81 FR 4682 - Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.24, Retail Price Improvement Program, To Extend the Pilot Period

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 17 (January 27, 2016)

Page Range		4682-4684
FR Document		2016-01664
Federal Register, Volume 81 Issue 17 (Wednesday, January 27, 2016)
[Federal Register Volume 81, Number 17 (Wednesday, January 27, 2016)]
[Notices]
[Pages 4682-4684]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-01664]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76965; File No. SR-BYX-2016-01]


Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 
11.24, Retail Price Improvement Program, To Extend the Pilot Period

January 22, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on January 12, 2016, BATS Y-Exchange, Inc. (the ``Exchange'' or 
``BYX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange filed a proposal to extend the pilot period for the 
Exchange's Retail Price Improvement (``RPI'') Program (the 
``Program''), which is currently set to expire on January 31, 2016, for 
6 months, to expire on July 31, 2016.
    The text of the proposed rule change is available at the Exchange's 
Web site at www.batstrading.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant parts of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    In November 2012, the Commission approved the RPI Program on a 
pilot basis.\3\ The Program is designed to attract retail order flow to 
the Exchange, and allows such order flow to receive potential price 
improvement. The Program is currently limited to trades occurring at 
prices equal to or greater than $1.00 per share. Under the Program, all 
Exchange Users \4\ are permitted to provide potential price improvement 
for Retail Orders \5\ in the form of non-displayed interest that is 
better than the national best bid that is a Protected Quotation 
(``Protected NBB'') or the national best offer that is a Protected 
Quotation (``Protected NBO'', and together with the Protected NBB, the 
``Protected NBBO'').\6\
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    \3\ See Securities Exchange Act Release No. 68303 (November 27, 
2012), 77 FR 71652 (December 3, 2012) (``RPI Approval Order'') (SR-
BYX-2012-019).
    \4\ A ``User'' is defined in BYX Rule 1.5(cc) as any member or 
sponsored participant of the Exchange who is authorized to obtain 
access to the System.
    \5\ A ``Retail Order'' is defined in Rule 11.24(a)(2) as an 
agency order that originates from a natural person and is submitted 
to the Exchange by a RMO, provided that no change is made to the 
terms of the order with respect to price or side of market and the 
order does not originate from a trading algorithm or any 
computerized methodology. See Rule 11.24(a)(2).
    \6\ The term Protected Quotation is defined in BYX Rule 1.5(t) 
and has the same meaning as is set forth in Regulation NMS Rule 
600(b)(58). The terms Protected NBB and Protected NBO are defined in 
BYX Rule 1.5(s). The Protected NBB is the best-priced protected bid 
and the Protected NBO is the best-priced protected offer. Generally, 
the Protected NBB and Protected NBO and the national best bid 
(``NBB'') and national best offer (``NBO'', together with the NBB, 
the ``NBBO'') will be the same. However, a market center is not 
required to route to the NBB or NBO if that market center is subject 
to an exception under Regulation NMS Rule 611(b)(1) or if such NBB 
or NBO is otherwise not available for an automatic execution. In 
such case, the Protected NBB or Protected NBO would be the best-
priced protected bid or offer to which a market center must route 
interest pursuant to Regulation NMS Rule 611.
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    The Program was approved by the Commission on a pilot basis running 
one-year from the date of implementation.\7\ The Commission approved 
the Program on November 27, 2012.\8\ The Exchange implemented the 
Program on January 11, 2013, and has extended the pilot period two 
times.\9\ The pilot period for the Program is scheduled to end on 
January 31, 2016.
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    \7\ See RPI Approval Order, supra note 3 at 71652.
    \8\ Id.
    \9\ See Securities Exchange Act Release Nos. 71249 (January 7, 
2014), 79 FR 2229 (January 13, 2014) (SR-BYX-2014-001) (Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change to 
Extend the Pilot Period for the Retail Price Improvement Program); 
74111 (January 22, 2015), 80 FR 4598 (January 28, 2015) (SR-BYX-
2015-05) (Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change to Extend the Pilot Period for BATS Y-Exchange, Inc.'s 
Retail Price Improvement (``RPI'') Program for 12 Months, To Expire 
on January 31, 2016).
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Proposal to Extend the Operation of the Program
    The Exchange established the RPI Program in an attempt to attract 
retail order flow to the Exchange by potentially providing price 
improvement to such order flow. The Exchange believes that the Program 
promotes competition for retail order flow by allowing Exchange members 
to submit Retail Price Improvement Orders (``RPI Orders'') \10\ to 
interact with Retail Orders. Such competition has the ability to 
promote efficiency by facilitating the price discovery process and 
generating

[[Page 4683]]

additional investor interest in trading securities, thereby promoting 
capital formation. The Exchange believes that extending the pilot is 
appropriate because it will allow the Exchange and the Commission 
additional time to gather and analyze data regarding the Program that 
the Exchange has committed to provide.\11\ As such, the Exchange 
believes that it is appropriate to extend the current operation of the 
Program.\12\ Through this filing, the Exchange seeks to extend the 
current pilot period of the Program until July 31, 2016.
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    \10\ A ``Retail Price Improvement Order'' is defined in Rule 
11.24(a)(3) as an order that consists of non-displayed interest on 
the Exchange that is priced better than the Protected NBB or 
Protected NBO by at least $0.001 and that is identified as such. See 
Rule 11.24(a)(3).
    \11\ See RPI Approval Order, supra note 3 at 71655.
    \12\ Concurrently with this filing, the Exchange has submitted a 
request for an extension of the exemption under Regulation NMS Rule 
612 previously granted by the Commission that permits it to accept 
and rank the RPI orders in sub-penny increments. See Letter from 
Anders Franzon, SVP, Associate General Counsel, BATS Y-Exchange, 
Inc. to Brent J. Fields, Secretary, Securities and Exchange 
Commission dated January 12, 2016.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with the 
requirements of the Act and the rules and regulations thereunder that 
are applicable to a national securities exchange, and, in particular, 
with the requirements of Section 6(b) of the Act.\13\ In particular, 
the Exchange believes the proposed change furthers the objectives of 
Section 6(b)(5) of the Act,\14\ in that 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 facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system. The Exchange believes that 
extending the pilot period for the RPI Program is consistent with these 
principles because the Program is reasonably designed to attract retail 
order flow to the exchange environment, while helping to ensure that 
retail investors benefit from the better price that liquidity providers 
are willing to give their orders. Additionally, as previously stated, 
the competition promoted by the Program may facilitate the price 
discovery process and potentially generate additional investor interest 
in trading securities. The extension of the pilot period will allow the 
Commission and the Exchange to continue to monitor the Program for its 
potential effects on public price discovery, and on the broader market 
structure.
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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change 
extends an established pilot program for 6 months, thus allowing the 
RPI Program to enhance competition for retail order flow and contribute 
to the public price discovery process.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any written comments from Members or other interested parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A) of the Act \15\ and Rule 19b-4(f)(6) \16\ thereunder. 
Because the foregoing proposed rule 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 if consistent with the protection of investors 
and the public interest, provided that the self-regulatory organization 
has given 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,\17\ the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \18\ and Rule 19b-4(f)(6) 
thereunder.\19\
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    \15\ 15 U.S.C. 78s(b)(3(A).
    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ The Exchange has fulfilled this requirement.
    \18\ 15 U.S.C. 78s(b)(3)(A).
    \19\ 17 CFR 240.19b-4(f)(6).
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    Under Rule 19b-4(f)(6) of the Act,\20\ a proposal does not become 
operative for 30 days after the date of its filing, or such shorter 
time as the Commission may designate if consistent with the protection 
of investors and the public interest. The Exchange has requested that 
the Commission waive the 30-day operative delay period after which a 
proposed rule change under Rule 19b-4(f)(6) becomes operative so that 
the proposal may become operative immediately upon filing. The 
Commission believes that waiver of the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because such waiver would allow the pilot program to continue 
uninterrupted. Accordingly, the Commission hereby grants the Exchange's 
request and designates the proposal operative upon filing.\21\
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    \20\ Id.
    \21\ For purposes only of waiving the operative delay, the 
Commission has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule change 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 Comments

     Use 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-BYX-2016-01 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-BYX-2016-01. 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

[[Page 4684]]

communications relating to the proposed rule change between the 
Commission and any person, other than those that may be withheld from 
the public in accordance with the provisions of 5 U.S.C. 552, will be 
available for Web site viewing and printing in the Commission's Public 
Reference Room, 100 F Street NE., Washington, DC 20549 on official 
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of 
such filing also will be available for inspection and copying at the 
principal 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-BYX-2016-01, and should be submitted on or before 
February 17, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-01664 Filed 1-26-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 17 / Wednesday, January 27, 2016 / Notices 4683

additional investor interest in trading B. Self-Regulatory Organization’s 4(f)(6) becomes operative so that the
securities, thereby promoting capital Statement on Burden on Competition proposal may become operative
formation. The Exchange believes that The Exchange does not believe that immediately upon filing. The
extending the pilot is appropriate the proposed rule change will impose Commission believes that waiver of the
because it will allow the Exchange and any burden on competition that is not 30-day operative delay is consistent
the Commission additional time to necessary or appropriate in furtherance with the protection of investors and the
gather and analyze data regarding the of the purposes of the Act. The public interest because such waiver
Program that the Exchange has proposed rule change extends an would allow the pilot program to
committed to provide.11 As such, the established pilot program for 6 months, continue uninterrupted. Accordingly,
Exchange believes that it is appropriate thus allowing the RPI Program to the Commission hereby grants the
to extend the current operation of the enhance competition for retail order Exchange’s request and designates the
Program.12 Through this filing, the flow and contribute to the public price proposal operative upon filing.21
Exchange seeks to extend the current discovery process. At any time within 60 days of the
pilot period of the Program until July filing of such proposed rule change, the
31, 2016. C. Self-Regulatory Organization’s Commission summarily may
Statement on Comments on the temporarily suspend such rule change if
2. Statutory Basis Proposed Rule Change Received From it appears to the Commission that such
The Exchange believes that its Members, Participants, or Others action is necessary or appropriate in the
proposal is consistent with the The Exchange has not solicited, and public interest, for the protection of
requirements of the Act and the rules does not intend to solicit, comments on investors, or otherwise in furtherance of
and regulations thereunder that are this proposed rule change. The the purposes of the Act. If the
applicable to a national securities Exchange has not received any written Commission takes such action, the
exchange, and, in particular, with the comments from Members or other Commission shall institute proceedings
requirements of Section 6(b) of the interested parties. to determine whether the proposed rule
Act.13 In particular, the Exchange change should be approved or
III. Date of Effectiveness of the
believes the proposed change furthers disapproved.
Proposed Rule Change and Timing for
the objectives of Section 6(b)(5) of the
Commission Action IV. Solicitation of Comments
Act,14 in that it is designed to prevent
fraudulent and manipulative acts and The Exchange has filed the proposed Interested persons are invited to
practices, to promote just and equitable rule change pursuant to Section submit written data, views, and
principles of trade, to foster cooperation 19(b)(3)(A) of the Act 15 and Rule 19b– arguments concerning the foregoing,
and coordination with persons engaged 4(f)(6) 16 thereunder. Because the including whether the proposed rule
in facilitating transactions in securities, foregoing proposed rule does not: (i) change is consistent with the Act.
and to remove impediments to and Significantly affect the protection of Comments may be submitted by any of
perfect the mechanism of a free and investors or the public interest; (ii) the following methods:
open market and a national market impose any significant burden on
competition; and (iii) become operative Electronic Comments
system. The Exchange believes that
extending the pilot period for the RPI for 30 days from the date on which it • Use the Commission’s Internet
Program is consistent with these was filed, or such shorter time as the comment form (http://www.sec.gov/
principles because the Program is Commission may designate if consistent rules/sro.shtml); or
reasonably designed to attract retail with the protection of investors and the • Send an email to rule-comments@
order flow to the exchange environment, public interest, provided that the self- sec.gov. Please include File Number SR–
while helping to ensure that retail regulatory organization has given the BYX–2016–01 on the subject line.
investors benefit from the better price Commission written notice of its intent
Paper Comments
that liquidity providers are willing to to file the proposed rule change at least
give their orders. Additionally, as five business days prior to the date of • Send paper comments in triplicate
previously stated, the competition filing of the proposed rule change or to Secretary, Securities and Exchange
promoted by the Program may facilitate such shorter time as designated by the Commission, 100 F Street NE.,
the price discovery process and Commission,17 the proposed rule Washington, DC 20549–1090.
potentially generate additional investor change has become effective pursuant to All submissions should refer to File
interest in trading securities. The Section 19(b)(3)(A) of the Act 18 and Number SR–BYX–2016–01. This file
extension of the pilot period will allow Rule 19b–4(f)(6) thereunder.19 number should be included on the
the Commission and the Exchange to Under Rule 19b–4(f)(6) of the Act,20 a subject line if email is used. To help the
continue to monitor the Program for its proposal does not become operative for Commission process and review your
potential effects on public price 30 days after the date of its filing, or comments more efficiently, please use
discovery, and on the broader market such shorter time as the Commission only one method. The Commission will
structure. may designate if consistent with the post all comments on the Commission’s
protection of investors and the public Internet Web site (http://www.sec.gov/
11 See RPI Approval Order, supra note 3 at 71655. interest. The Exchange has requested rules/sro.shtml). Copies of the
12 Concurrently with this filing, the Exchange has that the Commission waive the 30-day submission, all subsequent
asabaliauskas on DSK5VPTVN1PROD with NOTICES

submitted a request for an extension of the operative delay period after which a amendments, all written statements
exemption under Regulation NMS Rule 612 proposed rule change under Rule 19b– with respect to the proposed rule
previously granted by the Commission that permits
it to accept and rank the RPI orders in sub-penny change that are filed with the
15 15 U.S.C. 78s(b)(3(A).
increments. See Letter from Anders Franzon, SVP, Commission, and all written
16 17 CFR 240.19b–4(f)(6).
Associate General Counsel, BATS Y-Exchange, Inc.
17 The Exchange has fulfilled this requirement.
to Brent J. Fields, Secretary, Securities and 21 For purposes only of waiving the operative
Exchange Commission dated January 12, 2016. 18 15 U.S.C. 78s(b)(3)(A).
delay, the Commission has considered the proposed
13 15 U.S.C. 78f(b). 19 17 CFR 240.19b–4(f)(6).
rule’s impact on efficiency, competition, and capital
14 15 U.S.C. 78f(b)(5). 20 Id. formation. See 15 U.S.C. 78c(f).

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4684 Federal Register / Vol. 81, No. 17 / Wednesday, January 27, 2016 / Notices

communications relating to the Processing’’ to adopt a Limit Order at a percentage level above and below
proposed rule change between the Protection or ‘‘LOP’’ and a Market Order the average transaction price of the
Commission and any person, other than Protection for members accessing the security over the immediately preceding
those that may be withheld from the Nasdaq Market Center. five-minute period, and are calculated
public in accordance with the The text of the proposed rule change on a continuous basis during regular
provisions of 5 U.S.C. 552, will be is available on the Exchange’s Web site trading hours.5 Rule 4120, entitled
available for Web site viewing and at http://nasdaq.cchwallstreet.com, at ‘‘Limit Up-Limit Down Plan and
printing in the Commission’s Public the principal office of the Exchange, and Trading Halts,’’ describes this process
Reference Room, 100 F Street NE., at the Commission’s Public Reference for the Nasdaq Market Center.
Washington, DC 20549 on official Room. The Exchange proposes to adopt two
business days between the hours of new features, LOP for Limit Orders and
II. Self-Regulatory Organization’s
10:00 a.m. and 3:00 p.m. Copies of such Market Order Protection for Market
Statement of the Purpose of, and
filing also will be available for Orders, which would cancel these
Statutory Basis for, the Proposed Rule
inspection and copying at the principal Orders back to the member when the
Change
office of the Exchange. All comments order exceeds certain defined logic.
received will be posted without change; In its filing with the Commission, the These two new features would be in
the Commission does not edit personal Exchange included statements addition to the LULD protections, which
identifying information from concerning the purpose of and basis for exist today.6 Each mechanism is
submissions. You should submit only the proposed rule change and discussed explained further below.
information that you wish to make any comments it received on the
proposed rule change. The text of these LOP
available publicly. All submissions
should refer to File Number SR–BYX– statements may be examined at the The Exchange proposes to adopt a
2016–01, and should be submitted on or places specified in Item IV below. The new LOP feature on the Nasdaq Market
before February 17, 2016. Exchange has prepared summaries, set Center to prevent certain Limit Orders at
forth in sections A, B, and C below, of prices outside of pre-set standard limits
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
the most significant aspects of such (‘‘LOP Limit Table’’) from being
authority.22 statements. accepted by the System. LOP shall
Brent J. Fields, A. Self-Regulatory Organization’s apply to all Quotes and Orders,7
Secretary. Statement of the Purpose of, and including any modified Orders.8 LOP
Statutory Basis for, the Proposed Rule would not apply to Market Orders. LOP
[FR Doc. 2016–01664 Filed 1–26–16; 8:45 am]
Change would be operational each trading day,
BILLING CODE 8011–01–P
except during opening and closing
1. Purpose crosses, initial public offerings and
SECURITIES AND EXCHANGE The Exchange proposes to adopt two trading halts.9 Since Nasdaq Rules
COMMISSION new mechanisms to protect against provided controls for the opening,
erroneous orders which are entered into closing and initial public offering
[Release No. 34–76956; File No. SR– the Nasdaq Market Center. Specifically, processes within the Rulebook, the
NASDAQ–2016–005] proposed protections are rendered
these features address risks to market
participants of human error in entering ineffective for those processes.10
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of Orders at unintended prices. LOP and
5 If the National Best Offer (‘‘NBO’’) equals the
Filing of Proposed Rule Change To the Market Order Protection would
lower price band without crossing the NBBO, or
Adopt a Limit Order Protection and a prevent certain Orders from executing National Best Bid (‘‘NBB’’) equals the upper price
Market Order Protection or being placed on the Order Book at band without crossing the NBBO, then the stock
prices outside pre-set standard limits. will enter a limit state quotation period of 15
January 21, 2016. The System would not accept such seconds during which no new reference prices or
price bands will be calculated. A stock will exit the
Pursuant to Section 19(b)(1) of the Orders, rather than executing them limit state when the entire size of all quotations are
Securities Exchange Act of 1934 (the automatically. The proposed LOP and executed or cancelled. If the limit state exists and
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Market Order Protection features are trading continues to occur at the price band, or no
notice is hereby given that on January similar to risk features which exist trading occurs within the price band, for more than
15 seconds, then a five minute trading pause will
12, 2016, The Nasdaq Stock Market LLC today on the NASDAQ Options Market be enacted.
(‘‘Nasdaq’’ or the ‘‘Exchange’’) filed with LLC (‘‘NOM’’) 3 and are available for 6 While LULD bands are in place from 9:30 to
the Securities and Exchange Options Participants. 4:00 p.m. E.T. each trading day, these new
Commission (the ‘‘Commission’’) the protections will be in place for each trading session.
proposed rule change as described in Background 7 An Intermarket Sweep or ISO Order, which is

Today, the National Market System an Order that is immediately executable within the
Items I and II below, which Items have Nasdaq Market Center against Orders against which
been prepared by the Exchange. The Plan to Address Extraordinary Market they are marketable, is subject to LOP. See
Commission is publishing this notice to Volatility (the ‘‘Plan’’) 4 provides a limit NASDAQ Rule 4702.
solicit comments on the proposed rule up-limit down (‘‘LULD’’) mechanism 8 If an Order is modified, LOP will review the

change from interested persons. designed to prevent trades in NMS order anew and, if LOP is triggered, such
modification will not take effect and the original
securities from occurring outside of
I. Self-Regulatory Organization’s order will not be accepted.
asabaliauskas on DSK5VPTVN1PROD with NOTICES

specified price bands. The bands are set 9 LOP has the ability to suspend by symbol or
Statement of the Terms of Substance of
system wide. The Exchange would notify market
the Proposed Rule Change 3 See NOM Rules at Chapter VI, Section 6(c) and participants of any suspension that may be in place
The Exchange proposes to amend Section 18. via an alert.
4 See Securities Exchange Act Release No. 67091 10 The Nasdaq Rulebook provides specific rules
Nasdaq’s Rule 4757, entitled ‘‘Book
(May 31, 2012), 77 FR 33498 (June 6, 2012) (File for certain auction mechanisms, such as the
No. 4–631) (Order Approving, on a Pilot Basis, the opening, closing and initial public offering process.
22 17 CFR 200.30–3(a)(12). National Market System Plan To Address The mechanisms contain their own protections
1 15 U.S.C. 78s(b)(1). Extraordinary Market Volatility). See also Rule 608 with respect to the entry of Orders within those
2 17 CFR 240.19b–4. of Regulation NMS under the Act. mechanisms. The addition of the proposed

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Document Created: 2018-02-02 12:39:43
Document Modified: 2018-02-02 12:39:43
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 4682