80 FR 48590 - Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to a Delay of Implementation Relate to the Volume-Based and Multi-Trigger Threshold
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 156 (August 13, 2015)
Federal Register Volume 80, Issue 156 (August 13, 2015)
| Page Range | 48590-48592 | |
| FR Document | 2015-19873 |
[Federal Register Volume 80, Number 156 (Thursday, August 13, 2015)] [Notices] [Pages 48590-48592] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-19873] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75643; File No. SR-BX-2015-049] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to a Delay of Implementation Relate to the Volume-Based and Multi-Trigger Threshold August 7, 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 August 6, 2015, NASDAQ OMX BX, Inc. (``BX'' 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. --------------------------------------------------------------------------- \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 The Exchange proposes to extend the implementation timeframe for adopting [[Page 48591]] two new BX Market Maker \3\ risk protections, a volume-based threshold and a multi-trigger threshold. --------------------------------------------------------------------------- \3\ The term ``BX Market Maker'' means a Participant that has registered as a Market Maker on BX pursuant to Chapter VII, Section 2, and which remains in good standing pursuant to Chapter VII, Section 4. --------------------------------------------------------------------------- The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqomxbx.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 purpose of the proposal is to extend the implementation of the timeframe for the Exchange's amendments to BX's Rules at Chapter VII, Section 6(f) entitled ``Market Maker Quotations.'' \4\ In its rule change adopting the two new risk protections in Chapter VII, Section 6(f), the Exchange stated that it proposed to ``. . . implement this rule within thirty (30) days of the operative date.'' The Exchange stated that it would issue an Options Trader Alert in advance to inform market participants of such date.\5\ At this time, the Exchange desires to extend the implementation of this rule change to within (60) days of the operative date. The Exchange will announce the date of implementation by issuing an Options Trader Alert. --------------------------------------------------------------------------- \4\ This rule became immediately effective on June 23, 2015. Securities Exchange Release No. 75392 (July 8, 2015), 80 FR 41114 (July 14, 2015) (SR-BX-2015-036). \5\ See note 4. --------------------------------------------------------------------------- By way of background, the risk protections provided for in Chapter VII, Section 6(f) are intended to assist BX Market Makers in controlling their trading risks.\6\ Specifically, the risk protections establish: (1) A threshold used to calculate each BX Market Maker's total volume executed in all series of an underlying security within a specified time period and to compare that to a pre-determined threshold (``Volume-Based Threshold''), and (2) a threshold used to measure the number of times the System has triggered \7\ based on the Risk Monitor Mechanism (``Percentage-Based Threshold'') pursuant to Chapter VI, Section 19 and Volume-Based Thresholds within a specified time period and to compare that total to a pre-determined threshold (``Multi- Trigger Threshold'').\8\ --------------------------------------------------------------------------- \6\ Pursuant to BX Rules at Chapter VII, Section 5, entitled ``Obligations of Market Makers'', in registering as a market maker, an Options Participant commits himself to various obligations. Transactions of a BX Market Maker must constitute a course of dealings reasonably calculated to contribute to the maintenance of a fair and orderly market, and Market Makers should not make bids or offers or enter into transactions that are inconsistent with such course of dealings. Further, all Market Makers are designated as specialists on BX for all purposes under the Act or rules thereunder. See Chapter VII, Section 2. \7\ A trigger is defined as the event which causes the System to automatically remove all quotes in all options series in an underlying issue. \8\ The details of the two risk protections are described in the initial filing. See Securities Exchange Release No. 75392 (July 8, 2015), 80 FR 41114 (July 14, 2015) (SR-BX-2015-036). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \9\ in general, and furthers the objectives of Section 6(b)(5) of the Act \10\ 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 enhancing the risk protections available to Exchange members. The proposal promotes policy goals of the Commission, which has encouraged execution venues, exchange and non-exchange alike, to enhance risk protection tools and other mechanisms to decrease risk and increase stability. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The delay of the implementation of BX Rules at Chapter VII, Section 6(f) will permit the Exchange an additional thirty days within which to implement these risk protections that will be utilized by BX Market Makers. 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. With respect to the risk protections, the proposal will not impose a burden on intra-market or inter-market competition; rather it provides BX Market Makers with the opportunity to avail themselves of similar risk tools that are currently available on other exchanges.\11\ The proposal does not impose a burden on inter-market competition, because members may choose to become market makers on a number of other options exchanges, which may have similar but not identical features.\12\ The proposed rule change is meant to protect BX Market Makers from inadvertent exposure to excessive risk. Accordingly, the proposed rule change will have no impact on competition. --------------------------------------------------------------------------- \11\ See Section 8 of Form 19b-4, infra. \12\ See BATS Rule 21.16, BOX Rules 8100 and 8110, C2 Rule 8.12, CBOE Rule 8.18, ISE Rule 804(g), MIAX Rule 612, NYSE MKT Rule 928NY and NYSE Arca Rule 6.40. --------------------------------------------------------------------------- The delay of the implementation of BX Rules at Chapter VII, Section 6(f) will permit the Exchange additional time to implement these risk protections that will be utilized by BX Market Makers. 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) by its terms, 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)(ii) of the Act \13\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\14\ The Exchange has requested that the Commission waive the thirty-day operative delay so that the proposal may become operative immediately. The Exchange states that waiving the thirty-day operative delay will enable it to implement these risk protections within the new timeframe. The Commission believes that waiving the thirty-day operative delay is [[Page 48592]] consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the thirty-day operative delay and designates the proposal effective upon filing.\15\ --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(a)(ii). \14\ 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. \15\ For purposes 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). --------------------------------------------------------------------------- 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 CommentsUse 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-BX-2015-049 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-BX-2015-049. 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 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-BX-2015-049 and should be submitted on or before September 3, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Jill M. Peterson, Assistant Secretary. [FR Doc. 2015-19873 Filed 8-12-15; 8:45 am] BILLING CODE 8011-01-P
![48590 Federal Register / Vol. 80, No. 156 / Thursday, August 13, 2015 / Notices
quoting level and ADV calculations applicable to billing in July 2015. The those that may be withheld from the
described in the Price List. Moreover, Commission believes that the waiver public in accordance with the
the Exchange believes that the proposed would also assist the Exchange in provisions of 5 U.S.C. 552, will be
change would enhance competition determining transaction fees and credits available for Web site viewing and
between competing marketplaces by for member organizations in a timely printing in the Commission’s Public
enabling the Exchange to exclude July 8, manner after the end of the billing Reference Room, 100 F Street, NE.,
2015 for the purposes of determining month of July 2015. For these reasons, Washington, DC 20549, on official
transaction fees and credits based on the Commission believes that waiving business days between the hours of 10
volume and quoting levels as set forth the 30-day operative delay is consistent a.m. and 3 p.m. Copies of such filing
in the Price List. with the protection of investors and the also will be available for inspection and
public interest, and designates the copying at the principal office of the
C. Self-Regulatory Organization’s
proposed rule change to be operative Exchange. All comments received will
Statement on Comments on the
upon filing with the Commission.17 be posted without change; the
Proposed Rule Change Received From At any time within 60 days of the Commission does not edit personal
Members, Participants, or Others filing of the proposed rule change, the identifying information from
No written comments were solicited Commission summarily may submissions. You should submit only
or received with respect to the proposed temporarily suspend such rule change if information that you wish to make
rule change. it appears to the Commission that such available publicly. All submissions
III. Date of Effectiveness of the action is necessary or appropriate in the should refer to File Number SR–
Proposed Rule Change and Timing for public interest, for the protection of NYSEMKT–2015–60 and should be
Commission Action investors, or otherwise in furtherance of submitted on or before September 3,
the purposes of the Act.18 2015.
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A) IV. Solicitation of Comments For the Commission, by the Division of
Trading and Markets, pursuant to delegated
of the Act 13 and Rule 19b–4(f)(6) 14 Interested persons are invited to authority.19
thereunder because the proposal does submit written data, views, and Jill M. Peterson,
not: (i) Significantly affect the arguments concerning the foregoing,
Assistant Secretary.
protection of investors or the public including whether the proposed rule
interest; (ii) impose any significant [FR Doc. 2015–19877 Filed 8–12–15; 8:45 am]
change is consistent with the Act.
burden on competition; and (iii) by its Comments may be submitted by any of BILLING CODE 8011–01–P
terms, become operative for 30 days the following methods:
from the date on which it was filed, or
such shorter time as the Commission Electronic Comments SECURITIES AND EXCHANGE
may designate if consistent with the • Use the Commission’s Internet COMMISSION
protection of investors and the public comment form (http://www.sec.gov/ [Release No. 34–75643; File No. SR–BX–
interest.15 rules/sro.shtml); or 2015–049]
A proposed rule change filed under • Send an email to rule-comments@
Rule 19b–4(f)(6) normally may not sec.gov. Please include File Number SR– Self-Regulatory Organizations;
become operative prior to 30 days after NYSEMKT–2015–60 on the subject line. NASDAQ OMX BX, Inc.; Notice of Filing
the date of filing. However, Rule 19b– and Immediate Effectiveness of
Paper Comments Proposed Rule Change Relating to a
4(f)(6)(iii) 16 permits the Commission to
designate a shorter time if such action • Send paper comments in triplicate Delay of Implementation Relate to the
is consistent with the protection of to Secretary, Securities and Exchange Volume-Based and Multi-Trigger
investors and the public interest. The Commission, 100 F Street NE., Threshold
Exchange has requested that the Washington, DC 20549–1090.
August 7, 2015.
Commission waive the 30-day operative All submissions should refer to File
Pursuant to Section 19(b)(1) of the
delay period. The Commission believes Number SR–NYSEMKT–2015–60. This
Securities Exchange Act of 1934
that waiver of the 30-day operative file number should be included on the
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
delay period is consistent with the subject line if email is used. To help the
notice is hereby given that on August 6,
protection of investors and the public Commission process and review your
2015, NASDAQ OMX BX, Inc. (‘‘BX’’ or
interest. Specifically, the Commission comments more efficiently, please use
‘‘Exchange’’) filed with the Securities
believes that the proposal would allow only one method. The Commission will
and Exchange Commission (‘‘SEC’’ or
the Exchange to immediately implement post all comments on the Commission’s
‘‘Commission’’) the proposed rule
the calculation related to the trading Internet Web site (http://www.sec.gov/
change as described in Items I and II
suspension, thereby reducing the rules/sro.shtml). Copies of the
below, which Items have been prepared
potential for confusion among member submission, all subsequent
by the Exchange. The Commission is
organizations regarding the volume, amendments, all written statements
publishing this notice to solicit
liquidity, and quoting thresholds with respect to the proposed rule
comments on the proposed rule change
change that are filed with the
from interested persons.
13 15 U.S.C. 78s(b)(3)(A). Commission, and all written
14 17 CFR 240.19b–4(f)(6). communications relating to the I. Self-Regulatory Organization’s
15 In addition, Rule 19b–4(f)(6)(iii) requires the
proposed rule change between the Statement of the Terms of Substance of
Exchange to give the Commission written notice of
tkelley on DSK3SPTVN1PROD with NOTICES
the Exchange’s intent to file the proposed rule Commission and any person, other than the Proposed Rule Change
change, along with a brief description and text of The Exchange proposes to extend the
the proposed rule change, at least five business days 17 For purposes only of waiving the operative
prior to the date of filing of the proposed rule delay for this proposal, the Commission has
implementation timeframe for adopting
change, or such shorter time as designated by the considered the proposed rule’s impact on
19 17 CFR 200.30–3(a)(12).
Commission. The Exchange has satisfied this efficiency, competition, and capital formation. See
requirement. 15 U.S.C. 78c(f). 1 15 U.S.C. 78s(b)(1).
16 17 CFR 240.19b–4(f)(6)(iii). 18 15 U.S.C. 78s(b)(3)(C). 2 17 CFR 240.19b–4.
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![48592 Federal Register / Vol. 80, No. 156 / Thursday, August 13, 2015 / Notices
consistent with the protection of amendments, all written statements (‘‘Act’’),1 and Rule 19b–4 thereunder,2
investors and the public interest. with respect to the proposed rule notice is hereby given that on August 6,
Therefore, the Commission hereby change that are filed with the 2015, NASDAQ OMX PHLX LLC
waives the thirty-day operative delay Commission, and all written (‘‘PHLX’’ or ‘‘Exchange’’) filed with the
and designates the proposal effective communications relating to the Securities and Exchange Commission
upon filing.15 proposed rule change between the (‘‘SEC’’ or ‘‘Commission’’) the proposed
At any time within 60 days of the Commission and any person, other than rule change as described in Items I, II,
filing of the proposed rule change, the those that may be withheld from the and III, below, which Items have been
Commission summarily may public in accordance with the prepared by the Exchange. The
temporarily suspend such rule change if provisions of 5 U.S.C. 552, will be Commission is publishing this notice to
it appears to the Commission that such available for Web site viewing and
action is: (i) Necessary or appropriate in solicit comments on the proposed rule
printing in the Commission’s Public change from interested persons.
the public interest; (ii) for the protection Reference Room, 100 F Street NE.,
of investors; or (iii) otherwise in Washington, DC 20549, on official I. Self-Regulatory Organization’s
furtherance of the purposes of the Act. business days between the hours of 10 Statement of the Terms of Substance of
If the Commission takes such action, the a.m. and 3:00 p.m. Copies of the filing the Proposed Rule Change
Commission shall institute proceedings also will be available for inspection and
to determine whether the proposed rule copying at the principal office of the The Exchange proposes to update the
should be approved or disapproved. Exchange. All comments received will public disclosure of the sources of data
IV. Solicitation of Comments be posted without change; the that PHLX utilizes when performing (1)
Commission does not edit personal order handling and execution; (2) order
Interested persons are invited to identifying information from routing; and (3) related compliance
submit written data, views, and
submissions. You should submit only processes through the inclusion of the
arguments concerning the foregoing,
information that you wish to make National Stock Exchange (‘‘NSX’’).
including whether the proposed rule
available publicly. All submissions The text of the proposed rule change
change is consistent with the Act.
should refer to File Number SR–BX– is below. Proposed new language is
Comments may be submitted by any of
2015–049 and should be submitted on
the following methods: italicized.
or before September 3, 2015.
Electronic Comments * * * * *
For the Commission, by the Division of
• Use the Commission’s Internet Trading and Markets, pursuant to delegated 3304. Data Feeds Utilized
comment form (http://www.sec.gov/ authority.16
rules/sro.shtml); or Jill M. Peterson, The PSX System utilizes the below
• Send an email to rule-comments@ Assistant Secretary. proprietary and network processor feeds
sec.gov. Please include File Number SR– [FR Doc. 2015–19873 Filed 8–12–15; 8:45 am] [utilized by the System] for the
BX–2015–049 on the subject line. BILLING CODE 8011–01–P handling, routing, and execution of
Paper Comments orders, as well as for the regulatory
compliance processes related to those
• Send paper comments in triplicate SECURITIES AND EXCHANGE functions. The Secondary Source of data
to Brent J. Fields, Secretary, Securities COMMISSION is, where applicable, utilized only in
and Exchange Commission, 100 F Street emergency market conditions and only
NE., Washington, DC 20549–1090. [Release No. 34–75640; File No. SR–Phlx–
2015–70] until those emergency conditions are
All submissions should refer to File resolved.
Number SR–BX–2015–049. This file Self-Regulatory Organizations;
number should be included on the NASDAQ OMX PHLX LLC; Notice of
subject line if email is used. To help the Filing and Immediate Effectiveness of
Commission process and review your Proposed Rule Change To Update the
comments more efficiently, please use Public Disclosure of Sources of Data
only one method. The Commission will Utilized by PSX
post all comments on the Commission’s
Internet Web site (http://www.sec.gov/ August 7, 2015.
rules/sro.shtml). Copies of the Pursuant to Section 19(b)(1) of the
submission, all subsequent Securities Exchange Act of 1934
Market center Primary source Secondary source
A—NYSE MKT (AMEX) .......................... [CQS/UQDF] NYSE MKT OpenBook Ultra ............................................................ [n/a] CQS/UQDF
B—NASDAQ OMX BX ........................... BX ITCH 5.0 ........................................................................................................... CQS/UQDF
C—NSX .................................................. CQS/UQDF ............................................................................................................. n/a
D—FINRA ADF ....................................... CQS/UQDF ............................................................................................................. n/a
J—DirectEdge A ..................................... [EdgeBook] BATS PITCH ....................................................................................... CQS/UQDF
K—DirectEdge X ..................................... [EdgeBook] BATS PITCH ....................................................................................... CQS/UQDF
M—CSX .................................................. CQS/UQDF ............................................................................................................. n/a
N—NYSE ................................................ NYSE OpenBook Ultra ........................................................................................... CQS/UQDF
tkelley on DSK3SPTVN1PROD with NOTICES
P—NYSE Arca ........................................ [ArcaBook Binary uncompacted] NYSE ARCA XDP ............................................. CQS/UQDF
T/Q—NASDAQ ....................................... ITCH 5.0 ................................................................................................................. CQS/UQDF
X—NASDAQ OMX PSX ......................... PSX ITCH 5.0 ......................................................................................................... CQS/UQDF
15 For purposes of waiving the 30-day operative rule’s impact on efficiency, competition, and capital 1 15 U.S.C. 78s(b)(1).
delay, the Commission has considered the proposed formation. See 15 U.S.C. 78c(f). 2 17 CFR 240.19b–4.
16 17 CFR 200.30–3(a)(12).
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Document Created: 2018-02-23 10:56:58
Document Modified: 2018-02-23 10:56:58
| 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 48590 |
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