80 FR 66092 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding the Obvious Error Pilot Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 208 (October 28, 2015)
Federal Register Volume 80, Issue 208 (October 28, 2015)
| Page Range | 66092-66094 | |
| FR Document | 2015-27346 |
[Federal Register Volume 80, Number 208 (Wednesday, October 28, 2015)] [Notices] [Pages 66092-66094] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-27346] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76226; File No. SR-NASDAQ-2015-125] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding the Obvious Error Pilot Program October 22, 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 October 20, 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange is filing a proposal by The NASDAQ Options Market LLC (``NOM'') to amend Chapter V, Regulation of Trading on NOM, to extend the pilot program under Section 3(d)(iv), which provides for how the Exchange treats obvious and catastrophic options errors in response to the Plan to Address Extraordinary Market Volatility Pursuant to Rule 608 of Regulation NMS under the Act (the ``Limit Up-Limit Down Plan'' or the ``Plan'').\3\ The Exchange proposes to extend the pilot period to coincide with the pilot period for the Limit Up-Limit Down Plan, including any extensions to the pilot period for the Plan. --------------------------------------------------------------------------- \3\ Securities Exchange Act Release No. 69341 (April 8, 2013), 78 FR 21996 (April 12, 2013) (SR-NASDAQ-2013-048). --------------------------------------------------------------------------- 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 In April 2013, the Commission approved a proposal, on a one year pilot basis, to adopt Chapter V, Section 3(d)(iv) to provide for how the Exchange will treat obvious and catastrophic options errors in response to the Plan, which is applicable to all NMS stocks, as defined in Regulation NMS Rule 600(b)(47).\4\ The Plan is designed to prevent trades in individual NMS stocks from occurring outside of specified Price Bands.\5\ The requirements of the Plan are coupled with Trading Pauses to accommodate more fundamental price moves (as opposed to erroneous trades or momentary gaps in liquidity). --------------------------------------------------------------------------- \4\ The Plan was extended until February 20, 2015. The Plan was initially approved for a one-year pilot period, which began on April 8, 2013. Securities Exchange Act Release No. 71649 (March 5, 2014), 79 FR 13696 (March 11, 2014). \5\ Unless otherwise specified, capitalized terms used in this rule filing are based on the defined terms of the Plan. --------------------------------------------------------------------------- The Exchange extended the operation of Chapter V, Section 3(d)(iv), which provides that trades are not subject to an obvious error or catastrophic error review pursuant to Chapter V, Sections 6(c) or 6(d) during a Limit State or Straddle State in 2014,\6\ and again in 2015.\7\ The current pilot period expires October 23, 2015. Currently, the pilot period for the Plan is proposed to be extended until April 22, 2016.\8\ The Exchange now proposes to extend the pilot program for an additional pilot period to coincide with the pilot period for the Limit Up-Limit Down Plan, including any extensions to the pilot period for the Plan. The Exchange believes conducting an obvious error or catastrophic error review is impracticable given the lack of a reliable National Best Bid/Offer (``NBBO'') in the options market during Limit States and Straddle States, and that the resulting actions (i.e., nullified trades or adjusted prices) may not be appropriate given market conditions. Under the pilot, limit orders that are filled during a Limit State or Straddle State have certainty of execution in a manner that promotes just and equitable principles of trade, and removes impediments to, and perfects the mechanism of a free and open market and a national market system. Moreover, given that options prices during brief Limit States or Straddle States may deviate substantially from those available shortly following the Limit State or Straddle State, the Exchange believes giving market participants time to re- evaluate a transaction would create an unreasonable adverse selection opportunity that would discourage participants from providing liquidity during Limit States or Straddle States. On balance, the Exchange believes that removing the potential inequity of nullifying or adjusting executions occurring during Limit States or Straddle States outweighs any potential benefits from applying those provisions during such unusual market conditions. --------------------------------------------------------------------------- \6\ Securities Exchange Act Release No. 71902 (April 8, 2014), 79 FR 20946 (April 14, 2014) (SR-NASDAQ-2014-033). \7\ Securities Exchange Act Release No. 74336 (February 20, 2015), 80 FR 10551 (February 26, 2015) (SR-NASDAQ-2015-016). \8\ Securities Exchange Act Release No. 75917 (September 14, 2015), 80 FR 56515 (September 18, 2015). --------------------------------------------------------------------------- The Exchange believes the benefits to market participants from the pilot program should continue on a pilot basis to coincide with the operation of the Limit Up-Limit Down Plan. The Exchange believes that continuing the pilot will protect against any unanticipated consequences and permit [[Page 66093]] the industry to gain further experience operating the Plan. The Exchange will conduct an analysis concerning the elimination of obvious and catastrophic error provisions during Limit States and Straddle States and agrees to provide the Commission with relevant data to assess the impact of this proposed rule change. As part of its analysis, the Exchange will: (1) Evaluate the options market quality during Limit States and Straddle States; (2) assess the character of incoming order flow and transactions during Limit States and Straddle States; and (3) review any complaints from members and their customers concerning executions during Limit States and Straddle States. Additionally, the Exchange agrees to provide to the Commission data requested to evaluate the impact of the elimination of the obvious and catastrophic error provisions, including data relevant to assessing the various analyses noted above. No later than five months prior to the expiration of the pilot period, including any extensions to the pilot period for the Plan,\9\ the Exchange shall provide to the Commission and the public assessments relating to the impact of the operation of the obvious error rules during Limit and Straddle States as follows: \10\ --------------------------------------------------------------------------- \9\ If the Plan extension is approved, the next data assessment will be due no later than December 18, 2015. \10\ The Exchange submitted a data assessment on September 30, 2014 and May 29, 2015. --------------------------------------------------------------------------- 1. Evaluate the statistical and economic impact of Limit and Straddle States on liquidity and market quality in the options markets. 2. Assess whether the lack of obvious error rules in effect during the Straddle and Limit States are problematic. Each month the Exchange shall provide to the Commission and the public a dataset containing the data for each Straddle and Limit State in optionable stocks that had at least one trade on the Exchange during a Straddle or Limit State. For each of those options affected, each data record should contain the following information:Stock symbol, option symbol, time at the start of the Straddle or Limit State, an indicator for whether it is a Straddle or Limit State, For activity on the Exchange: executed volume, time-weighted quoted bid-ask spread, time-weighted average quoted depth at the bid, time-weighted average quoted depth at the offer, high execution price, low execution price, number of trades for which a request for review for error was received during Straddle and Limit States, an indicator variable for whether those options outlined above have a price change exceeding 30% during the underlying stock's Limit or Straddle State compared to the last available option price as reported by OPRA before the start of the Limit or Straddle State (1 if observe 30% and 0 otherwise). Another indicator variable for whether the option price within five minutes of the underlying stock leaving the Limit or Straddle State (or halt if applicable) is 30% away from the price before the start of the Limit or Straddle State.\11\ --------------------------------------------------------------------------- \11\ The Exchange agreed to provide similar data in the original proposal. See Securities Exchange Act Release No. 69341 (April 8, 2013), 78 FR 21996 (April 12, 2013) (SR-NASDAQ-2013-048) at notes 4 and 11. However, that data included two additional filters pertaining to the top 10 options and an in-the-money amount, which no longer apply. The Exchange provided historical data in the new form pursuant to this proposed rule change, going back to the beginning of the original pilot period. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the provisions of Section 6 of the Act,\12\ in general, and with Section 6(b)(5) of the Act,\13\ in particular, which requires that the rules of an exchange be designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national market system, and protect investors and the public interest, because it should continue to provide certainty about how errors involving options orders and trades will be handled during periods of extraordinary volatility in the underlying security. The Exchange believes that it continues to be necessary and appropriate in the interest of promoting fair and orderly markets to exclude transactions executed during a Limit State or Straddle State from certain aspects of Chapter V, Section 6. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f. \13\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Although the Limit Up-Limit Down Plan is operational, the Exchange believes that maintaining the pilot to coincide with the pilot period for the Plan will help the industry gain further experience operating the Plan as well as the pilot provisions. Based on the foregoing, the Exchange believes the benefits to market participants should continue on a pilot basis to coincide with the operation of the Limit Up-Limit Down Plan. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. Specifically, the proposal does not impose an intra-market burden on competition, because it will apply to all members. Nor will the proposal impose a burden on competition among the options exchanges, because, in addition to the vigorous competition for order flow among the options exchanges, the proposal addresses a regulatory situation common to all options exchanges. To the extent that market participants disagree with the particular approach taken by the Exchange herein, market participants can easily and readily direct order flow to competing venues. The Exchange believes this proposal will not impose a burden on competition and will help provide certainty during periods of extraordinary volatility in an NMS stock. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change does not (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate 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)(iii) thereunder.\15\ --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(3)(A). \15\ 17 CFR 240.19b-4(f)(6)(iii). 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. --------------------------------------------------------------------------- The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of [[Page 66094]] investors and the public interest, as it will allow the obvious error pilot program to continue uninterrupted while the industry gains further experience operating under the Plan, and avoid any investor confusion that could result from a temporary interruption in the pilot program. For this reason, the Commission designates the proposed rule change to be operative upon filing.\16\ --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NASDAQ-2015-125 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-NASDAQ-2015-125. 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-2015-125, and should be submitted on or before November 18, 2015. --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ Brent J. Fields, Secretary. [FR Doc. 2015-27346 Filed 10-27-15; 8:45 am] BILLING CODE 8011-01-P
![66092 Federal Register / Vol. 80, No. 208 / Wednesday, October 28, 2015 / Notices
provisions of 5 U.S.C. 552, will be how the Exchange treats obvious and The Exchange extended the operation
available for Web site viewing and catastrophic options errors in of Chapter V, Section 3(d)(iv), which
printing in the Commission’s Public response to the Plan to Address provides that trades are not subject to an
Reference Room, 100 F Street NE., Extraordinary Market Volatility obvious error or catastrophic error
Washington, DC 20549 on official Pursuant to Rule 608 of Regulation review pursuant to Chapter V, Sections
business days between the hours of NMS under the Act (the ‘‘Limit Up- 6(c) or 6(d) during a Limit State or
10:00 a.m. and 3:00 p.m. Copies of such Limit Down Plan’’ or the ‘‘Plan’’).3 Straddle State in 2014,6 and again in
filing also will be available for The Exchange proposes to extend the 2015.7 The current pilot period expires
inspection and copying at the principal pilot period to coincide with the pilot October 23, 2015. Currently, the pilot
office of the Exchange. All comments period for the Limit Up-Limit Down period for the Plan is proposed to be
received will be posted without change; Plan, including any extensions to the extended until April 22, 2016.8 The
the Commission does not edit personal pilot period for the Plan. Exchange now proposes to extend the
identifying information from The text of the proposed rule change pilot program for an additional pilot
submissions. You should submit only is available on the Exchange’s Web site period to coincide with the pilot period
information that you wish to make at http://nasdaq.cchwallstreet.com, at for the Limit Up-Limit Down Plan,
available publicly. All submissions the principal office of the Exchange, and including any extensions to the pilot
should refer to File Number SR–C2– at the Commission’s Public Reference period for the Plan. The Exchange
2015–029, and should be submitted on Room. believes conducting an obvious error or
or before November 18, 2015. catastrophic error review is
For the Commission, by the Division of
II. Self-Regulatory Organization’s impracticable given the lack of a reliable
Trading and Markets, pursuant to delegated Statement of the Purpose of, and National Best Bid/Offer (‘‘NBBO’’) in the
authority.15 Statutory Basis for, the Proposed Rule options market during Limit States and
Brent J. Fields, Change Straddle States, and that the resulting
Secretary. actions (i.e., nullified trades or adjusted
In its filing with the Commission, the
[FR Doc. 2015–27342 Filed 10–27–15; 8:45 am]
prices) may not be appropriate given
Exchange included statements
market conditions. Under the pilot,
BILLING CODE 8011–01–P concerning the purpose of and basis for limit orders that are filled during a
the proposed rule change and discussed Limit State or Straddle State have
any comments it received on the certainty of execution in a manner that
SECURITIES AND EXCHANGE proposed rule change. The text of these
COMMISSION promotes just and equitable principles
statements may be examined at the of trade, and removes impediments to,
[Release No. 34–76226; File No. SR– places specified in Item IV below. The and perfects the mechanism of a free
NASDAQ–2015–125] Exchange has prepared summaries, set and open market and a national market
forth in sections A, B, and C below, of system. Moreover, given that options
Self-Regulatory Organizations; The the most significant aspects of such
NASDAQ Stock Market LLC; Notice of prices during brief Limit States or
statements. Straddle States may deviate
Filing and Immediate Effectiveness of
Proposed Rule Change Regarding the A. Self-Regulatory Organization’s substantially from those available
Obvious Error Pilot Program Statement of the Purpose of, and shortly following the Limit State or
Statutory Basis for, the Proposed Rule Straddle State, the Exchange believes
October 22, 2015. Change giving market participants time to re-
Pursuant to Section 19(b)(1) of the evaluate a transaction would create an
Securities Exchange Act of 1934 1. Purpose unreasonable adverse selection
(‘‘Act’’), 1 and Rule 19b–4 thereunder,2 In April 2013, the Commission opportunity that would discourage
notice is hereby given that, on October approved a proposal, on a one year pilot participants from providing liquidity
20, 2015, The NASDAQ Stock Market basis, to adopt Chapter V, Section during Limit States or Straddle States.
LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed 3(d)(iv) to provide for how the Exchange On balance, the Exchange believes that
with the Securities and Exchange will treat obvious and catastrophic removing the potential inequity of
Commission (‘‘SEC’’ or ‘‘Commission’’) options errors in response to the Plan, nullifying or adjusting executions
the proposed rule change as described which is applicable to all NMS stocks, occurring during Limit States or
in Items I and II below, which Items as defined in Regulation NMS Rule Straddle States outweighs any potential
have been prepared by the Exchange. 600(b)(47).4 The Plan is designed to benefits from applying those provisions
The Commission is publishing this prevent trades in individual NMS stocks during such unusual market conditions.
notice to solicit comments on the from occurring outside of specified The Exchange believes the benefits to
proposed rule change from interested Price Bands.5 The requirements of the market participants from the pilot
persons. Plan are coupled with Trading Pauses to program should continue on a pilot
accommodate more fundamental price basis to coincide with the operation of
I. Self-Regulatory Organization’s
moves (as opposed to erroneous trades the Limit Up-Limit Down Plan. The
Statement of the Terms of the Substance
or momentary gaps in liquidity). Exchange believes that continuing the
of the Proposed Rule Change
pilot will protect against any
The Exchange is filing a proposal by 3 Securities Exchange Act Release No. 69341 unanticipated consequences and permit
The NASDAQ Options Market LLC (April 8, 2013), 78 FR 21996 (April 12, 2013) (SR–
mstockstill on DSK4VPTVN1PROD with NOTICES
(‘‘NOM’’) to amend Chapter V, NASDAQ–2013–048). 6 Securities Exchange Act Release No. 71902
Regulation of Trading on NOM, to 4 The Plan was extended until February 20, 2015. (April 8, 2014), 79 FR 20946 (April 14, 2014) (SR–
extend the pilot program under The Plan was initially approved for a one-year pilot NASDAQ–2014–033).
period, which began on April 8, 2013. Securities 7 Securities Exchange Act Release No. 74336
Section 3(d)(iv), which provides for Exchange Act Release No. 71649 (March 5, 2014), (February 20, 2015), 80 FR 10551 (February 26,
79 FR 13696 (March 11, 2014). 2015) (SR–NASDAQ–2015–016).
15 17 CFR 200.30–3(a)(12). 5 Unless otherwise specified, capitalized terms 8 Securities Exchange Act Release No. 75917
1 15 U.S.C. 78s(b)(1). used in this rule filing are based on the defined (September 14, 2015), 80 FR 56515 (September 18,
2 17 CFR 240.19b–4. terms of the Plan. 2015).
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![66094 Federal Register / Vol. 80, No. 208 / Wednesday, October 28, 2015 / Notices
investors and the public interest, as it Commission and any person, other than solicit comments on the proposed rule
will allow the obvious error pilot those that may be withheld from the change from interested persons.
program to continue uninterrupted public in accordance with the
while the industry gains further provisions of 5 U.S.C. 552, will be
experience operating under the Plan, available for Web site viewing and I. Self-Regulatory Organization’s
and avoid any investor confusion that printing in the Commission’s Public Statement of the Terms of the Substance
could result from a temporary Reference Room, 100 F Street NE., of the Proposed Rule Change
interruption in the pilot program. For Washington, DC 20549 on official The Exchange filed a proposal for the
this reason, the Commission designates business days between the hours of Exchange’s equity options platform
the proposed rule change to be operative 10:00 a.m. and 3:00 p.m. Copies of such (‘‘EDGX Options’’) to extend the pilot
upon filing.16 filing also will be available for program that suspends certain obvious
At any time within 60 days of the inspection and copying at the principal error provisions of Rule 20.6 during
filing of the proposed rule change, the office of the Exchange. All comments limit up-limit down states in securities
Commission summarily may received will be posted without change; that underlie options traded on the
temporarily suspend such rule change if the Commission does not edit personal Exchange.
it appears to the Commission that such identifying information from The text of the proposed rule change
action is necessary or appropriate in the submissions. You should submit only is available at the Exchange’s Web site
public interest, for the protection of information that you wish to make at www.batstrading.com, at the
investors, or otherwise in furtherance of available publicly. All submissions principal office of the Exchange, and at
the purposes of the Act. If the should refer to File Number SR– the Commission’s Public Reference
Commission takes such action, the NASDAQ–2015–125, and should be Room.
Commission shall institute proceedings submitted on or before November 18,
to determine whether the proposed rule 2015. II. Self-Regulatory Organization’s
should be approved or disapproved. Statement of the Purpose of, and
For the Commission, by the Division of
Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments Change
authority.17
Interested persons are invited to Brent J. Fields, In its filing with the Commission, the
submit written data, views, and Secretary. Exchange included statements
arguments concerning the foregoing, concerning the purpose of and basis for
[FR Doc. 2015–27346 Filed 10–27–15; 8:45 am]
including whether the proposed rule the proposed rule change and discussed
BILLING CODE 8011–01–P
change is consistent with the Act. any comments it received on the
Comments may be submitted by any of proposed rule change. The text of these
the following methods: SECURITIES AND EXCHANGE statements may be examined at the
Electronic Comments COMMISSION places specified in Item IV below. The
Exchange has prepared summaries, set
• Use the Commission’s Internet [Release No. 34–76230; File No. SR–EDGX–
2015–49]
forth in Sections A, B, and C below, of
comment form (http://www.sec.gov/
the most significant parts of such
rules/sro.shtml); or
Self-Regulatory Organizations; EDGX statements.
• Send an email to rule-comments@
sec.gov. Please include File Number SR– Exchange, Inc.; Notice of Filing and A. Self-Regulatory Organization’s
NASDAQ–2015–125 on the subject line. Immediate Effectiveness of a Proposed Statement of the Purpose of, and
Rule Change to Rule 20.6, Nullification Statutory Basis for, the Proposed Rule
Paper Comments and Adjustment of Options Change
• Send paper comments in triplicate Transactions Including Obvious Errors
to Brent J. Fields, Secretary, Securities 1. Purpose
October 22, 2015.
and Exchange Commission, 100 F Street Earlier this year, the Exchange
Pursuant to Section 19(b)(1) of the
NE., Washington, DC 20549–1090. received approval of rules governing the
All submissions should refer to File Securities Exchange Act of 1934 (the
trading of equity options on EDGX
Number SR–NASDAQ–2015–125. This ‘‘Act’’),1 and Rule 19b–4 thereunder,2
Options, including Rule 20.6 related to
file number should be included on the notice is hereby given that on October
the adjustment and nullification of
subject line if email is used. To help the 20, 2015, EDGX Exchange, Inc. (the
transactions that occur on EDGX
Commission process and review your ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Options.5 Interpretation and Policy .01
comments more efficiently, please use Securities and Exchange Commission
to Rule 20.6 is designed to address
only one method. The Commission will (‘‘Commission’’) the proposed rule
certain issues related to the Plan to
post all comments on the Commission’s change as described in Items I and II
Address Extraordinary Market Volatility
Internet Web site (http://www.sec.gov/ below, which Items have been prepared
Pursuant to Rule 608 of Regulation NMS
rules/sro.shtml). Copies of the by the Exchange. The Exchange has
under the Act (the ‘‘Limit Up-Limit
submission, all subsequent designated this proposal as a ‘‘non-
Down Plan’’ or the ‘‘Plan’’).6
amendments, all written statements controversial’’ proposed rule change
Specifically, pursuant to a pilot program
with respect to the proposed rule pursuant to Section 19(b)(3)(A) of the
set forth in Interpretation and Policy .01
change that are filed with the Act 3 and Rule 19b–4(f)(6)(iii)
to Rule 20.6, the Exchange excludes
Commission, and all written thereunder,4 which renders it effective
mstockstill on DSK4VPTVN1PROD with NOTICES
from certain provisions of Rule 20.6
communications relating to the upon filing with the Commission. The
transactions executed during a ‘‘Limit
proposed rule change between the Commission is publishing this notice to
5 See Securities Exchange Act Release No. 75650
17 17 CFR 200.30–3(a)(12).
16 For purposes only of waiving the 30-day (August 7, 2015), 80 FR 48600 (August 13, 2015)
1 15 U.S.C. 78s(b)(1).
operative delay, the Commission has also (SR–EDGX–2015–18).
2 17 CFR 240.19b–4.
considered the proposed rule’s impact on 6 See Securities Exchange Act Release No. 67091
3 15 U.S.C. 78s(b)(3)(A).
efficiency, competition, and capital formation. See (May 31, 2012), 77 FR 33498 (June 6, 2012) (the
15 U.S.C. 78c(f). 4 17 CFR 240.19b–4(f)(6)(iii). ‘‘Limit Up-Limit Down Release’’).
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Document Created: 2018-02-27 08:57:58
Document Modified: 2018-02-27 08:57:58
| 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 66092 |
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