80 FR 69761 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the LIST Routing Option
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 217 (November 10, 2015)
Federal Register Volume 80, Issue 217 (November 10, 2015)
| Page Range | 69761-69764 | |
| FR Document | 2015-28518 |
[Federal Register Volume 80, Number 217 (Tuesday, November 10, 2015)] [Notices] [Pages 69761-69764] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-28518] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76340; File No. SR-NASDAQ-2015-135] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the LIST Routing Option November 4, 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 November 2, 2015, The NASDAQ Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange [[Page 69762]] 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 modify Rule 4758(a)(1)(A)(x), concerning LIST Orders. 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 Background Nasdaq is proposing to amend Rule 4758(a)(1)(A)(x) to allow an Order \3\ with a LIST routing option \4\ (``LIST Order'') to be designated with a Time-in-Force \5\ (``TIF'') of MGTC \6\ or SGTC.\7\ The LIST routing option allows a Participant \8\ to participate in the opening and closing processes of the primary listing market of the particular security, while also taking advantage of the Exchange's liquidity during the remainder of the trading day.\9\ Under LIST, the Order will sent [sic] by Nasdaq to participate in the primary listing market's opening process.\10\ Where Nasdaq is the primary listing market for a LIST Order security, rather than route out for the opening process, the Order will first participate in Nasdaq's Opening Cross, then it will post on the Nasdaq book if it is not executed in full.\11\ --------------------------------------------------------------------------- \3\ As defined by Rule 4701(e). \4\ The System provides a variety of routing options. Generally, routing options may be combined with all available Order Types and Times-in-Force, with the exception of LIST Orders with a Time-in- Force of GTC and Order Types and Times-in-Force whose terms are inconsistent with the terms of a particular routing option. As discussed below, although not inconsistent, providing Participants the option to designate a LIST Orders [sic] with a GTC Time-in-Force has been unavailable due to a technological limitation. With respect to LIST Orders, there are no Times-in-Force that are inconsistent with its terms. Certain attributes that are inconsistent are also mutually exclusive and thus are never received. For example, a LIST order cannot also be submitted as a SCAN order. There are other instances where the attributes on a LIST order will not result in the order exercising the LIST functionality that sends an order to the primary listing exchange. For example, a LIST order with a TIF of IOC received during regular market hours, would check the system for available shares and route as per the LIST routing strategy, but would not be sent to the primary listing exchange because of the order's immediacy. After attempting to execute within its limit price at destinations in the System Routing Table, the order will expire as per the IOC TIF and be returned to the customer. \5\ The Time-in-Force assigned to an Order means the period of time that the Nasdaq Market Center will hold the Order for potential execution. Participants specify an Order's Time-in-Force by designating a time at which the Order will become active and a time at which the Order will cease to be active. See Rule 4703(a). \6\ An Order that is designated to deactivate one year after entry may be referred to as a ``Good-till-Cancelled'' or ``GTC'' Order. If a GTC Order is designated as eligible for execution during Market Hours only, it may be referred to as having a Time in Force of ``Market Hours Good-till-Cancelled'' or ``MGTC''. If a GTC is designated as eligible for execution during System Hours, it may be referred to as having a Time in Force of ``System Hours Good-till- Cancelled'' or ``SGTC''. See Rule 4703(a)(3). \7\ Id. \8\ As defined by Rule 4701(c). \9\ If a member firm designates a LIST Order as only eligible to participate in the opening or closing processes of the primary listing market, then Nasdaq will route it immediately to that exchange if it is accepting Orders. The Exchange notes that such an Order cannot have a GTC TIF. Orders designated for participation in the opening process only expire after completion thereof if not fully executed and thus cannot be GTC. An Order's designation as eligible to participate in the opening process only is mutually exclusive of the GTC TIF. Likewise, an Order designated for participation in the closing process only may not have a GTC TIF, since the Order is designated to expire after completion thereof. Accordingly, designation of an Order as eligible to participate in the closing process only is mutually exclusive of the GTC TIF. \10\ The Exchange notes that other primary listing exchanges do not all open at the same time as Nasdaq. Therefore, the Exchange system will hold orders that would otherwise be sent to an away exchange until that exchange begins accepting orders. Prior to being sent to the away exchange, the orders are not available for execution. For example, Nasdaq holds LIST Orders in NYSE-listed securities until NYSE begins to accept them starting at 7:45 a.m. ET, at which time Nasdaq sends all such held Orders to NYSE. By contrast, for NYSEArca-listed securities, starting at 4 a.m. ET Nasdaq sends LIST Orders to NYSEArca when received. \11\ See Rule 4752. --------------------------------------------------------------------------- When Nasdaq determines that the primary market is ``open'',\12\ any unexecuted shares that are returned to Nasdaq will execute against interest on the Nasdaq book if marketable, and remaining shares that do not execute on Nasdaq are routed to Regulation NMS protected market centers in accordance with the LIST System routing table.\13\ After routing to such destinations, any remaining unexecuted shares are returned to Nasdaq and posted on the Nasdaq book.\14\ Similarly, LIST Orders entered after the primary listing market's opening process but prior to two minutes prior to market close \15\ will check the Nasdaq book, route in accordance with the LIST System routing table, and then post to the Nasdaq book if there are shares remaining. Should a primary listing market initiate a stock halt during system hours and that market continues to accept orders, the Exchange will send all open LIST Orders on the book to the primary listing market, and upon the conclusion of the primary listing market halt resumption process any remaining unexecuted shares that return to Nasdaq will execute against interest on the Nasdaq book if marketable, with remaining shares routing to Regulation NMS protected market centers in accordance with the LIST System routing table. After routing to such destinations, any remaining unexecuted shares are returned to Nasdaq and posted on the Nasdaq book. --------------------------------------------------------------------------- \12\ Nasdaq currently uses various triggers to determine that the primary listing market opening process has completed, including its posting of a firm quote, a regular way order print, Nasdaq receives open-eligible orders back from the primary listing market, or if none of the prior conditions occur then at 9:45 a.m. ET. \13\ As provided, in Rule 4758(a)(1)(A), the term ``System routing table'' refers to the proprietary process for determining the specific trading venues to which the System routes Orders and the order in which it routes them. Nasdaq reserves the right to maintain a different System routing table for different routing options and to modify the System routing table at any time without notice. \14\ Pursuant to Rule 4758(a)(1)(B), if a routed Order is returned, in whole or in part, that Order will receive a new time stamp reflecting the time of its return to the System. \15\ This period begins at 3:58 p.m. ET, unless the primary market closes earlier. --------------------------------------------------------------------------- Two minutes prior to market close, any LIST Orders on the Nasdaq book are sent to their respective primary listing markets to post on those markets' books until market close or the Order's cancellation, whichever is earlier. LIST Orders entered at or after two minutes prior to the end of regular market hours, but before the conclusion of regular market hours trading, are also sent to the primary listing market for [[Page 69763]] participation in the closing process,\16\ after first checking the Nasdaq book for potential execution against interest on the Nasdaq book if marketable and then routing in accordance with the LIST System routing table.\17\ Shares unexecuted in the closing process or that are received after the primary listing market's close with a valid TIF for after hours trading \18\ will be posted to the Nasdaq book. Where Nasdaq is the primary listing market for a LIST Order security, rather than route out for the closing process, the Order will remain posted on the Nasdaq book \19\ and be eligible for the Nasdaq Closing Cross. Thereafter, the Order will stay on the book to the extent it has a TIF that allows it to do so.\20\ --------------------------------------------------------------------------- \16\ As noted in the rule, if a LIST order in a NYSE or NYSE MKT security has been designated to participate in the closing only and is entered at 3:45 p.m. ET or later (or in the case of an early closing, is entered 15 minutes prior to the close or later), the order will be rejected. \17\ Due to the possibility that Orders received very near the 4:00 p.m. ET deadline (e.g., 3:59:59:999 p.m. ET) will be routed to the primary listing market but arrive after the security has closed, customers are encouraged to submit their LIST Orders prior to 3:58 p.m. ET. \18\ Specifically, System Hours and System Hours Expire Time TIFs. \19\ Such an Order may execute at any time prior to the completion of the Closing Cross should it become marketable. If an Order in a non-Nasdaq security that is sent to participate in the primary listing market's closing process subsequently becomes marketable on Nasdaq, the Order will nonetheless remain at the primary listing market. Nonetheless, it may become marketable at the away exchange and execute prior to the exchange's closing process. \20\ See Rule 4754. Because regular trading hours have concluded, the trade-through protections of Regulation NMS Rule 611 do not apply. Nasdaq, nonetheless, routes to venues displaying the best price in an effort to gain the best execution of a member firm's Order. --------------------------------------------------------------------------- Proposal The Exchange is proposing to allow the use of Good-til-Canceled TIF with a LIST routing option.\21\ A Participant must designate a time at which a given Order will become active and a time at which the Order will cease to be active, which is the Order's TIF. The following times are available to Nasdaq Participants for deactivating an Order: Immediate (i.e., immediately after determining whether the Order is marketable); the end of Market Hours; the end of System Hours; one year after entry; \22\ or a specific time identified by the Participant, provided, however, that an Order specifying an expire time beyond the current trading day will be canceled at the end of the current trading day.\23\ The ``Good-til-Canceled'' or ``GTC'' TIF will cause an Order to deactivate one year after entry if it is not canceled or executed in full. If a GTC Order is designated as eligible for execution during Market Hours only, it may be referred to as having a TIF of ``Market Hours Good-till-Canceled'' or ``MGTC''. If a Participant designates a GTC Order as eligible for execution during System Hours, it may be referred to as having a TIF of ``System Hours Good-till-Canceled'' or ``SGTC''. --------------------------------------------------------------------------- \21\ The Exchange notes that the current functionality of LIST will not change other than with respect to timing of the expiration of an order designated as MGTC or SGTC. \22\ An Order that may be active up to one year after entry may nonetheless be returned to the customer in certain circumstances, such as excessive messaging, corporate actions, or because it is canceled by the participant. \23\ See Rule 4703(a). --------------------------------------------------------------------------- Nasdaq does not currently make MGTC or SGTC available to Participants entering LIST orders because it has not programmed the System to accept such Orders due to technological challenges. Consequently, under the current functionality if the LIST Order is not executed in full then it will be canceled when it expires based on the TIF assigned to the Order, which could be immediately (after determining whether the Order is marketable) or up to the end of the current trading day at which time the LIST Order would be canceled. The Exchange is now technologically able to allow a LIST Order to have a TIF of MGTC or SGTC, so it is proposing to eliminate the current limitation and allow Participants to designate a LIST Order with a GTC attribute. Nasdaq notes that the operation of the LIST Order will remain unchanged, with only the time that the Order remains active affected. For example, a Participant entering a LIST Order that would only be available for execution during Market Hours would, under the current rules, designate the Order with a TIF of MDAY.\24\ If such a LIST Order is not executed in full at the end of Market Hours, the Order would be canceled and thereafter the Participant would need to enter a new LIST Order with a TIF of MDAY for potential execution the following day. Nasdaq is proposing to allow a Participant to instead apply a TIF of MGTC or SGTC, which would allow the Order to remain active up to a year after entry, unless canceled or executed in full. Accordingly, Nasdaq is providing Participants with additional flexibility and control over the execution of their LIST Orders, which is currently available for other Order types on Nasdaq, and is providing efficiency and reducing cost and message traffic for Participants that currently replicate the proposed functionality using other TIFs. --------------------------------------------------------------------------- \24\ See Rule 4703(a)(5). --------------------------------------------------------------------------- By way of example, at 6 a.m. a Participant enters a LIST MGTC order to buy 1,000 shares of IBM, a NYSE-listed security. The Order is held by Nasdaq until 7:45 a.m. and then sent by the System to NYSE to participate in the NYSE opening. In the NYSE opening process 500 shares of the Order are executed. The remaining 500 shares of the Order are sent back to Nasdaq, where it checks the Nasdaq book and receives an execution of 100 shares against a resting sell Order. The remaining 400 shares of the Order are then routed to away markets, where the Order receives an execution on ARCA of 100 shares. The remaining 300 shares are then posted to the Nasdaq book. At 2 p.m., a market participant enters a sell Order that executes against the resting Order for 100 shares. At 3:58 p.m. the remaining 200 shares are sent to NYSE to participate in the NYSE closing process. In the NYSE closing process, 100 shares are executed with the remaining 100 returning to Nasdaq to be held until 7:45 a.m. the next day,\25\ at which time the Order \26\ is again sent away to NYSE and would follow the process described above. --------------------------------------------------------------------------- \25\ By contrast, if the LIST Order was entered with a TIF of SGTC, instead of being held upon arrival at NASDAQ (because Market Hours have concluded), the Order would be posted on the NASDAQ book until 8 p.m. and thereafter held until 7:45 a.m. the next day. \26\ The Order retains all of its original attributes, including information concerning the Order as it was initially entered by the Participant. --------------------------------------------------------------------------- The scenario described above would be slightly different if the Order was received for a security listed on Nasdaq. For example, at 6 a.m. a Participant enters a LIST MGTC order to buy 1,000 shares of AAPL, a Nasdaq-listed security. The Order is placed into the Nasdaq opening and in the Nasdaq opening process 500 shares of the Order are executed. The remaining 500 shares would then be transferred to the Nasdaq continuous book. At 2 p.m., a market participant enters a sell Order that executes against the resting Order for 100 shares, leaving 400 shares resting on the continuous book. At 3:58 p.m. the remaining 400 shares would continue to rest on the Nasdaq continuous book until the closing cross. When the closing cross occurs, 100 shares are executed in the cross. The remaining 300 shares would be held by Nasdaq until the next day, at which time the Order would participate in the Nasdaq opening process. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the [[Page 69764]] provisions of Section 6 of the Act,\27\ in general, and with Section 6(b)(5) of the Act,\28\ in particular, because it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest; and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The Exchange believes that the change Nasdaq is making to Rule 4758(a)(1)(A)(x) will provide Participants with additional flexibility and control over the execution of their Orders. Specifically, the Exchange is providing Participants with the option to designate a LIST Order to remain active for up to one year, unless canceled or executed in full. The Exchange notes that other Order routing options offered by the Exchange allow TIFs of MGTC and SGTC.\29\ Moreover, Participants are currently able to achieve the same outcome as a TIF of MGTC or SGTC with their LIST Orders by entering such orders with a TIF of MDAY or SDAY, respectively, for every trading day. As such, the proposed change will make this process more efficient and less costly to Participants by eliminating the need to reenter the Order for every trading day. Lastly, the Exchange is now technologically able to process LIST Orders with TIFs of MGTC and SGTC, and believes that allowing Participants to apply these TIFs to LIST Orders will benefit Participants by providing additional flexibility and control over their executions, in the same way that Participants have with other Order routing options. For these reasons, the Exchange believes that the proposed change further perfects the market and raises no investor protection concerns. --------------------------------------------------------------------------- \27\ 15 U.S.C. 78f. \28\ 15 U.S.C. 78f(b)(5). \29\ See, e.g., STGY and SCAN routing options under Rules 4758(a)(1)(A)(iii) and (iv), respectively. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition Nasdaq does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended.\30\ The Exchange notes that the proposed two optional LIST TIFs will benefit Nasdaq Participants by providing them with greater flexibility and control over their LIST Orders, and will save Participants time and reduce their costs to the extent they replicate the proposed functionality using MDAY and SDAY TIFs. As such, the proposed change may make Nasdaq a more attractive venue to market participants. If the proposed change does make Nasdaq a more attractive venue, it will likely promote competition among exchanges and other market venues to the benefit of all market participants. --------------------------------------------------------------------------- \30\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \31\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\32\ 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. --------------------------------------------------------------------------- \31\ 15 U.S.C. 78s(b)(3)(a)(iii). \32\ 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, 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 satisfied this requirement. --------------------------------------------------------------------------- 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 rule-comments@sec.gov. Please include File Number SR-NASDAQ-2015-135 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NASDAQ-2015-135. 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-2015-135, and should be submitted on or before December 1, 2015. --------------------------------------------------------------------------- \33\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\33\ Brent J. Fields, Secretary. [FR Doc. 2015-28518 Filed 11-9-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices 69761
6(b)(5) 8 requirements that the rules of the markets. By bringing the Exchange’s number should be included on the
an exchange be designed to prevent fees structure in line with that of subject line if email is used. To help the
fraudulent and manipulative acts and FINRA, the Exchange believes it is Commission process and review your
practices, to promote just and equitable removing impediments to free and open comments more efficiently, please use
principles of trade, to foster cooperation markets and encouraging competition only one method. The Commission will
and coordination with persons engaged between the Exchange and other post all comments on the Commission’s
in regulating, clearing, settling, markets that use the S106, S201, and Internet Web site (http://www.sec.gov/
processing information with respect to, S901 Continuing Education Programs. rules/sro.shtml). Copies of the
and facilitating transactions in Accordingly, the Exchange further submission, all subsequent
securities, to remove impediments to believes that the proposed rule change amendments, all written statements
and perfect the mechanism of a free and will relieve burdens on, and otherwise with respect to the proposed rule
open market and a national market promote competition. change that are filed with the
system, and, in general, to protect Commission, and all written
investors and the public interest. C. Self-Regulatory Organization's communications relating to the
Additionally, the Exchange believes the Statement on Comments on the proposed rule change between the
proposed rule change is consistent with Proposed Rule Change Received From Commission and any person, other than
the Section 6(b)(5) 9 requirement that Members, Participants, or Others those that may be withheld from the
the rules of an exchange not be designed The Exchange neither solicited nor public in accordance with the
to permit unfair discrimination between received written comments on the provisions of 5 U.S.C. 552, will be
customers, issuers, brokers, or dealers. proposed rule change. available for Web site viewing and
In particular, the Web-based delivery printing in the Commission’s Public
method for continuing education is in III. Date of Effectiveness of the Reference Room, 100 F Street NE.,
the interest of investors and free and Proposed Rule Change and Timing for Washington, DC 20549 on official
open markets. In general, Web-based Commission Action business days between the hours of
delivery will remove time parameters The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of such
that exist with respect to taking effective pursuant to Section 19(b)(3)(A) filing also will be available for
continuing education at testing centers. of the Act 10 and paragraph (f) of Rule inspection and copying at the principal
Having additional time to take 19b–4 11 thereunder. At any time within offices of the Exchange. All comments
continuing education may result in 60 days of the filing of the proposed rule received will be posted without change;
better learning outcomes, which should change, the Commission summarily may the Commission does not edit personal
enhance investor protection. In temporarily suspend such rule change if identifying information from
addition, the option to have Web-based it appears to the Commission that such submissions. You should submit only
delivery of the Regulatory Element of action is necessary or appropriate in the information that you wish to make
the S106, S201, and S901 Continuing public interest, for the protection of available publicly. All submissions
Education Programs at a reduced cost investors, or otherwise in furtherance of should refer to File Number SR–CBOE–
lowers barriers to entry and removes the purposes of the Act. If the 2015–093, and should be submitted on
impediments to a free and open market Commission takes such action, the or before December 1, 2015.
and national market system by making Commission will institute proceedings For the Commission, by the Division of
it easier and less costly for Trading to determine whether the proposed rule Trading and Markets, pursuant to delegated
Permit Holders to participate in the change should be approved or authority.12
market. Accordingly, the Exchange disapproved. Brent J. Fields,
believes that Web-based delivery of the Secretary.
Regulatory Element of the S106, S201, IV. Solicitation of Comments
[FR Doc. 2015–28515 Filed 11–9–15; 8:45 am]
and S901 Continuing Education Interested persons are invited to
BILLING CODE 8011–01–P
Programs and reducing the costs of submit written data, views, and
continuing education in general are arguments concerning the foregoing,
goals that are consistent with the Act. including whether the proposed rule SECURITIES AND EXCHANGE
change is consistent with the Act. COMMISSION
B. Self-Regulatory Organization's
Comments may be submitted by any of
Statement on Burden on Competition [Release No. 34–76340; File No. SR–
the following methods:
The Exchange does not believe that NASDAQ–2015–135]
the proposed rule change will impose Electronic Comments
Self-Regulatory Organizations; The
any burden on competition that is not • Use the Commission’s Internet
necessary or appropriate in furtherance NASDAQ Stock Market LLC; Notice of
comment form (http://www.sec.gov/
of the purposes of the Act. As FINRA Filing and Immediate Effectiveness of
rules/sro.shtml); or
Proposed Rule Change To Modify the
has stated, the proposed rule change is • Send an email to rule-comments@
LIST Routing Option
specifically intended to reduce the sec.gov. Please include File Number SR–
burdens of continuing education on CBOE–2015–093 on the subject line. November 4, 2015.
market participants while preserving the Pursuant to Section 19(b)(1) of the
Paper Comments
integrity of the S106, S201, and S901 Securities Exchange Act of 1934
• Send paper comments in triplicate
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Continuing Education Programs. In (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
general, reduction in cost and removal to Secretary, Securities and Exchange notice is hereby given that on November
of barriers to entry encourages Commission, 100 F Street NE., 2, 2015, The NASDAQ Stock Market
competition among market participants, Washington, DC 20549–1090. LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
particularly in situations where such All submissions should refer to File with the Securities and Exchange
rules are employed universally across Number SR–CBOE–2015–093. This file
12 17 CFR 200.30–3(a)(12).
8 15 U.S.C. 78f(b)(5). 10 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
9 Id. 11 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 19:41 Nov 09, 2015 Jkt 238001 PO 00000 Frm 00130 Fmt 4703 Sfmt 4703 E:\FR\FM\10NON1.SGM 10NON1](https://thefederalregister.org/doc/80_FR_69978/page/1.svg)
![69762 Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices
Commission (‘‘SEC’’ or ‘‘Commission’’) to be designated with a Time-in-Force 5 When Nasdaq determines that the
the proposed rule change as described (‘‘TIF’’) of MGTC 6 or SGTC.7 The LIST primary market is ‘‘open’’,12 any
in Items I and II below, which Items routing option allows a Participant 8 to unexecuted shares that are returned to
have been prepared by the Exchange. participate in the opening and closing Nasdaq will execute against interest on
The Commission is publishing this processes of the primary listing market the Nasdaq book if marketable, and
notice to solicit comments on the of the particular security, while also remaining shares that do not execute on
proposed rule change from interested taking advantage of the Exchange’s Nasdaq are routed to Regulation NMS
persons. liquidity during the remainder of the protected market centers in accordance
I. Self-Regulatory Organization’s trading day.9 Under LIST, the Order will with the LIST System routing table.13
Statement of the Terms of Substance of sent [sic] by Nasdaq to participate in the After routing to such destinations, any
the Proposed Rule Change primary listing market’s opening remaining unexecuted shares are
process.10 Where Nasdaq is the primary returned to Nasdaq and posted on the
The Exchange proposes to modify Nasdaq book.14 Similarly, LIST Orders
Rule 4758(a)(1)(A)(x), concerning LIST listing market for a LIST Order security,
rather than route out for the opening entered after the primary listing
Orders. market’s opening process but prior to
The text of the proposed rule change process, the Order will first participate
in Nasdaq’s Opening Cross, then it will two minutes prior to market close 15 will
is available on the Exchange’s Web site check the Nasdaq book, route in
at http://nasdaq.cchwallstreet.com, at post on the Nasdaq book if it is not
accordance with the LIST System
the principal office of the Exchange, and executed in full.11
routing table, and then post to the
at the Commission’s Public Reference Nasdaq book if there are shares
Room. available shares and route as per the LIST routing
remaining. Should a primary listing
strategy, but would not be sent to the primary
II. Self-Regulatory Organization’s listing exchange because of the order’s immediacy. market initiate a stock halt during
Statement of the Purpose of, and After attempting to execute within its limit price at system hours and that market continues
destinations in the System Routing Table, the order to accept orders, the Exchange will send
Statutory Basis for, the Proposed Rule
will expire as per the IOC TIF and be returned to
Change the customer.
all open LIST Orders on the book to the
5 The Time-in-Force assigned to an Order means primary listing market, and upon the
In its filing with the Commission, the
the period of time that the Nasdaq Market Center conclusion of the primary listing market
Exchange included statements
will hold the Order for potential execution. halt resumption process any remaining
concerning the purpose of and basis for Participants specify an Order’s Time-in-Force by unexecuted shares that return to Nasdaq
the proposed rule change and discussed designating a time at which the Order will become
will execute against interest on the
any comments it received on the active and a time at which the Order will cease to
be active. See Rule 4703(a). Nasdaq book if marketable, with
proposed rule change. The text of these
6 An Order that is designated to deactivate one remaining shares routing to Regulation
statements may be examined at the
year after entry may be referred to as a ‘‘Good-till- NMS protected market centers in
places specified in Item IV below. The Cancelled’’ or ‘‘GTC’’ Order. If a GTC Order is accordance with the LIST System
Exchange has prepared summaries, set designated as eligible for execution during Market
routing table. After routing to such
forth in sections A, B, and C below, of Hours only, it may be referred to as having a Time
the most significant aspects of such in Force of ‘‘Market Hours Good-till-Cancelled’’ or destinations, any remaining unexecuted
statements. ‘‘MGTC’’. If a GTC is designated as eligible for shares are returned to Nasdaq and
execution during System Hours, it may be referred posted on the Nasdaq book.
A. Self-Regulatory Organization's to as having a Time in Force of ‘‘System Hours
Good-till-Cancelled’’ or ‘‘SGTC’’. See Rule Two minutes prior to market close,
Statement of the Purpose of, and 4703(a)(3). any LIST Orders on the Nasdaq book are
Statutory Basis for, the Proposed Rule 7 Id.
sent to their respective primary listing
Change 8 As defined by Rule 4701(c).
markets to post on those markets’ books
9 If a member firm designates a LIST Order as
1. Purpose until market close or the Order’s
only eligible to participate in the opening or closing
cancellation, whichever is earlier. LIST
Background processes of the primary listing market, then
Nasdaq will route it immediately to that exchange Orders entered at or after two minutes
Nasdaq is proposing to amend Rule if it is accepting Orders. The Exchange notes that prior to the end of regular market hours,
4758(a)(1)(A)(x) to allow an Order 3 with such an Order cannot have a GTC TIF. Orders but before the conclusion of regular
a LIST routing option 4 (‘‘LIST Order’’) designated for participation in the opening process
only expire after completion thereof if not fully
market hours trading, are also sent to
executed and thus cannot be GTC. An Order’s the primary listing market for
3 As defined by Rule 4701(e). designation as eligible to participate in the opening
4 The System provides a variety of routing process only is mutually exclusive of the GTC TIF. 12 Nasdaq currently uses various triggers to
options. Generally, routing options may be Likewise, an Order designated for participation in
combined with all available Order Types and determine that the primary listing market opening
the closing process only may not have a GTC TIF, process has completed, including its posting of a
Times-in-Force, with the exception of LIST Orders since the Order is designated to expire after
with a Time-in-Force of GTC and Order Types and firm quote, a regular way order print, Nasdaq
completion thereof. Accordingly, designation of an receives open-eligible orders back from the primary
Times-in-Force whose terms are inconsistent with Order as eligible to participate in the closing
the terms of a particular routing option. As listing market, or if none of the prior conditions
process only is mutually exclusive of the GTC TIF. occur then at 9:45 a.m. ET.
discussed below, although not inconsistent, 10 The Exchange notes that other primary listing 13 As provided, in Rule 4758(a)(1)(A), the term
providing Participants the option to designate a
LIST Orders [sic] with a GTC Time-in-Force has exchanges do not all open at the same time as ‘‘System routing table’’ refers to the proprietary
been unavailable due to a technological limitation. Nasdaq. Therefore, the Exchange system will hold process for determining the specific trading venues
orders that would otherwise be sent to an away to which the System routes Orders and the order
asabaliauskas on DSK5VPTVN1PROD with NOTICES
With respect to LIST Orders, there are no Times-
in-Force that are inconsistent with its terms. Certain exchange until that exchange begins accepting in which it routes them. Nasdaq reserves the right
attributes that are inconsistent are also mutually orders. Prior to being sent to the away exchange, the to maintain a different System routing table for
exclusive and thus are never received. For example, orders are not available for execution. For example, different routing options and to modify the System
a LIST order cannot also be submitted as a SCAN Nasdaq holds LIST Orders in NYSE-listed securities routing table at any time without notice.
order. There are other instances where the attributes until NYSE begins to accept them starting at 7:45 14 Pursuant to Rule 4758(a)(1)(B), if a routed
on a LIST order will not result in the order a.m. ET, at which time Nasdaq sends all such held Order is returned, in whole or in part, that Order
exercising the LIST functionality that sends an Orders to NYSE. By contrast, for NYSEArca-listed will receive a new time stamp reflecting the time
order to the primary listing exchange. For example, securities, starting at 4 a.m. ET Nasdaq sends LIST of its return to the System.
a LIST order with a TIF of IOC received during Orders to NYSEArca when received. 15 This period begins at 3:58 p.m. ET, unless the
regular market hours, would check the system for 11 See Rule 4752. primary market closes earlier.
VerDate Sep<11>2014 19:41 Nov 09, 2015 Jkt 238001 PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 E:\FR\FM\10NON1.SGM 10NON1](https://thefederalregister.org/doc/80_FR_69978/page/2.svg)
![69764 Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices
provisions of Section 6 of the Act,27 in proposed two optional LIST TIFs will Electronic Comments
general, and with Section 6(b)(5) of the benefit Nasdaq Participants by
Act,28 in particular, because it is providing them with greater flexibility • Use the Commission’s Internet
designed to prevent fraudulent and and control over their LIST Orders, and comment form (http://www.sec.gov/
manipulative acts and practices, to will save Participants time and reduce rules/sro.shtml); or
promote just and equitable principles of their costs to the extent they replicate • Send an email to rule-comments@
trade, to foster cooperation and the proposed functionality using MDAY sec.gov. Please include File Number SR–
coordination with persons engaged in and SDAY TIFs. As such, the proposed NASDAQ–2015–135 on the subject line.
regulating, clearing, settling, processing change may make Nasdaq a more
information with respect to, and attractive venue to market participants. Paper Comments
facilitating transactions in securities, to If the proposed change does make
• Send paper comments in triplicate
remove impediments to and perfect the Nasdaq a more attractive venue, it will
mechanism of a free and open market to Secretary, Securities and Exchange
likely promote competition among
and a national market system, and, in exchanges and other market venues to Commission, 100 F Street NE.,
general, to protect investors and the the benefit of all market participants. Washington, DC 20549–1090.
public interest; and is not designed to All submissions should refer to File
permit unfair discrimination between C. Self-Regulatory Organization's
Number SR–NASDAQ–2015–135. This
customers, issuers, brokers, or dealers. Statement on Comments on the
file number should be included on the
The Exchange believes that the change Proposed Rule Change Received From
Members, Participants, or Others subject line if email is used. To help the
Nasdaq is making to Rule Commission process and review your
4758(a)(1)(A)(x) will provide No written comments were either comments more efficiently, please use
Participants with additional flexibility solicited or received. only one method. The Commission will
and control over the execution of their post all comments on the Commission’s
III. Date of Effectiveness of the
Orders. Specifically, the Exchange is Internet Web site (http://www.sec.gov/
Proposed Rule Change and Timing for
providing Participants with the option rules/sro.shtml). Copies of the
Commission Action
to designate a LIST Order to remain submission, all subsequent
active for up to one year, unless Because the foregoing proposed rule
amendments, all written statements
canceled or executed in full. The change does not: (i) Significantly affect
the protection of investors or the public with respect to the proposed rule
Exchange notes that other Order routing
interest; (ii) impose any significant change that are filed with the
options offered by the Exchange allow
TIFs of MGTC and SGTC.29 Moreover, burden on competition; and (iii) become Commission, and all written
Participants are currently able to operative for 30 days from the date on communications relating to the
achieve the same outcome as a TIF of which it was filed, or such shorter time proposed rule change between the
MGTC or SGTC with their LIST Orders as the Commission may designate, it has Commission and any person, other than
by entering such orders with a TIF of become effective pursuant to Section those that may be withheld from the
MDAY or SDAY, respectively, for every 19(b)(3)(A)(iii) of the Act 31 and public in accordance with the
trading day. As such, the proposed subparagraph (f)(6) of Rule 19b–4 provisions of 5 U.S.C. 552, will be
change will make this process more thereunder.32 At any time within 60 available for Web site viewing and
efficient and less costly to Participants days of the filing of the proposed rule printing in the Commission’s Public
by eliminating the need to reenter the change, the Commission summarily may Reference Room, 100 F Street NE.,
Order for every trading day. Lastly, the temporarily suspend such rule change if Washington, DC 20549 on official
Exchange is now technologically able to it appears to the Commission that such business days between the hours of
process LIST Orders with TIFs of MGTC action is: (i) Necessary or appropriate in 10:00 a.m. and 3:00 p.m. Copies of such
and SGTC, and believes that allowing the public interest; (ii) for the protection filing also will be available for
Participants to apply these TIFs to LIST of investors; or (iii) otherwise in inspection and copying at the principal
Orders will benefit Participants by furtherance of the purposes of the Act. office of the Exchange. All comments
providing additional flexibility and If the Commission takes such action, the received will be posted without change;
control over their executions, in the Commission shall institute proceedings the Commission does not edit personal
same way that Participants have with to determine whether the proposed rule identifying information from
other Order routing options. For these should be approved or disapproved. submissions. You should submit only
reasons, the Exchange believes that the IV. Solicitation of Comments information that you wish to make
proposed change further perfects the available publicly. All submissions
market and raises no investor protection Interested persons are invited to
submit written data, views, and should refer to File Number SR–
concerns.
arguments concerning the foregoing, NASDAQ–2015–135, and should be
B. Self-Regulatory Organization's including whether the proposed rule submitted on or before December 1,
Statement on Burden on Competition change is consistent with the Act. 2015.
Nasdaq does not believe that the Comments may be submitted by any of For the Commission, by the Division of
proposed rule change will result in any the following methods: Trading and Markets, pursuant to delegated
burden on competition that is not authority.33
asabaliauskas on DSK5VPTVN1PROD with NOTICES
necessary or appropriate in furtherance 31 15 U.S.C. 78s(b)(3)(a)(iii). Brent J. Fields,
of the purposes of the Act, as 32 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
Secretary.
amended.30 The Exchange notes that the
the Commission written notice of its intent to file [FR Doc. 2015–28518 Filed 11–9–15; 8:45 am]
27 15
the proposed rule change, along with a brief BILLING CODE 8011–01–P
U.S.C. 78f. description and the text of the proposed rule
28 15 U.S.C. 78f(b)(5).
change, at least five business days prior to the date
29 See, e.g., STGY and SCAN routing options
of filing of the proposed rule change, or such
under Rules 4758(a)(1)(A)(iii) and (iv), respectively. shorter time as designated by the Commission. The
30 15 U.S.C. 78f(b)(8). Exchange has satisfied this requirement. 33 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 19:41 Nov 09, 2015 Jkt 238001 PO 00000 Frm 00133 Fmt 4703 Sfmt 9990 E:\FR\FM\10NON1.SGM 10NON1](https://thefederalregister.org/doc/80_FR_69978/page/4.svg)
Document Created: 2018-03-01 11:24:27
Document Modified: 2018-03-01 11:24:27
| 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 69761 |
2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR