81 FR 50028 - Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to NSX Rule 11.25(a), Stating it Will Utilize IEX Market Data From the CQS/UQDF for Purposes of Order Handling, Routing, and Related Compliance Processes

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 146 (July 29, 2016)

Page Range		50028-50029
FR Document		2016-17906
Federal Register, Volume 81 Issue 146 (Friday, July 29, 2016)
[Federal Register Volume 81, Number 146 (Friday, July 29, 2016)]
[Notices]
[Pages 50028-50029]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17906]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78403; File No. SR-NSX-2016-06]


Self-Regulatory Organizations; National Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
to NSX Rule 11.25(a), Stating it Will Utilize IEX Market Data From the 
CQS/UQDF for Purposes of Order Handling, Routing, and Related 
Compliance Processes

July 25, 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 July 18, 2016, National Stock Exchange, Inc. (``NSX'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change, as described in 
Items I and II below, which Items have been prepared by the Exchange. 
The Exchange has designated this proposal as a ``non-controversial'' 
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and 
Rule 19b-4(f)(6)(iii)'' \4\ thereunder, which renders it effective upon 
filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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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 update Exchange Rule 11.25 
regarding the public disclosure of the sources of data that the 
Exchange utilizes when performing: (i) Order handling; (ii) order 
routing; and (iii) related compliance processes to reflect the 
operation of the Investors Exchange LLC (``IEX'') as a registered 
national securities exchange \5\ beginning on August 19, 2016.\6\
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    \5\ See Securities Exchange Act Release No. 78101 (June 17, 
2016), 81 FR 41141 (June 23, 2016) (``IEX Approval Order'').
    \6\ See Letter dated June 17, 2016 from Brad Katsuyama, CEO, 
IEX, to IEX's Sell-Side and Buy-Side Partners (https://www.iextrading.com/) (stating that IEX will commence a symbol-by-
symbol roll-out on August 19, 2016, concluding on September 2, 
2016).
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    The text of the proposed rule change is available at the Exchange's 
Web site at www.nsx.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
    On June 17, 2016, the Commission approved IEX's application to 
register as a national securities exchange.\7\ As part of its 
transition to exchange status, IEX has announced that it will commence 
a phased symbol-by-symbol roll-out on August 19, 2016, concluding on 
September 2, 2016.\8\ The Exchange, therefore, proposes to update Rule 
11.25(a) regarding the public disclosure of the sources of data that 
the Exchange utilizes when performing: (i) Order handling; (ii) order 
routing; and (iii) related compliance processes to reflect the 
operation of IEX as a registered national securities exchange beginning 
on August 19, 2016. Specifically, the Exchange proposes to amend Rule 
11.25(a) to include IEX by stating it will utilize IEX market data from 
the CQS/UQDF for purposes of order handling, routing, and related 
compliance processes.
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    \7\ See supra note 5.
    \8\ See supra note 6.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \9\ in general, and furthers the

[[Page 50029]]

objectives of Section 6(b)(5) of the Act \10\ in particular, in that it 
is designed to promote just and equitable principles of trade, to 
foster cooperation and coordination with persons engaged in 
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.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that its proposal to update Exchange Rule 
11.25(a) to include IEX will ensure that the rule correctly identifies 
and publicly states on a market-by-market basis the specific network 
processor 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. The proposed rule 
change also 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. To the contrary, 
the Exchange believes the proposal would enhance competition because 
including all of 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

    The Exchange has neither solicited nor received comments on the 
proposed rule change.

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

    Because the foregoing proposed rule change does not:
    A. Significantly affect the protection of investors or the public 
interest;
    B. impose any significant burden on competition; and
    C. 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) \11\ of the 
Exchange Act and Rule 19b-4(f)(6) thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 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.
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    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 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-NSX-2016-06 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-NSX-2016-06. 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 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-NSX-2016-06, and should be 
submitted on or before August 19, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-17906 Filed 7-28-16; 8:45 am]
 BILLING CODE 8011-01-P
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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Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Notices 50029

objectives of Section 6(b)(5) of the Act 10 it has become effective pursuant to provisions of 5 U.S.C. 552, will be
in particular, in that it is designed to Section 19(b)(3)(A) 11 of the Exchange available for Web site viewing and
promote just and equitable principles of Act and Rule 19b–4(f)(6) thereunder.12 printing in the Commission’s Public
trade, to foster cooperation and At any time within 60 days of the Reference Room, 100 F Street NE.,
coordination with persons engaged in filing of the proposed rule change, the Washington, DC 20549 on official
facilitating transactions in securities, to Commission summarily may business days between the hours of
remove impediments to and perfect the temporarily suspend such rule change if 10:00 a.m. and 3:00 p.m. Copies of such
mechanism of a free and open market it appears to the Commission that such filing also will be available for
and a national market system and, in action is: (i) Necessary or appropriate in inspection and copying at the principal
general, to protect investors and the the public interest; (ii) for the protection office of the Exchange. All comments
public interest. of investors; or (iii) otherwise in received will be posted without change;
The Exchange believes that its furtherance of the purposes of the Act. the Commission does not edit personal
proposal to update Exchange Rule If the Commission takes such action, the identifying information from
11.25(a) to include IEX will ensure that Commission shall institute proceedings submissions. You should submit only
the rule correctly identifies and publicly to determine whether the proposed rule information that you wish to make
states on a market-by-market basis the should be approved or disapproved. available publicly. All submissions
specific network processor data feeds IV. Solicitation of Comments should refer to File Number SR–NSX–
that the Exchange utilizes for the 2016–06, and should be submitted on or
Interested persons are invited to before August 19, 2016.
handling, routing, and execution of submit written data, views, and
orders, and for performing the arguments concerning the foregoing, For the Commission, by the Division of
regulatory compliance checks related to including whether the proposed rule Trading and Markets, pursuant to delegated
each of those functions. The proposed authority.13
change is consistent with the Act.
rule change also removes impediments Comments may be submitted by any of Robert W. Errett,
to and perfects the mechanism of a free the following methods: Deputy Secretary.
and open market and protects investors [FR Doc. 2016–17906 Filed 7–28–16; 8:45 am]
and the public interest because it Electronic Comments
BILLING CODE 8011–01–P
provides additional specificity, clarity • Use the Commission’s Internet
and transparency. comment form (http://www.sec.gov/
B. Self-Regulatory Organization’s rules/sro.shtml); or SECURITIES AND EXCHANGE
• Send an email to rule- COMMISSION
Statement on Burden on Competition
comments@sec.gov. Please include File
The Exchange does not believe that Number SR–NSX–2016–06 on the [Release No. 34–78406; File No. SR–
the proposed rule change will result in subject line. NASDAQ–2016–100]
any burden on competition that is not Paper Comments
necessary or appropriate in furtherance Self-Regulatory Organizations; The
of the purposes of the Act. To the • Send paper comments in triplicate NASDAQ Stock Market LLC; Notice of
contrary, the Exchange believes the to Secretary, Securities and Exchange Filing and Immediate Effectiveness of
proposal would enhance competition Commission, 100 F Street NE., Proposed Rule Change To Modify
because including all of the exchanges Washington, DC 20549–1090. NASDAQ Options Market LLC Pricing
enhances transparency and enables All submissions should refer to File at Chapter XV
investors to better assess the quality of Number SR–NSX–2016–06. This file
number should be included on the July 25, 2016
the Exchange’s execution and routing
services. subject line if email is used. To help the Pursuant to Section 19(b)(1) of the
Commission process and review your Securities Exchange Act of 1934
C. Self-Regulatory Organization’s comments more efficiently, please use (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Statement on Comments on the only one method. The Commission will notice is hereby given that, on July 12,
Proposed Rule Change Received From post all comments on the Commission’s 2016, The NASDAQ Stock Market LLC
Members, Participants, or Others Internet Web site (http://www.sec.gov/ (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
The Exchange has neither solicited rules/sro.shtml). Copies of the Securities and Exchange Commission
nor received comments on the proposed submission, all subsequent (‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change. amendments, all written statements rule change as described in Items I, II,
with respect to the proposed rule and III below, which Items have been
III. Date of Effectiveness of the change that are filed with the prepared by the Exchange. The
Proposed Rule Change and Timing for Commission, and all written Commission is publishing this notice to
Commission Action communications relating to the solicit comments on the proposed rule
proposed rule change between the change from interested persons.
Because the foregoing proposed rule
Commission and any person, other than
change does not: I. Self-Regulatory Organization’s
those that may be withheld from the
A. Significantly affect the protection public in accordance with the Statement of the Terms of Substance of
of investors or the public interest; the Proposed Rule Change
B. impose any significant burden on 11 15
U.S.C. 78s(b)(3)(A).
The Exchange proposes to modify the
ebenthall on DSK5MVXVN1PROD with NOTICES

competition; and 12 17
CFR 240.19b–4(f)(6). In addition, Rule 19b–
NASDAQ Options Market LLC’s
4(f)(6) requires a self-regulatory organization to give
C. become operative for 30 days from the Commission written notice of its intent to file (‘‘NOM’’) pricing at Chapter XV,
the date on which it was filed, or such the proposed rule change, along with a brief Sections 2(1) and 2(6) to: (i) Amend
shorter time as the Commission may description and the text of the proposed rule
designate, change, at least five business days prior to the date
13 17 CFR 200.30–3(a)(12).
of filing of the proposed rule change, or such
1 15 U.S.C. 78s(b)(1).
shorter time as designated by the Commission. The
10 15 U.S.C. 78f(b)(5). Exchange has satisfied this requirement. 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 21:05 Jul 29, 2016 Jkt 238001 PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 E:\FR\FM\29JYN1.SGM 29JYN1
Document Created: 2018-02-08 07:51:45
Document Modified: 2018-02-08 07:51:45
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 50028