81 FR 50026 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Update Public Disclosure of Exchange Usage of Market Data
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 146 (July 29, 2016)
Federal Register Volume 81, Issue 146 (July 29, 2016)
| Page Range | 50026-50028 | |
| FR Document | 2016-17911 |
[Federal Register Volume 81, Number 146 (Friday, July 29, 2016)] [Notices] [Pages 50026-50028] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-17911] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78408; File No. SR-Phlx-2016-76] Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Update Public Disclosure of Exchange Usage of Market Data July 25, 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 July 12, 2016, NASDAQ PHLX LLC (``Phlx'' or ``Exchange'') 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. --------------------------------------------------------------------------- \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 The Exchange proposes to update Exchange Rule 3304 and to amend the public disclosure of the sources of data that the Exchange utilizes when performing (1) order handling and execution; (2) order routing; and (3) related compliance processes. The text of the proposed rule change is below. Proposed new language is italicized. * * * * * Rule 3304. Data Feeds Utilized The PSX System utilizes the below proprietary and network processor feeds for the handling, routing, and execution of orders, as well as for the regulatory compliance processes related to those functions. The Secondary Source of data is, where applicable, utilized only in emergency market conditions and only until those emergency conditions are resolved. ------------------------------------------------------------------------ Market center Primary source Secondary source ------------------------------------------------------------------------ A--NYSE MKT (AMEX)............. NYSE MKT OpenBook CQS/UQDF. Ultra. B--NASDAQ OMX BX............... BX ITCH 5.0....... CQS/UQDF. C--NSX......................... CQS/UQDF.......... n/a. D--FINRA ADF................... CQS/UQDF.......... n/a. J--DirectEdge A................ BATS PITCH........ CQS/UQDF. K--DirectEdge X................ BATS PITCH........ CQS/UQDF. M--CHX......................... CHX Book Feed..... CQS/UQDF. N--NYSE........................ NYSE OpenBook CQS/UQDF. Ultra. P--NYSE Arca................... NYSE ARCA XDP..... CQS/UQDF. T/Q--NASDAQ.................... ITCH 5.0.......... CQS/UQDF. V--IEX......................... CQS/UQDF.......... n/a. [[Page 50027]] X--NASDAQ OMX PSX.............. PSX ITCH 5.0...... CQS/UQDF. Y--BATS Y-Exchange............. BATS PITCH........ CQS/UQDF. Z--BATS Exchange............... BATS PITCH........ CQS/UQDF. ------------------------------------------------------------------------ * * * * * The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqphlx.cchwallstreet.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 aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to update and amend the table in Exchange Rule 3304 that sets forth on a market-by-market basis the specific network processor and proprietary data feeds that the Exchange utilizes for the handling, routing, and execution of orders, and for performing the regulatory compliance checks related to each of those functions. Specifically, the table will be amended to include Investors' Exchange LLC (``IEX''), which has informed the UTP Securities Information Processor (``UTP SIP'') that it is projecting to activate its status as an operating participant for quotation and trading of Nasdaq-listed securities under the Unlisted Trading Privileges (``UTP'') Plan on or about August 1, 2016. The primary source will be CQS/UQDF and there is no secondary source provided. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of section 6 of the Act,\3\ in general and with section 6(b)(5) of the Act,\4\ in particular 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 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. --------------------------------------------------------------------------- \3\ 15 U.S.C. 78f. \4\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that its proposal to update the table in Exchange Rule 3304 to include IEX will ensure that Exchange Rule 3304 correctly identifies and publicly states on a market-by-market basis all of the specific network processor and proprietary data feeds that the Exchange utilizes for the handling, routing, and execution of orders, and for performing the regulatory compliance checks related to each of those functions. Also, the proposed rule change removes impediments to and perfects the mechanism of a free and open market and protects investors and the public interest because it provides additional specificity, clarity and transparency. 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. To the contrary, the Exchange believes the proposal would enhance competition because including all of the exchanges and the correct information for the exchanges enhances transparency and enables investors to better assess the quality of the Exchange's execution and routing services. 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 19(b)(3)(A) \5\ of the Act and Rule 19b- 4(f)(6) thereunder.\6\ --------------------------------------------------------------------------- \5\ 15 U.S.C. 78s(b)(3)(A). \6\ 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, along with a brief description and the text of 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. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \7\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \8\ 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 the proposal may become operative immediately upon filing. The Exchange states that waiver of the 30-day operative delay would permit the Exchange to immediately enhance transparency and to accommodate the projected date that IEX will activate its status as an operating participant for quotation and trading of Nasdaq-listed securities under the UTP Plan. Based on the foregoing, the Commission believes the waiver of the operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.\9\ --------------------------------------------------------------------------- \7\ 17 CFR 240.19b-4(f)(6). \8\ 17 CFR 240.19b-4(f)(6)(iii). \9\ 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 [[Page 50028]] 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-Phlx-2016-76 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-Phlx-2016-76. 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-Phlx-2016-76, and should be submitted on or before August 19, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-17911 Filed 7-28-16; 8:45 am] BILLING CODE 8011-01-P
![50026 Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Notices
Commission hereby waives the with respect to the proposed rule (‘‘Act’’),1 and Rule 19b–4 thereunder,2
operative delay and designates the change that are filed with the notice is hereby given that on July 12,
proposal operative upon filing.9 Commission, and all written 2016, NASDAQ PHLX LLC (‘‘Phlx’’ or
At any time within 60 days of the communications relating to the ‘‘Exchange’’) filed with the Securities
filing of the proposed rule change, the proposed rule change between the and Exchange Commission
Commission summarily may Commission and any person, other than (‘‘Commission’’) the proposed rule
temporarily suspend such rule change if those that may be withheld from the change as described in Items I and II
it appears to the Commission that such public in accordance with the below, which Items have been prepared
action is: (i) Necessary or appropriate in provisions of 5 U.S.C. 552, will be by the Exchange. The Commission is
the public interest; (ii) for the protection available for Web site viewing and publishing this notice to solicit
of investors; or (iii) otherwise in printing in the Commission’s Public
furtherance of the purposes of the Act. comments on the proposed rule change
Reference Room, 100 F Street NE., from interested persons.
If the Commission takes such action, the Washington, DC 20549, on official
Commission shall institute proceedings business days between the hours of I. Self-Regulatory Organization’s
to determine whether the proposed rule 10:00 a.m. and 3:00 p.m. Copies of the Statement of the Terms of Substance of
should be approved or disapproved. filing also will be available for the Proposed Rule Change
IV. Solicitation of Comments inspection and copying at the principal
office of the Exchange. All comments The Exchange proposes to update
Interested persons are invited to received will be posted without change; Exchange Rule 3304 and to amend the
submit written data, views, and the Commission does not edit personal public disclosure of the sources of data
arguments concerning the foregoing, identifying information from that the Exchange utilizes when
including whether the proposed rule submissions. You should submit only performing (1) order handling and
change is consistent with the Act.
information that you wish to make execution; (2) order routing; and (3)
Comments may be submitted by any of
available publicly. All submissions related compliance processes.
the following methods:
should refer to File Number SR– The text of the proposed rule change
Electronic Comments NASDAQ–2016–099, and should be is below. Proposed new language is
• Use the Commission’s Internet submitted on or before August 19, 2016.
italicized.
comment form (http://www.sec.gov/ For the Commission, by the Division of
* * * * *
rules/sro.shtml); or Trading and Markets, pursuant to delegated
• Send an email to rule- authority.10 Rule 3304. Data Feeds Utilized
comments@sec.gov. Please include File Robert W. Errett,
Number SR–NASDAQ–2016–099 on the Deputy Secretary. The PSX System utilizes the below
subject line. [FR Doc. 2016–17907 Filed 7–28–16; 8:45 am] proprietary and network processor feeds
for the handling, routing, and execution
Paper Comments BILLING CODE 8011–01–P
of orders, as well as for the regulatory
• Send paper comments in triplicate compliance processes related to those
to Secretary, Securities and Exchange SECURITIES AND EXCHANGE functions. The Secondary Source of data
Commission, 100 F Street NE., COMMISSION is, where applicable, utilized only in
Washington, DC 20549–1090. emergency market conditions and only
All submissions should refer to File [Release No. 34–78408; File No. SR–Phlx–
2016–76] until those emergency conditions are
Number SR–NASDAQ–2016–099. This resolved.
file number should be included on the Self-Regulatory Organizations;
subject line if email is used. To help the NASDAQ PHLX LLC; Notice of Filing
Commission process and review your and Immediate Effectiveness of
comments more efficiently, please use Proposed Rule Change To Update
only one method. The Commission will Public Disclosure of Exchange Usage
post all comments on the Commission’s of Market Data
Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the July 25, 2016.
submission, all subsequent Pursuant to section 19(b)(1) of the
amendments, all written statements Securities Exchange Act of 1934
Secondary
Market center Primary source source
A—NYSE MKT (AMEX) .............................................................. NYSE MKT OpenBook Ultra ...................................................... CQS/UQDF.
B—NASDAQ OMX BX ................................................................ BX ITCH 5.0 ............................................................................... CQS/UQDF.
C—NSX ....................................................................................... CQS/UQDF ................................................................................. n/a.
D—FINRA ADF ........................................................................... CQS/UQDF ................................................................................. n/a.
J—DirectEdge A .......................................................................... BATS PITCH .............................................................................. CQS/UQDF.
K—DirectEdge X ......................................................................... BATS PITCH .............................................................................. CQS/UQDF.
M—CHX ...................................................................................... CHX Book Feed ......................................................................... CQS/UQDF.
ebenthall on DSK5MVXVN1PROD with NOTICES
N—NYSE .................................................................................... NYSE OpenBook Ultra ............................................................... CQS/UQDF.
P—NYSE Arca ............................................................................ NYSE ARCA XDP ...................................................................... CQS/UQDF.
T/Q—NASDAQ ............................................................................ ITCH 5.0 ..................................................................................... CQS/UQDF.
V—IEX ......................................................................................... CQS/UQDF ................................................................................. n/a.
9 For purposes only of waiving the 30-day efficiency, competition, and capital formation. See 1 15 U.S.C. 78s(b)(1).
operative delay, the Commission has also 15 U.S.C. 78c(f). 2 17 CFR 240.19b–4.
considered the proposed rule’s impact on 10 17 CFR 200.30–3(a)(12).
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![50028 Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Notices
temporarily suspend such rule change if available publicly. All submissions registered national securities exchange 5
it appears to the Commission that such should refer to File Number SR–Phlx– beginning on August 19, 2016.6
action is: (i) Necessary or appropriate in 2016–76, and should be submitted on or The text of the proposed rule change
the public interest; (ii) for the protection before August 19, 2016. is available at the Exchange’s Web site
of investors; or (iii) otherwise in For the Commission, by the Division of
at www.nsx.com, at the principal office
furtherance of the purposes of the Act. Trading and Markets, pursuant to delegated of the Exchange, and at the
If the Commission takes such action, the authority.10 Commission’s Public Reference Room.
Commission shall institute proceedings Robert W. Errett, II. Self-Regulatory Organization’s
to determine whether the proposed rule Deputy Secretary. Statement of the Purpose of, and
should be approved or disapproved. Statutory Basis for, the Proposed Rule
[FR Doc. 2016–17911 Filed 7–28–16; 8:45 am]
IV. Solicitation of Comments BILLING CODE 8011–01–P Change
Interested persons are invited to In its filing with the Commission, the
submit written data, views, and Exchange included statements
arguments concerning the foregoing, SECURITIES AND EXCHANGE concerning the purpose of and basis for
including whether the proposed rule COMMISSION the proposed rule change and discussed
change is consistent with the Act. any comments it received on the
Comments may be submitted by any of [Release No. 34–78403; File No. SR–NSX– proposed rule change. The text of these
the following methods: 2016–06] statements may be examined at the
places specified in Item IV below. The
Electronic Comments Self-Regulatory Organizations; Exchange has prepared summaries, set
• Use the Commission’s Internet National Stock Exchange, Inc.; Notice forth in Sections A, B, and C below, of
comment form (http://www.sec.gov/ of Filing and Immediate Effectiveness the most significant parts of such
rules/sro.shtml); or of a Proposed Rule Change to NSX statements.
• Send an email to rule- Rule 11.25(a), Stating it Will Utilize IEX
comments@sec.gov. Please include File Market Data From the CQS/UQDF for A. Self-Regulatory Organization’s
Number SR–Phlx–2016–76 on the Purposes of Order Handling, Routing, Statement of the Purpose of, and
subject line. and Related Compliance Processes Statutory Basis for, the Proposed Rule
Change
Paper Comments July 25, 2016.
1. Purpose
• Send paper comments in triplicate Pursuant to Section 19(b)(1) of the
to Secretary, Securities and Exchange On June 17, 2016, the Commission
Securities Exchange Act of 1934 (the
Commission, 100 F Street NE., approved IEX’s application to register as
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
Washington, DC 20549–1090. a national securities exchange.7 As part
notice is hereby given that on July 18,
of its transition to exchange status, IEX
All submissions should refer to File 2016, National Stock Exchange, Inc.
has announced that it will commence a
Number SR–Phlx–2016–76. This file (‘‘NSX’’ or the ‘‘Exchange’’) filed with phased symbol-by-symbol roll-out on
number should be included on the the Securities and Exchange August 19, 2016, concluding on
subject line if email is used. To help the Commission (‘‘SEC’’ or ‘‘Commission’’) September 2, 2016.8 The Exchange,
Commission process and review your the proposed rule change, as described therefore, proposes to update Rule
comments more efficiently, please use in Items I and II below, which Items 11.25(a) regarding the public disclosure
only one method. The Commission will have been prepared by the Exchange. of the sources of data that the Exchange
post all comments on the Commission’s The Exchange has designated this utilizes when performing: (i) Order
Internet Web site (http://www.sec.gov/ proposal as a ‘‘non-controversial’’ handling; (ii) order routing; and (iii)
rules/sro.shtml). Copies of the proposed rule change pursuant to related compliance processes to reflect
submission, all subsequent Section 19(b)(3)(A) of the Act 3 and Rule the operation of IEX as a registered
amendments, all written statements 19b–4(f)(6)(iii)’’ 4 thereunder, which national securities exchange beginning
with respect to the proposed rule renders it effective upon filing with the on August 19, 2016. Specifically, the
change that are filed with the Commission. The Commission is Exchange proposes to amend Rule
Commission, and all written publishing this notice to solicit 11.25(a) to include IEX by stating it will
communications relating to the comments on the proposed rule change utilize IEX market data from the CQS/
proposed rule change between the from interested persons. UQDF for purposes of order handling,
Commission and any person, other than routing, and related compliance
those that may be withheld from the I. Self-Regulatory Organization’s
Statement of the Terms of the Substance processes.
public in accordance with the
provisions of 5 U.S.C. 552, will be of the Proposed Rule Change 2. Statutory Basis
available for Web site viewing and The Exchange filed a proposal to The Exchange believes that its
printing in the Commission’s Public update Exchange Rule 11.25 regarding proposal is consistent with Section 6(b)
Reference Room, 100 F Street NE., the public disclosure of the sources of of the Act 9 in general, and furthers the
Washington, DC 20549, on official data that the Exchange utilizes when
business days between the hours of performing: (i) Order handling; (ii) order
5 See Securities Exchange Act Release No. 78101
10:00 a.m. and 3:00 p.m. Copies of the (June 17, 2016), 81 FR 41141 (June 23, 2016) (‘‘IEX
routing; and (iii) related compliance Approval Order’’).
filing also will be available for
ebenthall on DSK5MVXVN1PROD with NOTICES
processes to reflect the operation of the 6 See Letter dated June 17, 2016 from Brad
inspection and copying at the principal Investors Exchange LLC (‘‘IEX’’) as a Katsuyama, CEO, IEX, to IEX’s Sell-Side and Buy-
office of the Exchange. All comments Side Partners (https://www.iextrading.com/) (stating
received will be posted without change; that IEX will commence a symbol-by-symbol roll-
10 17 CFR 200.30–3(a)(12). out on August 19, 2016, concluding on September
the Commission does not edit personal 1 15 U.S.C. 78s(b)(1). 2, 2016).
identifying information from 2 17 CFR 240.19b–4. 7 See supra note 5.
submissions. You should submit only 3 15 U.S.C. 78s(b)(3)(A). 8 See supra note 6.
information that you wish to make 4 17 CFR 240.19b–4(f)(6)(iii). 9 15 U.S.C. 78f(b).
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Document Created: 2018-02-08 07:51:14
Document Modified: 2018-02-08 07:51:14
| 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 50026 |
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