81 FR 80134 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .14 to Rule 3317 (Compliance With Regulation NMS Plan To Implement a Tick Size Pilot)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 220 (November 15, 2016)
Federal Register Volume 81, Issue 220 (November 15, 2016)
| Page Range | 80134-80137 | |
| FR Document | 2016-27366 |
[Federal Register Volume 81, Number 220 (Tuesday, November 15, 2016)] [Notices] [Pages 80134-80137] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-27366] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79261; File No. SR-Phlx-2016-110] Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .14 to Rule 3317 (Compliance With Regulation NMS Plan To Implement a Tick Size Pilot) November 8, 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 October 31, 2016, NASDAQ PHLX LLC (``Phlx'' or ``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 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 amend Commentary .14 to Rule 3317 (Compliance with Regulation NMS Plan to Implement a Tick Size Pilot) to provide the SEC with notice of its efforts to re-program its systems to eliminate a re-pricing functionality for certain orders in Test Group Three securities in connection with the Regulation NMS Plan to Implement a Tick Size Pilot Program (``Plan'' or ``Pilot'').\3\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 74892 (May 6, 2015), 80 FR 27513 (May 13, 2015) (``Approval Order''). --------------------------------------------------------------------------- The text of the proposed rule change is set forth below. Proposed new language is underlined; deleted text is in brackets. * * * * * NASDAQ PHLX Rules * * * * * 3317. Compliance With Regulation NMS Plan To Implement a Tick Size Pilot (a) through (d) No Change. Commentary .01-.13 No change. .14 Until [October 31, 2016] November 14, 2016, the treatment of Price to Comply Orders, Price to Display Orders, Non-Displayed Orders, and [[Page 80135]] Post-Only Orders that are entered through the OUCH or FLITE protocols in Test Group Three securities shall be as follows: Following entry, and if market conditions allow, a Price to Comply Order in a Test Group Three Pilot Security will be adjusted repeatedly in accordance with changes to the NBBO until such time as the Price to Comply Order is able to be ranked and displayed at its original entered limit price. Following entry, and if market conditions allow, a Price to Display Order in a Test Group Three Pilot Security will be adjusted repeatedly in accordance with changes to the NBBO until such time as the Price to Display Order is able to be ranked and displayed at its original entered limit price. Following entry, and if market conditions allow, a Non-Displayed Order in a Test Group Three Pilot Security will be adjusted repeatedly in accordance with changes to the NBBO up (down) to the Order's limit price. Following entry, and if market conditions allow, the Post-Only Order in a Test Group Three Pilot Security will be adjusted repeatedly in accordance with changes to the NBBO or the best price on the Exchange Book, as applicable until such time as the Post-Only Order is able to be ranked and displayed at its original entered limit price. * * * * * II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose On September 7, 2016, the Exchange filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') a proposed rule change (``Proposal'') to adopt paragraph (d) and Commentary .12 to Exchange Rule 3317 to describe changes to system functionality necessary to implement the Plan. The Exchange also proposed amendments to Rule 3317(a) and (c) to clarify how the Trade-at exception may be satisfied. The SEC published the Proposal in the Federal Register for notice and comment on September 20, 2016.\4\ Phlx subsequently filed three Partial Amendments to clarify aspects of the Proposal. The Commission approved the Proposal, as amended, on October 7, 2016.\5\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 78835 (September 14, 2016), 81 FR 64552 (September 20, 2016) (SR-Phlx-2016-92). \5\ See Securities Exchange Act Release No. 79074 (October 7, 2016) (SR-Phlx-2016-92). --------------------------------------------------------------------------- In SR-Phlx-2016-92, Phlx had initially proposed a re-pricing functionality for Price to Comply Orders, Non-Displayed Orders, and Post-Only Orders entered through the OUCH and FLITE protocols in Group Three securities.\6\ Phlx subsequently determined that it would not offer this re-pricing functionality for Price to Comply Orders, Non- Displayed Orders, and Post-Only Orders entered through the OUCH and FLITE protocols in Group Three securities. As part of Partial Amendment No. 2 to SR-Phlx-2016-92, Phlx proposed to delete the relevant language from Rule 3317 related to this re-pricing functionality. --------------------------------------------------------------------------- \6\ As originally proposed, Rule 3317(d)(2) stated that Price to Comply Orders in a Test Group Three Pilot Security will be adjusted repeatedly in accordance with changes to the NBBO until such time as the Price to Comply Order is able to be ranked and displayed at its original entered limit price. Rule 3317(d)(3) stated that, if market conditions allow, a Non-Displayed Order in a Test Group Three Pilot Security will be adjusted repeatedly in accordance with changes to the NBBO up (down) to the Order's limit price. Rule 3317(d)(4) stated that, if market conditions allow, the Post-Only Order in a Test Group Three Pilot Security will be adjusted repeatedly in accordance with changes to the NBBO or the best price on the Phlx Book, as applicable until such time as the Post-Only Order is able to be ranked and displayed at its original entered limit price. --------------------------------------------------------------------------- In that amendment, Phlx noted that this change would only impact the treatment of Price to Comply Orders, Non-Displayed Orders, and Post-Only orders that are submitted through the OUCH and FLITE protocols in Test Group Three Pilot Securities, as these types of Orders that are currently submitted to Phlx through the RASH or FIX protocols are already subject to this re-pricing functionality and will remain subject to this functionality under the Pilot. In the Amendment, Phlx further noted that its systems are currently programmed so that Price to Comply Orders, Non-Displayed Orders and Post-Only Orders entered through the OUCH and FLITE protocols in Test Group Three Securities may be adjusted repeatedly to reflect changes to the NBBO and/or the best price on the Phlx book. Phlx stated that it is re-programming its systems to remove this functionality for Price to Comply Orders, Non-Displayed Orders and Post-Only Orders entered through the OUCH and FLITE protocols in Test Group Three Securities. In the Amendment, Phlx stated that it anticipated that this re-programming shall be completed no later than November 30, 2016. If it appears that this functionality will remain operational by October 17, 2016, Phlx indicated that it would file a proposed rule change with the SEC and will provide notice to market participants sufficiently in advance of that date to provide effective notice. The rule change and the notice to market participants will describe the current operation of the Phlx systems in this regard, and the timing related to the re-programming. On October 17, 2016, Phlx filed a proposal to extend the date by which it would complete the re-programing of its systems to eliminate the re-pricing functionality in Test Group Three securities for Price to Comply Orders, Price to Display Orders, Non-Displayed Orders, and Post-Only Orders that are entered through the OUCH or FLITE protocols.\7\ In that proposal, Phlx stated that it anticipated that this re-programming shall be complete on or before October 31, 2016.\8\ --------------------------------------------------------------------------- \7\ See Securities Exchange Act Release No. 79156 (October 25, 2016) (SR-Phlx-2016-106). Subsequent to the approval of SR-Phlx- 2016-92, Phlx become aware that this re-pricing functionality also applies to Price to Display Orders that are entered through the OUCH and FLITE protocols in Test Group Three Securities, and included those Orders as part of SR-Phlx-2016-106 accordingly. Price to Display Orders will be treated in the same manner as Price to Comply Orders under the re-pricing functionality. \8\ Id. --------------------------------------------------------------------------- At this time, Phlx is still determining how to modify its systems to eliminate the current re-pricing functionality in Test Group Three securities for Price to Comply Orders, Price to Display Orders, Non- Displayed Orders, and Post-Only Orders that are entered through the OUCH or FLITE protocols. Phlx is therefore submitting this proposal to extend the date by which the current re-pricing functionality will be eliminated. Phlx anticipates that the re-programming to eliminate the current re-pricing functionality shall be completed on or before November 14, 2016. Therefore, the current treatment of Price to Comply Orders, Price to Display Orders, Non-Displayed Orders, and Post-Only Orders that are entered through the OUCH or FLITE protocols [[Page 80136]] in Test Group Three securities shall be as follows: Following entry, and if market conditions allow, a Price to Comply Order in a Test Group Three Pilot Security will be adjusted repeatedly in accordance with changes to the NBBO until such time as the Price to Comply Order is able to be ranked and displayed at its original entered limit price. Following entry, and if market conditions allow, a Price to Display Order in a Test Group Three Pilot Security will be adjusted repeatedly in accordance with changes to the NBBO until such time as the Price to Display Order is able to be ranked and displayed at its original entered limit price. Following entry, and if market conditions allow, a Non-Displayed Order in a Test Group Three Pilot Security will be adjusted repeatedly in accordance with changes to the NBBO up (down) to the Order's limit price. Following entry, and if market conditions allow, a Post-Only Order in a Test Group Three Pilot Security will be adjusted repeatedly in accordance with changes to the NBBO or the best price on the Phlx Book, as applicable until such time as the Post-Only Order is able to be ranked and displayed at its original entered limit price. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\9\ in general, and furthers the 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 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. The purpose of this filing is to inform the SEC and market participants of the status of Phlx's attempts to re-program its systems to remove the re-pricing functionality in Test Group Three securities for Price to Comply Orders, Price to Display Orders, Non-Displayed Orders, and Post-Only Orders that are entered through the OUCH or FLITE protocols, and the current treatment of such orders pending the removal of this functionality. This proposal is consistent with the Act because it provides the SEC and market participants with notice of Phlx's efforts in this regard, and is being submitted in connection with the statements made by Phlx in SR-Phlx-2016-92 and SR-Phlx-2016-106 in proposing the removal of this functionality. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Phlx also believes that the proposal is consistent with the Act because the re-pricing functionality will not significantly impact the data gathered pursuant to the Pilot. Phlx notes that this re-pricing functionality only affects Price to Comply Orders, Price to Display Orders, Non-Displayed Orders, and Post-Only Orders that are entered through the OUCH or FLITE protocols for Test Group Three securities until the re-pricing functionality is eliminated, and only becomes relevant when an Order in a Test Group Three security would cross a Protected Quotation of another market center. Phlx has analyzed data relating to the frequency with which Orders in Test Group Three securities are entered with a limit price that would cross a Protected Quotation of another market center, and believes that the re-pricing functionality will be triggered infrequently once Test Group Three becomes fully operational.\11\ The Exchange also notes that it is diligently working to eliminate the current re-pricing functionality in Test Group Three securities for Price to Comply Orders, Price to Display Orders, Non-Displayed Orders, and Post-Only Orders that are entered through the OUCH or FLITE protocols, and that it anticipates this re-programming to be complete on or before November 14, 2016. --------------------------------------------------------------------------- \11\ For example, on October 31, 2016, in the one hundred Test Group Three securities that are currently live, 0.06% of orders that were entered on the NASDAQ Stock Market LLC in those securities were entered at a price that crossed the NBBO. --------------------------------------------------------------------------- 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 not necessary or appropriate in furtherance of the purposes of the Act. The purpose of this proposal is to provide the SEC and market participants with notice of Phlx's efforts to remove its re-pricing functionality in Test Group Three securities for Price to Comply Orders, Price to Display Orders, Non- Displayed Orders, and Post-Only Orders that are entered through the OUCH or FLITE protocols, consistent with its statements in SR-Phlx- 2016-92 and SR-Phlx-2016-106. 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)(iii) of the Act \12\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\13\ --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A)(iii). \13\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) normally does not become operative prior to 30 days after the date of filing. Rule 19b-4(f)(6)(iii), however, permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange requests that the Commission waive the 30-day operative delay contained in Rule 19b- 4(f)(6)(iii) so that this proposed change will be in operative as of October 31, 2016, the date that Test Group Three securities are fully implemented and are subject to the quoting and trading restrictions of the Plan and, therefore, the relevant language in Rule 3317. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because it will allow the Exchange to implement the proposed rules immediately thereby preventing delays in the implementation of the Plan. The Commission notes that the Pilot started implementation on October 3, 2016, Test Group Three securities were fully phased into the Pilot on October 31, 2016, and waiving the 30-day operative delay would ensure that the rules of the Exchange would be in place during implementation. Therefore, the Commission hereby waives the 30-day operative delay and designates the proposed rule change to be operative upon filing with the Commission.\14\ --------------------------------------------------------------------------- \14\ For purposes only of waiving the operative delay for this proposal, the Commission has 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 [[Page 80137]] 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-2016-110 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-2016-110. 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-2016-110, and should be submitted on or before December 6, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-27366 Filed 11-14-16; 8:45 am] BILLING CODE 8011-01-P
![80134 Federal Register / Vol. 81, No. 220 / Tuesday, November 15, 2016 / Notices
continue to have regulatory authority Electronic Comments SECURITIES AND EXCHANGE
over the Exchange, as is currently the COMMISSION
case, as well as jurisdiction over CBOE • Use the Commission’s Internet
Holdings with respect to activities comment form (http://www.sec.gov/ [Release No. 34–79261; File No. SR–Phlx–
related to the Exchange.11 rules/sro.shtml); or 2016–110]
The Exchange is proposing no • Send an email to rule- Self-Regulatory Organizations;
changes to its existing operational and comments@sec.gov. Please include File NASDAQ PHLX LLC; Notice of Filing
trading structure in connection with the Number SR–C2–2016–022 on the and Immediate Effectiveness of
Transaction. Upon Closing, the subject line.
Exchange will operate in essentially the Proposed Rule Change To Amend
same manner as it operates today. Paper Comments Commentary .14 to Rule 3317
Therefore, the Exchange believes it will (Compliance With Regulation NMS
continue to satisfy the requirements of • Send paper comments in triplicate Plan To Implement a Tick Size Pilot)
the Act and the rules and regulations to Secretary, Securities and Exchange November 8, 2016.
thereunder applicable to a national Commission, 100 F Street NE.,
Pursuant to Section 19(b)(1) of the
securities exchange. Washington, DC 20549–1090. Securities Exchange Act of 1934
B. Self-Regulatory Organization’s All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Statement on Burden on Competition Number SR–C2–2016–022. This file notice is hereby given that on October
number should be included on the 31, 2016, NASDAQ PHLX LLC (‘‘Phlx’’
The Exchange does not believe the
subject line if email is used. To help the or ‘‘Exchange’’) filed with the Securities
proposed rule change will impose any
Commission process and review your and Exchange Commission (‘‘SEC’’ or
burden on competition not necessary or
appropriate in furtherance of the comments more efficiently, please use ‘‘Commission’’) the proposed rule
purposes of the Act. The proposed rule only one method. The Commission will change as described in Items I and II,
change relates to the corporate post all comments on the Commission’s below, which Items have been prepared
governance of CBOE Holdings— Internet Web site (http://www.sec.gov/ by the Exchange. The Commission is
specifically a change in composition of rules/sro.shtml). Copies of the publishing this notice to solicit
the CBOE Holdings Board in connection comments on the proposed rule change
submission, all subsequent
with a corporate transaction—and not from interested persons.
amendments, all written statements
the operations of the Exchange. This is with respect to the proposed rule I. Self-Regulatory Organization’s
not a competitive filing and, therefore, change that are filed with the Statement of the Terms of Substance of
imposes no burden on competition. Commission, and all written the Proposed Rule Change
C. Self-Regulatory Organization’s communications relating to the The Exchange proposes to amend
Statement on Comments on the proposed rule change between the Commentary .14 to Rule 3317
Proposed Rule Change Received From Commission and any person, other than (Compliance with Regulation NMS Plan
Members, Participants, or Others those that may be withheld from the to Implement a Tick Size Pilot) to
The Exchange neither solicited nor public in accordance with the provide the SEC with notice of its efforts
received comments on the proposed provisions of 5 U.S.C. 552, will be to re-program its systems to eliminate a
rule change. available for Web site viewing and re-pricing functionality for certain
printing in the Commission’s Public orders in Test Group Three securities in
III. Date of Effectiveness of the Reference Room, 100 F Street NE., connection with the Regulation NMS
Proposed Rule Change and Timing for Plan to Implement a Tick Size Pilot
Washington, DC 20549, on official
Commission Action Program (‘‘Plan’’ or ‘‘Pilot’’).3
business days between the hours of
Within 45 days of the date of 10:00 a.m. and 3:00 p.m. Copies of the The text of the proposed rule change
publication of this notice in the Federal filing also will be available for is set forth below. Proposed new
Register or within such longer period inspection and copying at the principal language is underlined; deleted text is
up to 90 days (i) as the Commission may office of the Exchange. All comments in brackets.
designate if it finds such longer period * * * * *
received will be posted without change;
to be appropriate and publishes its
the Commission does not edit personal NASDAQ PHLX Rules
reasons for so finding or (ii) as to which
the Exchange consents, the Commission identifying information from
ubmissions. You should submit only * * * * *
will:
A. By order approve or disapprove information that you wish to make 3317. Compliance With Regulation
such proposed rule change, or available publicly. All submissions NMS Plan To Implement a Tick Size
B. institute proceedings to determine should refer to File Number SR–C2– Pilot
whether the proposed rule change 2016–022, and should be submitted on (a) through (d) No Change.
should be disapproved. or before December 6, 2016.
Commentary
IV. Solicitation of Comments For the Commission, by the Division of
Trading and Markets, pursuant to delegated .01–.13 No change.
Interested persons are invited to .14 Until [October 31, 2016]
authority.12
submit written data, views, and November 14, 2016, the treatment of
mstockstill on DSK3G9T082PROD with NOTICES
arguments concerning the foregoing, Brent J. Fields,
Price to Comply Orders, Price to Display
including whether the proposed rule Secretary.
Orders, Non-Displayed Orders, and
change is consistent with the Act. [FR Doc. 2016–27372 Filed 11–14–16; 8:45 am]
Comments may be submitted by any of BILLING CODE 8011–01–P 1 15U.S.C. 78s(b)(1).
the following methods: 2 17CFR 240.19b–4.
3 See Securities Exchange Act Release No. 74892
11 See, e.g., CBOE Holdings Certificate Article (May 6, 2015), 80 FR 27513 (May 13, 2015)
Fourteenth. 12 17 CFR 200.30–3(a)(12). (‘‘Approval Order’’).
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![Federal Register / Vol. 81, No. 220 / Tuesday, November 15, 2016 / Notices 80137
furtherance of the purposes of the Act. For the Commission, by the Division of concerning the purpose of and basis for
If the Commission takes such action, the Trading and Markets, pursuant to delegated the proposed rule change and discussed
Commission shall institute proceedings authority.15 any comments it received on the
to determine whether the proposed rule Brent J. Fields, proposed rule change. The text of these
should be approved or disapproved. Secretary. statements may be examined at the
[FR Doc. 2016–27366 Filed 11–14–16; 8:45 am] places specified in Item IV below. The
IV. Solicitation of Comments
BILLING CODE 8011–01–P Exchange has prepared summaries, set
Interested persons are invited to forth in sections A, B, and C below, of
submit written data, views, and the most significant aspects of such
arguments concerning the foregoing, SECURITIES AND EXCHANGE statements.
including whether the proposed rule COMMISSION
A. Self-Regulatory Organization’s
change is consistent with the Act. [Release No. 34–79270; File No. SR– Statement of the Purpose of, and
Comments may be submitted by any of NASDAQ–2016–153] Statutory Basis for, the Proposed Rule
the following methods: Change
Self-Regulatory Organizations; The
Electronic Comments 1. Purpose
NASDAQ Stock Market LLC; Notice of
• Use the Commission’s Internet Filing and Immediate Effectiveness of The Exchange proposes to amend
comment form (http://www.sec.gov/ Proposed Rule Change To Amend Rule Nasdaq Rule 7014, Market Quality
rules/sro.shtml); or 7014 and the Nasdaq Growth Program Incentive Programs, to modify the
• Send an email to rule-comments@ November 8, 2016. volume threshold for the method under
sec.gov. Please include File Number SR– Pursuant to Section 19(b)(1) of the which members may currently qualify
Phlx–2016–110 on the subject line. Securities Exchange Act of 1934 for the Program. The Exchange also
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 proposes to add another method
Paper Comments through which members may qualify for
notice is hereby given that on November
• Send paper comments in triplicate 1, 2016, The NASDAQ Stock Market the Nasdaq Growth Program
to Secretary, Securities and Exchange LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed (‘‘Program’’), and to modify the manner
Commission, 100 F Street NE., with the Securities and Exchange in which a member’s Growth Baseline is
Washington, DC 20549–1090. Commission (‘‘SEC’’ or ‘‘Commission’’) updated.
the proposed rule change as described Nasdaq recently introduced the
All submissions should refer to File Nasdaq Growth Program.3 The purpose
Number SR–Phlx–2016–110. This file in Items I, II, and III, below, which Items
have been prepared by the Exchange. of the Program is to provide a credit per
number should be included on the share executed for members that meet
subject line if email is used. To help the The Commission is publishing this
notice to solicit comments on the certain growth criteria. The credit is
Commission process and review your designed to provide an incentive to
comments more efficiently, please use proposed rule change from interested
persons. members that do not qualify for other
only one method. The Commission will credits under Rule 7018 in excess of the
post all comments on the Commission’s I. Self-Regulatory Organization’s Program credit to increase their
Internet Web site (http://www.sec.gov/ Statement of the Terms of Substance of participation on the Exchange. The
rules/sro.shtml). Copies of the the Proposed Rule Change Program will provide a member a
submission, all subsequent $0.0025 per share executed credit in
amendments, all written statements The Exchange proposes to amend
Nasdaq Rule 7014, Market Quality securities priced $1 or more per share if
with respect to the proposed rule the member meets certain criteria. The
change that are filed with the Incentive Programs, to modify the
volume threshold for the method under credit will be provided in lieu of other
Commission, and all written credits provided to the member for
communications relating to the which members may currently qualify
for the Nasdaq Growth Program displayed quotes/orders (other than
proposed rule change between the Supplemental Orders or Designated
Commission and any person, other than (‘‘Program’’). The Exchange also
proposes to add another method Retail Orders) that provide liquidity
those that may be withheld from the under Rule 7018, if the credit under the
public in accordance with the through which members may qualify for
the Program, and to modify the manner Nasdaq Growth Program is greater than
provisions of 5 U.S.C. 552, will be the credit attained under Rule 7018. To
available for Web site viewing and in which a member’s Growth Baseline is
updated. be eligible for the credit a member must:
printing in the Commission’s Public (i) Add greater than 750,000 shares a
Reference Room, 100 F Street NE., The text of the proposed rule change
is available on the Exchange’s Web site day on average during the month
Washington, DC 20549, on official through one or more of its Nasdaq
business days between the hours of at http://nasdaq.cchwallstreet.com, at
the principal office of the Exchange, and Market Center MPIDs; and (ii) increase
10:00 a.m. and 3:00 p.m. Copies of the its shares of liquidity provided through
filing also will be available for at the Commission’s Public Reference
Room. one or more of its Nasdaq Market Center
inspection and copying at the principal MPIDs as a percent of Consolidated
office of the Exchange. All comments II. Self-Regulatory Organization’s Volume by 25% versus the member’s
received will be posted without change; Statement of the Purpose of, and Growth Baseline.4
the Commission does not edit personal Statutory Basis for, the Proposed Rule
mstockstill on DSK3G9T082PROD with NOTICES
identifying information from Change 3 See Securities Exchange Act Release No. 78977
submissions. You should submit only (September 29, 2016), 81 FR 69140 (October 5,
In its filing with the Commission, the
information that you wish to make 2016) (SR–NASDAQ–2016–132).
Exchange included statements
available publicly. All submissions 4 As part of this proposed rule change, Nasdaq is
should refer to File Number SR–Phlx– amending the rule text to add the conjunctive
15 17 CFR 200.30–3(a)(12). ‘‘and’’ between these two conditions to make clear
2016–110, and should be submitted on 1 15 U.S.C. 78s(b)(1). that a member must satisfy both conditions in order
or before December 6, 2016. 2 17 CFR 240.19b–4. to qualify for the Program.
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Document Created: 2016-11-15 00:47:40
Document Modified: 2016-11-15 00:47:40
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| FR Citation | 81 FR 80134 |
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