until 9:30 a.m. Eastern Time, at which time the 
System determines whether such orders are marketable. The Exchange 
proposed to no longer accept MIOC orders entered prior to the beginning 
of the Regular Market Session. The Exchange also proposed clarifying 
the rule text to make it clear that MIOC orders will be available for 
order entry and execution beginning at completion of the Opening Cross.
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    \3\ Securities Exchange Act Release No. 74518 (March 17, 2015), 
80 FR 15260 (March 23, 2015) (SR-NASDAQ-2015-022).
    \4\ Time in Force is the period of time that the System will 
hold an order for potential execution. See Rule 4751(h).
    \5\ As defined by Rule 4120(b)(4)(D).
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    The Exchange had originally anticipated implementing the changes on 
April 13, 2015. The Exchange, however, has experienced unanticipated 
delay in the development of the changes to its systems, which has made 
the original implementation date unachievable. The Exchange believes it 
will be able to implement the changes sometime in the second quarter of 
2015, and will provide notice of the implementation date of the changes 
in an Equity Trader Alert not less than 30 days prior to 
implementation.
2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\6\ in general, and with Section 
6(b)(5) of the Act,\7\ in particular, because it is 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 is not designed to 
permit unfair discrimination between customers, issuers, brokers, or 
dealers. The Exchange believes that the changes NASDAQ is making to 
Rule 4751(h)(5) promote consistency and transparency in the process for 
handling MIOC orders. Delaying implementation of the changes for brief 
period so that NASDAQ may implement and test the changes to its systems 
necessary to ensure that the processing of MIOC orders operate as 
planned promotes fair and orderly markets, and the protection of 
investors and the public interest.
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    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    NASDAQ does not believe that the proposed rule change will result 
in any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act, as amended.\8\ The Exchange 
believes that the proposal is irrelevant to competition because it is 
not driven by, and will have no impact on, competition. Specifically, 
the proposal is representative of the Exchange's efforts to harmonize 
and simplify the processing of orders. Delaying implementation of the 
proposal will ensure the proposed changes are adequately implemented 
and tested.
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    \8\ 15 U.S.C. 78f(b)(8).
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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

    Because the foregoing 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, it has become 
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \9\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(a)(ii) [sic].
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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. 
The Exchange has satisfied this requirement.
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    The Exchange has asked the Commission to waive the 30-day operative 
delay so that the proposal may become operative immediately upon 
filing. The Exchange notes that waiving the operative delay is 
consistent with the protection of investors and the public interest 
because it will allow the Exchange to postpone implementation of the 
previously proposed changes immediately, prior to the operative date of 
those changes. For this reason, the Commission waives the operative 
delay and designates the proposed rule change to be operative upon 
filing.\11\
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    \11\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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 
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-NASDAQ-2015-028 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-NASDAQ-2015-028. 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

[[Page 18909]]

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-NASDAQ-2015-028 and should 
be submitted on or before April 29, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-07965 Filed 4-7-15; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 67 / Wednesday, April 8, 2015 / Notices 18907

securities purchased during a the investment and for a period of not (‘‘Act’’),1 and Rule 19b–4 thereunder,2
comparable period of time in less than six years thereafter, the first notice is hereby given that on March 25,
underwritings other than Affiliated two years in an easily accessible place. 2015, The NASDAQ Stock Market LLC
Underwritings or to a benchmark such 10. Before approving any advisory (‘‘NASDAQ’’ or ‘‘Exchange’’) filed with
as a comparable market index; and (iii) contract under section 15 of the Act, the the Securities and Exchange
whether the amount of securities board of directors or trustees of each Commission (‘‘SEC’’ or ‘‘Commission’’)
purchased by the Fund, or its respective Investing Management Company, the proposed rule change as described
Master Fund, in Affiliated including a majority of the disinterested in Items I and II, below, which Items
Underwritings and the amount directors or trustees, will find that the have been prepared by the Exchange.
purchased directly from an advisory fees charged under such The Commission is publishing this
Underwriting Affiliate have changed contract are based on services provided notice to solicit comments on the
significantly from prior years. The that will be in addition to, rather than proposed rule change from interested
Board will take any appropriate actions duplicative of, the services provided persons.
based on its review, including, if under the advisory contract(s) of any
appropriate, the institution of I. Self-Regulatory Organization’s
Fund, or its respective Master Fund, in
procedures designed to ensure that Statement of the Terms of Substance of
which the Investing Management
purchases of securities in Affiliated the Proposed Rule Change
Company may invest. These findings
Underwritings are in the best interest of and their basis will be fully recorded in The Exchange proposes to postpone
shareholders of the Fund. the minute books of the appropriate implementation of changes to Rule
8. Each Fund, or its respective Master Investing Management Company. 4751(h)(5).
Fund, will maintain and preserve 11. Any sales charges and/or service The text of the proposed rule change
permanently in an easily accessible fees charged with respect to shares of a is available on the Exchange’s Web site
place a written copy of the procedures Fund of Funds will not exceed the at http://nasdaq.cchwallstreet.com, at
described in the preceding condition, limits applicable to a fund of funds as the principal office of the Exchange, and
and any modifications to such set forth in NASD Conduct Rule 2830. at the Commission’s Public Reference
procedures, and will maintain and 12. No Fund, or its respective Master Room.
preserve for a period of not less than six Fund, will acquire securities of an
years from the end of the fiscal year in II. Self-Regulatory Organization’s
investment company or company Statement of the Purpose of, and
which any purchase in an Affiliated relying on section 3(c)(1) or 3(c)(7) of
Underwriting occurred, the first two Statutory Basis for, the Proposed Rule
the Act in excess of the limits contained Change
years in an easily accessible place, a in section 12(d)(1)(A) of the Act, except
written record of each purchase of to the extent (i) the Fund, or its In its filing with the Commission, the
securities in Affiliated Underwritings respective Master Fund, acquires Exchange included statements
once an investment by a Fund of Funds securities of another investment concerning the purpose of and basis for
in the securities of the Fund exceeds the company pursuant to exemptive relief the proposed rule change and discussed
limit of section 12(d)(1)(A)(i) of the Act, from the Commission permitting the any comments it received on the
setting forth from whom the securities proposed rule change. The text of these
Fund, or its respective Master Fund, to
were acquired, the identity of the statements may be examined at the
acquire securities of one or more
underwriting syndicate’s members, the places specified in Item IV below. The
investment companies for short-term
terms of the purchase, and the Exchange has prepared summaries, set
cash management purposes or (ii) the
information or materials upon which forth in sections A, B, and C below, of
Fund acquires securities of the Master
the Board’s determinations were made. the most significant aspects of such
9. Before investing in a Fund in Fund pursuant to the Master-Feeder
Relief. statements.
excess of the limit in section
12(d)(1)(A), a Fund of Funds and the For the Commission, by the Division of A. Self-Regulatory Organization’s
Trust will execute a FOF Participation Investment Management, under delegated Statement of the Purpose of, and
Agreement stating without limitation authority. Statutory Basis for, the Proposed Rule
that their respective boards of directors Brent J. Fields, Change
or trustees and their investment Secretary.
1. Purpose
advisers, or trustee and Sponsor, as [FR Doc. 2015–08023 Filed 4–7–15; 8:45 am]
applicable, understand the terms and BILLING CODE 8011–01–P
NASDAQ is proposing to delay
conditions of the order, and agree to implementation of changes to Rule
fulfill their responsibilities under the 4751(h)(5) relating to processing of
order. At the time of its investment in SECURITIES AND EXCHANGE Market Hours IOC (‘‘MIOC’’) orders and
Shares of a Fund in excess of the limit COMMISSION to make clarifying changes to the rule,
in section 12(d)(1)(A)(i), a Fund of which are effective but not yet
Funds will notify the Fund of the [Release No. 34–74637; File No. SR–
implemented. On March 6, 2015, the
investment. At such time, the Fund of NASDAQ–2015–028] Exchange filed an immediately effective
Funds will also transmit to the Fund a filing 3 to amend the processing of MIOC
list of the names of each Fund of Funds Self-Regulatory Organizations; The orders under Rule 4751(h)(5). MIOC is
Affiliate and Underwriting Affiliate. The a Time in Force 4 characteristic of an
asabaliauskas on DSK5VPTVN1PROD with NOTICES

NASDAQ Stock Market LLC; Notice of
Fund of Funds will notify the Fund of Filing and Immediate Effectiveness of
any changes to the list of the names as Proposed Rule Change To Postpone 1 15 U.S.C. 78s(b)(1).
soon as reasonably practicable after a Implementation of Changes to Rule 2 17 CFR 240.19b–4.
change occurs. The Fund and the Fund 4751(h)(5) 3 Securities Exchange Act Release No. 74518

of Funds will maintain and preserve a (March 17, 2015), 80 FR 15260 (March 23, 2015)
April 2, 2015. (SR–NASDAQ–2015–022).
copy of the order, the FOF Participation 4 Time in Force is the period of time that the
Agreement, and the list with any Pursuant to Section 19(b)(1) of the System will hold an order for potential execution.
updated information for the duration of Securities Exchange Act of 1934 See Rule 4751(h).

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18908 Federal Register / Vol. 80, No. 67 / Wednesday, April 8, 2015 / Notices

order that will cause it (or unexecuted ensure that the processing of MIOC and designates the proposed rule change
portion thereof) to be canceled if, after orders operate as planned promotes fair to be operative upon filing.11
entry into the System the order (or and orderly markets, and the protection At any time within 60 days of the
unexecuted portion thereof) becomes of investors and the public interest. filing of the proposed rule change, the
non-marketable during the Regular Commission summarily may
B. Self-Regulatory Organization’s
Market Session, 9:30 a.m. until 4:00 temporarily suspend such rule change if
p.m. Eastern Time.5 Currently, MIOC Statement on Burden on Competition
it appears to the Commission that such
orders entered from 4 a.m. Eastern Time NASDAQ does not believe that the action is: (i) Necessary or appropriate in
to immediately prior to 9:30 a.m. proposed rule change will result in any the public interest; (ii) for the protection
Eastern Time are held by the System burden on competition that is not of investors; or (iii) otherwise in
until 9:30 a.m. Eastern Time, at which necessary or appropriate in furtherance furtherance of the purposes of the Act.
time the System determines whether of the purposes of the Act, as amended.8 If the Commission takes such action, the
such orders are marketable. The The Exchange believes that the proposal Commission shall institute proceedings
Exchange proposed to no longer accept is irrelevant to competition because it is to determine whether the proposed rule
MIOC orders entered prior to the not driven by, and will have no impact should be approved or disapproved.
beginning of the Regular Market on, competition. Specifically, the
Session. The Exchange also proposed proposal is representative of the IV. Solicitation of Comments
clarifying the rule text to make it clear Exchange’s efforts to harmonize and Interested persons are invited to
that MIOC orders will be available for simplify the processing of orders. submit written data, views and
order entry and execution beginning at Delaying implementation of the arguments concerning the foregoing,
completion of the Opening Cross. proposal will ensure the proposed including whether the proposed rule
The Exchange had originally changes are adequately implemented change is consistent with the Act.
anticipated implementing the changes and tested. Comments may be submitted by any of
on April 13, 2015. The Exchange, the following methods:
however, has experienced unanticipated C. Self-Regulatory Organization’s
delay in the development of the changes Statement on Comments on the Electronic Comments
to its systems, which has made the Proposed Rule Change Received From • Use the Commission’s Internet
original implementation date Members, Participants or Others comment form (http://www.sec.gov/
unachievable. The Exchange believes it No written comments were either rules/sro.shtml); or
will be able to implement the changes solicited or received. • Send an email to rule-comments@
sometime in the second quarter of 2015, sec.gov. Please include File Number SR–
and will provide notice of the III. Date of Effectiveness of the
NASDAQ–2015–028 on the subject line.
implementation date of the changes in Proposed Rule Change and Timing for
an Equity Trader Alert not less than 30 Commission Action Paper Comments
days prior to implementation. Because the foregoing proposed rule • Send paper comments in triplicate
2. Statutory Basis change does not: (i) Significantly affect to Secretary, Securities and Exchange
the protection of investors or the public Commission, 100 F Street NE.,
NASDAQ believes that the proposed interest; (ii) impose any significant Washington, DC 20549–1090.
rule change is consistent with the burden on competition; and (iii) become All submissions should refer to File
provisions of Section 6 of the Act,6 in operative for 30 days from the date on Number SR–NASDAQ–2015–028. This
general, and with Section 6(b)(5) of the which it was filed, or such shorter time file number should be included on the
Act,7 in particular, because it is as the Commission may designate, it has subject line if email is used. To help the
designed to prevent fraudulent and become effective pursuant to Section Commission process and review your
manipulative acts and practices, to 19(b)(3)(A)(iii) of the Act 9 and comments more efficiently, please use
promote just and equitable principles of subparagraph (f)(6) of Rule 19b–4 only one method. The Commission will
trade, to foster cooperation and thereunder.10 post all comments on the Commission’s
coordination with persons engaged in The Exchange has asked the Internet Web site (http://www.sec.gov/
regulating, clearing, settling, processing Commission to waive the 30-day rules/sro.shtml). Copies of the
information with respect to, and operative delay so that the proposal may submission, all subsequent
facilitating transactions in securities, to become operative immediately upon amendments, all written statements
remove impediments to and perfect the filing. The Exchange notes that waiving with respect to the proposed rule
mechanism of a free and open market the operative delay is consistent with change that are filed with the
and a national market system, and, in the protection of investors and the Commission, and all written
general, to protect investors and the public interest because it will allow the communications relating to the
public interest; and is not designed to Exchange to postpone implementation proposed rule change between the
permit unfair discrimination between of the previously proposed changes Commission and any person, other than
customers, issuers, brokers, or dealers. immediately, prior to the operative date those that may be withheld from the
The Exchange believes that the changes of those changes. For this reason, the public in accordance with the
NASDAQ is making to Rule 4751(h)(5) Commission waives the operative delay provisions of 5 U.S.C. 552, will be
promote consistency and transparency available for Web site viewing and
asabaliauskas on DSK5VPTVN1PROD with NOTICES

in the process for handling MIOC 8 15 U.S.C. 78f(b)(8). printing in the Commission’s Public
orders. Delaying implementation of the 9 15 U.S.C. 78s(b)(3)(a)(ii) [sic]. Reference Room, 100 F Street NE.,
changes for brief period so that 10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
Washington, DC 20549, on official
NASDAQ may implement and test the 4(f)(6) requires a self-regulatory organization to give
business days between the hours of
changes to its systems necessary to the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule 11 For purposes only of waiving the 30-day
5 As defined by Rule 4120(b)(4)(D). change, or such shorter time as designated by the operative delay, the Commission has considered the
6 15 U.S.C. 78f.
Commission. The Exchange has satisfied this proposed rule’s impact on efficiency, competition,
7 15 U.S.C. 78f(b)(5). requirement. and capital formation. See 15 U.S.C. 78c(f).

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Federal Register / Vol. 80, No. 67 / Wednesday, April 8, 2015 / Notices 18909

10:00 a.m. and 3:00 p.m. Copies of the II. Self-Regulatory Organization’s In addition to having the authority to
filing also will be available for Statement of the Purpose of, and appoint one Lead Market Maker
inspection and copying at the principal Statutory Basis for, the Proposed Rule (‘‘LMM’’) 7 per option class, ‘‘[t]he
office of the Exchange. All comments Change Exchange may appoint an unlimited
received will be posted without change; In its filing with the Commission, the number of Market Makers in each class
the Commission does not edit personal self-regulatory organization included unless the number of Market Makers
identifying information from statements concerning the purpose of, appointed to a particular option class
submissions. You should submit only and basis for, the proposed rule change should be limited’’ based on the
information that you wish to make and discussed any comments it received Exchange’s judgment.8 Further, the Rule
available publicly. All submissions on the proposed rule change. The text provides that ‘‘Market Makers may
should refer to File Number SR– of those statements may be examined at select from among any option issues
NASDAQ–2015–028 and should be the places specified in Item IV below. traded on the Exchange for inclusion in
submitted on or before April 29, 2015. The Exchange has prepared summaries, their appointment, subject to the
For the Commission, by the Division of set forth in sections A, B, and C below, approval of the Exchange. In
Trading and Markets, pursuant to delegated of the most significant parts of such considering the approval of the
authority.12 statements. appointment of a Market Maker in each
Brent J. Fields, security,’’ the Exchange will consider
Secretary.
A. Self-Regulatory Organization’s the Market Maker’s preference; the
Statement of the Purpose of, and financial resources available to the
[FR Doc. 2015–07965 Filed 4–7–15; 8:45 am]
Statutory Basis for, the Proposed Rule Market Maker; the Market Maker’s
BILLING CODE 8011–01–P
Change experience, expertise and past
1. Purpose performance in making markets,
SECURITIES AND EXCHANGE including the Market Maker’s
The Exchange proposes to amend performance in other securities; the
COMMISSION
Rule 6.35 to refine the appointment Market Maker’s operational capability;
process utilized by the Exchange. The and the maintenance and enhancement
[Release No. 34–74635; File No. SR– Exchange believes this proposal, which
NYSEArca–2015–17] of competition among Market Makers in
is consistent with the rules of other
each security in which they are
option exchanges,4 would simplify and
Self-Regulatory Organizations; NYSE appointed.9 The Rule also sets forth the
enhance the efficiency of the
Arca, Inc.; Notice of Filing of Proposed number of Options Trading Permits
appointment process for both Market
Rule Change Amending Rule 6.35 To (‘‘OTPs’’) required of a Market Maker in
Makers and the Exchange and add
Refine the Appointment Process order to have a specified number of
clarity to Exchange rules.
Utilized by the Exchange options issues included in the Market
Current Appointment Process Maker’s appointment (e.g., 1 OTP
April 2, 2015.
To register as a Market Maker, an affords a Market Maker up to 100 option
Pursuant to Section 19(b)(1) 1 of the issues in their appointment, whereas 4
applicant must file an application with
Securities Exchange Act of 1934 (the OTPs enables a Market Maker to include
the Exchange on a form or forms
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 in their appointment all option issues
prescribed by the Exchange.5 Once
notice is hereby given that, on March traded on the Exchange).10
registered, a Market Maker may seek an
20, 2015, NYSE Arca, Inc. (the Under the current Rule, ‘‘Market
appointment in one or more option
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with Makers may change the option issues in
classes pursuant to Rule 6.35.
the Securities and Exchange their appointment, subject to the
Specifically, this Rule provides that
Commission (the ‘‘Commission’’) the approval of the Exchange’’ provided
‘‘[o]n a form or forms prescribed by the
proposed rule change as described in requests for changes are ‘‘made in a
Exchange, a Market Maker must apply
Items I, II, and III below, which Items form and manner prescribed by the
for an appointment in one or more
have been prepared by the self- Exchange.’’ 11 In addition, ‘‘Market
classes of option contracts.’’ 6
regulatory organization. The Makers may withdraw from trading an
Commission is publishing this notice to 4 See, e.g., BATS Exchange, Inc. (‘‘BATS’’) Rules option issue that is within their
solicit comments on the proposed rule 22.3(a),(b) (Market Maker Registration); NASDAQ appointment by providing the Exchange
change from interested persons. OMX PHLX (‘‘PHLX) Rule 3212(b) (Registration as with three business days’ written notice
a Market Maker); NASDAQ Options Market
I. Self-Regulatory Organization’s (‘‘NOM’’), Chapter VII (Market Participants),
of such withdrawal.’’ 12 If Market
Statement of the Terms of the Substance Section 3(a),(b) (Continuing Market Maker Makers fail to provide this notice, they
of the Proposed Rule Change Registration). ‘‘may be subject to formal disciplinary
5 See Rule 6.33 (Registration of Market Makers).

The Exchange proposes to amend See also Rule 6.32(a) (Market Maker Defined) (A 7 An LMM is ‘‘is an individual or entity that has
Rule 6.35 (Appointment of Market ‘‘Market Maker is an individual who is registered
been deemed qualified by the Exchange for the
with the Exchange for the purpose of making
Makers) to refine the appointment transactions as a dealer-specialist on the Floor of
purpose of making transactions on the Exchange in
process utilized by the Exchange. The accordance with the provisions of Rule 6.82. Each
the Exchange or for the purpose of submitting
LMM or nominee thereof must be registered with
text of the proposed rule change is quotes electronically and making transactions as a
the Exchange as a Market Maker. Any OTP Holder
dealer-specialist through the NYSE Arca OX
asabaliauskas on DSK5VPTVN1PROD with NOTICES

available on the Exchange’s Web site at or OTP Firm registered as a Market Maker with the
electronic trading system. Registered Market Makers
www.nyse.com, at the principal office of are designated as specialists on the Exchange for all
Exchange is eligible to be qualified as an LMM.’’
the Exchange, and at the Commission’s See Rule 6.82(a)(1).
purposes under the Securities Exchange Act of 1934 8 See Rule 6.35(b).
Public Reference Room. and the Rules and Regulations thereunder. A
9 See Rule 6.35(c).
Market Maker on the Exchange will be either a
10 See Rule 6.35(d).
Market Maker or a Lead Market Maker. Unless
12 17 CFR 200.30–3(a)(12). 11 See Rule 6.35(e). In considering the change
specified, or unless the context requires otherwise,
1 15 U.S.C. 78s(b)(1). the term Market Maker refers to both Market Makers request, the Exchange will consider the factors set
2 15 U.S.C. 78a. and Lead Market Maker.’’). forth in Rule 6.35(c).
3 17 CFR 240.19b–4. 6 See Rule 6.35(a). 12 See Rule 6.35(f).

VerDate Sep<11>2014 17:55 Apr 07, 2015 Jkt 235001 PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 E:\FR\FM\08APN1.SGM 08APN1
Document Created: 2018-02-21 10:07:03
Document Modified: 2018-02-21 10:07:03
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 18907