81 FR 50041 - Self-Regulatory Organizations; NASDAQ BX, Inc.; 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)

Page Range		50041-50042
FR Document		2016-17908
Federal Register, Volume 81 Issue 146 (Friday, July 29, 2016)
[Federal Register Volume 81, Number 146 (Friday, July 29, 2016)]
[Notices]
[Pages 50041-50042]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17908]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78405; File No. SR-BX-2016-04]


Self-Regulatory Organizations; NASDAQ BX, Inc.; 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 BX, Inc. (``BX'' 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 4759 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.
* * * * *

4759. Data Feeds Utilized

    The BX 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 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.
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://nasdaqbx.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 4759 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 
Sections [sic] 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).

---------------------------------------------------------------------------

[[Page 50042]]

    The Exchange believes that its proposal to update the table in 
Exchange Rule 4759 to include IEX will ensure that Exchange Rule 4759 
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 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-BX-2016-044 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-2016-044. 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-2016-044, 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. 2016-17908 Filed 7-28-16; 8:45 am]
 BILLING CODE 8011-01-P
50042 Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Notices

The Exchange believes that its Act 7 normally does not become Commission, 100 F Street NE.,
proposal to update the table in operative for 30 days after the date of its Washington, DC 20549–1090.
Exchange Rule 4759 to include IEX will filing. However, Rule 19b–4(f)(6)(iii) 8 All submissions should refer to File
ensure that Exchange Rule 4759 permits the Commission to designate a Number SR–BX–2016–044. This file
correctly identifies and publicly states shorter time if such action is consistent number should be included on the
on a market-by-market basis all of the with the protection of investors and the subject line if email is used. To help the
specific network processor and public interest. The Exchange has asked Commission process and review your
proprietary data feeds that the Exchange the Commission to waive the 30-day comments more efficiently, please use
utilizes for the handling, routing, and operative delay so that the proposal may only one method. The Commission will
execution of orders, and for performing become operative immediately upon post all comments on the Commission’s
the regulatory compliance checks filing. The Exchange states that waiver Internet Web site (http://www.sec.gov/
related to each of those functions. Also, of the 30-day operative delay would rules/sro.shtml). Copies of the
the proposed rule change removes permit the Exchange to immediately submission, all subsequent
impediments to and perfects the enhance transparency and to amendments, all written statements
mechanism of a free and open market accommodate the projected date that with respect to the proposed rule
and protects investors and the public IEX will activate its status as an change that are filed with the
interest because it provides additional operating participant for quotation and Commission, and all written
specificity, clarity and transparency. trading of Nasdaq-listed securities under communications relating to the
the UTP Plan. Based on the foregoing, proposed rule change between the
B. Self-Regulatory Organization’s
the Commission believes the waiver of Commission and any person, other than
Statement on Burden on Competition
the operative delay is consistent with those that may be withheld from the
The Exchange does not believe that the protection of investors and the public in accordance with the
the proposed rule change will result in public interest. Therefore, the provisions of 5 U.S.C. 552, will be
any burden on competition that is not Commission hereby waives the available for Web site viewing and
necessary or appropriate in furtherance operative delay and designates the printing in the Commission’s Public
of the purposes of the Act, as amended. proposal operative upon filing.9 Reference Room, 100 F Street NE.,
To the contrary, the Exchange believes At any time within 60 days of the Washington, DC 20549, on official
the proposal would enhance filing of the proposed rule change, the business days between the hours of
competition because including all of the Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the
exchanges and the correct information temporarily suspend such rule change if filing also will be available for
for the exchanges enhances it appears to the Commission that such inspection and copying at the principal
transparency and enables investors to action is: (i) Necessary or appropriate in office of the Exchange. All comments
better assess the quality of the the public interest; (ii) for the protection received will be posted without change;
Exchange’s execution and routing of investors; or (iii) otherwise in the Commission does not edit personal
services. furtherance of the purposes of the Act. identifying information from
C. Self-Regulatory Organization’s If the Commission takes such action, the submissions. You should submit only
Statement on Comments on the Commission shall institute proceedings information that you wish to make
Proposed Rule Change Received From to determine whether the proposed rule available publicly. All submissions
Members, Participants, or Others should be approved or disapproved. should refer to File Number SR–BX–
IV. Solicitation of Comments 2016–044, and should be submitted on
No written comments were either or before August 19, 2016.
solicited or received. Interested persons are invited to For the Commission, by the Division of
III. Date of Effectiveness of the submit written data, views, and Trading and Markets, pursuant to delegated
Proposed Rule Change and Timing for arguments concerning the foregoing, authority.10
Commission Action including whether the proposed rule Robert W. Errett,
change is consistent with the Act. Deputy Secretary.
Because the foregoing proposed rule Comments may be submitted by any of
change does not: (i) Significantly affect [FR Doc. 2016–17908 Filed 7–28–16; 8:45 am]
the following methods:
the protection of investors or the public BILLING CODE 8011–01–P
interest; (ii) impose any significant Electronic Comments
burden on competition; and (iii) become • Use the Commission’s Internet
operative for 30 days from the date on comment form (http://www.sec.gov/ SMALL BUSINESS ADMINISTRATION
which it was filed, or such shorter time rules/sro.shtml); or [Disaster Declaration #14779 and #14780]
as the Commission may designate, it has • Send an email to rule-
become effective pursuant to Section comments@sec.gov. Please include File Virginia Disaster #VA–00064
19(b)(3)(A) 5 of the Act and Rule 19b– Number SR–BX–2016–044 on the
4(f)(6) thereunder.6 AGENCY: U.S. Small Business
subject line. Administration.
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the Paper Comments ACTION: Notice.
• Send paper comments in triplicate SUMMARY: This is a notice of an
5 15 U.S.C. 78s(b)(3)(A). to Secretary, Securities and Exchange
ebenthall on DSK5MVXVN1PROD with NOTICES

6 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
Administrative declaration of a disaster
4(f)(6) requires a self-regulatory organization to give for the State of Virginia dated 07/22/
the Commission written notice of its intent to file 17 CFR 240.19b–4(f)(6).
7
2016.
the proposed rule change, along with a brief 17 CFR 240.19b–4(f)(6)(iii).
8
Incident: Severe storms and flooding.
description and the text of the proposed rule 9 For purposes only of waiving the 30-day
Incident Period: 06/23/2016.
change, at least five business days prior to the date operative delay, the Commission has also
of filing of the proposed rule change, or such considered the proposed rule’s impact on Effective Date: 07/22/2016.
shorter time as designated by the Commission. The efficiency, competition, and capital formation. See
Exchange has satisfied this requirement. 15 U.S.C. 78c(f). 10 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 21:05 Jul 29, 2016 Jkt 238001 PO 00000 Frm 00121 Fmt 4703 Sfmt 4703 E:\FR\FM\29JYN1.SGM 29JYN1
Document Created: 2018-02-08 07:51:42
Document Modified: 2018-02-08 07:51:42
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 50041