80_FR_66043 80 FR 65836 - Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.11, Routing to Away Trading Centers

80 FR 65836 - Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.11, Routing to Away Trading Centers

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 207 (October 27, 2015)

Page Range65836-65838
FR Document2015-27214

Federal Register, Volume 80 Issue 207 (Tuesday, October 27, 2015) 
[Federal Register Volume 80, Number 207 (Tuesday, October 27, 2015)]
[Notices]
[Pages 65836-65838]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-27214]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76212; File No. SR-EDGX-2015-46)]


Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Rule 11.11, Routing to Away Trading Centers

October 21, 2015.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on October 13, 2015, EDGX Exchange, Inc. (the ``Exchange'' 
or ``EDGX'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the Exchange. The Exchange has 
designated this proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \4\ and Rule 19-
4(f)(6) thereunder,\5\ which renders it effective upon filing with the 
Commission. 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19-4.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend Rule 11.11, Routing to Away 
Trading Centers, to: (i) Enable Users \6\ to designate their orders for 
participation in the re-opening (following a halt, suspension, or 
pause) of a primary listing market (BATS, NYSE, Nasdaq, NYSE MKT, or 
NYSE Arca) if received before the re-opening time of such market; and 
(ii) amend the ROOC routing option to remove a provision regarding not 
routing orders in BATS listed securities designated for participation 
in the re-opening process on BATS following a halt, suspension, or 
pause.
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    \6\ The term ``User'' is defined as ``any Member or Sponsored 
Participant who is authorized to obtain access to the System 
pursuant to Rule 11.3.'' See Exchange Rule 1.5(ee).
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    The text of the proposed rule change is available at the Exchange's 
Web site at www.batstrading.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 parts 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 proposes to amend Rule 11.11, Routing to Away Trading 
Centers, to: (i) Enable Users \7\ to designate their orders for 
participation in the re-opening (following a halt, suspension, or 
pause) of a primary listing market (BATS, NYSE, Nasdaq, NYSE MKT, or 
NYSE Arca); and (ii) amend the ROOC routing option to remove a 
provision regarding not routing orders in BATS listed securities 
designated for participation in the re-opening process on BATS 
following a halt, suspension, or pause. The Exchange currently offers 
the ROOC routing option, under which Users may designate their orders 
for participation in the opening or closing process, in addition to the 
re-opening (following a halt, suspension, or pause), of a primary 
listing market, if received before the opening/re-opening/closing time 
of such market.\8\ However, some Users only wish that their orders be 
routed to participate in the primary market's re-opening process, and 
not its opening or closing processes. Therefore, the Exchange proposes 
to enable Users to designate their orders for participation in the re-
opening of a primary listing market.
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    \7\ The term ``User'' is defined as ``any Member or Sponsored 
Participant who is authorized to obtain access to the System 
pursuant to Rule 11.3.'' See Exchange Rule 1.5(ee).
    \8\ See Exchange Rule 11.11(g)(8).
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    The proposed optionality would operate like the current ROOC 
routing option, but for routing to the primary listing market's opening 
or closing process. Lastly, like the ROOC routing option, any remaining 
shares will either be posted to the EDGX Book, executed, or routed to 
destinations on the System routing table.\9\ Should no halt, 
suspension, or pause occur on the primary listing market, such orders 
would remain on the EDGX Book, executed, or routed to destinations on 
the System routing table.
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    \9\ The term ``System routing table'' refers to the proprietary 
process for determining the specific options exchanges to which the 
System routes orders and the order in which it routes them. See 
Exchange Rule 11.11(g).
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    In addition, the Exchange proposes to amend the ROOC routing option 
to remove a provision regarding not routing orders in BATS listed 
securities designated for participation in the re-opening process on 
BATS following a halt, suspension, or pause. Previously, due to system 
limitations, the Exchange was unable to route orders in BATS listed 
securities to participate in the re-opening process on BATS following a 
halt, suspension or pause. In such case, the orders remained on the 
EDGX Book \10\ and became eligible for execution once the halt, 
suspension, or pause has been lifted. The Exchange has since performed 
the necessary system modifications and removed this restriction from 
its system. The Exchange is now able to route orders in BATS listed 
securities to BATS to participate in the reopening following a halt, 
suspension or pause pursuant to the ROOC routing option. Therefore, the 
Exchange proposes to remove this

[[Page 65837]]

restriction from the description of the ROOC routing option under Rule 
11.11.
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    \10\ The term ``EDGX Book'' is defined as ``the System's 
electronic file of orders.'' See Exchange Rule 1.5(d).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \11\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \12\ in particular, in that it is designed to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in 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. Certain Users whose orders 
are resting on the EDGX Book may wish that their order only be routed 
to the primary market's re-opening process following a halt, suspension 
or pause, and not the primary market's opening or closing processes. 
The proposed rule change promotes just and equitable principles of 
trade because it would provide such Users with additional flexibility 
where they wish that their order only be eligible to route to the 
primary listing market to participate in the re-opening process 
following a halt, suspension or pause. In addition, and as discussed 
above, the proposed rule change is similar to the Exchange's current 
ROOC routing option.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
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    The Exchange also believes its proposal to remove a provision from 
the description of the ROOC routing option regarding not routing orders 
in BATS listed securities designated for participation in the re-
opening process on BATS following a halt, suspension, or pause is 
consistent with Section 6(b)(5) of the Act \13\ in that it intended 
[sic] to make the Exchange's rules clearer and less confusing for 
investors by eliminating a provision that is no longer necessary. 
Previously, due to system limitations, the Exchange was unable to route 
orders in BATS listed securities to participate in the re-opening 
process on BATS following a halt, suspension or pause. The Exchange has 
since removed this restriction from its system. The proposed change 
updates the description of the ROOC routing option to remove this 
restriction for BATS listed securities as the Exchange is now able to 
route such orders to BATS to participate in the opening process 
following a halt, suspension or pause. Therefore, the Exchange believes 
the proposal removes impediments to and perfects the mechanism of a 
free and open market and a national market system, and, in general, 
protects investors and the public interest because it would enable the 
Exchange to treat orders in BATS listed securities that are subject to 
the ROOC routing option like NYSE and Nasdaq listed securities and 
route such order [sic] to the re-opening process on BATS following a 
halt, suspension or pause.
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    \13\ Id.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposal will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act. The Exchange believes that its proposal would 
increase competition because it offers Users an alternative means to 
route orders to the primary listing market to participate in the re-
opening following a halt, suspension, or pause as if they entered 
orders on that market directly. In addition, the proposed rule change 
amendment to the ROOC routing option is not designed to address any 
competitive issues but rather avoid investor confusion by updating the 
rule text to reflect current system functionality.

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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

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

    Because the proposed rule change does not (i) significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate 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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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission.
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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 stated that waiver of the operative delay will 
allow the ROOC routing option to be used to route orders in BATS listed 
securities to BATS to participate in the re-opening process on BATS. 
The Exchange also stated that the proposal would enable orders in BATS 
listed securities to be treated like orders in NYSE and Nasdaq listed 
securities when using the ROOC routing option. Moreover, the Exchange 
stated that the proposed new routing functionality would operate like 
its current ROOC routing option and would provide Users with additional 
flexibility to have their orders routed only to the primary market's 
re-opening process. The Commission believes that waiving the 30-day 
operative delay is consistent with the protection of investors and the 
public interest. Therefore, the Commission hereby waives the operative 
delay and designates the proposed rule change operative upon 
filing.\16\
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    \16\ For purposes only of waiving the 30-day operative delay, 
the Commission has also 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 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-EDGX-2015-46 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.


[[Page 65838]]


All submissions should refer to File Number SR-EDGX-2015-46. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-EDGX-2015-46, and should be 
submitted on or before November 17, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-27214 Filed 10-26-15; 8:45 am]
BILLING CODE 8011-01-P

65836 Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices disapproved. The Commission is I. Self-Regulatory Organization’s opening process on BATS following a extending this 45-day time period. The Statement of the Terms of Substance of halt, suspension, or pause. The Commission finds that it is appropriate the Proposed Rule Change Exchange currently offers the ROOC to designate a longer period within The Exchange filed a proposal to routing option, under which Users may which to take action on the proposed amend Rule 11.11, Routing to Away designate their orders for participation rule change so that it has sufficient time Trading Centers, to: (i) Enable Users 6 to in the opening or closing process, in to consider the proposed rule change. designate their orders for participation addition to the re-opening (following a Accordingly, the Commission, in the re-opening (following a halt, halt, suspension, or pause), of a primary pursuant to Section 19(b)(2) of the Act,6 suspension, or pause) of a primary listing market, if received before the listing market (BATS, NYSE, Nasdaq, opening/re-opening/closing time of such designates December 9, 2015, as the date NYSE MKT, or NYSE Arca) if received market.8 However, some Users only by which the Commission shall either before the re-opening time of such wish that their orders be routed to approve or disapprove or institute market; and (ii) amend the ROOC participate in the primary market’s re- proceedings to determine whether to routing option to remove a provision opening process, and not its opening or disapprove the proposed rule change regarding not routing orders in BATS closing processes. Therefore, the (File Number SR–EDGA–2015–36). listed securities designated for Exchange proposes to enable Users to For the Commission, by the Division of participation in the re-opening process designate their orders for participation Trading and Markets, pursuant to delegated on BATS following a halt, suspension, in the re-opening of a primary listing authority.7 or pause. market. Brent J. Fields, The text of the proposed rule change The proposed optionality would Secretary. is available at the Exchange’s Web site operate like the current ROOC routing [FR Doc. 2015–27216 Filed 10–26–15; 8:45 am] at www.batstrading.com, at the option, but for routing to the primary principal office of the Exchange, and at listing market’s opening or closing BILLING CODE 8011–01–P the Commission’s Public Reference process. Lastly, like the ROOC routing Room. option, any remaining shares will either SECURITIES AND EXCHANGE II. Self-Regulatory Organization’s be posted to the EDGX Book, executed, COMMISSION Statement of the Purpose of, and or routed to destinations on the System Statutory Basis for, the Proposed Rule routing table.9 Should no halt, [Release No. 34–76212; File No. SR–EDGX– Change suspension, or pause occur on the 2015–46)] In its filing with the Commission, the primary listing market, such orders Exchange included statements would remain on the EDGX Book, Self-Regulatory Organizations; EDGX concerning the purpose of and basis for executed, or routed to destinations on Exchange, Inc.; Notice of Filing and the proposed rule change and discussed the System routing table. Immediate Effectiveness of a Proposed any comments it received on the In addition, the Exchange proposes to Rule Change To Amend Rule 11.11, proposed rule change. The text of these amend the ROOC routing option to Routing to Away Trading Centers statements may be examined at the remove a provision regarding not places specified in Item IV below. The routing orders in BATS listed securities October 21, 2015. Exchange has prepared summaries, set designated for participation in the re- Pursuant to Section 19(b)(1) 1 of the forth in Sections A, B, and C below, of opening process on BATS following a Securities Exchange Act of 1934 (the the most significant parts of such halt, suspension, or pause. Previously, ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 statements. due to system limitations, the Exchange notice is hereby given that, on October A. Self-Regulatory Organization’s was unable to route orders in BATS 13, 2015, EDGX Exchange, Inc. (the Statement of the Purpose of, and listed securities to participate in the re- ‘‘Exchange’’ or ‘‘EDGX’’) filed with the Statutory Basis for, the Proposed Rule opening process on BATS following a Securities and Exchange Commission Change halt, suspension or pause. In such case, (the ‘‘Commission’’) the proposed rule the orders remained on the EDGX change as described in Items I and II 1. Purpose Book 10 and became eligible for below, which Items have been prepared The Exchange proposes to amend execution once the halt, suspension, or by the Exchange. The Exchange has Rule 11.11, Routing to Away Trading pause has been lifted. The Exchange has designated this proposal as a ‘‘non- Centers, to: (i) Enable Users 7 to since performed the necessary system controversial’’ proposed rule change designate their orders for participation modifications and removed this pursuant to Section 19(b)(3)(A) of the in the re-opening (following a halt, restriction from its system. The Act 4 and Rule 19–4(f)(6) thereunder,5 suspension, or pause) of a primary Exchange is now able to route orders in which renders it effective upon filing listing market (BATS, NYSE, Nasdaq, BATS listed securities to BATS to with the Commission. The Commission NYSE MKT, or NYSE Arca); and (ii) participate in the reopening following a is publishing this notice to solicit amend the ROOC routing option to halt, suspension or pause pursuant to comments on the proposed rule change remove a provision regarding not the ROOC routing option. Therefore, the from interested persons. routing orders in BATS listed securities Exchange proposes to remove this designated for participation in the re- 8 See Exchange Rule 11.11(g)(8). tkelley on DSK3SPTVN1PROD with NOTICES 6 Id. 6 The term ‘‘User’’ is defined as ‘‘any Member or 9 The term ‘‘System routing table’’ refers to the 7 17 CFR 200.30–3(a)(31). Sponsored Participant who is authorized to obtain proprietary process for determining the specific 1 15 U.S.C. 78s(b)(1). access to the System pursuant to Rule 11.3.’’ See options exchanges to which the System routes 2 15 U.S.C. 78a. Exchange Rule 1.5(ee). orders and the order in which it routes them. See 7 The term ‘‘User’’ is defined as ‘‘any Member or Exchange Rule 11.11(g). 3 17 CFR 240.19–4. Sponsored Participant who is authorized to obtain 10 The term ‘‘EDGX Book’’ is defined as ‘‘the 4 15 U.S.C. 78s(b)(3)(A). access to the System pursuant to Rule 11.3.’’ See System’s electronic file of orders.’’ See Exchange 5 17 CFR 240.19–4(f)(6). Exchange Rule 1.5(ee). Rule 1.5(d). VerDate Sep<11>2014 18:24 Oct 26, 2015 Jkt 238001 PO 00000 Frm 00150 Fmt 4703 Sfmt 4703 E:\FR\FM\27OCN1.SGM 27OCN1

Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices 65837 restriction from the description of the mechanism of a free and open market operative delay so that the proposal may ROOC routing option under Rule 11.11. and a national market system, and, in become operative immediately upon general, protects investors and the filing. The Exchange stated that waiver 2. Statutory Basis public interest because it would enable of the operative delay will allow the The Exchange believes that its the Exchange to treat orders in BATS ROOC routing option to be used to route proposal is consistent with Section 6(b) listed securities that are subject to the orders in BATS listed securities to of the Act 11 in general, and furthers the ROOC routing option like NYSE and BATS to participate in the re-opening objectives of Section 6(b)(5) of the Act 12 Nasdaq listed securities and route such process on BATS. The Exchange also in particular, in that it is designed to order [sic] to the re-opening process on stated that the proposal would enable promote just and equitable principles of BATS following a halt, suspension or orders in BATS listed securities to be trade, to foster cooperation and pause. treated like orders in NYSE and Nasdaq coordination with persons engaged in listed securities when using the ROOC facilitating transactions in securities, to B. Self-Regulatory Organization’s Statement on Burden on Competition routing option. Moreover, the Exchange remove impediments to and perfect the stated that the proposed new routing mechanism of a free and open market The Exchange does not believe that functionality would operate like its and a national market system and, in the proposal will impose any burden on current ROOC routing option and would general, to protect investors and the competition not necessary or provide Users with additional flexibility public interest. Certain Users whose appropriate in furtherance of the to have their orders routed only to the orders are resting on the EDGX Book purposes of the Act. The Exchange primary market’s re-opening process. may wish that their order only be routed believes that its proposal would The Commission believes that waiving to the primary market’s re-opening increase competition because it offers the 30-day operative delay is consistent process following a halt, suspension or Users an alternative means to route with the protection of investors and the pause, and not the primary market’s orders to the primary listing market to public interest. Therefore, the opening or closing processes. The participate in the re-opening following a Commission hereby waives the proposed rule change promotes just and halt, suspension, or pause as if they operative delay and designates the equitable principles of trade because it entered orders on that market directly. proposed rule change operative upon would provide such Users with In addition, the proposed rule change filing.16 additional flexibility where they wish amendment to the ROOC routing option At any time within 60 days of the that their order only be eligible to route is not designed to address any filing of the proposed rule change, the to the primary listing market to competitive issues but rather avoid Commission summarily may participate in the re-opening process investor confusion by updating the rule temporarily suspend such rule change if following a halt, suspension or pause. In text to reflect current system it appears to the Commission that such addition, and as discussed above, the functionality. action is necessary or appropriate in the proposed rule change is similar to the C. Self-Regulatory Organization’s public interest, for the protection of Exchange’s current ROOC routing Statement on Comments on the investors, or otherwise in furtherance of option. Proposed Rule Change Received From The Exchange also believes its the purposes of the Act. If the Members, Participants, or Others Commission takes such action, the proposal to remove a provision from the description of the ROOC routing option The Exchange has neither solicited Commission shall institute proceedings regarding not routing orders in BATS nor received written comments on the to determine whether the proposed rule listed securities designated for proposed rule change. should be approved or disapproved. participation in the re-opening process III. Date of Effectiveness of the IV. Solicitation of Comments on BATS following a halt, suspension, Proposed Rule Change and Timing for Interested persons are invited to or pause is consistent with Section Commission Action submit written data, views, and 6(b)(5) of the Act 13 in that it intended Because the proposed rule change arguments concerning the foregoing, [sic] to make the Exchange’s rules does not (i) significantly affect the including whether the proposed rule clearer and less confusing for investors protection of investors or the public change is consistent with the Act. by eliminating a provision that is no interest; (ii) impose any significant Comments may be submitted by any of longer necessary. Previously, due to burden on competition; and (iii) become the following methods: system limitations, the Exchange was operative for 30 days from the date on unable to route orders in BATS listed Electronic Comments which it was filed, or such shorter time securities to participate in the re- as the Commission may designate if • Use the Commission’s Internet opening process on BATS following a consistent with the protection of comment form (http://www.sec.gov/ halt, suspension or pause. The Exchange investors and the public interest, the rules/sro.shtml); or has since removed this restriction from proposed rule change has become • Send an email to rule-comments@ its system. The proposed change effective pursuant to Section 19(b)(3)(A) sec.gov. Please include File Number SR– updates the description of the ROOC of the Act 14 and Rule 19b–4(f)(6) EDGX–2015–46 on the subject line. routing option to remove this restriction thereunder.15 for BATS listed securities as the The Exchange has asked the Paper Comments Exchange is now able to route such Commission to waive the 30-day • Send paper comments in triplicate orders to BATS to participate in the to Brent J. Fields, Secretary, Securities opening process following a halt, 14 15 U.S.C. 78s(b)(3)(A). and Exchange Commission, 100 F Street tkelley on DSK3SPTVN1PROD with NOTICES suspension or pause. Therefore, the 15 17 CFR 240.19b–4(f)(6). As required under Rule NE., Washington, DC 20549–1090. Exchange believes the proposal removes 19b–4(f)(6)(iii), the Exchange provided the impediments to and perfects the Commission with written notice of its intent to file the proposed rule change, along with a brief 16 For purposes only of waiving the 30-day description and the text of the proposed rule operative delay, the Commission has also 11 15 U.S.C. 78f(b). change, at least five business days prior to the date considered the proposed rule’s impact on 12 15 U.S.C. 78f(b)(5). of filing of the proposed rule change, or such efficiency, competition, and capital formation. See 13 Id. shorter time as designated by the Commission. 15 U.S.C. 78c(f). VerDate Sep<11>2014 18:24 Oct 26, 2015 Jkt 238001 PO 00000 Frm 00151 Fmt 4703 Sfmt 4703 E:\FR\FM\27OCN1.SGM 27OCN1

65838 Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices All submissions should refer to File (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 to adopt Nasdaq Rule 5745 governing Number SR–EDGX–2015–46. This file notice is hereby given that on October the listing and trading of NextShares.4 number should be included on the 15, 2015, Financial Industry Regulatory As described more fully in Nasdaq’s subject line if email is used. To help the Authority, Inc. (‘‘FINRA’’) filed with the filing, NextShares will trade in the Commission process and review your Securities and Exchange Commission secondary market using a new trading comments more efficiently, please use (‘‘SEC’’ or ‘‘Commission’’) the proposed protocol called ‘‘NAV-Based Trading.’’ only one method. The Commission will rule change as described in Items I, II, In NAV-Based Trading, all bids, offers post all comments on the Commission’s and III below, which Items have been and execution prices will be expressed Internet Web site (http://www.sec.gov/ prepared by FINRA. FINRA has as a premium or discount (which may rules/sro.shtml). Copies of the designated the proposed rule change as be zero) to the fund’s next-determined submission, all subsequent constituting a ‘‘non-controversial’’ rule net asset value per share (‘‘NAV’’), e.g., amendments, all written statements change under paragraph (f)(6) of Rule NAV¥$0.01 or NAV+$0.01. A with respect to the proposed rule 19b–4 under the Act,3 which renders NextShares Fund’s NAV will be change that are filed with the the proposal effective upon receipt of determined each business day after the Commission, and all written this filing by the Commission. The close of trading. All trades will be communications relating to the Commission is publishing this notice to binding at the time of execution, with proposed rule change between the solicit comments on the proposed rule the transaction prices contingent upon Commission and any person, other than change from interested persons. the determination of the NAV at the end those that may be withheld from the of the trading day.5 Pursuant to Nasdaq I. Self-Regulatory Organization’s Rule 5745, trading in NextShares is public in accordance with the Statement of the Terms of the Substance limited to Nasdaq’s Regular Market provisions of 5 U.S.C. 552, will be of the Proposed Rule Change Session through 4:00 p.m.6 available for Web site viewing and printing in the Commission’s Public FINRA is proposing to adopt Rule In its filing with the SEC, Nasdaq Reference Room, 100 F Street NE., 6184 (Transactions in Exchange-Traded explained that, because existing order Washington, DC 20549 on official Managed Fund Shares (‘‘NextShares’’)) transmission and processing systems business days between the hours of relating to the reporting of over-the- commonly used by exchanges and firms 10:00 a.m. and 3:00 p.m. Copies of the counter (‘‘OTC’’) transactions in are generally not designed to filing also will be available for exchange-traded managed fund shares, accommodate pricing arrangements inspection and copying at the principal which have been approved by the SEC such as NAV-Based Trading, the prices office of the Exchange. All comments for listing and trading on the Nasdaq of NextShares trades and quotes will be received will be posted without change; Stock Market LLC (‘‘Nasdaq’’). represented intraday using a ‘‘proxy the Commission does not edit personal Exchange-traded managed fund shares price’’ format. In proxy price format, a identifying information from are referred to under Nasdaq rules and NextShares Fund’s next-determined submissions. You should submit only herein as ‘‘NextShares.’’ NAV will be represented as 100.00. A information that you wish to make The text of the proposed rule change premium or discount of a stated amount available publicly. All submissions is available on FINRA’s Web site at to the next-determined NAV will be should refer to File Number SR–EDGX– http://www.finra.org, at the principal represented by the same increment or 2015–46, and should be submitted on or office of FINRA and at the decrement from 100, e.g., NAV¥$0.01 before November 17, 2015. Commission’s Public Reference Room. will be represented as 99.99, and NAV+$0.01 will be represented as For the Commission, by the Division of II. Self-Regulatory Organization’s 100.01. Nasdaq will report intraday Trading and Markets, pursuant to delegated Statement of the Purpose of, and bids, offers and trades for NextShares in authority.17 Statutory Basis for, the Proposed Rule real-time to the consolidated tape using Brent J. Fields, Change the proxy price format. However, the Secretary. In its filing with the Commission, trade will not clear and settle at the [FR Doc. 2015–27214 Filed 10–26–15; 8:45 am] FINRA included statements concerning price expressed in the proxy price BILLING CODE 8011–01–P the purpose of and basis for the format. After a NextShares Fund’s NAV proposed rule change and discussed any has been calculated at the end of the comments it received on the proposed trading day, Nasdaq will price each SECURITIES AND EXCHANGE rule change. The text of these statements COMMISSION may be examined at the places specified 4 See Securities Exchange Act Release No. 73562 (November 7, 2014), 79 FR 68309 (November 14, in Item IV below. FINRA has prepared 2014) (Notice of Filing of Amendment No. 1 and [Release No. 34–76213; File No. SR–FINRA– summaries, set forth in sections A, B, Order Granting Accelerated Approval of File No. 2015–043] and C below, of the most significant SR–NASDAQ–2014–020). In SR–NASDAQ–2014– aspects of such statements. 020, Nasdaq used the terms ‘‘ETMF’’ and ‘‘ETMF Self-Regulatory Organizations; Shares.’’ On October 13, 2015, Nasdaq filed a Financial Industry Regulatory A. Self-Regulatory Organization’s proposed rule change to amend Nasdaq Rule 5745 to replace these terms with ‘‘NextShares Fund’’ and Authority, Inc.; Notice of Filing and Statement of the Purpose of, and ‘‘NextShares,’’ respectively. See SR–NASDAQ– Immediate Effectiveness of a Proposed Statutory Basis for, the Proposed Rule 2015–121, available at nasdaq.cchwallstreet.com/ Rule Change Relating to the Reporting Change NASDAQ/pdf/nasdaq-filings/2015/SR-NASDAQ- of OTC Transactions in Exchange- 2015-121.pdf. 1. Purpose 5 Thus, because in NAV-Based Trading, prices of Traded Managed Fund Shares executed trades are not determined until the tkelley on DSK3SPTVN1PROD with NOTICES (NextShares) to FINRA Background reference NAV is calculated, buyers and sellers of In November 2014, the SEC approved NextShares will not know the final value of their October 21, 2015. purchases and sales until the end of the trading day. a proposed rule change filed by Nasdaq Pursuant to Section 19(b)(1) of the 6 As explained in SR–NASDAQ–2014–020, Securities Exchange Act of 1934 Nasdaq Rule 4120(b)(4) defines ‘‘Regular Market 1 15 U.S.C. 78s(b)(1). Session’’ as the trading session from 9:30 a.m. to 2 17 CFR 240.19b–4. 4:00 p.m. or 4:15 p.m.; NextShares will trade until 17 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4(f)(6). 4:00 p.m. VerDate Sep<11>2014 18:24 Oct 26, 2015 Jkt 238001 PO 00000 Frm 00152 Fmt 4703 Sfmt 4703 E:\FR\FM\27OCN1.SGM 27OCN1


Document Created: 2015-12-14 15:36:26
Document Modified: 2015-12-14 15:36:26
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 65836 
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