81 FR 18911 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the Maximum Number of Times an Order on Nasdaq May Be Updated Before The System Cancels The Order
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 63 (April 1, 2016)
Federal Register Volume 81, Issue 63 (April 1, 2016)
| Page Range | 18911-18913 | |
| FR Document | 2016-07331 |
[Federal Register Volume 81, Number 63 (Friday, April 1, 2016)] [Notices] [Pages 18911-18913] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-07331] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77454; File No. SR-NASDAQ-2016-039] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the Maximum Number of Times an Order on Nasdaq May Be Updated Before The System Cancels The Order March 28, 2016. 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 March 16, 2016, The NASDAQ Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by Nasdaq. 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 Nasdaq proposes to proposal [sic] to modify the maximum number of times an Order on Nasdaq may be updated before the System cancels the Order. The text of the proposed rule change is available on Nasdaq's Web site at http://nasdaq.cchwallstreet.com, at the principal office of Nasdaq, 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, Nasdaq 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. Nasdaq has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. [[Page 18912]] A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Background Nasdaq will cancel an Order if it is updated a certain number of times during any given day. Pursuant to Rule 4702(a), an Order will be cancelled if it is repriced and/or reentered 10,000 times for any reason.\3\ --------------------------------------------------------------------------- \3\ Orders entered through OUCH and FLITE ports generally are not repriced or reentered. As explained in rule 4702(b)(1)(B), orders entered through OUCH and FLITE may be updated for display once. Further, OUCH and FLITE Orders may only be decremented in size, which is not considered repricing or reentry of the Order. See http://www.nasdaqtrader.com/Trader.aspx?id=TradingSpecs for a description of the various order entry port specifications. --------------------------------------------------------------------------- Pursuant to Rule 4702(b)(7)(A), a Market Maker Peg Order will be canceled if it is repriced 1,000 times. Pursuant to Rule 4703(d), an Order with Primary Pegging will be cancelled if it is updated 1,000 times, and an Order with Market Pegging will be cancelled if it is updated 10,000 times. Nasdaq applies these limits to conserve System resources by limiting the persistence of Orders that update repeatedly without execution. These limits are applied daily to each order entered into the System. Orders that have a Time-in-Force \4\ that allows them to persist longer than a single trading day will have their count reset each day. For example, if an Order with a Time-in-Force of Good-till- Canceled \5\ is repriced 9,999 times during any given day, the Order will not be canceled due to the number of updates. Starting the next day, the Order would be again allowed to reprice up to 9,999 times before it would be canceled by the System. --------------------------------------------------------------------------- \4\ The ``Time-in-Force'' assigned to an Order means the period of time that the Nasdaq Market Center will hold the Order for potential execution. See Rule 4703(a). \5\ An Order that is designated to deactivate one year after entry may be referred to as a ``Good-till-Cancelled.'' See Rule 4703(a)(3). --------------------------------------------------------------------------- Proposed Changes First, Nasdaq is proposing to eliminate rule text under Rules 4702(a), 4702(b)(7)(A), and 4703(d) concerning cancellation based on Order updates and consolidate the concept under a new Rule 4756(a)(4). Second, Nasdaq is proposing to no longer state the specific number of times a particular Order Type may be updated before it is canceled in the new rule and is, instead, noting that the number of permissible changes may vary by Order Type or Order Attribute and may change from time to time. Further, the proposed rule will note that Nasdaq will post on its Web site what is considered a change for a particular Order Type and Order Attribute, and the current limits on the number of such changes. Nasdaq is changing the process by which it counts updates, which will allow it to identify a wider range of updates to an Order. Using the new process, Nasdaq will be able to track the following Order updates: (1) System-generated child orders; (2) display size refreshes from reserve; (3) replaces of System-generated child Orders (which include Orders with a Pegging Attribute); and (4) cancellation requests of System-generated child Orders. Nasdaq notes that all updates identified by the current process will be counted under the new process. Nasdaq believes these changes will provide it with greater flexibility in addressing changes in volume, market participant behavior, and Nasdaq's capacity to handle the message volume caused by Orders that update a significant number of times throughout the trading day. Nasdaq will provide at least one day's advanced notice to the public of any changes to the number of updates permitted before an Order is canceled. Initially, Nasdaq will keep the number of updates consistent with what is currently noted in the rules; however, Nasdaq may shortly thereafter change the number of updates as needed to address market conditions. Nasdaq is also making two minor technical corrections to Rule 4703(d) to remove an erroneous quote from the rule text. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,\6\ in general, and with Section 6(b)(5) of the Act,\7\ in particular, because it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest; and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f. \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Excessive updating of Orders places a burden on Nasdaq's System, which, if left unchecked, could potentially affect overall market quality. Nasdaq will continue canceling Orders that reach a certain number of updates but, instead of the static number of updates stated in the rules, Nasdaq is proposing to provide the number of updates by Order type or Order Attribute on its public Web site. Web site posting will allow Nasdaq to react more quickly to changes in the marketplace by changing the applicable number of updates that will trigger cancellation of an Order. Nasdaq will provide advanced notice to market participants of any changes to the number of updates applied. Thus, the proposed rule change will further promote the protection investors [sic] and the public interest. B. Self-Regulatory Organization's Statement on Burden on Competition Nasdaq does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended.\8\ Nasdaq is proposing to make the change because it will allow it to better manage market quality for all market participants, who would be negatively impacted by issues caused by Orders that tax System resources due to the excessive number of updates. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- These adjustments will not impact competition among market participants because the cancellation parameters will apply equally to all market participants. As is the case now, market participants that have an Order canceled due to the number of updates may enter a new replacement Order. Thus, Nasdaq does not think that the proposed change will place a burden on competition not necessary or appropriate in furtherance of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section [[Page 18913]] 19(b)(3)(A)(iii) of the Act \9\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\10\ --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(a)(iii) [sic]. \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change 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. --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. 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-NASDAQ-2016-039 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NASDAQ-2016-039. 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 the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NASDAQ-2016-039 and should be submitted on or before April 22, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-07331 Filed 3-31-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 63 / Friday, April 1, 2016 / Notices 18911
A proposed rule change filed Electronic Comments SECURITIES AND EXCHANGE
pursuant to Rule 19b–4(f)(6) under the COMMISSION
Act normally does not become operative • Use the Commission’s Internet
for 30 days after the date of its filing. comment form (http://www.sec.gov/
[Release No. 34–77454; File No. SR–
However, Rule 19b–4(f)(6)(iii) permits rules/sro.shtml); or
NASDAQ–2016–039]
the Commission to designate a shorter • Send an email to rule-comments@
time if such action is consistent with the sec.gov. Please include File Number SR– Self-Regulatory Organizations; The
protection of investors and the public BX–2016–018 on the subject line. NASDAQ Stock Market LLC; Notice of
interest. The Exchange has asked the Filing and Immediate Effectiveness of
Commission to waive the 30-day Paper Comments
Proposed Rule Change To Modify the
operative delay so that the proposal may
• Send paper comments in triplicate Maximum Number of Times an Order
become operative immediately upon on Nasdaq May Be Updated Before The
to Brent J. Fields, Secretary, Securities
filing. Waiver of the 30-day operative
and Exchange Commission, 100 F Street System Cancels The Order
delay would help facilitate the
harmonization of information barrier NE., Washington, DC 20549–1090.
March 28, 2016.
rules across options exchanges. The All submissions should refer to File
Exchange represents that Exchange rules Pursuant to Section 19(b)(1) of the
Number SR–BX–2016–018. This file Securities Exchange Act of 1934
still require a Market Maker to evaluate number should be included on the
its business to assure that its policies (‘‘Act’’),1 and Rule 19b–4 thereunder,2
subject line if email is used. To help the notice is hereby given that on March 16,
and procedures are reasonably designed Commission process and review your
to protect against the misuse of material 2016, The NASDAQ Stock Market LLC
comments more efficiently, please use (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
nonpublic information. Further, the only one method. The Commission will
Exchange represents that the proposed Securities and Exchange Commission
post all comments on the Commission’s (‘‘Commission’’) the proposed rule
rule change will not decrease the
Internet Web site (http://www.sec.gov/ change as described in Items I, II, and
protections against the misuse of
rules/sro.shtml). III, below, which Items have been
material, non-public information;
instead, it is designed to provide more Copies of the submission, all prepared by Nasdaq. The Commission is
flexibility to market participants. Based subsequent amendments, all written publishing this notice to solicit
on the foregoing, the Commission statements with respect to the proposed comments on the proposed rule change
believes the waiver of the operative rule change that are filed with the from interested persons.
delay is consistent with the protection Commission, and all written
of investors and the public interest.21 communications relating to the I. Self-Regulatory Organization’s
The Commission hereby grants the proposed rule change between the Statement of the Terms of Substance of
waiver and designates the proposal Commission and any person, other than the Proposed Rule Change
operative upon filing. those that may be withheld from the Nasdaq proposes to proposal [sic] to
At any time within 60 days of the public in accordance with the modify the maximum number of times
filing of the proposed rule change, the provisions of 5 U.S.C. 552, will be an Order on Nasdaq may be updated
Commission summarily may available for Web site viewing and before the System cancels the Order.
temporarily suspend such rule change if printing in the Commission’s Public
it appears to the Commission that such Reference Room, 100 F Street NE., The text of the proposed rule change
action is necessary or appropriate in the Washington, DC 20549, on official is available on Nasdaq’s Web site at
public interest, for the protection of business days between the hours of http://nasdaq.cchwallstreet.com, at the
investors, or otherwise in furtherance of 10:00 a.m. and 3:00 p.m. Copies of the principal office of Nasdaq, and at the
the purposes of the Act. If the filing also will be available for Commission’s Public Reference Room.
Commission takes such action, the inspection and copying at the principal II. Self-Regulatory Organization’s
Commission shall institute proceedings office of the Exchange. All comments
to determine whether the proposed rule Statement of the Purpose of, and
received will be posted without change; Statutory Basis for, the Proposed Rule
should be approved or disapproved.
the Commission does not edit personal Change
IV. Solicitation of Comments identifying information from
submissions. You should submit only In its filing with the Commission,
Interested persons are invited to Nasdaq included statements concerning
submit written data, views, and information that you wish to make
available publicly. the purpose of and basis for the
arguments concerning the foregoing, proposed rule change and discussed any
including whether the proposed rule All submissions should refer to File
comments it received on the proposed
change is consistent with the Act. Number SR–BX–2016–018 and should
rule change. The text of these statements
Comments may be submitted by any of be submitted on or before April 22,
the following methods: may be examined at the places specified
2016.
in Item IV below. Nasdaq has prepared
For the Commission, by the Division of summaries, set forth in sections A, B,
the Exchange’s intent to file the proposed rule Trading and Markets, pursuant to delegated
change, along with a brief description and text of and C below, of the most significant
asabaliauskas on DSK3SPTVN1PROD with NOTICES
the proposed rule change, at least five business days authority.22 aspects of such statements.
prior to the date of filing of the proposed rule Robert W. Errett,
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this Deputy Secretary.
requirement. [FR Doc. 2016–07336 Filed 3–31–16; 8:45 am]
21 For purposes only of waiving the 30-day
BILLING CODE 8011–01–P
operative delay, the Commission has also
considered the proposed rule’s impact on
1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 22 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
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![18912 Federal Register / Vol. 81, No. 63 / Friday, April 1, 2016 / Notices
A. Self-Regulatory Organization’s from time to time. Further, the proposed left unchecked, could potentially affect
Statement of the Purpose of, and rule will note that Nasdaq will post on overall market quality. Nasdaq will
Statutory Basis for, the Proposed Rule its Web site what is considered a change continue canceling Orders that reach a
Change for a particular Order Type and Order certain number of updates but, instead
Attribute, and the current limits on the of the static number of updates stated in
1. Purpose
number of such changes. the rules, Nasdaq is proposing to
Background Nasdaq is changing the process by provide the number of updates by Order
Nasdaq will cancel an Order if it is which it counts updates, which will type or Order Attribute on its public
updated a certain number of times allow it to identify a wider range of Web site. Web site posting will allow
during any given day. Pursuant to Rule updates to an Order. Using the new Nasdaq to react more quickly to changes
4702(a), an Order will be cancelled if it process, Nasdaq will be able to track the in the marketplace by changing the
is repriced and/or reentered 10,000 following Order updates: (1) System- applicable number of updates that will
times for any reason.3 generated child orders; (2) display size trigger cancellation of an Order. Nasdaq
Pursuant to Rule 4702(b)(7)(A), a refreshes from reserve; (3) replaces of will provide advanced notice to market
Market Maker Peg Order will be System-generated child Orders (which participants of any changes to the
canceled if it is repriced 1,000 times. include Orders with a Pegging number of updates applied. Thus, the
Pursuant to Rule 4703(d), an Order with Attribute); and (4) cancellation requests proposed rule change will further
Primary Pegging will be cancelled if it of System-generated child Orders. promote the protection investors [sic]
is updated 1,000 times, and an Order Nasdaq notes that all updates identified and the public interest.
with Market Pegging will be cancelled if by the current process will be counted
under the new process. Nasdaq believes B. Self-Regulatory Organization’s
it is updated 10,000 times.
Nasdaq applies these limits to these changes will provide it with Statement on Burden on Competition
conserve System resources by limiting greater flexibility in addressing changes Nasdaq does not believe that the
the persistence of Orders that update in volume, market participant behavior, proposed rule change will result in any
repeatedly without execution. These and Nasdaq’s capacity to handle the burden on competition that is not
limits are applied daily to each order message volume caused by Orders that necessary or appropriate in furtherance
entered into the System. Orders that update a significant number of times of the purposes of the Act, as amended.8
have a Time-in-Force 4 that allows them throughout the trading day. Nasdaq is proposing to make the change
to persist longer than a single trading Nasdaq will provide at least one day’s because it will allow it to better manage
day will have their count reset each day. advanced notice to the public of any market quality for all market
For example, if an Order with a Time- changes to the number of updates participants, who would be negatively
in-Force of Good-till-Canceled 5 is permitted before an Order is canceled. impacted by issues caused by Orders
repriced 9,999 times during any given Initially, Nasdaq will keep the number that tax System resources due to the
day, the Order will not be canceled due of updates consistent with what is excessive number of updates.
to the number of updates. Starting the currently noted in the rules; however, These adjustments will not impact
next day, the Order would be again Nasdaq may shortly thereafter change competition among market participants
allowed to reprice up to 9,999 times the number of updates as needed to because the cancellation parameters will
before it would be canceled by the address market conditions. apply equally to all market participants.
System. Nasdaq is also making two minor
As is the case now, market participants
technical corrections to Rule 4703(d) to
Proposed Changes that have an Order canceled due to the
remove an erroneous quote from the
First, Nasdaq is proposing to number of updates may enter a new
rule text.
eliminate rule text under Rules 4702(a), replacement Order. Thus, Nasdaq does
4702(b)(7)(A), and 4703(d) concerning 2. Statutory Basis not think that the proposed change will
cancellation based on Order updates Nasdaq believes that the proposed place a burden on competition not
and consolidate the concept under a rule change is consistent with the necessary or appropriate in furtherance
new Rule 4756(a)(4). provisions of Section 6 of the Act,6 in of the Act.
Second, Nasdaq is proposing to no general, and with Section 6(b)(5) of the C. Self-Regulatory Organization’s
longer state the specific number of times Act,7 in particular, because it is Statement on Comments on the
a particular Order Type may be updated designed to prevent fraudulent and Proposed Rule Change Received From
before it is canceled in the new rule and manipulative acts and practices, to Members, Participants, or Others
is, instead, noting that the number of promote just and equitable principles of
permissible changes may vary by Order trade, to foster cooperation and No written comments were either
Type or Order Attribute and may change coordination with persons engaged in solicited or received.
regulating, clearing, settling, processing III. Date of Effectiveness of the
3 Orders entered through OUCH and FLITE ports information with respect to, and Proposed Rule Change and Timing for
generally are not repriced or reentered. As
explained in rule 4702(b)(1)(B), orders entered
facilitating transactions in securities, to Commission Action
through OUCH and FLITE may be updated for remove impediments to and perfect the
display once. Further, OUCH and FLITE Orders mechanism of a free and open market Because the foregoing proposed rule
may only be decremented in size, which is not and a national market system, and, in change does not: (i) Significantly affect
considered repricing or reentry of the Order. See the protection of investors or the public
asabaliauskas on DSK3SPTVN1PROD with NOTICES
http://www.nasdaqtrader.com/
general, to protect investors and the
public interest; and is not designed to interest; (ii) impose any significant
Trader.aspx?id=TradingSpecs for a description of
the various order entry port specifications. permit unfair discrimination between burden on competition; and (iii) become
4 The ‘‘Time-in-Force’’ assigned to an Order
customers, issuers, brokers, or dealers. operative for 30 days from the date on
means the period of time that the Nasdaq Market Excessive updating of Orders places a which it was filed, or such shorter time
Center will hold the Order for potential execution. as the Commission may designate, it has
See Rule 4703(a). burden on Nasdaq’s System, which, if
5 An Order that is designated to deactivate one
become effective pursuant to Section
6 15 U.S.C. 78f.
year after entry may be referred to as a ‘‘Good-till-
Cancelled.’’ See Rule 4703(a)(3). 7 15 U.S.C. 78f(b)(5). 8 15 U.S.C. 78f(b)(8).
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![Federal Register / Vol. 81, No. 63 / Friday, April 1, 2016 / Notices 18913
19(b)(3)(A)(iii) of the Act 9 and available for Web site viewing and by the Commission by the Bats BZX
subparagraph (f)(6) of Rule 19b–4 printing in the Commission’s Public Exchange, Inc. f/k/a BATS Exchange,
thereunder.10 Reference Room, 100 F Street NE., Inc. (‘‘BZX’’) to adopt BZX Rule 11.27(b)
At any time within 60 days of the Washington, DC 20549, on official which also sets forth requirements for
filing of the proposed rule change, the business days between the hours of the collection and transmission of data
Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the pursuant to Appendices B and C of the
temporarily suspend such rule change if filing also will be available for Plan.3
it appears to the Commission that such inspection and copying at the principal
The text of the proposed rule change
action is: (i) Necessary or appropriate in office of the Exchange. All comments
is available on the Exchange’s Web site
the public interest; (ii) for the protection received will be posted without change;
at http://nasdaqomxbx.cchwall
of investors; or (iii) otherwise in the Commission does not edit personal
street.com/, at the principal office of the
furtherance of the purposes of the Act. identifying information from
Exchange, and at the Commission’s
If the Commission takes such action, the submissions. You should submit only
information that you wish to make Public Reference Room.
Commission shall institute proceedings
to determine whether the proposed rule available publicly. All submissions II. Self-Regulatory Organization’s
should be approved or disapproved. should refer to File Number SR– Statement of the Purpose of, and
NASDAQ–2016–039 and should be Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments submitted on or before April 22, 2016. Change
Interested persons are invited to For the Commission, by the Division of
submit written data, views and Trading and Markets, pursuant to delegated In its filing with the Commission, the
arguments concerning the foregoing, authority.11 Exchange included statements
including whether the proposed rule Robert W. Errett, concerning the purpose of and basis for
change is consistent with the Act. Deputy Secretary. the proposed rule change and discussed
Comments may be submitted by any of [FR Doc. 2016–07331 Filed 3–31–16; 8:45 am] any comments it received on the
the following methods: BILLING CODE 8011–01–P
proposed rule change. The text of these
statements may be examined at the
Electronic Comments
places specified in Item IV below. The
• Use the Commission’s Internet SECURITIES AND EXCHANGE Exchange has prepared summaries, set
comment form (http://www.sec.gov/ COMMISSION forth in sections A, B, and C below, of
rules/sro.shtml); or the most significant aspects of such
• Send an email to rule-comments@ [Release No. 34–77457; File No. SR–BX– statements.
sec.gov. Please include File Number SR– 2016–019]
NASDAQ–2016–039 on the subject line. A. Self-Regulatory Organization’s
Self-Regulatory Organizations; Statement of the Purpose of, and
Paper Comments NASDAQ BX, Inc.; Notice of Filing and Statutory Basis for, the Proposed Rule
Immediate Effectiveness of Proposed
• Send paper comments in triplicate Change
Rule Change To Adopt Rule 4770 To
to Secretary, Securities and Exchange 1. Purpose
Implement the Regulation NMS Plan To
Commission, 100 F Street NE.,
Implement a Tick Size Pilot Program
Washington, DC 20549–1090. On August 25, 2014, NYSE Group,
All submissions should refer to File March 28, 2016. Inc., on behalf of BATS Exchange, Inc.,
Number SR–NASDAQ–2016–039. This Pursuant to Section 19(b)(1) of the BATS Y-Exchange, Inc., Chicago Stock
file number should be included on the Securities Exchange Act of 1934 Exchange, Inc., EDGA Exchange, Inc.,
subject line if email is used. To help the (‘‘Act’’),1 and Rule 19b–4 thereunder,2 EDGX Exchange, Inc., Financial
Commission process and review your notice is hereby given that on March 23, Industry Regulatory Authority, Inc.
comments more efficiently, please use 2016, NASDAQ BX, Inc. (‘‘Exchange’’) (‘‘FINRA’’), NASDAQ BX, Inc.,
only one method. The Commission will filed with the Securities and Exchange NASDAQ PHLX LLC, the Nasdaq Stock
post all comments on the Commission’s Commission (‘‘SEC’’ or ‘‘Commission’’) Market LLC, New York Stock Exchange
Internet Web site (http://www.sec.gov/ the proposed rule change as described LLC (‘‘NYSE’’), NYSE MKT LLC, and
rules/sro.shtml). Copies of the in Items I and II below, which Items NYSE Arca, Inc. (collectively
submission, all subsequent have been prepared by the Exchange. ‘‘Participants’’), filed with the
amendments, all written statements The Commission is publishing this Commission, pursuant to Section 11A of
with respect to the proposed rule notice to solicit comments on the the Act 4 and Rule 608 of Regulation
change that are filed with the proposed rule change from interested NMS thereunder,5 the Plan to
Commission, and all written persons. Implement a Tick Size Pilot Program
communications relating to the I. Self-Regulatory Organization’s (‘‘Pilot’’).6
proposed rule change between the Statement of the Terms of Substance of The Participants filed the Plan to
Commission and any person, other than the Proposed Rule Change comply with an order issued by the
those that may be withheld from the
public in accordance with the The Exchange proposes to a proposal
3 See Securities Exchange Act Release No. 77105
provisions of 5 U.S.C. 552, will be to adopt Exchange Rule 4770 to (February 10, 2016), 81 FR 8112 (February 17, 2016)
asabaliauskas on DSK3SPTVN1PROD with NOTICES
implement the Regulation NMS Plan to (order approving SR–BATS–2015–102); see also
9 15 U.S.C. 78s(b)(3)(a)(iii) [sic]. Implement a Tick Size Pilot Program. Securities Exchange Act Release No. 77310 (March
10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– The proposed rule change is 7, 2016), 81 FR 13012 (March 11, 2016) (notice for
comment and immediate effectiveness of SR–
4(f)(6) requires a self-regulatory organization to give substantially similar to proposed rule BATS–2016–27).
the Commission written notice of its intent to file changes recently approved or published 4 15 U.S.C. 78k–1.
the proposed rule change at least five business days
5 17 CFR 242.608.
prior to the date of filing of the proposed rule
11 17 CFR 200.30–3(a)(12).
change, or such shorter time as designated by the 6 See Letter from Brendon J. Weiss, Vice
1 15 U.S.C. 78s(b)(1).
Commission. The Exchange has satisfied this President, Intercontinental Exchange, Inc., to
requirement. 2 17 CFR 240.19b–4. Secretary, Commission, dated August 25, 2014.
VerDate Sep<11>2014 17:25 Mar 31, 2016 Jkt 238001 PO 00000 Frm 00091 Fmt 4703 Sfmt 4703 E:\FR\FM\01APN1.SGM 01APN1](https://thefederalregister.org/doc/81_FR_18974/page/3.svg)
Document Created: 2016-04-06 00:08:03
Document Modified: 2016-04-06 00:08:03
| 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 | |
| Dates | (1) System-generated child orders; (2) display size refreshes from reserve; (3) replaces of System-generated child Orders (which include Orders with a Pegging Attribute); and (4) cancellation requests of System-generated child Orders. Nasdaq notes that all updates identified by the current process will be counted under the new process. Nasdaq believes these changes will provide it with greater | |
| FR Citation | 81 FR 18911 |
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