80 FR 74184 - Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to BX PRISM
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 228 (November 27, 2015)
Federal Register Volume 80, Issue 228 (November 27, 2015)
| Page Range | 74184-74185 | |
| FR Document | 2015-30079 |
[Federal Register Volume 80, Number 228 (Friday, November 27, 2015)] [Notices] [Pages 74184-74185] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-30079] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76487; File No. SR-BX-2015-068] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to BX PRISM November 20, 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 9, 2015, NASDAQ OMX BX, Inc. (``BX'' or the ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend BX Rules at Chapter VI, Section 9, entitled ``Price Improvement Auction (``PRISM''),'' to correct two cross-references to BX Rules. The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqomxbx.cchwallstreet.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend BX Rules at Chapter VI, Section 9, entitled ``Price Improvement Auction (``PRISM'')'' to correct two cross-references to BX Rules. Specifically, the Exchange cited to its Size Pro-Rata allocation algorithm in the BX PRISM Rule at Chapter VI, Section 9(ii)(E). The cite was to Chapter VI, Section 10(1)(C)(1)(a) when it should have cited to Section 10(1)(C)(2). Further, the Exchange cited to its Price/Time allocation algorithm in the BX PRISM Rule at Chapter VI, Section 9(ii)(F). The cite was to Chapter VI, Section 10(1)(C)(2)(1) when it should have cited to Section 10(1)(C)(1). These clarifications to the BX PRISM rule will update the Rulebook and help avoid confusion for Participants. The proposed changes are non- substantive rule changes. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \3\ in general, and furthers the objectives of Section 6(b)(5) of the Act \4\ 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 correcting citation errors within the BX Rulebook. --------------------------------------------------------------------------- \3\ 15 U.S.C. 78f(b). \4\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange's proposal to correct the citations will serve to avoid confusion as to the correct algorithm. The proposed changes are non-substantive rule changes. B. Self-Regulatory Organization's Statement on Burden on Competition BX does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed changes do not impose any burden on competition, rather, the non-substantive rule changes correct incorrect references within the Rulebook. As a result, there will be no substantive changes to the Exchange's operations or its rules. 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 The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-4(f)(6) thereunder.\6\ Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) [[Page 74185]] of the Act and Rule 19b-4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78s(b)(3)(A)(iii). \6\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 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 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. --------------------------------------------------------------------------- The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange has stated that updating the existing rule text to reflect the correct citations sooner, rather than later, will avoid confusion for Participants. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because this waiver will enable the Exchange to provide the correct citations to the applicable allocation rules for its PRISM rule in a timely manner, and thereby avoid confusion for the Exchange's Participants with respect to how PRISM executions would be allocated.\7\ For this reason, the Commission hereby waives the 30-day operative delay requirement and designates the proposed rule change as operative upon filing.\8\ --------------------------------------------------------------------------- \7\ The Exchange stated in its proposal for the PRISM rule that it anticipated that it would deploy the PRISM mechanism within 45 days of Commission approval. See Securities Exchange Act Release No. 75827 (Sept. 30, 2015), 80 FR 54601 (Sept. 10, 2015) (notice for SR- BX-2015-032). The Commission approved the proposed PRISM rule on October 29, 2015. See Securities Exchange Act Release No. 76301, 80 FR 68347 (Nov. 4, 2015) (order approving SR-BX-2015-032). \8\ For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of such 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 under Section 19(b)(2)(B) \9\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-BX-2015-068 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-BX-2015-068. 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 offices of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-BX-2015-068, and should be submitted on or before December 18, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-30079 Filed 11-25-15; 8:45 am] BILLING CODE 8011-01-P
![74184 Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices
comments more efficiently, please use prepared by the Exchange. The of the Act 3 in general, and furthers the
only one method. The Commission will Commission is publishing this notice to objectives of Section 6(b)(5) of the Act 4
post all comments on the Commission’s solicit comments on the proposed rule in particular, in that it is designed to
Internet Web site (http://www.sec.gov/ change from interested persons. promote just and equitable principles of
rules/sro.shtml). Copies of the trade, to remove impediments to and
I. Self-Regulatory Organization’s
submission, all subsequent perfect the mechanism of a free and
amendments, all written statements Statement of the Terms of Substance of
open market and a national market
with respect to the proposed rule the Proposed Rule Change
system, and, in general to protect
change that are filed with the The Exchange proposes to amend BX investors and the public interest, by
Commission, and all written Rules at Chapter VI, Section 9, entitled correcting citation errors within the BX
communications relating to the ‘‘Price Improvement Auction Rulebook.
proposed rule change between the (‘‘PRISM’’),’’ to correct two cross- The Exchange’s proposal to correct
Commission and any person, other than references to BX Rules. The text of the the citations will serve to avoid
those that may be withheld from the proposed rule change is available on the confusion as to the correct algorithm.
public in accordance with the Exchange’s Web site at http:// The proposed changes are non-
provisions of 5 U.S.C. 552, will be nasdaqomxbx.cchwallstreet.com, at the substantive rule changes.
available for Web site viewing and principal office of the Exchange, and at
printing in the Commission’s Public the Commission’s Public Reference B. Self-Regulatory Organization’s
Reference Room, 100 F Street NE., Room. Statement on Burden on Competition
Washington, DC 20549 on official BX does not believe that the proposed
business days between the hours of II. Self-Regulatory Organization’s
Statement of the Purpose of, and rule change will impose any burden on
10:00 a.m. and 3:00 p.m. Copies of such competition that is not necessary or
filing also will be available for Statutory Basis for, the Proposed Rule
Change appropriate in furtherance of the
inspection and copying at the principal purposes of the Act. The proposed
office of the Exchange. All comments In its filing with the Commission, the changes do not impose any burden on
received will be posted without change; Exchange included statements competition, rather, the non-substantive
the Commission does not edit personal concerning the purpose of and basis for rule changes correct incorrect references
identifying information from the proposed rule change and discussed within the Rulebook. As a result, there
submissions. You should submit only any comments it received on the will be no substantive changes to the
information that you wish to make proposed rule change. The text of these Exchange’s operations or its rules.
available publicly. All submissions statements may be examined at the
should refer to File Number SR–ISE– places specified in Item IV below. The C. Self-Regulatory Organization’s
2015–40, and should be submitted on or Exchange has prepared summaries, set Statement on Comments on the
before December 18, 2015. forth in sections A, B, and C below, of Proposed Rule Change Received From
For the Commission, by the Division of the most significant aspects of such Members, Participants, or Others
Trading and Markets, pursuant to delegated statements. No written comments were either
authority.11 solicited or received.
A. Self-Regulatory Organization’s
Robert W. Errett,
Statement of the Purpose of, and the III. Date of Effectiveness of the
Deputy Secretary.
Statutory Basis for, the Proposed Rule Proposed Rule Change and Timing for
[FR Doc. 2015–30090 Filed 11–25–15; 8:45 am] Change Commission Action
BILLING CODE 8011–01–P
1. Purpose The Exchange has filed the proposed
The Exchange proposes to amend BX rule change pursuant to Section
SECURITIES AND EXCHANGE Rules at Chapter VI, Section 9, entitled 19(b)(3)(A)(iii) of the Act 5 and Rule
COMMISSION ‘‘Price Improvement Auction 19b–4(f)(6) thereunder.6 Because the
[Release No. 34–76487; File No. SR–BX– (‘‘PRISM’’)’’ to correct two cross- proposed rule change does not: (i)
2015–068] references to BX Rules. Specifically, the Significantly affect the protection of
Exchange cited to its Size Pro-Rata investors or the public interest; (ii)
Self-Regulatory Organizations; allocation algorithm in the BX PRISM impose any significant burden on
NASDAQ OMX BX, Inc.; Notice of Filing Rule at Chapter VI, Section 9(ii)(E). The competition; and (iii) become operative
and Immediate Effectiveness of cite was to Chapter VI, Section prior to 30 days from the date on which
Proposed Rule Change Relating to BX 10(1)(C)(1)(a) when it should have cited it was filed, or such shorter time as the
PRISM to Section 10(1)(C)(2). Further, the Commission may designate, if
Exchange cited to its Price/Time consistent with the protection of
November 20, 2015.
allocation algorithm in the BX PRISM investors and the public interest, the
Pursuant to Section 19(b)(1) of the
Rule at Chapter VI, Section 9(ii)(F). The proposed rule change has become
Securities Exchange Act of 1934
cite was to Chapter VI, Section effective pursuant to Section 19(b)(3)(A)
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on November 10(1)(C)(2)(1) when it should have cited
9, 2015, NASDAQ OMX BX, Inc. (‘‘BX’’ to Section 10(1)(C)(1). These 3 15 U.S.C. 78f(b).
4 15 U.S.C. 78f(b)(5).
or the ‘‘Exchange’’) filed with the clarifications to the BX PRISM rule will
5 15 U.S.C. 78s(b)(3)(A)(iii).
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Securities and Exchange Commission update the Rulebook and help avoid 6 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
(‘‘SEC’’ or ‘‘Commission’’) the proposed confusion for Participants. The 4(f)(6)(iii) requires a self-regulatory organization to
rule change as described in Items I and proposed changes are non-substantive give the Commission written notice of its intent to
II below, which Items have been rule changes. file the proposed rule change, along with a brief
description and text of the proposed rule change,
2. Statutory Basis at least five business days prior to the date of filing
11 17 CFR 200.30–3(a)(12). of the proposed rule change, or such shorter time
1 15 U.S.C. 78s(b)(1). The Exchange believes that its as designated by the Commission. The Exchange
2 17 CFR 240.19b–4. proposal is consistent with Section 6(b) has satisfied this requirement.
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![Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices 74185
of the Act and Rule 19b–4(f)(6)(iii) • Send an email to rule-comments@ SECURITIES AND EXCHANGE
thereunder. sec.gov. Please include File Number SR– COMMISSION
The Exchange has asked the BX–2015–068 on the subject line. [Release No. 34–76495; File No. SR–BX–
Commission to waive the 30-day 2014–048]
operative delay so that the proposal may Paper Comments
become operative immediately upon • Send paper comments in triplicate Self-Regulatory Organizations;
filing. The Exchange has stated that to Brent J. Fields, Secretary, Securities NASDAQ OMX BX, Inc.; Order Granting
updating the existing rule text to reflect an Extension To Limited Exemption
and Exchange Commission, 100 F Street
the correct citations sooner, rather than From Rule 612(c) of Regulation NMS in
NE., Washington, DC 20549–1090.
later, will avoid confusion for Connection With the Exchange’s Retail
Participants. The Commission believes All submissions should refer to File Price Improvement Program Until
that waiving the 30-day operative delay Number SR–BX–2015–068. This file December 1, 2016
is consistent with the protection of number should be included on the
investors and the public interest November 20, 2015.
subject line if email is used. To help the
because this waiver will enable the On November 28, 2014, the
Commission process and review your
Exchange to provide the correct Commission issued an order pursuant to
comments more efficiently, please use
citations to the applicable allocation its authority under Rule 612(c) of
only one method. The Commission will
rules for its PRISM rule in a timely Regulation NMS 1 (‘‘Sub-Penny Rule’’)
post all comments on the Commission’s that granted the NASDAQ OMX BX, Inc.
manner, and thereby avoid confusion Internet Web site (http://www.sec.gov/
for the Exchange’s Participants with (‘‘BX’’ or ‘‘Exchange’’) a limited
rules/sro.shtml). Copies of the exemption from the Sub-Penny Rule in
respect to how PRISM executions would submission, all subsequent
be allocated.7 For this reason, the connection with the operation of the
amendments, all written statements Exchange’s Retail Price Improvement
Commission hereby waives the 30-day
with respect to the proposed rule Program (‘‘RPI Program’’).2 The limited
operative delay requirement and
change that are filed with the exemption was granted concurrently
designates the proposed rule change as
operative upon filing.8 Commission, and all written with the Commission’s approval of the
At any time within 60 days of the communications relating to the Exchange’s proposal to adopt the RPI
filing of such proposed rule change, the proposed rule change between the Program on a one-year pilot term. The
Commission summarily may Commission and any person, other than Commission granted the exemption
temporarily suspend such rule change if those that may be withheld from the coterminous with the effectiveness of
it appears to the Commission that such public in accordance with the the RPI Program—both the RPI Program
action is necessary or appropriate in the provisions of 5 U.S.C. 552, will be and the exemption are scheduled to
public interest, for the protection of available for Web site viewing and expire on December 1, 2015.
investors, or otherwise in furtherance of printing in the Commission’s Public The Exchange now seeks to extend
the purposes of the Act. If the Reference Room, 100 F Street NE., the exemption until December 1, 2016.3
Commission takes such action, the Washington, DC 20549 on official The Exchange’s request was made in
Commission shall institute proceedings business days between the hours of conjunction with an immediately
under Section 19(b)(2)(B) 9 of the Act to 10:00 a.m. and 3:00 p.m. Copies of such effectively filing that extends the
determine whether the proposed rule operation of the RPI Program until
filing also will be available for
change should be approved or December 1, 2016.4 In its request to
inspection and copying at the principal
disapproved. extend the exemption, the Exchange
offices of the Exchange. All comments
notes that given the gradual
IV. Solicitation of Comments received will be posted without change; implementation of the RPI Program and
the Commission does not edit personal the preliminary participation and
Interested persons are invited to identifying information from
submit written data, views, and results, extending the exemption would
submissions. You should submit only provide additional opportunities for
arguments concerning the foregoing,
information that you wish to make greater participation and assessment of
including whether the proposed rule
available publicly. All submissions the results. Accordingly, the Exchange
change is consistent with the Act.
Comments may be submitted by any of should refer to File Number SR–BX– has asked additional time to allow it
the following methods: 2015–068, and should be submitted on and the Commission to analyze data
or before December 18, 2015. concerning the RPI Program, which the
Electronic Comments Exchange committed to provide to the
For the Commission, by the Division of
• Use the Commission’s Internet Trading and Markets, pursuant to delegated Commission.5 For this reason and the
comment form (http://www.sec.gov/ authority.10 reasons stated in the RPI Approval
rules/sro.shtml); or Robert W. Errett,
Order originally granting the limited
exemption, the Commission, pursuant
Deputy Secretary.
7 The Exchange stated in its proposal for the to its authority under Rule 612(c) of
PRISM rule that it anticipated that it would deploy [FR Doc. 2015–30079 Filed 11–25–15; 8:45 am] Regulation NMS, finds that pursuant to
the PRISM mechanism within 45 days of BILLING CODE 8011–01–P its authority under Rule 612(c) of
Commission approval. See Securities Exchange Act
Release No. 75827 (Sept. 30, 2015), 80 FR 54601
1 17 CFR 242.612(c).
(Sept. 10, 2015) (notice for SR–BX–2015–032). The
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2 See Securities Exchange Act Release No. 73702,
Commission approved the proposed PRISM rule on
October 29, 2015. See Securities Exchange Act 79 FR 72049 (December 4, 2014) (SR–BX–2014–048)
Release No. 76301, 80 FR 68347 (Nov. 4, 2015) (‘‘RPI Approval Order’’).
(order approving SR–BX–2015–032). 3 See Letter from Jeffrey S. Davis, Vice President
8 For purposes only of waiving the 30-day & Deputy General Counsel, Exchange, to Brent J.
operative delay, the Commission has considered the Fields, Secretary, Commission, dated November 12,
proposed rule’s impact on efficiency, competition, 2015.
and capital formation. See 15 U.S.C. 78c(f). 4 See SR–BX–2015–073.
9 15 U.S.C. 78s(b)(2)(B). 10 17 CFR 200.30–3(a)(12). 5 See RPI Approval Order, supra note 2.
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Document Created: 2015-12-14 14:05:31
Document Modified: 2015-12-14 14:05:31
| 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 74184 |
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