81 FR 10935 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Approving a Proposed Rule Change To Implement Additional Price Protections in the Opening Process
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 41 (March 2, 2016)
Federal Register Volume 81, Issue 41 (March 2, 2016)
| Page Range | 10935-10937 | |
| FR Document | 2016-04505 |
[Federal Register Volume 81, Number 41 (Wednesday, March 2, 2016)] [Notices] [Pages 10935-10937] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-04505] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77235; File No. SR-NASDAQ-2015-159] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Approving a Proposed Rule Change To Implement Additional Price Protections in the Opening Process February 25, 2016. I. Introduction On December 23, 2015, the NASDAQ Stock Market LLC (``Exchange'' or ``Nasdaq'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to enhance the price protections for the Exchange's opening process. The proposed rule change was published for comment in the Federal Register on January 11, 2016.\3\ The Commission received one comment letter on the proposed rule change.\4\ This order approves the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 76833 (January 5, 2016), 81 FR 1240 (``Notice''). \4\ See letter from Kermit Kubitz to the Commission, dated February 1, 2016 (``Kubitz Letter''). --------------------------------------------------------------------------- II. Description of the Proposal The Exchange proposes new paragraph (F) to Rule 4752(d)(2) to enhance the price protections for the Nasdaq Opening Cross.\5\ --------------------------------------------------------------------------- \5\ The term ``Nasdaq Opening Cross'' (hereinafter also referred to as ``Opening Cross'') is defined in Nasdaq Rule 4752(a)(5). --------------------------------------------------------------------------- Background Nasdaq Rule 4752(d) describes the Nasdaq Opening Cross process, and Rule 4752(d)(2)(A) through (E) sets forth the process for determining the price at which an Opening Cross occurs. Specifically, the Opening Cross occurs at 9:30 a.m. ET and occurs at the price that maximizes the number of shares of Market On Open orders (``MOO''), Limit On Open orders (``LOO''), Opening Imbalance Only orders (``OIO''), Early [[Page 10936]] Market Hours orders, and executable quotes and orders in the Nasdaq Market Center to be executed.\6\ If more than one price exists that would maximize such quotes and orders to be executed, then the Opening Cross occurs at the price that minimizes any imbalance.\7\ If more than one price exists that would minimize an imbalance, then the Opening Cross occurs at the entered price at which shares will remain unexecuted in the cross.\8\ If more than one price exists at which shares will remain unexecuted in the cross, then the Opening Cross occurs at the price that minimizes the distance from the bid-ask midpoint of the inside quotation prevailing at 9:30 a.m.\9\ --------------------------------------------------------------------------- \6\ See Notice, 81 FR at 1241; see also Rule 4752(d)(2)(A). The MOO, LOO, and OIO order types are defined in Rules 4702(b)(8), (b)(9), and (b)(10), respectively; the Early Market Hours order type is defined in Rule 4752(a)(7). \7\ See Notice, 81 FR at 1241; see also Rule 4752(d)(2)(B). \8\ See Notice, 81 FR at 1241; see also Rule 4752(d)(2)(C). \9\ See Notice, 81 FR at 1241; see also Rule 4752(d)(2)(D). --------------------------------------------------------------------------- In addition to the calculation of the Opening Cross price pursuant to Rule 4752(d)(2)(A) through (D), the Exchange applies a price range within which the Opening Cross must execute in order to ensure that the Opening Cross price is reasonably tied to the prevailing market at the time.\10\ Specifically, the Exchange applies a percentage based threshold (``Threshold Percentage'') to a benchmark (``Benchmark Value'') to determine a specific value.\11\ That value is then applied to the spread for a particular security to determine the price range within which the Opening Cross for the security may occur (``Threshold Range''), and outside of which the Opening Cross for the security may not occur.\12\ Currently, the Threshold Percentage is 10% and the Benchmark Value is the midpoint of the Nasdaq Best Bid and Offer (``QBBO'').\13\ To establish the Threshold Range, the Exchange calculates 10% of the midpoint of the QBBO, and then adds the resulting value to the Nasdaq Best Offer and subtracts the resulting value from the Nasdaq Best Bid.\14\ If the Opening Cross price of a security established pursuant to Rule 4752(d)(2)(A) through (D) falls outside the Threshold Range, then the Exchange adjusts the Opening Cross price to a price within the Threshold Range that best satisfies the conditions of Rule 4752(d)(2)(A) through (D).\15\ --------------------------------------------------------------------------- \10\ See Notice, 81 FR at 1241; see also Rule 4752(d)(2)(E). \11\ See Notice, 81 FR at 1241; see also Rule 4752(d)(2)(E). \12\ See Notice, 81 FR at 1241; see also Rule 4752(d)(2)(E). \13\ See Notice, 81 FR at 1241. The Threshold Percentage and Benchmark Value are set by Nasdaq officials in advance and are published via the NasdaqTrader Web site. See id. \14\ See id. \15\ See id.; see also Rule 4752(d)(2)(E). --------------------------------------------------------------------------- According to the Exchange, the current price adjustment process has been effective at ensuring that the Opening Cross price of a security falls within a certain range of the QBBO.\16\ However, an order or quote entered by a participant in error that establishes one side of the QBBO could result in an excessively wide QBBO and significantly skew the Opening Cross price of a security.\17\ The current price adjustment process would not prevent the Opening Cross from occurring at an erroneous price under these circumstances, because the price would still fall within the excessively wide Threshold Range, which would be calculated using the excessively wide QBBO.\18\ Under these circumstances, the parties to the erroneously priced transactions would have to avail themselves of the Exchange's clearly erroneous trade nullification process.\19\ --------------------------------------------------------------------------- \16\ See Notice, 81 FR at 1242. \17\ See id. The Commission understands that such a scenario is most likely to arise with illiquid securities. \18\ See id. \19\ See id. --------------------------------------------------------------------------- New Price Protections In order to mitigate the potential for mispriced Opening Crosses and the resulting need to use the Exchange's clearly erroneous trade nullification process, the Exchange proposes additional price protections for its opening process to help ensure that the Opening Cross price is reasonably related to the market and not the product of erroneous order entry.\20\ Specifically, in addition to the existing process for determining the Opening Cross price for a security, the Exchange would require the security to pass one of three new ``Opening Cross Price Tests'' in order for an Opening Cross in the security to occur.\21\ Each Opening Cross Price Test would specify a range within which the Opening Cross price must fall and, as discussed in more detail below, each price range is calculated by applying a threshold to a specific reference measure.\22\ The Exchange proposes to initially set the threshold for each Opening Cross Price Test at the greater of $0.50 or 10% of the reference measure, although the Exchange may adjust the thresholds for each Opening Cross Price Test independently of one another.\23\ If a security's Opening Cross price fails all three tests, then all MOO, LOO, OIO, and Early Market Hours orders in the Nasdaq Opening Cross in that security would be cancelled back to the participants, no Opening Cross would occur in that security, and the security would open for regular market hours trading consistent with Rule 4752(c).\24\ --------------------------------------------------------------------------- \20\ See id. \21\ See id.; see also proposed Rule 4752(d)(2)(F). \22\ See Notice, 81 FR at 1242; see also proposed Rule 4752(d)(2)(F). \23\ See Notice, 81 FR at 1242. As proposed, Nasdaq management would set and modify the thresholds from time to time upon prior notice to market participants. See id.; see also proposed Rule 4752(d)(2)(F). In addition, the Exchange states that the thresholds for the proposed Opening Cross Price Tests would be published via the NasdaqTrader Web site. See Notice, 81 FR at 1242. \24\ See Notice, 81 FR at 1242; see also proposed Rule 4752(d)(2)(F). --------------------------------------------------------------------------- Under Opening Cross Price Test A, for a Nasdaq-listed security, the Exchange would establish the Opening Cross price range by adding the threshold amount to and subtracting the threshold amount from the Nasdaq Official Closing Price of the security from the previous trading day. For non-Nasdaq-listed securities, the Exchange would establish the price range by adding the threshold amount to and subtracting the threshold amount from the consolidated closing price of the security from the previous trading day. For new Exchange Traded Products (``ETPs'') that do not have a Nasdaq Official Closing Price, the Exchange would establish the price range by adding the threshold amount to and subtracting the threshold amount from the offering price. If the Opening Cross price falls outside of the relevant price range, or if a security does not have a Nasdaq Official Closing Price or consolidated closing price from the previous trading day, then the security would fail Opening Cross Price Test A and the Exchange would perform Opening Cross Price Test B.\25\ --------------------------------------------------------------------------- \25\ See Notice, 81 FR at 1242; see also proposed Rule 4752(d)(2)(F)(i). --------------------------------------------------------------------------- Under Opening Cross Price Test B, the Exchange would establish the Opening Cross price range by adding the threshold amount to and subtracting the threshold amount from the Nasdaq last sale (either round lot or odd lot) after 9:15 a.m. ET but before the Opening Cross. If the Opening Cross price falls outside this price range, or if there is no Nasdaq last sale, then the security would fail Opening Cross Price Test B and the Exchange would perform Opening Cross Price Test C.\26\ --------------------------------------------------------------------------- \26\ See Notice, 81 FR at 1242; see also proposed Rule 4752(d)(2)(F)(ii). --------------------------------------------------------------------------- Under Opening Cross Price Test C, if the Opening Cross price is higher than the closing price used under Test A, then the Exchange would establish the [[Page 10937]] price range by adding the threshold amount to and subtracting the threshold amount from the Nasdaq Best Bid. If the Opening Cross price is lower than the closing price used under Test A, then the Exchange would establish the price range by adding the threshold amount to and subtracting the threshold amount from the Nasdaq Best Offer. If a security does not have a Nasdaq Official Closing Price or consolidated closing price, as applicable, then the Exchange would use a price of $0. If the Opening Cross price for a security falls outside of the relevant price range, then no Opening Cross would occur in the security; MOO, LOO, OIO, and Early Market Hours orders would be cancelled; and the Exchange would open that security for market hours trading consistent with Rule 4752(c).\27\ --------------------------------------------------------------------------- \27\ See Notice, 81 FR at 1242; see also proposed Rule 4752(d)(2)(F)(iii). --------------------------------------------------------------------------- Implementation The Exchange proposes to implement the Opening Cross Price Tests in stages over the course of approximately four weeks, beginning with a small number of securities.\28\ The Exchange states that the implementation details would be published via an Exchange Trader Alert and be posted on the NasdaqTrader Web site.\29\ --------------------------------------------------------------------------- \28\ See Notice, 81 FR at 1243. \29\ See id. --------------------------------------------------------------------------- III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.\30\ In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,\31\ which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, 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. --------------------------------------------------------------------------- \30\ In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \31\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Commission notes that the proposal is designed to enhance the price protections for the Exchange's opening process, to mitigate the potential for mispriced trades, and to mitigate the need to use the Exchange's clearly erroneous trade nullification process. In particular, as discussed above, the proposed Opening Cross Price Tests are designed to mitigate the potential for a mispriced Opening Cross when an order or quote entered by a participant in error establishes one side of the QBBO and significantly skews the Opening Cross price for the security. As noted by the Exchange, the proposal would help ensure that the Opening Cross price for a security is reasonably related to the market and not the product of erroneous order entry. The Commission also notes that a commenter expressed support for the proposal, stating that the ``proposed change to avoid a biased or erroneous opening due to an inadvertent or mistaken submission of a pre-open order and price is a reasonable change by NASDAQ.'' \32\ Based on the foregoing, the Commission believes that the proposed Opening Cross Price Tests are consistent with the Act. --------------------------------------------------------------------------- \32\ See Kubitz Letter, supra note 4. This commenter also expressed broader concerns regarding the availability of information about pre-market activities and regarding the circumstances under which pre-market activities would constitute manipulation, in light of the events of August 24, 2015. See id. --------------------------------------------------------------------------- The Commission also believes that the Exchange's proposal to implement the Opening Cross Price Tests in stages is consistent with the Act because it would help to limit potential market disruption if the Exchange experiences a technical issue with the implementation. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\33\ that the proposed rule change (SR-NASDAQ-2015-159) be, and hereby is, approved. --------------------------------------------------------------------------- \33\ 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\34\ --------------------------------------------------------------------------- \34\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-04505 Filed 3-1-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 41 / Wednesday, March 2, 2016 / Notices 10935
C. Self-Regulatory Organization’s IV. Solicitation of Comments For the Commission, by the Division of
Statement on Comments on the Trading and Markets, pursuant to delegated
Proposed Rule Change Received From Interested persons are invited to authority.15
Members, Participants, or Others submit written data, views, and
arguments concerning the foregoing, Robert W. Errett,
Written comments were neither Deputy Secretary.
solicited nor received. including whether the proposed rule
change is consistent with the Act. [FR Doc. 2016–04502 Filed 3–1–16; 8:45 am]
III. Date of Effectiveness of the Comments may be submitted by any of BILLING CODE 8011–01–P
Proposed Rule Change and Timing for the following methods:
Commission Action
Electronic Comments SECURITIES AND EXCHANGE
Because the proposed rule change
COMMISSION
does not (i) significantly affect the • Use the Commission’s Internet
protection of investors or the public comment form (http://www.sec.gov/ [Release No. 34–77235; File No. SR–
interest; (ii) impose any significant rules/sro.shtml); or NASDAQ–2015–159]
burden on competition; and (iii) become
operative for 30 days from the date on • Send an email to rule-comments@ Self-Regulatory Organizations; The
which it was filed, or such shorter time sec.gov. Please include File Number SR– NASDAQ Stock Market LLC; Order
as the Commission may designate if NASDAQ–2016–026 on the subject line. Approving a Proposed Rule Change To
consistent with the protection of Implement Additional Price Protections
Paper Comments in the Opening Process
investors and the public interest, the
proposed rule change has become • Send paper comments in triplicate February 25, 2016.
effective pursuant to Section 19(b)(3)(A) to Brent J. Fields, Secretary, Securities
of the Act 12 and Rule 19b–4(f)(6) and Exchange Commission, 100 F Street I. Introduction
thereunder.13 NE., Washington, DC 20549–1090. On December 23, 2015, the NASDAQ
The Exchange has asked the Stock Market LLC (‘‘Exchange’’ or
Commission to waive the 30-day All submissions should refer to File
‘‘Nasdaq’’) filed with the Securities and
operative delay so that the proposal may Number SR–NASDAQ–2016–026. This Exchange Commission (‘‘Commission’’),
become operative immediately upon file number should be included on the pursuant to Section 19(b)(1) of the
filing. The Exchange stated that waiver subject line if email is used. To help the Securities Exchange Act of 1934
of this requirement will allow the Commission process and review your (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
Exchange to implement a Proxy Price comments more efficiently, please use proposed rule change to enhance the
Protection threshold similar to existing only one method. The Commission will price protections for the Exchange’s
mechanisms on other markets and post all comments on the Commission’s opening process. The proposed rule
would reduce the risk of and potentially Internet Web site (http://www.sec.gov/ change was published for comment in
prevent the erroneous execution of rules/sro.shtml). Copies of the the Federal Register on January 11,
orders on the Exchange. Accordingly, submission, all subsequent 2016.3 The Commission received one
the Commission believes that waiving amendments, all written statements comment letter on the proposed rule
the 30-day operative delay is consistent with respect to the proposed rule change.4 This order approves the
with the protection of investors and the proposed rule change.
change that are filed with the
public interest and hereby waives the
Commission, and all written II. Description of the Proposal
30-day operative delay and designates
the proposed rule change to be operative communications relating to the
proposed rule change between the The Exchange proposes new
upon filing.14 paragraph (F) to Rule 4752(d)(2) to
At any time within 60 days of the Commission and any person, other than
enhance the price protections for the
filing of the proposed rule change, the those that may be withheld from the
Nasdaq Opening Cross.5
Commission summarily may public in accordance with the
temporarily suspend such rule change if provisions of 5 U.S.C. 552, will be Background
it appears to the Commission that such available for Web site viewing and Nasdaq Rule 4752(d) describes the
action is necessary or appropriate in the printing in the Commission’s Public Nasdaq Opening Cross process, and
public interest, for the protection of Reference Room, 100 F Street NE., Rule 4752(d)(2)(A) through (E) sets forth
investors, or otherwise in furtherance of Washington, DC 20549 on official the process for determining the price at
the purposes of the Act. If the business days between the hours of which an Opening Cross occurs.
Commission takes such action, the 10:00 a.m. and 3:00 p.m. Copies of such Specifically, the Opening Cross occurs
Commission shall institute proceedings filing also will be available for at 9:30 a.m. ET and occurs at the price
to determine whether the proposed rule inspection and copying at the principal that maximizes the number of shares of
should be approved or disapproved. office of the Exchange. All comments Market On Open orders (‘‘MOO’’), Limit
received will be posted without change; On Open orders (‘‘LOO’’), Opening
12 15 U.S.C. 78s(b)(3)(A). the Commission does not edit personal Imbalance Only orders (‘‘OIO’’), Early
13 17 CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the identifying information from
15 17 CFR 200.30–3(a)(12).
Commission with written notice of its intent to file submissions. You should submit only 1 15
the proposed rule change, along with a brief U.S.C. 78s(b)(1).
information that you wish to make
mstockstill on DSK4VPTVN1PROD with NOTICES
2 17 CFR 240.19b–4.
description and the text of the proposed rule
change, at least five business days prior to the date
available publicly. All submissions 3 See Securities Exchange Act Release No. 76833
of filing of the proposed rule change, or such should refer to File Number SR– (January 5, 2016), 81 FR 1240 (‘‘Notice’’).
shorter time as designated by the Commission. NASDAQ–2016–026, and should be 4 See letter from Kermit Kubitz to the
14 For purposes only of waiving the 30-day
submitted on or before March 23, 2016. Commission, dated February 1, 2016 (‘‘Kubitz
operative delay, the Commission has also Letter’’).
considered the proposed rule’s impact on 5 The term ‘‘Nasdaq Opening Cross’’ (hereinafter
efficiency, competition, and capital formation. See also referred to as ‘‘Opening Cross’’) is defined in
15 U.S.C. 78c(f). Nasdaq Rule 4752(a)(5).
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![Federal Register / Vol. 81, No. 41 / Wednesday, March 2, 2016 / Notices 10937
price range by adding the threshold clearly erroneous trade nullification SECURITIES AND EXCHANGE
amount to and subtracting the threshold process. In particular, as discussed COMMISSION
amount from the Nasdaq Best Bid. If the above, the proposed Opening Cross
[Release No. 34–77230; File No. SR–ISE
Opening Cross price is lower than the Price Tests are designed to mitigate the Gemini–2016–01]
closing price used under Test A, then potential for a mispriced Opening Cross
the Exchange would establish the price when an order or quote entered by a Self-Regulatory Organizations; ISE
range by adding the threshold amount to participant in error establishes one side Gemini, LLC; Notice of Filing and
and subtracting the threshold amount of the QBBO and significantly skews the Immediate Effectiveness of Proposed
from the Nasdaq Best Offer. If a security Opening Cross price for the security. As Rule Change To Correct the Text of ISE
does not have a Nasdaq Official Closing noted by the Exchange, the proposal Gemini Rule 306
Price or consolidated closing price, as
would help ensure that the Opening February 25, 2016.
applicable, then the Exchange would
Cross price for a security is reasonably Pursuant to Section 19(b)(1) of the
use a price of $0. If the Opening Cross
price for a security falls outside of the related to the market and not the Securities Exchange Act of 1934 (the
relevant price range, then no Opening product of erroneous order entry. The ‘‘Act’’ or the ‘‘Exchange Act’’),1 and
Cross would occur in the security; Commission also notes that a Rule 19b–4 thereunder,2 notice is
MOO, LOO, OIO, and Early Market commenter expressed support for the hereby given that on February 18, 2016,
Hours orders would be cancelled; and proposal, stating that the ‘‘proposed ISE Gemini, LLC (the ‘‘Exchange’’ or
the Exchange would open that security change to avoid a biased or erroneous ‘‘ISE Gemini’’) filed with the Securities
for market hours trading consistent with opening due to an inadvertent or and Exchange Commission the proposed
Rule 4752(c).27 mistaken submission of a pre-open rule change as described in Items I, II,
order and price is a reasonable change and III below, which Items have been
Implementation by NASDAQ.’’ 32 Based on the prepared by the self-regulatory
The Exchange proposes to implement foregoing, the Commission believes that organization. The Commission is
the Opening Cross Price Tests in stages the proposed Opening Cross Price Tests publishing this notice to solicit
over the course of approximately four are consistent with the Act. comments on the proposed rule change
weeks, beginning with a small number from interested persons.
of securities.28 The Exchange states that The Commission also believes that the
Exchange’s proposal to implement the I. Self-Regulatory Organization’s
the implementation details would be
Opening Cross Price Tests in stages is Statement of the Terms of Substance of
published via an Exchange Trader Alert
consistent with the Act because it the Proposed Rule Change
and be posted on the NasdaqTrader Web
site.29 would help to limit potential market ISE Gemini proposes to correct, .08 of
disruption if the Exchange experiences Supplementary Material to Rule 306,
III. Discussion and Commission a technical issue with the Registration Requirements, which
Findings implementation. describes the categories of registration
After careful review, the Commission and respective qualification
finds that the proposed rule change is IV. Conclusion examinations required for individual
consistent with the requirements of the It is therefore ordered, pursuant to associated persons (‘‘associated
Act and the rules and regulations Section 19(b)(2) of the Act,33 that the persons’’) that engage in the securities
thereunder applicable to a national proposed rule change (SR–NASDAQ– activities of members on the Exchange.
securities exchange.30 In particular, the This amendment proposes to replace the
2015–159) be, and hereby is, approved.
Commission finds that the proposed inadvertent use of the term ‘‘Permit
rule change is consistent with Section For the Commission, by the Division of Holder’’ with ‘‘Member’’ which is the
6(b)(5) of the Act,31 which requires, Trading and Markets, pursuant to delegated correct term used throughout the ISE
among other things, that the rules of a authority.34 Gemini Rulebook to describe a member
national securities exchange be Robert W. Errett, of the Exchange. The text of the
designed to prevent fraudulent and Deputy Secretary. proposed rule change is available on the
manipulative acts and practices, to [FR Doc. 2016–04505 Filed 3–1–16; 8:45 am] Exchange’s Web site at www.ise.com, at
promote just and equitable principles of BILLING CODE 8011–01–P
the principal office of the Exchange, and
trade, to remove impediments to and at the Commission’s Public Reference
perfect the mechanism of a free and Room.
open market and a national market
II. Self-Regulatory Organization’s
system, and, in general, to protect
Statement of the Purpose of, and
investors and the public interest.
The Commission notes that the Statutory Basis for, the Proposed Rule
proposal is designed to enhance the Change
price protections for the Exchange’s In its filing with the Commission, the
opening process, to mitigate the self-regulatory organization included
potential for mispriced trades, and to statements concerning the purpose of,
mitigate the need to use the Exchange’s and basis for, the proposed rule change
32 See Kubitz Letter, supra note 4. This
and discussed any comments it received
mstockstill on DSK4VPTVN1PROD with NOTICES
27 See Notice, 81 FR at 1242; see also proposed on the proposed rule change. The text
commenter also expressed broader concerns
Rule 4752(d)(2)(F)(iii). of these statements may be examined at
28 See Notice, 81 FR at 1243. regarding the availability of information about pre-
market activities and regarding the circumstances the places specified in Item IV below.
29 See id.
30 In approving this proposed rule change, the
under which pre-market activities would constitute The Exchange has prepared summaries,
Commission has considered the proposed rule’s manipulation, in light of the events of August 24, set forth in sections A, B, and C below,
impact on efficiency, competition, and capital 2015. See id.
33 15 U.S.C. 78s(b)(2).
formation. See 15 U.S.C. 78c(f). 1 15 U.S.C. 78s(b)(1).
31 15 U.S.C. 78f(b)(5). 34 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
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Document Created: 2018-02-02 15:04:21
Document Modified: 2018-02-02 15:04:21
| 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 | 81 FR 10935 |
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