80 FR 70054 - Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Price Improving and Post-Only Orders
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 218 (November 12, 2015)
Federal Register Volume 80, Issue 218 (November 12, 2015)
| Page Range | 70054-70057 | |
| FR Document | 2015-28692 |
[Federal Register Volume 80, Number 218 (Thursday, November 12, 2015)] [Notices] [Pages 70054-70057] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-28692] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76375; File No. SR-BX-2015-64] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Price Improving and Post-Only Orders November 5, 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 30, 2015, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to remove a ``Price Improving Order'' and a ``Post-Only Order'' as eligible order types for entry into the automated system for order execution and trade reporting owned and operated by BX (``System''). The Exchange requests that the Commission waive the 30-day operative delay period contained in Exchange Act Rule 19b- 4(f)(6)(iii).\3\ --------------------------------------------------------------------------- \3\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqomxbx.cchwallstreet.com/, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. [[Page 70055]] A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange is seeking to remove references to ``Price Improving Orders'' in the Rulebook. Specifically, the Exchange is seeking to amend the following sections of the Rulebook: Chapter III, Section 4, entitled ``Prevention of the Misuse of Material Nonpublic Information;'' Chapter VI, Section 1, entitled ``Definitions,'' Section 6, entitled ``Acceptance of Quotes and Orders'' and Section 7, entitled ``Entry and Display of Orders;'' and Chapter VII, Section 12, entitled ``Order Exposure Requirements.'' The Exchange is also seeking to remove references to ``Post-Only Orders'' in the Rulebook. Specifically, the Exchange is seeking to amend the following sections in the Rulebook: Chapter VI, Section 1, entitled ``Definitions,'' Section 6, entitled ``Acceptance of Quotes and Orders'' and Section 9 entitled ``Price Improvement Auction (``PRISM'').'' Each order type will be explained in more detail below. Price Improving Orders Price Improving Orders are orders to buy or sell an option at a specified price at an increment smaller than the minimum price variation in the security. Today, Price Improving Orders may be entered in increments as small as one cent and are available for display at the minimum price variation (``MPV'') in that security and shall be rounded up for sell orders and rounded down for buy orders. Without this order type, market participants would not be able to submit orders or quotes priced between the MPV; those orders or quotes would be rejected. The Exchange proposes to amend Chapter III, Section 4, entitled ``Prevention of the Misuse of Material Nonpublic Information'' to remove Price Improving Orders as an example of an order type that would be violative of this rule. The Exchange proposes to remove the definition of a Price Improving Order from the list of order types that are acceptable on BX in Chapter VI, Section I, entitled ``Definitions.'' The Exchange proposes to amend Chapter VI, Section 6, entitled ``Acceptance of Quotes and Orders'' to remove Price Improving Orders as an acceptable order type. The Exchange proposes to amend Chapter VI, Section 7, entitled ``Entry and Display of Orders'' to remove language describing the manner in which Price Improving Orders are displayed in the System. Finally, the Exchange proposes to amend Chapter VII, Section 12, entitled ``Order Exposure Requirements'' to remove the reference to the exposure time for Price Improving Orders. Today, Price Improving Orders on BX represent less than 1.5% of the BX volume. The Exchange is removing this order type in connection with its recent filing of a price improving auction (PRISM).\4\ This proposed auction mechanism will offer participants an alternative means of entering price improving interest. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 76301 (October 29, 2015) (SR-BX-2015-032) (Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment Nos. 1 and 2, to Adopt a New Price Improvement Auction, BX PRISM) (not yet published) [sic]. --------------------------------------------------------------------------- The Exchange believes that PRISM should promote and foster competition and provide more options contracts with the opportunity for price improvement. As a result of the increased opportunities for price improvement, the Exchange believes that participants will use PRISM to increase the number of Public Customer orders that are provided with the opportunity to receive price improvement over the NBBO. Post-Only Orders Post-Only Orders are orders that will not remove liquidity from the System. Post-Only Orders are to be ranked and executed on the Exchange or cancelled, as appropriate, without routing away to another market. Post-Only Orders are evaluated at the time of entry with respect to locking or crossing other orders as follows: (i) If a Post-Only Order would lock or cross an order on the System, the order will be re-priced to $.01 below the current low offer (for bids) or above the current best bid (for offers) and displayed by the System at one minimum price increment below the current low offer (for bids) or above the current best bid (for offers); and (ii) if a Post-Only Order would not lock or cross an order on the System but would lock or cross the NBBO as reflected in the protected quotation of another market center, the order will be handled pursuant to Chapter VI, Section 7(b)(3)(C). Participants may choose to have their Post-Only Orders returned whenever the order would lock or cross the NBBO or be placed on the book at a price other than its limit price. Post-Only Orders received prior to the opening cross or after market close will be rejected. Post-Only Orders may not have a time-in-force designation of Good Til Cancelled or Immediate or Cancel. The Exchange proposes to remove the definition of a Post-Only Order from the list of order types that are acceptable on BX in Chapter VI, Section I, entitled ``Definitions.'' The Exchange proposes to amend Chapter VI, Section 6, entitled ``Acceptance of Quotes and Orders'' to remove Post-Only Orders as an acceptable order type. Finally, the Exchange proposes to amend Chapter VI, Section 9, entitled ``Price Improvement Auction (``PRISM'')'' to remove an explanation on the manner in which Post-Only Orders will interact in the auction process. Today, the Exchange transacts a small number of Post-Only Orders on BX.\5\ The Exchange adopted the Post-Only Order to encourage displayed liquidity and offer BX market participants greater flexibility to post liquidity on BX. Participants are not utilizing this order type very frequently. As previously mentioned, the Exchange is removing the Price-Improving Order in connection with its recent filing of a price improving auction (PRISM).\6\ This proposed auction mechanism will offer participants a new means of entering price improving interest. Aside from Price-Improving Orders, the Post-Only Order is the only other non-displayed order type currently on BX. At this time, the Exchange proposes to also remove the Post-Only Order from BX which would result in all remaining order types on BX being displayed similar to NASDAQ OMX PHLX LLC (``Phlx'') order types. --------------------------------------------------------------------------- \5\ The Exchange transacted on 90 Post-Only Orders from July through September 2015. \6\ See note 4. --------------------------------------------------------------------------- This proposed rule change would remove Price Improving Orders and Post-Only Orders as acceptable order types for orders or quotes entered into BX's System for all market participants. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \7\ in general, and furthers the objectives of Section 6(b)(5) of the Act \8\ in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest, by removing Price Improving and Post-Only Orders as acceptable order types for all market participants. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Price-Improving Orders With the removal of Price Improving Orders, market participants would not [[Page 70056]] be able to submit orders or quotes priced between the MPV; those orders would be rejected. Other options exchanges currently do not offer a similar order type.\9\ The Exchange believes that the removal of the Price Improving Order does not otherwise create an impediment to a free and open market. The Exchange believes this proposed amendment is non- controversial. By not accepting Price Improving Orders, BX's true BBO will be transparent. All orders will be disseminated at the prices and sizes submitted by market participants at the time of entry into the System.\10\ The Exchange believes that market participants will continue to quote at their best prices and the market will be more transparent. The Exchange believe that despite the removal of the availability and use of Price Improving Orders, the Exchange will remain competitive. --------------------------------------------------------------------------- \9\ See Phlx and BOX Options Exchange LLC, which do not have a similar type of price improving order. \10\ If this results in a price which locks or crosses an away market, then it will be repriced in accordance with BX Rules at Chapter VI, Section 7(C). --------------------------------------------------------------------------- Today, Price Improving Orders are not displayed at their limit price, and Participants are unable to ascertain the BX BBO with certainty. The removal of the Price Improving order type will result in greater transparency. In addition, BX recently received approval for a new auction mechanism, PRISM, which offers Participants an alternative means of entering price improving interest.\11\ --------------------------------------------------------------------------- \11\ See note 4. --------------------------------------------------------------------------- Post-Only Orders With the removal of Post-Only Orders, market participants would not be able to submit orders or quotes priced between the MPV; those orders would be rejected. Other options exchanges currently do not offer a similar order type.\12\ The Exchange believes that the removal of the Post-Only Order does not otherwise create an impediment to a free and open market. The Exchange believes this proposed amendment is non- controversial. By not accepting Post-Only Orders, BX's true BBO will be transparent. All orders will be disseminated at the prices and sizes submitted by market participants at the time of entry into the System.\13\ The Exchange believes that market participants will continue to quote at their best prices and the market will be more transparent. The Exchange believe that despite the removal of the availability and use of Post-Only Orders, the Exchange will remain competitive. --------------------------------------------------------------------------- \12\ See Phlx and BOX Options Exchange LLC, which do not have a similar type of post-only order. \13\ See note 10. --------------------------------------------------------------------------- Today, Post-Only Orders are not displayed at their limit price, and Participants are unable to ascertain the BX BBO with certainty. The removal of the Post-Only order type will result in greater transparency. With the removal of both the Price-Improving order type and Post-Only order type, the remaining order types will be displayed. The Exchange's removal of Price Improving and Post-Only Orders will reduce the complexity surrounding the repricing of such non-displayed order types within the auction mechanism. The Exchange's proposal would result in all orders being displayed on BX and the elimination of non- displayed order types. Notwithstanding the foregoing, the BBO shall be the Best Bid or Best Offer on BX. The BBO is repriced and displayed in accordance with BX Rules at Chapter VI, Section 7(C). B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposal to remove Price Improving Orders as an acceptable Order type creates an undue burden on inter-market competition because despite the removal of Price Improving Orders, BX will remain competitive. By not accepting Price Improving Orders, BX's true BBO will be more transparent. Orders will be disseminated at the prices and sizes submitted by market participants at the time of entry into the System. Market participants would not be able to submit orders or quotes priced between the MPV. The Exchange does not believe that the proposal to remove Post-Only Orders as an acceptable order type creates an undue burden on inter- market competition because despite the removal of Post-Only Orders, BX will remain competitive. Similarly, by not accepting Post-Only Orders, BX's true BBO will be more transparent. Orders will be disseminated at the prices and sizes submitted by market participants at the time of entry into the System. Market participants would not be able to submit orders or quotes priced between the MPV with the removal of this order type. The Exchange does not believe that the proposal to remove Price Improving Orders and Post-Only Orders as acceptable order types creates an undue burden on intra-market competition because the proposed rule change would thereby remove Price Improving Orders and Post-Only Orders as acceptable order types for orders enters into BX's System for all market participants. 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 after the date of the filing, or such shorter time as the Commission may designate, it has become effective pursuant to 19(b)(3)(A) of the Act \14\ and Rule 19b-4(f)(6) \15\ thereunder. --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \16\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \17\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the filing can be operative prior to the implementation of BX PRISM. The Exchange states that it intends to launch the newly approved BX PRISM auction without the ability to enter either of these order types. The Exchange further states that BX PRISM will benefit from the transparency of the orders entered into the auction. The Exchange also states that the removal of Post-Only Orders and Price-Improving Orders will reduce complexity surrounding the repricing of such non-displayed order types within BX PRISM. The Commission believes that waiver of the 30-day operative delay is appropriate so that Post-Only Order and Price-Improving Orders may be removed as order types on the Exchange prior to the implementation of BX PRISM. Based on the foregoing, the Commission [[Page 70057]] believes that the waiver of the operative delay is consistent with the protection of investors and the public interest.\18\ The Commission hereby grants the waiver and designates the proposal operative upon filing. --------------------------------------------------------------------------- \16\ 17 CFR 240.19b-4(f)(6). \17\ 17 CFR 240.19b-4(f)(6)(iii). \18\ For purposes only of waiving the 30-day operative delay, the Commission has 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. SR-BX-2015-64 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 No. SR-BX-2015-64. 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 No. SR-BX-2015-64, and should be submitted on or before December 3, 2015. --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ Robert W. Errett, Deputy Secretary. [FR Doc. 2015-28692 Filed 11-10-15; 8:45 am] BILLING CODE 8011-01-P
![70054 Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices
be met if it offered space on the roof for Comments may be submitted by any of SECURITIES AND EXCHANGE
third party wireless equipment. the following methods: COMMISSION
Moreover, access to the pole or roof is
not required for third parties to establish Electronic Comments
[Release No. 34–76375; File No. SR–BX–
wireless networks that can compete • Use the Commission’s Internet 2015–64]
with the Exchange’s proposed service, comment form (http://www.sec.gov/
as witnessed by the existing wireless Self-Regulatory Organizations;
rules/sro.shtml); or NASDAQ OMX BX, Inc.; Notice of Filing
networks currently serving Users. Based
on the information available to it, the • Send an email to rule-comments@ and Immediate Effectiveness of
Exchange believes that its proposed sec.gov. Please include File Number SR– Proposed Rule Change Related to
wireless connection would provide data NYSEArca–2015–99 on the subject line. Price Improving and Post-Only Orders
at the same or similar speed, and at the Paper Comments November 5, 2015.
same or similar cost, as its proposed
Pursuant to Section 19(b)(1) of the
wireless connection, thereby enhancing • Send paper comments in triplicate
Securities Exchange Act of 1934
competition.17 to Brent J. Fields, Secretary, Securities
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
Finally, the Exchange notes that it and Exchange Commission, 100 F Street notice is hereby given that on October
operates in a highly competitive market NE., Washington, DC 20549–1090. 30, 2015, NASDAQ OMX BX, Inc. (‘‘BX’’
in which market participants can
All submissions should refer to File or ‘‘Exchange’’) filed with the Securities
readily favor competing venues if they
Number SR±NYSEArca±2015±99. This and Exchange Commission (‘‘SEC’’ or
deem fee levels at a particular venue to
file number should be included on the ‘‘Commission’’) the proposed rule
be excessive. In such an environment,
subject line if email is used. To help the change as described in Items I and II
the Exchange must continually review,
Commission process and review your below, which Items have been prepared
and consider adjusting, its services and
comments more efficiently, please use by the Exchange. The Commission is
related fees and credits to remain
only one method. The Commission will publishing this notice to solicit
competitive with other exchanges. For
post all comments on the Commission’s comments on the proposed rule change
the reasons described above, the
Internet Web site (http://www.sec.gov/ from interested persons.
Exchange believes that the proposed
rule change reflects this competitive rules/sro.shtml). Copies of the I. Self-Regulatory Organization’s
environment. submission, all subsequent Statement of the Terms of the Substance
amendments, all written statements of the Proposed Rule Change
C. Self-Regulatory Organization's with respect to the proposed rule
Statement on Comments on the The Exchange proposes to remove a
change that are filed with the
Proposed Rule Change Received From ‘‘Price Improving Order’’ and a ‘‘Post-
Commission, and all written
Members, Participants, or Others Only Order’’ as eligible order types for
communications relating to the
No written comments were solicited entry into the automated system for
proposed rule change between the
or received with respect to the proposed order execution and trade reporting
Commission and any person, other than
rule change. owned and operated by BX (‘‘System’’).
those that may be withheld from the
The Exchange requests that the
III. Date of Effectiveness of the public in accordance with the
Commission waive the 30-day operative
Proposed Rule Change and Timing for provisions of 5 U.S.C. 552, will be
delay period contained in Exchange Act
Commission Action available for Web site viewing and
Rule 19b–4(f)(6)(iii).3
printing in the Commission’s Public
Within 45 days of the date of The text of the proposed rule change
Reference Room, 100 F Street NE., is available on the Exchange’s Web site
publication of this notice in the Federal Washington, DC 20549, on official
Register or up to 90 days (i) as the at http://
business days between the hours of nasdaqomxbx.cchwallstreet.com/, at the
Commission may designate if it finds 10:00 a.m. and 3:00 p.m. Copies of the
such longer period to be appropriate principal office of the Exchange, and at
filing also will be available for the Commission’s Public Reference
and publishes its reasons for so finding inspection and copying at the principal
or (ii) as to which the self-regulatory Room.
office of the Exchange. All comments
organization consents, the Commission received will be posted without change; II. Self-Regulatory Organization’s
will: the Commission does not edit personal Statement of the Purpose of, and
(A) By order approve or disapprove identifying information from Statutory Basis for, the Proposed Rule
the proposed rule change, or submissions. You should submit only Change
(B) institute proceedings to determine
information that you wish to make In its filing with the Commission, the
whether the proposed rule change
available publicly. All submissions Exchange included statements
should be disapproved.
should refer to File Number SR– concerning the purpose of and basis for
IV. Solicitation of Comments NYSEArca–2015–99 and should be the proposed rule change and discussed
Interested persons are invited to submitted on or before December 3, any comments it received on the
submit written data, views, and 2015. proposed rule change. The text of these
arguments concerning the foregoing, For the Commission, by the Division of statements may be examined at the
including whether the proposed rule Trading and Markets, pursuant to delegated places specified in Item IV below. The
mstockstill on DSK4VPTVN1PROD with NOTICES
change is consistent with the Act. authority.18 Exchange has prepared summaries, set
Robert W. Errett, forth in sections A, B, and C below, of
17 The Exchange notes that the distance of a the most significant aspects of such
Deputy Secretary.
wireless network provider’s wireless equipment statements.
from the User is only one factor in determining [FR Doc. 2015–28684 Filed 11–10–15; 8:45 am]
overall latency. Other factors include the number of BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1).
repeaters in the route, the number of switches the
2 17 CFR 240.19b–4.
data has to travel through, and the millimeter wave
and switch technology used. 18 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4(f)(6)(iii).
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A. Self-Regulatory Organization's Orders are displayed in the System. The Exchange proposes to remove the
Statement of the Purpose of, and Finally, the Exchange proposes to definition of a Post-Only Order from the
Statutory Basis for, the Proposed Rule amend Chapter VII, Section 12, entitled list of order types that are acceptable on
Change ‘‘Order Exposure Requirements’’ to BX in Chapter VI, Section I, entitled
remove the reference to the exposure ‘‘Definitions.’’ The Exchange proposes
1. Purpose
time for Price Improving Orders. to amend Chapter VI, Section 6, entitled
The Exchange is seeking to remove Today, Price Improving Orders on BX ‘‘Acceptance of Quotes and Orders’’ to
references to ‘‘Price Improving Orders’’ represent less than 1.5% of the BX remove Post-Only Orders as an
in the Rulebook. Specifically, the volume. The Exchange is removing this acceptable order type. Finally, the
Exchange is seeking to amend the order type in connection with its recent Exchange proposes to amend Chapter
following sections of the Rulebook: filing of a price improving auction VI, Section 9, entitled ‘‘Price
Chapter III, Section 4, entitled (PRISM).4 This proposed auction Improvement Auction (‘‘PRISM’’)’’ to
‘‘Prevention of the Misuse of Material mechanism will offer participants an remove an explanation on the manner in
Nonpublic Information;’’ Chapter VI, alternative means of entering price which Post-Only Orders will interact in
Section 1, entitled ‘‘Definitions,’’ improving interest. the auction process.
Section 6, entitled ‘‘Acceptance of Today, the Exchange transacts a small
The Exchange believes that PRISM
Quotes and Orders’’ and Section 7, number of Post-Only Orders on BX.5
should promote and foster competition
entitled ‘‘Entry and Display of Orders;’’ The Exchange adopted the Post-Only
and provide more options contracts
and Chapter VII, Section 12, entitled Order to encourage displayed liquidity
with the opportunity for price
‘‘Order Exposure Requirements.’’ and offer BX market participants greater
The Exchange is also seeking to improvement. As a result of the
increased opportunities for price flexibility to post liquidity on BX.
remove references to ‘‘Post-Only Participants are not utilizing this order
Orders’’ in the Rulebook. Specifically, improvement, the Exchange believes
that participants will use PRISM to type very frequently. As previously
the Exchange is seeking to amend the mentioned, the Exchange is removing
following sections in the Rulebook: increase the number of Public Customer
orders that are provided with the the Price-Improving Order in
Chapter VI, Section 1, entitled connection with its recent filing of a
‘‘Definitions,’’ Section 6, entitled opportunity to receive price
price improving auction (PRISM).6 This
‘‘Acceptance of Quotes and Orders’’ and improvement over the NBBO.
proposed auction mechanism will offer
Section 9 entitled ‘‘Price Improvement Post-Only Orders participants a new means of entering
Auction (‘‘PRISM’’).’’ price improving interest. Aside from
Each order type will be explained in Post-Only Orders are orders that will
Price-Improving Orders, the Post-Only
more detail below. not remove liquidity from the System.
Order is the only other non-displayed
Post-Only Orders are to be ranked and
Price Improving Orders order type currently on BX. At this time,
executed on the Exchange or cancelled,
the Exchange proposes to also remove
Price Improving Orders are orders to as appropriate, without routing away to
the Post-Only Order from BX which
buy or sell an option at a specified price another market. Post-Only Orders are
would result in all remaining order
at an increment smaller than the evaluated at the time of entry with
types on BX being displayed similar to
minimum price variation in the respect to locking or crossing other
NASDAQ OMX PHLX LLC (‘‘Phlx’’)
security. Today, Price Improving Orders orders as follows: (i) If a Post-Only
order types.
may be entered in increments as small Order would lock or cross an order on This proposed rule change would
as one cent and are available for display the System, the order will be re-priced remove Price Improving Orders and
at the minimum price variation to $.01 below the current low offer (for Post-Only Orders as acceptable order
(‘‘MPV’’) in that security and shall be bids) or above the current best bid (for types for orders or quotes entered into
rounded up for sell orders and rounded offers) and displayed by the System at BX’s System for all market participants.
down for buy orders. Without this order one minimum price increment below
type, market participants would not be the current low offer (for bids) or above 2. Statutory Basis
able to submit orders or quotes priced the current best bid (for offers); and (ii) The Exchange believes that its
between the MPV; those orders or if a Post-Only Order would not lock or proposal is consistent with Section 6(b)
quotes would be rejected. cross an order on the System but would of the Act 7 in general, and furthers the
The Exchange proposes to amend lock or cross the NBBO as reflected in objectives of Section 6(b)(5) of the Act 8
Chapter III, Section 4, entitled the protected quotation of another in particular, in that it is designed to
‘‘Prevention of the Misuse of Material market center, the order will be handled promote just and equitable principles of
Nonpublic Information’’ to remove Price pursuant to Chapter VI, Section trade, to remove impediments to and
Improving Orders as an example of an 7(b)(3)(C). Participants may choose to perfect the mechanism of a free and
order type that would be violative of have their Post-Only Orders returned open market and a national market
this rule. The Exchange proposes to whenever the order would lock or cross system, and, in general to protect
remove the definition of a Price the NBBO or be placed on the book at investors and the public interest, by
Improving Order from the list of order a price other than its limit price. Post- removing Price Improving and Post-
types that are acceptable on BX in Only Orders received prior to the Only Orders as acceptable order types
Chapter VI, Section I, entitled opening cross or after market close will for all market participants.
‘‘Definitions.’’ The Exchange proposes be rejected. Post-Only Orders may not
Price-Improving Orders
have a time-in-force designation of Good
mstockstill on DSK4VPTVN1PROD with NOTICES
to amend Chapter VI, Section 6, entitled
‘‘Acceptance of Quotes and Orders’’ to Til Cancelled or Immediate or Cancel. With the removal of Price Improving
remove Price Improving Orders as an Orders, market participants would not
acceptable order type. The Exchange 4 See Securities Exchange Act Release No. 76301
5 The Exchange transacted on 90 Post-Only
proposes to amend Chapter VI, Section (October 29, 2015) (SR–BX–2015–032) (Order
Granting Accelerated Approval of a Proposed Rule Orders from July through September 2015.
7, entitled ‘‘Entry and Display of Change, as Modified by Amendment Nos. 1 and 2, 6 See note 4.
Orders’’ to remove language describing to Adopt a New Price Improvement Auction, BX 7 15 U.S.C. 78f(b).
the manner in which Price Improving PRISM) (not yet published) [sic]. 8 15 U.S.C. 78f(b)(5).
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![Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices 70057
believes that the waiver of the operative printing in the Commission’s Public Use of Up to 0.3500 mgd; Approval
delay is consistent with the protection Reference Room, 100 F Street NE., Date: September 11, 2015.
of investors and the public interest.18 Washington, DC 20549 on official
Approvals By Rule Issued Under 18
The Commission hereby grants the business days between the hours of
CFR 806.22(f)
waiver and designates the proposal 10:00 a.m. and 3:00 p.m. Copies of such
operative upon filing. filing also will be available for 1. Anadarko E&P Onshore, LLC, Pad ID:
At any time within 60 days of the inspection and copying at the principal Don J Davis Pad A, ABR–
filing of the proposed rule change, the office of the Exchange. All comments 201008028.R1, Gamble Township,
Commission summarily may received will be posted without change; Lycoming County, Pa.;
temporarily suspend such rule change if the Commission does not edit personal Consumptive Use of Up to 3.0000
it appears to the Commission that such identifying information from mgd; Approval Date: September 3,
action is necessary or appropriate in the submissions. You should submit only 2015.
public interest, for the protection of information that you wish to make 2. Chesapeake Appalachia, LLC, Pad ID:
investors, or otherwise in furtherance of available publicly. All submissions Decker Farms, ABR–201009037.R1,
the purposes of the Act. If the should refer to File No. SR–BX–2015– Rush Township, Susquehanna
Commission takes such action, the 64, and should be submitted on or County, Pa.; Consumptive Use of
Commission shall institute proceedings before December 3, 2015. Up to 7.5000 mgd; Approval Date:
to determine whether the proposed rule September 3, 2015.
For the Commission, by the Division of 3. Chesapeake Appalachia, LLC, Pad ID:
should be approved or disapproved.
Trading and Markets, pursuant to delegated
authority.19
Rocks, ABR–201101003.R1,
IV. Solicitation of Comments
Overton Township, Bradford
Interested persons are invited to Robert W. Errett,
County, Pa.; Consumptive Use of
submit written data, views, and Deputy Secretary. Up to 7.5000 mgd; Approval Date:
arguments concerning the foregoing, [FR Doc. 2015–28692 Filed 11–10–15; 8:45 am] September 3, 2015.
including whether the proposed rule BILLING CODE 8011–01–P 4. Chesapeake Appalachia, LLC, Pad ID:
change is consistent with the Act. Aukema, ABR–201101013.R1,
Comments may be submitted by any of Meshoppen Township, Wyoming
the following methods: County, Pa.; Consumptive Use of
SUSQUEHANNA RIVER BASIN
Electronic Comments Up to 7.5000 mgd; Approval Date:
COMMISSION
September 3, 2015.
• Use the Commission’s Internet 5. Chesapeake Appalachia, LLC, Pad ID:
comment form (http://www.sec.gov/ Projects Approved for Consumptive
Uses of Water Fausto, ABR–201101015.R1,
rules/sro.shtml); or Litchfield Township, Bradford
• Send an email to rule-comments@ AGENCY: Susquehanna River Basin County, Pa.; Consumptive Use of
sec.gov. Please include File No. SR–BX– Commission. Up to 7.5000 mgd; Approval Date:
2015–64 on the subject line. September 3, 2015.
ACTION: Notice.
Paper Comments 6. Chesapeake Appalachia, LLC, Pad ID:
SUMMARY: This notice lists the projects Bo, ABR–201101016.R1, Tuscarora
• Send paper comments in triplicate approved by rule by the Susquehanna Township, Bradford County, Pa.;
to Secretary, Securities and Exchange River Basin Commission during the Consumptive Use of Up to 7.5000
Commission, 100 F Street NE.,
period set forth in DATES. mgd; Approval Date: September 3,
Washington, DC 20549–1090.
DATES: September 1–30, 2015. 2015.
All submissions should refer to File No. 7. Chesapeake Appalachia, LLC, Pad ID:
SR–BX–2015–64. This file number ADDRESSES: Susquehanna River Basin
Commission, 4423 North Front Street, Struble, ABR–201101017.R1,
should be included on the subject line Litchfield Township, Bradford
if email is used. To help the Harrisburg, PA 17110–1788.
County, Pa.; Consumptive Use of
Commission process and review your FOR FURTHER INFORMATION CONTACT:
Up to 7.5000 mgd; Approval Date:
comments more efficiently, please use Jason E. Oyler, General Counsel, September 3, 2015.
only one method. The Commission will telephone: (717) 238–0423, ext. 1312; 8. Chesapeake Appalachia, LLC, Pad ID:
post all comments on the Commission’s fax: (717) 238–2436; email: joyler@ DJ, ABR–201101021.R1, Wysox
Internet Web site (http://www.sec.gov/ srbc.net. Regular mail inquiries may be Township, Bradford County, Pa.;
rules/sro.shtml). Copies of the sent to the above address. Consumptive Use of Up to 7.5000
submission, all subsequent SUPPLEMENTARY INFORMATION: This mgd; Approval Date: September 3,
amendments, all written statements notice lists the projects, described 2015.
with respect to the proposed rule below, receiving approval for the 9. Chief Oil & Gas, LLC, Pad ID:
change that are filed with the consumptive use of water pursuant to Dacheux Drilling Pad #1, ABR–
Commission, and all written the Commission’s approval by rule 201101014.R1, Cherry Township,
communications relating to the process set forth in 18 CFR 806.22(e) Sullivan County, Pa.; Consumptive
proposed rule change between the and (f) for the time period specified Use of Up to 2.0000 mgd; Approval
Commission and any person, other than above: Date: September 3, 2015.
those that may be withheld from the 10. Chief Oil & Gas, LLC, Pad ID:
public in accordance with the Approvals By Rule Issued Under 18
mstockstill on DSK4VPTVN1PROD with NOTICES
CFR 806.22(e) Andrus Drilling Pad #1, ABR–
provisions of 5 U.S.C. 552, will be 201101023.R1, Granville Township,
available for Web site viewing and 1. Downs Racing, LP dba Mohegan Sun Bradford County, Pa.; Consumptive
Pocono, Mohegan Sun Pocono, Use of Up to 2.0000 mgd; Approval
18 For purposes only of waiving the 30-day
ABR–201509001, Plains Township, Date: September 3, 2015.
operative delay, the Commission has also Luzerne County, Pa.; Consumptive
considered the proposed rule’s impact on
11. EOG Resources, Inc., Pad ID:
efficiency, competition, and capital formation. See KINGSLEY 2H, ABR–20100692.R1,
15 U.S.C. 78c(f). 19 17 CFR 200.30–3(a)(12). Springfield Township, Bradford
VerDate Sep<11>2014 18:15 Nov 10, 2015 Jkt 238001 PO 00000 Frm 00123 Fmt 4703 Sfmt 4703 E:\FR\FM\12NON1.SGM 12NON1](https://thefederalregister.org/doc/80_FR_70272/page/4.svg)
Document Created: 2015-12-14 14:53:07
Document Modified: 2015-12-14 14:53:07
| 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 70054 |
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