80 FR 74185 - Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Order Granting an Extension To Limited Exemption From Rule 612(c) of Regulation NMS in Connection With the Exchange's Retail Price Improvement Program Until December 1, 2016
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 228 (November 27, 2015)
Federal Register Volume 80, Issue 228 (November 27, 2015)
| Page Range | 74185-74186 | |
| FR Document | 2015-30084 |
[Federal Register Volume 80, Number 228 (Friday, November 27, 2015)] [Notices] [Pages 74185-74186] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-30084] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76495; File No. SR-BX-2014-048] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Order Granting an Extension To Limited Exemption From Rule 612(c) of Regulation NMS in Connection With the Exchange's Retail Price Improvement Program Until December 1, 2016 November 20, 2015. On November 28, 2014, the Commission issued an order pursuant to its authority under Rule 612(c) of Regulation NMS \1\ (``Sub-Penny Rule'') that granted the NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'') a limited exemption from the Sub-Penny Rule in connection with the operation of the Exchange's Retail Price Improvement Program (``RPI Program'').\2\ The limited exemption was granted concurrently with the Commission's approval of the Exchange's proposal to adopt the RPI Program on a one-year pilot term. The Commission granted the exemption coterminous with the effectiveness of the RPI Program--both the RPI Program and the exemption are scheduled to expire on December 1, 2015. --------------------------------------------------------------------------- \1\ 17 CFR 242.612(c). \2\ See Securities Exchange Act Release No. 73702, 79 FR 72049 (December 4, 2014) (SR-BX-2014-048) (``RPI Approval Order''). --------------------------------------------------------------------------- The Exchange now seeks to extend the exemption until December 1, 2016.\3\ The Exchange's request was made in conjunction with an immediately effectively filing that extends the operation of the RPI Program until December 1, 2016.\4\ In its request to extend the exemption, the Exchange notes that given the gradual implementation of the RPI Program and the preliminary participation and results, extending the exemption would provide additional opportunities for greater participation and assessment of the results. Accordingly, the Exchange has asked additional time to allow it and the Commission to analyze data concerning the RPI Program, which the Exchange committed to provide to the Commission.\5\ For this reason and the reasons stated in the RPI Approval Order originally granting the limited exemption, the Commission, pursuant to its authority under Rule 612(c) of Regulation NMS, finds that pursuant to its authority under Rule 612(c) of [[Page 74186]] Regulation NMS, extending the exemption is appropriate in the public interest and consistent with the protection of investors. --------------------------------------------------------------------------- \3\ See Letter from Jeffrey S. Davis, Vice President & Deputy General Counsel, Exchange, to Brent J. Fields, Secretary, Commission, dated November 12, 2015. \4\ See SR-BX-2015-073. \5\ See RPI Approval Order, supra note 2. --------------------------------------------------------------------------- Therefore, it is hereby ordered that, pursuant to Rule 612(c) of Regulation NMS, the Exchange is granted an extension of the limited exemption from Rule 612 of Regulation NMS that allows the Exchange to accept and rank orders priced equal to or greater than $1.00 per share in increments of $0.001, in connection with the operation of its RPI Program, until December 1, 2016. The limited and temporary exemption extended by this Order is subject to modification or revocation if at any time the Commission determines that such action is necessary or appropriate in furtherance of the purposes of the Act. Responsibility for compliance with any applicable provisions of the Federal securities laws must rest with the persons relying on the exemption that are the subject of this Order. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\6\ --------------------------------------------------------------------------- \6\ 17 CFR 200.30-3(a)(83). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-30084 Filed 11-25-15; 8:45 am] BILLING CODE 8011-01-P
![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
mstockstill on DSK4VPTVN1PROD with NOTICES
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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![74186 Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices
Regulation NMS, extending the I. Self-Regulatory Organization’s be less than five (5) seconds. The value
exemption is appropriate in the public Statement of the Terms of Substance of of ‘‘x’’ shall be equal to the value of ‘‘n.’’
interest and consistent with the the Proposed Rule Change (b) The Technical Disconnect
protection of investors. Mechanism is enabled for all Permit
The Exchange proposes to amend
Therefore, it is hereby ordered that, Holders and may not be disabled by
Rule 6.48 related to the Exchange’s
pursuant to Rule 612(c) of Regulation Permit Holders, except the automatic
Technical Disconnect Mechanism. The
NMS, the Exchange is granted an cancellation of a Permit Holder’s day
text of the proposed rule change is
extension of the limited exemption from orders is an optional service that the
provided below. (additions are
Rule 612 of Regulation NMS that allows Permit Holder may enable or disable
italicized; deletions are [bracketed])
the Exchange to accept and rank orders through the API.
priced equal to or greater than $1.00 per C2 Options Exchange, Incorporated (c) The trigger of the Technical
share in increments of $0.001, in Rules Disconnect Mechanism is event- and
connection with the operation of its RPI Client Application- specific. The
Program, until December 1, 2016. * * * * * automatic cancellation of a Market-
Rule 6.48. Technical Disconnect Maker’s quotes (if applicable) or a
The limited and temporary exemption
Permit Holder’s day orders (if enabled
extended by this Order is subject to (a) When a CBOE Application Server by the Permit Holder) entered into a
modification or revocation if at any time (‘‘CAS’’) loses communication with a CAS via a particular Client Application
the Commission determines that such Client Application such that a CAS does will neither impact nor determine the
action is necessary or appropriate in not receive an appropriate response to a treatment of the quotes of the same or
furtherance of the purposes of the Act. Heartbeat Request within ‘‘x’’ period of other Market-Makers or orders of the
Responsibility for compliance with any time, the Technical Disconnect same Permit Holder entered into the
applicable provisions of the Federal Mechanism will automatically logoff the CAS via a separate and distinct Client
securities laws must rest with the Permit Holder’s affected Client Application. Except for day orders the
persons relying on the exemption that Application and [, if applicable, will] Technical Disconnect Mechanism
are the subject of this Order. automatically cancel all the Permit automatically cancels if a Permit Holder
For the Commission, by the Division of Holder’s Market-Maker quotes, if enables that optional service, [T]the
Trading and Markets, pursuant to delegated applicable, and open orders with a time- Technical Disconnect Mechanism will
authority.6 in-force of ‘‘day’’ (‘‘day orders’’), if the not impact or determine the treatment of
Robert W. Errett, Permit Holder enables that optional orders a Permit Holder previously
Deputy Secretary. service, posted through the affected entered into the CAS.
[FR Doc. 2015–30084 Filed 11–25–15; 8:45 am] Client Application. The following . . . Interpretations and Policies:
BILLING CODE 8011–01–P
describes how the Technical Disconnect .01 No change.
Mechanism works for each of the
* * * * *
Exchange’s application programming
interfaces (‘‘APIs’’): The text of the proposed rule change
SECURITIES AND EXCHANGE is also available on the Exchange’s Web
COMMISSION (i) CBOE Market Interface 2.0 (‘‘CMi
site (http://www.c2exchange.com/Legal/
2’’) API. A CAS shall generate a
), at the Exchange’s Office of the
Heartbeat Request to a Client
[Release No. 34–76488; File No. SR–C2– Secretary, and at the Commission’s
2015–032] Application (i) after the CAS does not
Public Reference Room.
receive any messages from a particular
Self-Regulatory Organizations; C2 Client Application for ‘‘n’’ period of II. Self-Regulatory Organization’s
Options Exchange, Incorporated; time or (ii) after every ‘‘n’’ period of Statement of the Purpose of, and
Notice of Filing and Immediate time. A Permit Holder shall determine Statutory Basis for, the Proposed Rule
Effectiveness of a Proposed Rule the value of ‘‘n.’’ In no event shall ‘‘n’’ Change
Change Relating to the Technical be less than three (3) seconds or exceed In its filing with the Commission, the
Disconnect Mechanism twenty (20) seconds. If a CAS generates Exchange included statements
a Heartbeat Request only after it does concerning the purpose of and basis for
November 20, 2015. not receive any messages from a the proposed rule change and discussed
Pursuant to Section 19(b)(1) of the particular Client Application for ‘‘n’’ any comments it received on the
Securities Exchange Act of 1934 (the period of time, the value of ‘‘x’’ shall be proposed rule change. The text of these
‘‘Act’’),1 and Rule 19b–4 thereunder,2 set at a half (.5) second. If a CAS statements may be examined at the
notice is hereby given that on November generates a Heartbeat Request every ‘‘n’’ places specified in Item IV below. The
9, 2015, C2 Options Exchange, period of time, the value of ‘‘x’’ shall be Exchange has prepared summaries, set
Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) equal to the value of ‘‘n.’’ forth in sections A, B, and C below, of
filed with the Securities and Exchange (ii) Financial Information eXchange the most significant aspects of such
Commission (the ‘‘Commission’’) the (‘‘FIX’’) Protocol API. A CAS shall statements.
proposed rule change as described in generate a Heartbeat Message to a Client
Items I, II, and III below, which Items Application after the CAS does not A. Self-Regulatory Organization’s
have been prepared by the Exchange. receive any messages from a particular Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
mstockstill on DSK4VPTVN1PROD with NOTICES
The Commission is publishing this Client Application for ‘‘n’’ period of
notice to solicit comments on the time. If the CAS does not receive a Change
proposed rule change from interested response to the Heartbeat Message from 1. Purpose
persons. the Client Application for ‘‘n’’ period of
time, the CAS shall generate a Heartbeat The Exchange proposes to amend
6 17 CFR 200.30–3(a)(83). Request to the Client Application. A Rule 6.48 related to the Exchange’s
1 15 U.S.C. 78s(b)(1). Permit Holder shall determine the value Technical Disconnect Mechanism. Rule
2 17 CFR 240.19b–4. of ‘‘n’’ at logon. In no event shall ‘‘n’’ 6.48(a) provides that when a CBOE
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Document Created: 2015-12-14 14:05:18
Document Modified: 2015-12-14 14:05:18
| 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 74185 |
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