81 FR 45188 - Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 4120
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 133 (July 12, 2016)
Federal Register Volume 81, Issue 133 (July 12, 2016)
| Page Range | 45188-45190 | |
| FR Document | 2016-16378 |
[Federal Register Volume 81, Number 133 (Tuesday, July 12, 2016)] [Notices] [Pages 45188-45190] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-16378] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78234; File No. SR-BX-2016-033] Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 4120 July 6, 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 June 22, 2016, NASDAQ BX, Inc. (``BX'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule [[Page 45189]] change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange is proposing to amend Rule 4120 and the BX process for commencing trading of a security that is the subject of a trading halt. The text of the proposed rule change is available at http://nasdaqomxbx.cchwallstreet.com/, at the Exchange's principal office, 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 Statutory Basis for, the Proposed Rule Change 1. Purpose BX is proposing to make a minor modification to the BX process for commencing trading of a security that is the subject of a trading halt. Specifically, the Exchange is proposing to modify the way in which orders are accepted prior to the commencement of trading for securities subject to a trading halt. This change will simplify the order submission operations for market participants during trading halts.\3\ --------------------------------------------------------------------------- \3\ The proposed rule change is consistent with the recently approved filing of The NASDAQ Stock Market LLC (``Nasdaq'') as to the process for commencing trading of a security that is the subject of a trading halt. See Securities Exchange Act Release No. 77445 (March 25, 2016), 81 FR 18658 (March 31, 2016) (SR-NASDAQ-2016-008). --------------------------------------------------------------------------- Currently, BX Rule 4120(c)(4)(B) provides that during any trading halt or pause, market participants may enter orders during the trading halt or pause and designate such orders to be held until the termination of the trading halt or pause. Under this rule, such orders will be held in a suspended state until the termination of the halt or pause, at which time they will be entered into the system. The Exchange proposes that Rule 4120(c)(4)(B) be revised to simply state that orders entered during any trading halt or pause will not be accepted. The implementation of the existing functionality for accepting orders prior to the Exchange releasing the security for trading has not been widely used and the Exchange believes the proposed rule change will both improve and simplify the Exchange process for market participants. The Exchange will issue an Equity Trader Alert notifying Exchange member firms of the change prior to implementation on July 11, 2016. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,\4\ in general, and with Section 6(b)(5) of the Act,\5\ in particular, in that the proposal 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. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f. \5\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed rule change will remove impediments to and perfect the mechanism of a free and open market and a national market system through an improved and simplified Exchange process for commencing trading of a security that is the subject of a trading halt. Specifically, this will be accomplished by revising Exchange Rule 4120(c)(4)(B) to simply state that orders entered during any trading halt or pause will not be accepted. The current functionality for accepting orders prior to the Exchange releasing the security for trading is used infrequently and consequently the proposed rule change will have little impact on customers. To the extent that there is any impact, it will be that rejecting orders rather than holding them in a suspended state will clarify the state of participant orders, thereby reducing potential confusion. The implementation of the existing functionality for accepting orders prior to the Exchange releasing the security for trading has not been widely used and the Exchange believes the proposed rule change will both improve and simplify the Exchange process for market participants. The proposed rule change also will remove impediments to and perfect the mechanism of a free and open market through competition. Specifically, the proposed rule change will enhance competition by increasing the Exchange's attractiveness as a venue for trading securities because, as stated above, it will both improve and simplify the Exchange process for market participants. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange 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. The Exchange believes that the proposed rule change will result in an improved and simplified process for market participants, which in turn will reduce potential confusion during important market events. The Exchange believes that this change will enhance competition by increasing its attractiveness as a venue for trading securities. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change: (i) Does not significantly affect the protection of investors or the public interest; (ii) does not impose any significant burden on competition; and (iii) by its terms, does not 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 19(b)(3)(A) of the Act and Rule 19b4(f)(6) thereunder.\6\ --------------------------------------------------------------------------- \6\ 17 CFR 240.19b-4(f)(6). Furthermore, Rule 19b-4(f)(6)(iii) requires a self-regulatory organization to give the Commission written notice of its intent to file a 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, or such shorter time as designated by the Commission. The Exchange has provided such notice. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) normally does not become operative for 30-days from the date of filing. However, Rule 19b- [[Page 45190]] 4(f)(6)(iii) \7\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30- day operative delay so that it may implement the proposed rule change on July 11, 2016, contemporaneously with a similar Nasdaq rule that was previously approved by the Commission \8\ and a virtually identical proposed rule change submitted by NASDAQ PHLX LLC.\9\ --------------------------------------------------------------------------- \7\ 17 CFR 240.19b-4(f)(6)(iii). \8\ See supra note 3. \9\ See SR-PHLX-2016-70 submitted on June 22, 2016. --------------------------------------------------------------------------- The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. The Exchange proposes to modify the way in which orders are accepted prior to the commencement of trading for securities that are subject to a trading halt. The Exchange notes that the current functionality for accepting orders prior to the Exchange releasing the security for trading is used infrequently and therefore the proposed rule change will have little impact on its customers. Further, the Commission does not believe that the proposed rule change raises any new or novel issues. Accordingly, the Commission hereby waives the 30-day operative delay and designates the proposed rule change as operative upon filing.\10\ --------------------------------------------------------------------------- \10\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-BX-2016-033 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-BX-2016-033. 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-BX-2016-033, and should be submitted on or before August 2, 2016. --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ Brent J. Fields, Secretary. [FR Doc. 2016-16378 Filed 7-11-16; 8:45 am] BILLING CODE 8011-01-P
![45188 Federal Register / Vol. 81, No. 133 / Tuesday, July 12, 2016 / Notices
securities inadvisable, or the rule change would facilitate the listing number should be included on the
circumstances set forth in BZX Rule and trading of additional types of subject line if email is used. To help the
14.11(d)(2)(H), which sets forth Futures-Linked Securities, which will Commission process and review your
circumstances under which Linked enhance competition among market comments more efficiently, please use
Securities may be halted. participants, to the benefit of investors only one method. The Commission will
As noted above, both in the context and the marketplace and provide post all comments on the Commission’s
presented herein and throughout the investors with the ability to better Internet Web site (http://www.sec.gov/
history of VSTOXX Futures, the diversify and hedge their portfolios rules/sro.shtml). Copies of the
monthly trading volume and open using an exchange listed security submission, all subsequent
interest in VSTOXX Futures has, subject without having to trade directly in the amendments, all written statements
to natural fluctuation in the market, underlying futures contracts. The with respect to the proposed rule
continued to grow. The Exchange notes Exchange believes that this would change that are filed with the
that the monthly trading volume in the reduce the time frame for bringing Commission, and all written
VSTOXX Futures is very similar to the Futures-Linked Securities linked to the communications relating to the
trading volume of the CBOE Volatility VSTOXX Futures to market, thereby proposed rule change between the
Index® (VIX®) Futures prior to NYSE reducing the burdens on issuers and Commission and any person, other than
Arca, Inc. adding the VIX Futures to the other market participants and promoting those that may be withheld from the
definition of futures reference asset in competition. public in accordance with the
its comparable rule,15 which, as noted provisions of 5 U.S.C. 552, will be
above, the Exchange also added to its C. Self-Regulatory Organization’s available for Web site viewing and
rules related to Futures-Linked Statement on Comments on the printing in the Commission’s Public
Securities. Much like the Futures- Proposed Rule Change Received From Reference Room, 100 F Street NE.,
Linked Securities linked to the VIX Members, Participants, or Others Washington, DC 20549 on official
Futures, Futures-Linked Securities The Exchange has neither solicited business days between the hours of
linked to the VSTOXX Futures will nor received written comments on the 10:00 a.m. and 3:00 p.m. Copies of such
provide investors with the ability to proposed rule change. filing will also be available for
better diversify and hedge their inspection and copying at the principal
III. Date of Effectiveness of the offices of the Exchange. All comments
portfolios using an exchange listed Proposed Rule Change and Timing for
security without having to trade directly received will be posted without change;
Commission Action the Commission does not edit personal
in the underlying futures contracts. The
Exchange also believes that the Within 45 days of the date of identifying information from
proposed rule change would fulfill the publication of this notice in the Federal submissions. You should submit only
intended objective of Rule 19b–4(e) Register or within such longer period information that you wish to make
under the Act by allowing Futures- up to 90 days (i) as the Commission may available publicly. All submissions
Linked Securities linked to the VSTOXX designate if it finds such longer period should refer to File Number SR-
Futures that satisfy the listing standards to be appropriate and publishes its BatsBZX–2016–26, and should be
in Rule 14.11(d) to be listed and traded reasons for so finding or (ii) as to which submitted on or before August 2, 2016.
without separate Commission approval. the self-regulatory organization For the Commission, by the Division of
However, as proposed, the Exchange consents, the Commission will: (a) By Trading and Markets, pursuant to delegated
would continue to file separate order approve or disapprove such authority.16
proposed rule changes before the listing proposed rule change; or (b) institute Brent J. Fields,
and trading of Futures-Linked Securities proceedings to determine whether the Secretary.
that do not satisfy the criteria of Rule proposed rule change should be [FR Doc. 2016–16380 Filed 7–11–16; 8:45 am]
14.11(d)(2)(K)(iv). As such, the disapproved. BILLING CODE 8011–01–P
Exchange believes that the proposed IV. Solicitation of Comments
amendment to add VSTOXX Futures as
an underlying Futures Reference asset Interested persons are invited to SECURITIES AND EXCHANGE
will facilitate the listing and trading of submit written data, views, and COMMISSION
an additional Futures-Linked Security arguments concerning the foregoing,
including whether the proposed rule [Release No. 34–78234; File No. SR–BX–
that will enhance competition among 2016–033]
market participants, to the benefit of change is consistent with the Act.
investors and the marketplace. Comments may be submitted by any of Self-Regulatory Organizations;
For the above reasons, the Exchange the following methods: NASDAQ BX, Inc.; Notice of Filing and
believes that the proposed rule change Electronic Comments Immediate Effectiveness of Proposed
is consistent with the requirements of Rule Change To Amend Rule 4120
• Use the Commission’s Internet
Section 6(b)(5) of the Act.
comment form (http://www.sec.gov/ July 6, 2016.
B. Self-Regulatory Organization’s rules/sro.shtml); or Pursuant to Section 19(b)(1) of the
Statement on Burden on Competition • Send an email to rule-comments@ Securities Exchange Act of 1934
The Exchange does not believe that sec.gov. Please include File Number SR- (‘‘Act’’),1 and Rule 19b–4 thereunder,2
the proposed rule change will impose BatsBZX–2016–26 on the subject line. notice is hereby given that on June 22,
mstockstill on DSK3G9T082PROD with NOTICES
any burden on competition that is not Paper Comments 2016, NASDAQ BX, Inc. (‘‘BX’’ or
necessary or appropriate in furtherance ‘‘Exchange’’) filed with the Securities
• Send paper comments in triplicate and Exchange Commission
of the purpose of the Act. Instead, the to Secretary, Securities and Exchange
Exchange believes that the proposed (‘‘Commission’’) the proposed rule
Commission, 100 F Street NE.,
15 See Securities Exchange Act Release No. 58968
Washington, DC 20549–1090. 16 17 CFR 200.30–3(a)(12).
(November 17, 2008), 73 FR 71082 (November 24, All submissions should refer to File 1 15 U.S.C. 78s(b)(1).
2008) (NYSEArca–2008–111). Number SR-BatsBZX–2016–26. This file 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 18:30 Jul 11, 2016 Jkt 238001 PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 E:\FR\FM\12JYN1.SGM 12JYN1](https://thefederalregister.org/doc/81_FR_45321/page/1.svg)
![45190 Federal Register / Vol. 81, No. 133 / Tuesday, July 12, 2016 / Notices
4(f)(6)(iii) 7 permits the Commission to Electronic Comments SECURITIES AND EXCHANGE
designate a shorter time if such action COMMISSION
is consistent with the protection of • Use the Commission’s Internet
investors and the public interest. The comment form (http://www.sec.gov/ [Release No. 34–78233; File No. SR–NYSE–
Exchange has asked the Commission to rules/sro.shtml); or 2016–47]
waive the 30-day operative delay so that • Send an email to rule-comments@
it may implement the proposed rule sec.gov. Please include File Number SR– Self-Regulatory Organizations; New
BX–2016–033 on the subject line. York Stock Exchange LLC; Notice of
change on July 11, 2016,
Filing and Immediate Effectiveness of
contemporaneously with a similar
Paper Comments Proposed Rule Change Amending Its
Nasdaq rule that was previously Price List
approved by the Commission 8 and a • Send paper comments in triplicate
virtually identical proposed rule change to Secretary, Securities and Exchange July 6, 2016.
submitted by NASDAQ PHLX LLC.9 Commission, 100 F Street NE., Pursuant to Section 19(b)(1) 1 of the
The Commission believes that Washington, DC 20549–1090. Securities Exchange Act of 1934 (the
waiving the 30-day operative delay is ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
All submissions should refer to File notice is hereby given that, on June 27,
consistent with the protection of Number SR–BX–2016–033. This file
investors and the public interest. The 2016, New York Stock Exchange LLC
number should be included on the (‘‘NYSE’’ or the ‘‘Exchange’’) filed with
Exchange proposes to modify the way in subject line if email is used. To help the the Securities and Exchange
which orders are accepted prior to the Commission process and review your Commission (the ‘‘Commission’’) the
commencement of trading for securities comments more efficiently, please use proposed rule change as described in
that are subject to a trading halt. The only one method. The Commission will Items I, II, and III below, which Items
Exchange notes that the current post all comments on the Commission’s have been prepared by the self-
functionality for accepting orders prior Internet Web site (http://www.sec.gov/ regulatory organization. The
to the Exchange releasing the security rules/sro.shtml). Copies of the Commission is publishing this notice to
for trading is used infrequently and submission, all subsequent solicit comments on the proposed rule
therefore the proposed rule change will amendments, all written statements change from interested persons.
have little impact on its customers. with respect to the proposed rule
Further, the Commission does not I. Self-Regulatory Organization’s
change that are filed with the Statement of the Terms of Substance of
believe that the proposed rule change Commission, and all written
raises any new or novel issues. the Proposed Rule Change
communications relating to the
Accordingly, the Commission hereby proposed rule change between the The Exchange proposes to amend its
waives the 30-day operative delay and Commission and any person, other than Price List for equity transactions in
designates the proposed rule change as stocks with a per share stock price more
those that may be withheld from the
operative upon filing.10 than $1.00 to revise: (1) Certain fees for
public in accordance with the
executions at the close; and (2) the
At any time within 60 days of the provisions of 5 U.S.C. 552, will be requirements for credits related to
filing of the proposed rule change, the available for Web site viewing and executions of orders sent to Floor
Commission summarily may printing in the Commission’s Public brokers that add liquidity on the
temporarily suspend such rule change if Reference Room, 100 F Street NE., Exchange. The Exchange also proposes
it appears to the Commission that such Washington, DC 20549, on official to amend its Price List to revise its
action is necessary or appropriate in the business days between the hours of trading license fees. The Exchange
public interest, for the protection of 10:00 a.m. and 3:00 p.m. Copies of the proposes to implement these changes to
investors, or otherwise in furtherance of filing also will be available for its Price List effective July 1, 2016. The
the purposes of the Act. If the inspection and copying at the principal proposed rule change is available on the
Commission takes such action, the office of the Exchange. All comments Exchange’s Web site at www.nyse.com,
Commission shall institute proceedings received will be posted without change; at the principal office of the Exchange,
to determine whether the proposed rule the Commission does not edit personal and at the Commission’s Public
should be approved or disapproved. identifying information from Reference Room.
submissions. You should submit only II. Self-Regulatory Organization’s
IV. Solicitation of Comments
information that you wish to make Statement of the Purpose of, and
Interested persons are invited to available publicly. All submissions Statutory Basis for, the Proposed Rule
submit written data, views, and should refer to File Number SR–BX– Change
arguments concerning the foregoing, 2016–033, and should be submitted on
or before August 2, 2016. In its filing with the Commission, the
including whether the proposed rule
self-regulatory organization included
change is consistent with the Act. For the Commission, by the Division of statements concerning the purpose of,
Comments may be submitted by any of Trading and Markets, pursuant to delegated and basis for, the proposed rule change
the following methods: authority.11 and discussed any comments it received
Brent J. Fields, on the proposed rule change. The text
7 17 CFR 240.19b–4(f)(6)(iii).
mstockstill on DSK3G9T082PROD with NOTICES
Secretary. of those statements may be examined at
8 See supra note 3.
[FR Doc. 2016–16378 Filed 7–11–16; 8:45 am] the places specified in Item IV below.
9 See SR–PHLX–2016–70 submitted on June 22,
BILLING CODE 8011–01–P
The Exchange has prepared summaries,
2016.
10 For purposes only of waiving the 30-day
set forth in sections A, B, and C below,
operative delay, the Commission has also
1 15 U.S.C. 78s(b)(1).
considered the proposed rule’s impact on
2 15 U.S.C. 78a.
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 11 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.
VerDate Sep<11>2014 18:30 Jul 11, 2016 Jkt 238001 PO 00000 Frm 00070 Fmt 4703 Sfmt 4703 E:\FR\FM\12JYN1.SGM 12JYN1](https://thefederalregister.org/doc/81_FR_45321/page/3.svg)
Document Created: 2016-07-12 01:59:11
Document Modified: 2016-07-12 01:59:11
| 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 45188 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR