81 FR 80154 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .14 to Rule 4770 (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 | 80154-80157 | |
| FR Document | 2016-27368 |
[Federal Register Volume 81, Number 220 (Tuesday, November 15, 2016)] [Notices] [Pages 80154-80157] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-27368] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79263; File No. SR-NASDAQ-2016-151] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .14 to Rule 4770 (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, The NASDAQ Stock Market LLC (``Nasdaq'' 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 4770 (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. * * * * * The NASDAQ Stock Market Rules * * * * * 4770. 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 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 Nasdaq 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 Nasdaq Stock Market LLC (``Nasdaq'' or ``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 4770 to describe changes to system [[Page 80155]] functionality necessary to implement the Plan. The Exchange also proposed amendments to Rule 4770(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\ Nasdaq 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. 78837 (September 14, 2016), 81 FR 64544 (September 20, 2016) (SR-NASDAQ-2016-126). \5\ See Securities Exchange Act Release No. 79075 (October 7, 2016) (SR-NASDAQ-2016-126). --------------------------------------------------------------------------- In SR-NASDAQ-2016-126, Nasdaq 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\ Nasdaq 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-NASDAQ-2016-126, Nasdaq proposed to delete the relevant language from Rule 4770 related to this re-pricing functionality. --------------------------------------------------------------------------- \6\ As originally proposed, Rule 4770(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 4770(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 4770(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 Nasdaq 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, Nasdaq 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 Nasdaq through the RASH, QIX or FIX protocols are already subject to this re-pricing functionality and will remain subject to this functionality under the Pilot. In the Amendment, Nasdaq 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 Nasdaq book. Nasdaq 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, Nasdaq stated that it anticipated that this re-programming shall be completed no later than November 30, 2016. If it appeared that this functionality would remain operational by October 17, 2016, Nasdaq 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 would describe the current operation of the Nasdaq systems in this regard, and the timing related to the re-programming. On October 17, 2016, Nasdaq 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, Nasdaq 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. 79155 (October 25, 2016) (SR-NASDAQ-2016-143). Subsequent to the approval of SR-NASDAQ-2016-126, Nasdaq 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-NASDAQ-2016-143 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, Nasdaq 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. Nasdaq is therefore submitting this proposal to extend the date by which the current re-pricing functionality will be eliminated. Nasdaq 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 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 Nasdaq 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 Nasdaq'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 Nasdaq's efforts in this regard, and is being submitted in connection with the statements made by Nasdaq in SR-NASDAQ-2016-126 and SR-NASDAQ- [[Page 80156]] 2016-143 in proposing the removal of this functionality. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Nasdaq 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. Nasdaq 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. Nasdaq 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 Nasdaq 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 Nasdaq'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-NASDAQ- 2016-126 and SR-NASDAQ-2016-143. 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 19-4 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 4770. 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 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-NASDAQ-2016-151 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-NASDAQ-2016-151. 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-NASDAQ-2016-151, and should be [[Page 80157]] 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. 2016-27368 Filed 11-14-16; 8:45 am] BILLING CODE 8011-01-P
![80154 Federal Register / Vol. 81, No. 220 / Tuesday, November 15, 2016 / Notices
Electronic Comments SECURITIES AND EXCHANGE Non-Displayed Orders, and Post-Only
COMMISSION Orders that are entered through the
• Use the Commission’s Internet OUCH or FLITE protocols in Test Group
comment form (http://www.sec.gov/ [Release No. 34–79263; File No. SR– Three securities shall be as follows:
rules/sro.shtml); or NASDAQ–2016–151] Following entry, and if market
• Send an email to rule-comments@ Self-Regulatory Organizations; The conditions allow, a Price to Comply
sec.gov. Please include File Number SR– NASDAQ Stock Market LLC; Notice of Order in a Test Group Three Pilot
BatsEDGA–2016–24 on the subject line. Filing and Immediate Effectiveness of Security will be adjusted repeatedly in
Proposed Rule Change To Amend accordance with changes to the NBBO
Paper Comments until such time as the Price to Comply
Commentary .14 to Rule 4770
Order is able to be ranked and displayed
• Send paper comments in triplicate (Compliance With Regulation NMS
at its original entered limit price.
to Secretary, Securities and Exchange Plan To Implement a Tick Size Pilot)
Following entry, and if market
Commission, 100 F Street NE., November 8, 2016. conditions allow, a Price to Display
Washington, DC 20549–1090. Order in a Test Group Three Pilot
Pursuant to Section 19(b)(1) of the
All submissions should refer to File Securities Exchange Act of 1934 Security will be adjusted repeatedly in
Number SR–BatsEDGA–2016–24. This (‘‘Act’’),1 and Rule 19b–4 thereunder,2 accordance with changes to the NBBO
file number should be included on the notice is hereby given that on October until such time as the Price to Display
subject line if email is used. To help the 31, 2016, The NASDAQ Stock Market Order is able to be ranked and displayed
Commission process and review your LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed at its original entered limit price.
with the Securities and Exchange Following entry, and if market
comments more efficiently, please use
Commission (‘‘SEC’’ or ‘‘Commission’’) conditions allow, a Non-Displayed
only one method. The Commission will
the proposed rule change as described Order in a Test Group Three Pilot
post all comments on the Commission’s Security will be adjusted repeatedly in
Internet Web site (http://www.sec.gov/ in Items I and II, below, which Items
have been prepared by the Exchange. accordance with changes to the NBBO
rules/sro.shtml). Copies of the up (down) to the Order’s limit price.
submission, all subsequent The Commission is publishing this
notice to solicit comments on the Following entry, and if market
amendments, all written statements conditions allow, the Post-Only Order
proposed rule change from interested
with respect to the proposed rule in a Test Group Three Pilot Security
persons.
change that are filed with the will be adjusted repeatedly in
Commission, and all written I. Self-Regulatory Organization’s accordance with changes to the NBBO
communications relating to the Statement of the Terms of Substance of or the best price on the Nasdaq Book, as
proposed rule change between the the Proposed Rule Change applicable until such time as the Post-
Commission and any person, other than The Exchange proposes to amend Only Order is able to be ranked and
those that may be withheld from the Commentary .14 to Rule 4770 displayed at its original entered limit
public in accordance with the (Compliance with Regulation NMS Plan price.
provisions of 5 U.S.C. 552, will be to Implement a Tick Size Pilot) to * * * * *
available for Web site viewing and provide the SEC with notice of its efforts
II. Self-Regulatory Organization’s
printing in the Commission’s Public to re-program its systems to eliminate a
Statement of the Purpose of, and
Reference Room, 100 F Street NE., re-pricing functionality for certain
Statutory Basis for, the Proposed Rule
Washington, DC 20549, on official orders in Test Group Three securities in
Change
business days between the hours of connection with the Regulation NMS
10:00 a.m. and 3:00 p.m. Copies of the Plan to Implement a Tick Size Pilot In its filing with the Commission, the
filing also will be available for Program (‘‘Plan’’ or ‘‘Pilot’’).3 Exchange included statements
inspection and copying at the principal The text of the proposed rule change concerning the purpose of and basis for
is set forth below. Proposed new the proposed rule change and discussed
office of the Exchange. All comments
language is underlined; deleted text is any comments it received on the
received will be posted without change;
in brackets. proposed rule change. The text of these
the Commission does not edit personal
* * * * * statements may be examined at the
identifying information from places specified in Item IV below. The
submissions. You should submit only The NASDAQ Stock Market Rules Exchange has prepared summaries, set
information that you wish to make forth in sections A, B, and C below, of
* * * * *
available publicly. All submissions the most significant aspects of such
should refer to File Number SR– 4770. Compliance With Regulation statements.
BatsEDGA–2016–24, and should be NMS Plan To Implement a Tick Size
submitted on or before December 6, Pilot A. Self-Regulatory Organization’s
2016. Statement of the Purpose of, and
(a) through (d) No Change. Statutory Basis for, the Proposed Rule
For the Commission, by the Division of Change
Commentary
Trading and Markets, pursuant to delegated
authority.55 .01–.13 No change. 1. Purpose
.14 Until [October 31, 2016]November On September 7, 2016, The Nasdaq
mstockstill on DSK3G9T082PROD with NOTICES
Brent J. Fields,
14, 2016, the treatment of Price to Stock Market LLC (‘‘Nasdaq’’ or
Secretary.
Comply Orders, Price to Display Orders, ‘‘Exchange’’) filed with the Securities
[FR Doc. 2016–27370 Filed 11–14–16; 8:45 am]
and Exchange Commission (‘‘SEC’’ or
BILLING CODE 8011–01–P 1 15U.S.C. 78s(b)(1).
2 17
‘‘Commission’’) a proposed rule change
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 74892 (‘‘Proposal’’) to adopt paragraph (d) and
(May 6, 2015), 80 FR 27513 (May 13, 2015) Commentary .12 to Exchange Rule 4770
55 17 CFR 200.30–3(a)(12). (‘‘Approval Order’’). to describe changes to system
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![Federal Register / Vol. 81, No. 220 / Tuesday, November 15, 2016 / Notices 80157
submitted on or before December 6, It is anticipated that twenty SECURITIES AND EXCHANGE
2016. respondents, consisting of nineteen COMMISSION
For the Commission, by the Division of national securities exchanges and one
[Release No. 34–79268; File No. SR–CBOE–
Trading and Markets, pursuant to delegated national securities association, will 2016–076]
authority.15 collectively respond approximately
Brent J. Fields, 2,184,303,485,488 times per year Self-Regulatory Organizations;
Secretary. pursuant to Rule 602(a) at 18.22 Chicago Board Options Exchange,
[FR Doc. 2016–27368 Filed 11–14–16; 8:45 am]
microseconds per response, resulting in Incorporated; Notice of Filing of a
BILLING CODE 8011–01–P
a total annual burden of approximately Proposed Rule Change in Connection
11,640 hours. It is anticipated that no With a Proposed Corporate
respondents will have a reporting Transaction Involving CBOE Holdings,
SECURITIES AND EXCHANGE burden pursuant to Rule 602(b).4 Inc. and Bats Global Markets, Inc.
COMMISSION Thus, the aggregate third-party
disclosure burden under Rule 602 is November 8, 2016.
Submission for OMB Review; 11,640 hours annually which is Pursuant to Section 19(b)(1) of the
Comment Request comprised of 11,640 hours relating to Securities Exchange Act of 1934
Rule 602(a) and 0 hours relating to Rule (‘‘Act’’) 1, and Rule 19b–4 thereunder,2
Upon Written Request, Copies Available 602(b). notice is hereby given that on November
From: Securities and Exchange Compliance with Rule 602 of 4, 2016, Chicago Board Options
Commission, Office of FOIA Services, Regulation NMS is mandatory and the Exchange, Incorporated (‘‘Exchange’’ or
100 F Street NE., Washington, DC information collected is made available ‘‘CBOE’’) filed with the Securities and
20549–2736. to the public. Exchange Commission (‘‘Commission’’)
Extension: An agency may not conduct or the proposed rule change as described
Rule 602, SEC File No. 270–404, OMB sponsor, and a person is not required to in Items I, II, and III below, which Items
Control No. 3235–0461. respond to, a collection of information have been prepared by the Exchange.
Notice is hereby given that pursuant under the PRA unless it displays a The Commission is publishing this
to the Paperwork Reduction Act of 1995 currently valid OMB control number. notice to solicit comments on the
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the The public may view background proposed rule change from interested
Securities and Exchange Commission documentation for this information persons.
(‘‘Commission’’) has submitted to the collection at the following Web site:
www.reginfo.gov. Comments should be I. Self-Regulatory Organization’s
Office of Management and Budget Statement of the Terms of Substance of
(‘‘OMB’’) a request for approval of directed to: (i) Desk Officer for the
Securities and Exchange Commission, the Proposed Rule Change
extension of the previously approved
collection of information provided for in Office of Information and Regulatory The Exchange submits this rule filing
Rule 602 of Regulation NMS (17 CFR Affairs, Office of Management and in connection with a proposed corporate
240.602), under the Securities Exchange Budget, Room 10102, New Executive transaction (the ‘‘Transaction’’)
Act of 1934 (15 U.S.C. 78a et seq.). Office Building, Washington, DC 20503, involving its ultimate parent company,
Rule 602 of Regulation NMS, or by sending an email to: Shagufta_ CBOE Holdings, Inc. (‘‘CBOE
Dissemination of Quotations in NMS Ahmed@omb.eop.gov; and (ii) Pamela C. Holdings’’), two wholly owned
securities, contains two related Dyson, Director/Chief Information subsidiaries of CBOE Holdings, CBOE
collections. The first collection of Officer, Securities and Exchange Corporation and CBOE V, LLC (‘‘CBOE
information is found in Rule 602(a).1 Commission, c/o Remi Pavlik-Simon, V’’), and Bats Global Markets, Inc.
This third-party disclosure requirement 100 F Street NE., Washington, DC (‘‘BGM’’). BGM is the ultimate parent
obligates each national securities 20549, or by sending an email to: PRA_ company of Bats BZX Exchange, Inc.
exchange and national securities Mailbox@sec.gov. Comments must be (‘‘Bats BZX’’), Bats BYX Exchange, Inc.
association to make available to submitted to OMB within 30 days of (‘‘Bats BYX’’), Bats EDGX Exchange, Inc.
quotation vendors for dissemination to this notice. (‘‘Bats EDGX’’), and Bats EDGA
the public the best bid, best offer, and Dated: November 8, 2016. Exchange, Inc. (‘‘Bats EDGA’’ and,
aggregate quotation size for each Brent J. Fields, together with Bats BZX, Bats BYX, and
‘‘subject security,’’ as defined under the Secretary. Bats EDGX, the ‘‘Bats Exchanges’’).
Rule. The second collection of [FR Doc. 2016–27377 Filed 11–14–16; 8:45 am]
Upon completion of the Transaction
information is found in Rule 602(b).2 (the ‘‘Closing’’), CBOE Holdings will
BILLING CODE 8011–01–P
This disclosure requirement obligates become the ultimate parent of the Bats
any exchange member and over-the- orders entered by market makers on the ECN, to
Exchanges.
counter (‘‘OTC’’) market maker that is a satisfy such market makers’ reporting obligation On September 25, 2016, CBOE
‘‘responsible broker or dealer,’’ as under Rule 602(b). Since this reporting requirement Holdings, CBOE Corporation, CBOE V,
is an alternative method of meeting the market and BGM entered into an Agreement
defined under the Rule, to communicate makers’ reporting obligation, and because it is
to an exchange or association their best directed to nine or fewer persons (ECNs), this
and Plan of Merger, as it may be
bids, best offers, and quotation sizes for collection of information is not subject to OMB amended from time to time (the ‘‘Merger
subject securities.3 review under the Paperwork Reduction Act Agreement’’). In connection with the
(‘‘PRA’’). Transaction, the Exchange seeks the
4 For the reporting obligation under Rule 602(b),
mstockstill on DSK3G9T082PROD with NOTICES
15 17 CFR 200.30–3(a)(12). Commission’s approval of a provision in
the respondents are exchange members and OTC
1 17 CFR 242.602(a). market makers. The Commission believes that the Merger Agreement regarding the
2 17 CFR 242.602(b).
communication of quotations through an composition of the CBOE Holdings
3 Under Rule 602(b)(5), electronic exchange’s electronic trading system effectively Board of Directors (‘‘CBOE Holdings
communications networks (‘‘ECNs’’) have the means that exchange members currently have no
option of reporting to an exchange or association for reporting burden under Rule 602(b) for these
Board’’) upon the Closing. There are no
public dissemination, on behalf of customers that quotations. The Commission also believes that there
1 15 U.S.C. 78s(b)(1).
are OTC market makers or exchange market makers, are presently no OTC market makers that quote
the best-priced orders and the full size for such other than on an exchange. 2 17 CFR 240.19b–4.
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Document Created: 2016-11-15 00:47:50
Document Modified: 2016-11-15 00:47:50
| 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 80154 |
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