80 FR 44411 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to NOM Order Routing

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 143 (July 27, 2015)

Page Range		44411-44413
FR Document		2015-18276

Federal Register, Volume 80 Issue 143 (Monday, July 27, 2015)

[Federal Register Volume 80, Number 143 (Monday, July 27, 2015)]
[Notices]
[Pages 44411-44413]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2015-18276]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75498; File No. SR-NASDAQ-2015-079]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
NOM Order Routing

July 21, 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 July 13, 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 amend Chapter VI (Trading Systems) at
Section 11 (Order Routing), of the rules governing the NASDAQ Options
Market (``NOM'' or ``Exchange''), to clarify the manner in which a SEEK
Order will route again after an initial routing attempt to another
market center.
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
The Exchange's rules at Chapter VI, Section 11 provide for the
manner in which orders submitted to the System \3\ will route to other
market centers.\4\ The System provides two routing options pursuant to
which orders are sent to other available market centers for potential
execution, per the entering firm's instructions. The routing options
are SEEK and SRCH. Routing options may be combined with all available
order types and times-in-force, with the exception of order types and
times-in-force whose terms are inconsistent with the terms of a
particular routing option. The Exchange is seeking to clarify the
manner in which a SEEK order will route again, after it is initially
routed (``re-route'').\5\
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\3\ The term ``System'' is defined in NOM Rules at Chapter VI,
Section 1(a).
\4\ Participants can designate orders as either available for
routing or not available for routing. See Chapter VI, Sec. 11(a).
\5\ If an order is only partially routed the portion that was
not routed will be posted to the book.
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SEEK is a routing option pursuant to which an order will first
check the System for available contracts for execution. After checking
the System for available contracts, orders are sent to other available
market centers for potential execution, per the entering firm's
instructions. When checking the book, the System will seek to execute
at the price at which it would send the order to a destination market
center.
SRCH is a routing option pursuant to which an order will first
check the System for available contracts for execution. After checking
the System for available contracts, orders are sent to other available
market centers for potential execution, per the entering firm's
instructions. When checking the book, the System will seek to execute
at the price at which it would send the order to a destination market
center.
Both SEEK and SRCH eligible unexecuted orders will continue to be
routed utilizing a route timer. The SEEK or SRCH order will post to the
book and will be routed after a time period (``Route Timer'') not to
exceed one second as specified by the Exchange on its Web site provided
that the order's limit price would lock or cross other market
center(s).\6\ If, during the Route Timer, any new interest arrives
opposite the order that is equal to or better than the ABBO \7\ price,
the order will trade against such new interest at the ABBO price.
Eligible unexecuted orders will be routed at the end of the Route Timer
provided the order was not filled and the order's limit price would
continue to lock or cross the ABBO. If an order was routed with either
the SEEK or SRCH routing option, and has size after such routing, it
will execute against contra side interest in the book, post in the
book, and route again pursuant to the process described above, if
applicable, if the order's limit price would lock or cross another
market center(s).
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\6\ Pursuant to Section 11(c) of Chapter VI, orders sent by the
System pursuant to the SEEK and SRCH routing options to other
markets would not retain time priority with respect to other orders
in the System. If an order routed pursuant to SEEK or SRCH is
subsequently returned, in whole or in part, that order, or its
remainder, will receive a new time stamp reflecting the time of its
return to the System.
\7\ ABBO is the away market's best bid or offer.
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With respect to SRCH Orders, if contracts remain un-executed after
routing, they are posted on the book. Once on the book, should the
order subsequently be locked or crossed by another market center, it
will re-route. With SEEK orders, the rule currently states, if
contracts remain un-executed after routing, they are posted on the
book. Once on the book at the limit

[[Page 44412]]

price, should the order subsequently be locked or crossed by another
market center, the System will not route the order to the locking or
crossing market center.
The Exchange seeks to amend the rule text in Chapter VI, Section
11(a)(1)(A) to state, while, on the book at the limit price, should the
order subsequently be locked or crossed by another market center, the
System will not route the order to the locking or crossing market
center. The purpose of this change is to make clear that the SEEK order
will not re-route as long as that order is at the limit price. The SEEK
order may re-route, after it has initially routed, when such order
reprices.
Example #1: By way of example, if an order is subject to Acceptable
Trade Range \8\ (``ATR'') with a price band of 0.80 and the order book
is as follows:

\8\ The System will calculate an Acceptable Trade Range to limit
the range of prices at which an order will be allowed to execute.
The Acceptable Trade Range is calculated by taking the reference
price, plus or minus a value to be determined by the Exchange.
(i.e., the reference price - (x) for sell orders and the reference
price + (x) for buy orders). Upon receipt of a new order, the
reference price is the national best bid (NBB) for sell orders and
the national best offer (NBO) for buy orders or the last price at
which the order is posted whichever is higher for a buy order or
lower for a sell order. See NASDAQ Rules at Chapter VI, Section
10(7).
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[cir] Order 1: Buy SEEK order 27(10)
[cir] Order 2: Sell SEEK order 31 (10)
[cir] Order 3: Sell DNR order 29 (10)
Further, if NASDAQ's BBO is 27(10) x 29(10) and the away market is
27(10) x 33 (10) with an NBBO of 27(20) x 29(10); then
An incoming Order 4: Buy DNR 30 (100) triggers ATR and the
following takes place within the order book:
Order 4 first executes with Order 3 at 29(10)
ATR timer starts, with Order 4 re-priced and displayed at
29.80 (90)
Exchange BBO becomes 29.80 (90) x 31 (10), offer 31 is
non-firm
Assume, during ATR timer, away market moves such that new
away market is 31.10(10) x 33(10)
After ATR processing concludes, Order 2 is repriced to be
offered at 31.10 and displayed tick away at 31.20 to avoid locking/
crossing the market
Exchange BBO becomes 30(90) x 31.20(10)
After route timer, Order 2 routes to away market at 31.10.
The Exchange proposes to add the following new sentence, ``SEEK
orders will not be eligible for routing until the next time the option
series is subject to a new opening or reopening.'' The purpose of this
new sentence is to make clear that an opening and reopening will cause
an order to be eligible for routing. The SEEK order will be treated as
a new order and therefore will become subject to the routing process
anew with an opening or reopening process, provided the order locks or
crosses another market.
Example #2: By way of example, presume a halt occurred on NOM with
the following order book:
[ssquf] Order 1: Buy SEEK Order is on the book at its limit price,
2.00 (15).
[ssquf] The related underlying is halted.
[ssquf] Immediately following the halt, before NOM has re-opened
the issue, the away market quotes at 1.95 (100) x 1.99 (100).
[ssquf] Upon re-opening the issue on NOM, the SEEK order routes at
1.99 (15). The System comes out of a halt with a new opening process
and treats all orders as if they were new orders thus the SEEK order
will re-route.
The Exchange proposes to modify the existing sentence which states,
``[o]nce on the book at the limit price, should the order subsequently
be locked or crossed by another market center, the System will not
route the order to the locking or crossing market center'' to ``[w]hile
on the book at the limit price, should the order subsequently be locked
or crossed by another market center, the System will not route the
order to the locking or crossing market center.'' The Exchange believes
that this modification reflects more accurate rule text. The Exchange
believes that market participants are aware of the manner in which the
SEEK order operates as there has been no System change with respect to
the function of the SEEK order. The proposed language serves to make
clear that a SEEK order will not re-route while at its limit price, but
once that order is re-priced, it may route again.\9\
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\9\ See Example #1.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \10\ in general, and furthers the objectives of Section
6(b)(5) of the Act \11\ in particular, in that it is designed to
promote just and equitable principles of trade, 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, by amending the rule text to clarify the existing rule text
and provide the circumstances when a SEEK order would be eligible to
route, such as (1) when the order is repriced, after it is posted to
the order book, at a price not at its limit price; and (2) when an
opening or reopening (after a halt) occurs such that the System views
these orders as new orders and they become subject to routing anew. The
Exchange believes that these amendments provide transparency and
specificity to the Rules and the corrected rule text protects investors
and the public interest by reducing the potential for investor
confusion.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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The Exchange believes the additional language benefits other market
participants who may not be currently familiar with the routing options
on NOM to understand the difference between the two routing options
offered by the Exchange. While the Exchange is modifying the rule text,
it notes that the System will continue to operate as it does today.
Rather, the proposed rule text seeks to bring additional clarity to the
current rule text to clarify when a SEEK order will re-route to another
market center after it has initially routed. The Exchange believes this
language corrects the current rule text and more clearly differentiates
an order routed pursuant to the SEEK routing option as compared to the
SRCH routing option.

B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule change does
not create an undue burden on competition as the proposed rule change
is not a substantive change in that the System will continue to operate
as it does today. The Exchange desires to amend the current rule text
to provide two circumstances when the SEEK order would re-route after
it has initially routed to an away market center. The Exchange believes
that this proposed rule text will clarify the current rule which states
that SEEK order will not re-route once it is on the book at the limit
price. The Exchange is seeking to provide greater transparency in its
rules. The amendments would apply to all market participants in the
same manner.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

The Exchange has filed the proposed rule change pursuant to Section

[[Page 44413]]

19(b)(3)(A)(iii) of the Act \12\ and Rule 19b-4(f)(6) thereunder.\13\
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, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b-
4(f)(6) thereunder.\15\
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6).
\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and 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. The
Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\17\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposed
rule change may become operative immediately. The Exchange states that
the proposal would apply to all market participants in the same manner
and believes that market participants would benefit from the additional
clarity the Exchange asserts the proposal would provide in regard to
the circumstances when a SEEK order is eligible to re-route. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because the proposal provides further clarity regarding the routing
functionality of the Exchange's SEEK orders, which the Commission
believes will benefit investors and market participants who use such
orders to accomplish their trading objectives. For this reason, the
Commission hereby waives the 30-day operative delay and designates the
proposal operative upon filing.\18\
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\16\ 17 CFR 240.19b-4(f)(6).
\17\ 17 CFR 240.19b-4(f)(6)(iii).
\18\ 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 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 change 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 rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2015-079 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-2015-079. 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 such 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-2015-079 and should
be submitted on or before August 17, 2015.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-18276 Filed 7-24-15; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 143 / Monday, July 27, 2015 / Notices 44411

Written comments are invited on: (a) solicit comments on the proposed rule SEEK is a routing option pursuant to
Whether the proposed collection of change from interested persons. which an order will first check the
information is necessary for the proper System for available contracts for
I. Self-Regulatory Organization’s
performance of the functions of the execution. After checking the System for
Statement of the Terms of Substance of
Commission, including whether the available contracts, orders are sent to
the Proposed Rule Change
information shall have practical utility; other available market centers for
(b) the accuracy of the Commission’s The Exchange proposes to amend potential execution, per the entering
estimates of the burden of the proposed Chapter VI (Trading Systems) at Section firm’s instructions. When checking the
collection of information; (c) ways to 11 (Order Routing), of the rules book, the System will seek to execute at
enhance the quality, utility, and clarity governing the NASDAQ Options Market the price at which it would send the
of the information to be collected; and (‘‘NOM’’ or ‘‘Exchange’’), to clarify the order to a destination market center.
(d) ways to minimize the burden of the manner in which a SEEK Order will SRCH is a routing option pursuant to
collection of information on route again after an initial routing which an order will first check the
respondents, including through the use attempt to another market center. System for available contracts for
of automated collection techniques or The text of the proposed rule change execution. After checking the System for
other forms of information technology. is available on the Exchange’s Web site available contracts, orders are sent to
Consideration will be given to at http://nasdaq.cchwallstreet.com, at other available market centers for
comments and suggestions submitted in the principal office of the Exchange, and potential execution, per the entering
writing within 60 days of this at the Commission’s Public Reference firm’s instructions. When checking the
publication. Room. book, the System will seek to execute at
An agency may not conduct or II. Self-Regulatory Organization’s the price at which it would send the
sponsor, and a person is not required to Statement of the Purpose of, and order to a destination market center.
Statutory Basis for, the Proposed Rule Both SEEK and SRCH eligible
respond to, a collection of information
Change unexecuted orders will continue to be
under the PRA unless it displays a
routed utilizing a route timer. The SEEK
currently valid OMB control number. In its filing with the Commission, the
or SRCH order will post to the book and
Please direct your written comments Exchange included statements
will be routed after a time period
to: Pamela Dyson, Director/Chief concerning the purpose of and basis for
(‘‘Route Timer’’) not to exceed one
Information Officer, Securities and the proposed rule change and discussed
second as specified by the Exchange on
Exchange Commission, c/o Remi Pavlik- any comments it received on the
its Web site provided that the order’s
Simon, 100 F Street NE., Washington, proposed rule change. The text of these
limit price would lock or cross other
DC 20549, or send an email to: PRA_ statements may be examined at the
places specified in Item IV below. The market center(s).6 If, during the Route
Mailbox@sec.gov. Timer, any new interest arrives opposite
Exchange has prepared summaries, set
Dated: July 22, 2015. forth in sections A, B, and C below, of the order that is equal to or better than
Robert W. Errett, the most significant aspects of such the ABBO 7 price, the order will trade
Deputy Secretary. statements. against such new interest at the ABBO
[FR Doc. 2015–18325 Filed 7–24–15; 8:45 am]
price. Eligible unexecuted orders will be
A. Self-Regulatory Organization’s routed at the end of the Route Timer
BILLING CODE 8011–01–P
Statement of the Purpose of, and provided the order was not filled and
Statutory Basis for, the Proposed Rule the order’s limit price would continue
Change to lock or cross the ABBO. If an order
SECURITIES AND EXCHANGE
COMMISSION 1. Purpose was routed with either the SEEK or
SRCH routing option, and has size after
The Exchange’s rules at Chapter VI, such routing, it will execute against
[Release No. 34–75498; File No. SR– Section 11 provide for the manner in contra side interest in the book, post in
NASDAQ–2015–079] which orders submitted to the System 3 the book, and route again pursuant to
will route to other market centers.4 The the process described above, if
Self-Regulatory Organizations; The System provides two routing options
NASDAQ Stock Market LLC; Notice of applicable, if the order’s limit price
pursuant to which orders are sent to would lock or cross another market
Filing and Immediate Effectiveness of other available market centers for
Proposed Rule Change to NOM Order center(s).
potential execution, per the entering With respect to SRCH Orders, if
Routing firm’s instructions. The routing options contracts remain un-executed after
July 21, 2015. are SEEK and SRCH. Routing options routing, they are posted on the book.
may be combined with all available Once on the book, should the order
Pursuant to Section 19(b)(1) of the order types and times-in-force, with the subsequently be locked or crossed by
Securities Exchange Act of 1934 exception of order types and times-in- another market center, it will re-route.
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 force whose terms are inconsistent with With SEEK orders, the rule currently
notice is hereby given that on July 13, the terms of a particular routing option. states, if contracts remain un-executed
2015, The NASDAQ Stock Market LLC The Exchange is seeking to clarify the after routing, they are posted on the
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the manner in which a SEEK order will book. Once on the book at the limit
Securities and Exchange Commission route again, after it is initially routed
(‘‘SEC’’ or ‘‘Commission’’) the proposed (‘‘re-route’’).5 6 Pursuant to Section 11(c) of Chapter VI, orders
tkelley on DSK3SPTVN1PROD with NOTICES

rule change as described in Items I and sent by the System pursuant to the SEEK and SRCH
II below, which Items have been 3 The
term ‘‘System’’ is defined in NOM Rules at routing options to other markets would not retain
prepared by the Exchange. The Chapter VI, Section 1(a). time priority with respect to other orders in the
Commission is publishing this notice to
4 Participants can designate orders as either System. If an order routed pursuant to SEEK or
available for routing or not available for routing. See SRCH is subsequently returned, in whole or in part,
Chapter VI, Sec. 11(a). that order, or its remainder, will receive a new time
1 15 U.S.C. 78s(b)(1). 5 If an order is only partially routed the portion stamp reflecting the time of its return to the System.
2 17 CFR 240.19b–4. that was not routed will be posted to the book. 7 ABBO is the away market’s best bid or offer.

VerDate Sep<11>2014 18:58 Jul 24, 2015 Jkt 235001 PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 E:\FR\FM\27JYN1.SGM 27JYN1

44412 Federal Register / Vol. 80, No. 143 / Monday, July 27, 2015 / Notices

price, should the order subsequently be The SEEK order will be treated as a new opening or reopening (after a halt)
locked or crossed by another market order and therefore will become subject occurs such that the System views these
center, the System will not route the to the routing process anew with an orders as new orders and they become
order to the locking or crossing market opening or reopening process, provided subject to routing anew. The Exchange
center. the order locks or crosses another believes that these amendments provide
The Exchange seeks to amend the rule market. transparency and specificity to the
text in Chapter VI, Section 11(a)(1)(A) to Example #2: By way of example, Rules and the corrected rule text
state, while, on the book at the limit presume a halt occurred on NOM with protects investors and the public
price, should the order subsequently be the following order book: interest by reducing the potential for
locked or crossed by another market D Order 1: Buy SEEK Order is on the investor confusion.
center, the System will not route the book at its limit price, 2.00 (15). The Exchange believes the additional
order to the locking or crossing market D The related underlying is halted. language benefits other market
center. The purpose of this change is to D Immediately following the halt, participants who may not be currently
make clear that the SEEK order will not before NOM has re-opened the issue, the familiar with the routing options on
re-route as long as that order is at the away market quotes at 1.95 (100) x 1.99 NOM to understand the difference
limit price. The SEEK order may re- (100). between the two routing options offered
route, after it has initially routed, when D Upon re-opening the issue on NOM, by the Exchange. While the Exchange is
such order reprices. the SEEK order routes at 1.99 (15). The modifying the rule text, it notes that the
Example #1: By way of example, if an System comes out of a halt with a new System will continue to operate as it
order is subject to Acceptable Trade opening process and treats all orders as does today. Rather, the proposed rule
Range 8 (‘‘ATR’’) with a price band of if they were new orders thus the SEEK text seeks to bring additional clarity to
0.80 and the order book is as follows: order will re-route. the current rule text to clarify when a
Æ Order 1: Buy SEEK order 27(10) The Exchange proposes to modify the SEEK order will re-route to another
Æ Order 2: Sell SEEK order 31 (10) existing sentence which states, ‘‘[o]nce market center after it has initially
Æ Order 3: Sell DNR order 29 (10) on the book at the limit price, should routed. The Exchange believes this
Further, if NASDAQ’s BBO is 27(10) × the order subsequently be locked or language corrects the current rule text
29(10) and the away market is 27(10) × crossed by another market center, the and more clearly differentiates an order
33 (10) with an NBBO of 27(20) × System will not route the order to the routed pursuant to the SEEK routing
29(10); then locking or crossing market center’’ to option as compared to the SRCH routing
An incoming Order 4: Buy DNR 30 ‘‘[w]hile on the book at the limit price, option.
(100) triggers ATR and the following should the order subsequently be locked
or crossed by another market center, the B. Self-Regulatory Organization’s
takes place within the order book:
Statement on Burden on Competition
• Order 4 first executes with Order 3 System will not route the order to the
at 29(10) locking or crossing market center.’’ The The Exchange does not believe that
• ATR timer starts, with Order 4 re- Exchange believes that this modification the proposed rule change will impose
priced and displayed at 29.80 (90) reflects more accurate rule text. The any burden on competition not
• Exchange BBO becomes 29.80 (90) Exchange believes that market necessary or appropriate in furtherance
x 31 (10), offer 31 is non-firm participants are aware of the manner in of the purposes of the Act. The
• Assume, during ATR timer, away which the SEEK order operates as there proposed rule change does not create an
market moves such that new away has been no System change with respect undue burden on competition as the
market is 31.10(10) x 33(10) to the function of the SEEK order. The proposed rule change is not a
• After ATR processing concludes, proposed language serves to make clear substantive change in that the System
Order 2 is repriced to be offered at 31.10 that a SEEK order will not re-route will continue to operate as it does today.
and displayed tick away at 31.20 to while at its limit price, but once that The Exchange desires to amend the
avoid locking/crossing the market order is re-priced, it may route again.9 current rule text to provide two
• Exchange BBO becomes 30(90) x 2. Statutory Basis
circumstances when the SEEK order
31.20(10) would re-route after it has initially
• After route timer, Order 2 routes to The Exchange believes that its routed to an away market center. The
away market at 31.10. proposal is consistent with Section 6(b) Exchange believes that this proposed
The Exchange proposes to add the of the Act 10 in general, and furthers the rule text will clarify the current rule
following new sentence, ‘‘SEEK orders objectives of Section 6(b)(5) of the Act 11 which states that SEEK order will not
will not be eligible for routing until the in particular, in that it is designed to re-route once it is on the book at the
next time the option series is subject to promote just and equitable principles of limit price. The Exchange is seeking to
a new opening or reopening.’’ The trade, to remove impediments to and provide greater transparency in its rules.
purpose of this new sentence is to make perfect the mechanism of a free and The amendments would apply to all
clear that an opening and reopening will open market and a national market market participants in the same manner.
cause an order to be eligible for routing. system, and, in general to protect
investors and the public interest, by C. Self-Regulatory Organization’s
8 The System will calculate an Acceptable Trade amending the rule text to clarify the Statement on Comments on the
Range to limit the range of prices at which an order existing rule text and provide the Proposed Rule Change Received From
will be allowed to execute. The Acceptable Trade circumstances when a SEEK order Members, Participants, or Others
Range is calculated by taking the reference price,
plus or minus a value to be determined by the would be eligible to route, such as (1) No written comments were either
tkelley on DSK3SPTVN1PROD with NOTICES

Exchange. (i.e., the reference price ¥ (x) for sell when the order is repriced, after it is solicited or received.
orders and the reference price + (x) for buy orders). posted to the order book, at a price not III. Date of Effectiveness of the
Upon receipt of a new order, the reference price is at its limit price; and (2) when an
the national best bid (NBB) for sell orders and the Proposed Rule Change and Timing for
national best offer (NBO) for buy orders or the last
9 See
Commission Action
price at which the order is posted whichever is Example #1.
higher for a buy order or lower for a sell order. See 10 15 U.S.C. 78f(b). The Exchange has filed the proposed
NASDAQ Rules at Chapter VI, Section 10(7). 11 15 U.S.C. 78f(b)(5). rule change pursuant to Section

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Federal Register / Vol. 80, No. 143 / Monday, July 27, 2015 / Notices 44413

19(b)(3)(A)(iii) of the Act 12 and Rule Commission summarily may information that you wish to make
19b–4(f)(6) thereunder.13 Because the temporarily suspend such rule change if available publicly. All submissions
proposed rule change does not: (i) it appears to the Commission that such should refer to File Number SR–
Significantly affect the protection of action is necessary or appropriate in the NASDAQ–2015–079 and should be
investors or the public interest; (ii) public interest, for the protection of submitted on or before August 17, 2015.
impose any significant burden on investors, or otherwise in furtherance of For the Commission, by the Division of
competition; and (iii) become operative the purposes of the Act. If the Trading and Markets, pursuant to delegated
for 30 days from the date on which it Commission takes such action, the authority.19
was filed, or such shorter time as the Commission shall institute proceedings Robert W. Errett,
Commission may designate, if to determine whether the proposed rule Deputy Secretary.
consistent with the protection of change should be approved or
[FR Doc. 2015–18276 Filed 7–24–15; 8:45 am]
investors and the public interest, the disapproved.
BILLING CODE 8011–01–P
proposed rule change has become
IV. Solicitation of Comments
effective pursuant to Section 19(b)(3)(A)
of the Act 14 and Rule 19b–4(f)(6) Interested persons are invited to
thereunder.15 submit written data, views, and SMALL BUSINESS ADMINISTRATION
A proposed rule change filed under arguments concerning the foregoing, [Disaster Declaration #14383 and #14384]
Rule 19b–4(f)(6) 16 normally does not including whether the proposed rule
become operative prior to 30 days after change is consistent with the Act. Kansas Disaster #KS–00003
the date of the filing. However, pursuant Comments may be submitted by any of
to Rule 19b–4(f)(6)(iii),17 the the following methods: AGENCY: U.S. Small Business
Commission may designate a shorter Administration.
Electronic Comments
time if such action is consistent with the ACTION: Notice.
protection of investors and the public • Use the Commission’s Internet
interest. The Exchange has asked the comment form (http://www.sec.gov/ SUMMARY: This is a Notice of the
Commission to waive the 30-day rules/sro.shtml); or Presidential declaration of a major
operative delay so that the proposed • Send an email to rule-comments@ disaster for Public Assistance Only for
rule change may become operative sec.gov. Please include File Number SR– the State of Kansas (FEMA–4230–DR),
immediately. The Exchange states that NASDAQ–2015–079 on the subject line. dated 07/20/2015.
the proposal would apply to all market Incident: Severe Storms, Tornadoes,
Paper Comments
participants in the same manner and Straight-line Winds, and Flooding.
• Send paper comments in triplicate Incident Period: 05/04/2015 through
believes that market participants would
to Secretary, Securities and Exchange 06/21/2015.
benefit from the additional clarity the
Commission, 100 F Street NE., DATES: Effective Date: 07/20/2015.
Exchange asserts the proposal would
Washington, DC 20549–1090. Physical Loan Application Deadline
provide in regard to the circumstances
when a SEEK order is eligible to re- All submissions should refer to File Date: 09/18/2015.
route. The Commission believes that Number SR–NASDAQ–2015–079. This Economic Injury (EIDL) Loan
waiving the 30-day operative delay is file number should be included on the Application Deadline Date: 04/20/2016.
consistent with the protection of subject line if email is used. To help the
ADDRESSES: Submit completed loan
investors and the public interest Commission process and review your
applications to: U.S. Small Business
because the proposal provides further comments more efficiently, please use
Administration, Processing And
clarity regarding the routing only one method. The Commission will
Disbursement Center, 14925 Kingsport
functionality of the Exchange’s SEEK post all comments on the Commission’s
Road, Fort Worth, TX 76155.
orders, which the Commission believes Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the FOR FURTHER INFORMATION CONTACT: A.
will benefit investors and market Escobar, Office of Disaster Assistance,
participants who use such orders to submission, all subsequent
amendments, all written statements U.S. Small Business Administration,
accomplish their trading objectives. For 409 3rd Street SW., Suite 6050,
this reason, the Commission hereby with respect to the proposed rule
change that are filed with the Washington, DC 20416.
waives the 30-day operative delay and
Commission, and all written SUPPLEMENTARY INFORMATION: Notice is
designates the proposal operative upon
filing.18 communications relating to the hereby given that as a result of the
At any time within 60 days of the proposed rule change between the President’s major disaster declaration on
filing of the proposed rule change, the Commission and any person, other than 07/20/2015, Private Non-Profit
those that may be withheld from the organizations that provide essential
12 15 U.S.C. 78s(b)(3)(A)(iii). public in accordance with the services of governmental nature may file
13 17 CFR 240.19b–4(f)(6). provisions of 5 U.S.C. 552, will be disaster loan applications at the address
14 15 U.S.C. 78s(b)(3)(A).
available for Web site viewing and listed above or other locally announced
15 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
printing in the Commission’s Public locations.
4(f)(6)(iii) requires the Exchange to give the The following areas have been
Commission written notice of the Exchange’s intent Reference Room, 100 F Street NE.,
to file the proposed rule change, along with a brief Washington, DC 20549 on official determined to be adversely affected by
description and text of the proposed rule change, business days between the hours of the disaster:
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
10:00 a.m. and 3:00 p.m. Copies of such Primary Counties: Atchison, Barton,
tkelley on DSK3SPTVN1PROD with NOTICES

as designated by the Commission. The Exchange filing also will be available for Brown, Butler, Chase, Chautauqua,
has satisfied this requirement. inspection and copying at the principal Cherokee, Cheyenne, Clay, Cloud,
16 17 CFR 240.19b–4(f)(6).
office of the Exchange. All comments Coffey, Cowley, Doniphan, Edwards,
17 17 CFR 240.19b–4(f)(6)(iii).
18 For purposes only of waiving the 30-day
received will be posted without change; Elk, Ellsworth, Franklin, Gray,
operative delay, the Commission has considered the
the Commission does not edit personal Greenwood, Harper, Haskell,
proposed rule’s impact on efficiency, competition, identifying information from
and capital formation. See 15 U.S.C. 78c(f). submissions. You should submit only 19 17 CFR 200.30–3(a)(12).

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Document Created: 2018-02-23 09:26:45
Document Modified: 2018-02-23 09:26:45

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 44411