81 FR 87089 - 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 232 (December 2, 2016)
Federal Register Volume 81, Issue 232 (December 2, 2016)
| Page Range | 87089-87091 | |
| FR Document | 2016-28930 |
[Federal Register Volume 81, Number 232 (Friday, December 2, 2016)] [Notices] [Pages 87089-87091] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-28930] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79407; File No. SR-Phlx-2016-114] 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 28, 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 November 14, 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 italicized; 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 [November 14, 2016] December 12, 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 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 [[Page 87090]] 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 appeared that this functionality would 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 would 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. --------------------------------------------------------------------------- On October 31, 2016, Phlx submitted a proposed rule change to extend the date by which it would eliminate the re-pricing functionality to November 14, 2016.\9\ In that proposal, Phlx stated that it was 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. --------------------------------------------------------------------------- \9\ See Securities Exchange Act No. 79261 (November 8, 2016) (SR-Phlx-2016-110). --------------------------------------------------------------------------- At this time, Phlx is in the process of re-programming 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. Phlx anticipates that this re-programming shall be complete on or before December 12, 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 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,\10\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\11\ 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, SR-Phlx-2016-106, and SR- Phlx-2016-110 in proposing the removal of this functionality. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 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 [[Page 87091]] 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.\12\ 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 December 12, 2016. --------------------------------------------------------------------------- \12\ For example, for the time period between October 17 and November 11, 2016, 0.08% of orders that were entered on the NASDAQ Stock Market LLC in Test Group Three 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, SR-Phlx-2016-106, and SR-Phlx-2016-110. 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 The foregoing change has become effective pursuant to Section 19(b)(3)(A)(iii) \13\ of the Act and Rule 19b-4(f)(6) \14\ thereunder, in that it effects a change that: (i) Does not significantly affect the protection of investors or the public interest; (ii) does not impose any significant burden on competition; and (iii) by its terms, does not become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A)(iii). \14\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- 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-Phlx-2016-114 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-Phlx-2016-114. 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-2016-114 and should be submitted on or before December 23, 2016. --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ Robert W. Errett, Deputy Secretary. [FR Doc. 2016-28930 Filed 12-1-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 232 / Friday, December 2, 2016 / Notices 87089
amendments, all written statements comments on the proposed rule change accordance with changes to the NBBO
with respect to the proposed rule from interested persons. or the best price on the Exchange Book,
change that are filed with the as applicable until such time as the
I. Self-Regulatory Organization’s
Commission, and all written Post-Only Order is able to be ranked and
Statement of the Terms of Substance of
communications relating to the displayed at its original entered limit
the Proposed Rule Change
proposed rule change between the price.
Commission and any person, other than The Exchange proposes to amend * * * * *
those that may be withheld from the Commentary .14 to Rule 3317
public in accordance with the (Compliance with Regulation NMS Plan II. Self-Regulatory Organization’s
provisions of 5 U.S.C. 552, will be to Implement a Tick Size Pilot) to Statement of the Purpose of, and
available for Web site viewing and provide the SEC with notice of its efforts Statutory Basis for, the Proposed Rule
printing in the Commission’s Public to re-program its systems to eliminate a Change
Reference Room, 100 F Street NE., re-pricing functionality for certain In its filing with the Commission, the
Washington, DC 20549, on official orders in Test Group Three securities in Exchange included statements
business days between the hours of connection with the Regulation NMS concerning the purpose of and basis for
10:00 a.m. and 3:00 p.m. Copies of the Plan to Implement a Tick Size Pilot the proposed rule change and discussed
filing also will be available for Program (‘‘Plan’’ or ‘‘Pilot’’).3 any comments it received on the
inspection and copying at the principal The text of the proposed rule change proposed rule change. The text of these
office of the Exchange. All comments is set forth below. Proposed new statements may be examined at the
received will be posted without change; language is italicized; deleted text is in places specified in Item IV below. The
the Commission does not edit personal brackets. Exchange has prepared summaries, set
identifying information from * * * * * forth in sections A, B, and C below, of
submissions. You should submit only the most significant aspects of such
NASDAQ PHLX Rules
information that you wish to make statements.
available publicly. All submissions * * * * *
should refer to File Number SR–MIAX– A. Self-Regulatory Organization’s
3317. Compliance With Regulation Statement of the Purpose of, and
2016–44 and should be submitted on or NMS Plan To Implement a Tick Size
before December 23, 2016. Statutory Basis for, the Proposed Rule
Pilot Change
For the Commission, by the Division of
Trading and Markets, pursuant to delegated (a) through (d) No Change. 1. Purpose
authority.27 Commentary: .01–.13 No change.
.14 Until [November 14, 2016] On September 7, 2016, the Exchange
Robert W. Errett, filed with the Securities and Exchange
December 12, 2016, the treatment of
Deputy Secretary. Commission (‘‘SEC’’ or ‘‘Commission’’)
Price to Comply Orders, Price to Display
[FR Doc. 2016–28928 Filed 12–1–16; 8:45 am] Orders, Non-Displayed Orders, and a proposed rule change (‘‘Proposal’’) to
BILLING CODE 8011–01–P Post-Only Orders that are entered adopt paragraph (d) and Commentary
through the OUCH or FLITE protocols .12 to Exchange Rule 3317 to describe
in Test Group Three securities shall be changes to system functionality
SECURITIES AND EXCHANGE as follows: necessary to implement the Plan. The
COMMISSION Following entry, and if market Exchange also proposed amendments to
conditions allow, a Price to Comply Rule 3317(a) and (c) to clarify how the
[Release No. 34–79407; File No. SR–Phlx– Order in a Test Group Three Pilot Trade-at exception may be satisfied. The
2016–114] Security will be adjusted repeatedly in SEC published the Proposal in the
accordance with changes to the NBBO Federal Register for notice and
Self-Regulatory Organizations; until such time as the Price to Comply comment on September 20, 2016.4 Phlx
NASDAQ PHLX LLC; Notice of Filing Order is able to be ranked and displayed subsequently filed three Partial
and Immediate Effectiveness of at its original entered limit price. Amendments to clarify aspects of the
Proposed Rule Change To Amend Following entry, and if market Proposal. The Commission approved the
Commentary .14 to Rule 3317 conditions allow, a Price to Display Proposal, as amended, on October 7,
(Compliance With Regulation NMS Order in a Test Group Three Pilot 2016.5
Plan To Implement a Tick Size Pilot) Security will be adjusted repeatedly in In SR–Phlx–2016–92, Phlx had
November 28, 2016. accordance with changes to the NBBO initially proposed a re-pricing
until such time as the Price to Display functionality for Price to Comply
Pursuant to Section 19(b)(1) of the Order is able to be ranked and displayed Orders, Non-Displayed Orders, and
Securities Exchange Act of 1934 at its original entered limit price. Post-Only Orders entered through the
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Following entry, and if market OUCH and FLITE protocols in Group
notice is hereby given that on November conditions allow, a Non-Displayed Three securities.6 Phlx subsequently
14, 2016, NASDAQ PHLX LLC (‘‘Phlx’’ Order in a Test Group Three Pilot
or ‘‘Exchange’’) filed with the Securities Security will be adjusted repeatedly in
4 See Securities Exchange Act Release No. 78835
and Exchange Commission (‘‘SEC’’ or accordance with changes to the NBBO
(September 14, 2016), 81 FR 64552 (September 20,
2016) (SR–Phlx–2016–92).
asabaliauskas on DSK3SPTVN1PROD with NOTICES
‘‘Commission’’) the proposed rule up (down) to the Order’s limit price. 5 See Securities Exchange Act Release No. 79074
change as described in Items I and II Following entry, and if market (October 7, 2016) (SR–Phlx–2016–92).
below, which Items have been prepared conditions allow, the Post-Only Order 6 As originally proposed, Rule 3317(d)(2) stated
by the Exchange. The Commission is in a Test Group Three Pilot Security that Price to Comply Orders in a Test Group Three
publishing this notice to solicit will be adjusted repeatedly in
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
27 17 CFR 200.30–3(a)(12). 3 See Securities Exchange Act Release No. 74892 ranked and displayed at its original entered limit
1 15 U.S.C. 78s(b)(1). (May 6, 2015), 80 FR 27513 (May 13, 2015) price. Rule 3317(d)(3) stated that, if market
2 17 CFR 240.19b–4. (‘‘Approval Order’’). Continued
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![Federal Register / Vol. 81, No. 232 / Friday, December 2, 2016 / Notices 87091
with which Orders in Test Group Three Commission summarily may available publicly. All submissions
securities are entered with a limit price temporarily suspend such rule change if should refer to File Number SR–Phlx–
that would cross a Protected Quotation it appears to the Commission that such 2016–114 and should be submitted on
of another market center, and believes action is: (i) Necessary or appropriate in or before December 23, 2016.
that the re-pricing functionality will be the public interest; (ii) for the protection For the Commission, by the Division of
triggered infrequently.12 The Exchange of investors; or (iii) otherwise in Trading and Markets, pursuant to delegated
also notes that it is diligently working furtherance of the purposes of the Act. authority.15
to eliminate the current re-pricing If the Commission takes such action, the Robert W. Errett,
functionality in Test Group Three Commission shall institute proceedings Deputy Secretary.
securities for Price to Comply Orders, to determine whether the proposed rule
[FR Doc. 2016–28930 Filed 12–1–16; 8:45 am]
Price to Display Orders, Non-Displayed should be approved or disapproved.
BILLING CODE 8011–01–P
Orders, and Post-Only Orders that are IV. Solicitation of Comments
entered through the OUCH or FLITE
protocols, and that it anticipates this re- Interested persons are invited to
submit written data, views, and SECURITIES AND EXCHANGE
programming to be complete on or COMMISSION
before December 12, 2016. arguments concerning the foregoing,
including whether the proposed rule
B. Self-Regulatory Organization’s change is consistent with the Act. [Release No. 34–79409; File No. SR–BX–
Statement on Burden on Competition 2016–061]
Comments may be submitted by any of
The Exchange does not believe that the following methods: Self-Regulatory Organizations;
the proposed rule change will impose Electronic Comments NASDAQ BX, Inc.; Notice of Filing and
any burden on competition not Immediate Effectiveness of Proposed
necessary or appropriate in furtherance • Use the Commission’s Internet
comment form (http://www.sec.gov/ Rule Change To Amend Commentary
of the purposes of the Act. The purpose .14 to Rule 4770 (Compliance With
of this proposal is to provide the SEC rules/sro.shtml); or
• Send an email to rule-comments@ Regulation NMS Plan To Implement a
and market participants with notice of Tick Size Pilot)
Phlx’s efforts to remove its re-pricing sec.gov. Please include File Number SR–
functionality in Test Group Three Phlx–2016–114 on the subject line. November 28, 2016.
securities for Price to Comply Orders, Paper Comments Pursuant to Section 19(b)(1) of the
Price to Display Orders, Non-Displayed Securities Exchange Act of 1934
• Send paper comments in triplicate
Orders, and Post-Only Orders that are (‘‘Act’’),1 and Rule 19b–4 thereunder,2
to Brent J. Fields, Secretary, Securities
entered through the OUCH or FLITE notice is hereby given that on November
and Exchange Commission, 100 F Street
protocols, consistent with its statements 14, 2016, NASDAQ BX, Inc. (‘‘BX’’ or
NE., Washington, DC 20549–1090.
in SR–Phlx–2016–92, SR–Phlx–2016– ‘‘Exchange’’) filed with the Securities
All submissions should refer to File and Exchange Commission (‘‘SEC’’ or
106, and SR–Phlx–2016–110.
Number SR–Phlx–2016–114. This file ‘‘Commission’’) the proposed rule
C. Self-Regulatory Organization’s number should be included on the change as described in Items I and II
Statement on Comments on the subject line if email is used. To help the below, which Items have been prepared
Proposed Rule Change Received From Commission process and review your by the Exchange. The Commission is
Members, Participants, or Others comments more efficiently, please use publishing this notice to solicit
No written comments were either only one method. The Commission will comments on the proposed rule change
solicited or received. post all comments on the Commission’s from interested persons.
Internet Web site (http://www.sec.gov/
III. Date of Effectiveness of the rules/sro.shtml). I. Self-Regulatory Organization’s
Proposed Rule Change and Timing for Copies of the submission, all Statement of the Terms of Substance of
Commission Action subsequent amendments, all written the Proposed Rule Change
The foregoing change has become statements with respect to the proposed The Exchange proposes to amend
effective pursuant to Section rule change that are filed with the Commentary .14 to Rule 4770
19(b)(3)(A)(iii) 13 of the Act and Rule Commission, and all written (Compliance with Regulation NMS Plan
19b–4(f)(6) 14 thereunder, in that it communications relating to the to Implement a Tick Size Pilot) to
effects a change that: (i) Does not proposed rule change between the provide the SEC with notice of its efforts
significantly affect the protection of Commission and any person, other than to re-program its systems to eliminate a
investors or the public interest; (ii) does those that may be withheld from the re-pricing functionality for certain
not impose any significant burden on public in accordance with the orders in Test Group Three securities in
competition; and (iii) by its terms, does provisions of 5 U.S.C. 552, will be connection with the Regulation NMS
not become operative for 30 days after available for Web site viewing and Plan to Implement a Tick Size Pilot
the date of the filing, or such shorter printing in the Commission’s Public Program (‘‘Plan’’ or ‘‘Pilot’’).3
time as the Commission may designate Reference Room, 100 F Street NE., The text of the proposed rule change
if consistent with the protection of Washington, DC 20549, on official is set forth below. Proposed new
investors and the public interest. business days between the hours of language is italicized; deleted text is in
At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the
asabaliauskas on DSK3SPTVN1PROD with NOTICES
brackets.
filing of the proposed rule change, the filing also will be available for
inspection and copying at the principal * * * * *
12 For example, for the time period between office of the Exchange. All comments
15 17 CFR 200.30–3(a)(12).
October 17 and November 11, 2016, 0.08% of orders received will be posted without change;
that were entered on the NASDAQ Stock Market 1 15 U.S.C. 78s(b)(1).
LLC in Test Group Three securities were entered at
the Commission does not edit personal 2 17 CFR 240.19b–4.
a price that crossed the NBBO. identifying information from 3 See Securities Exchange Act Release No. 74892
13 15 U.S.C. 78s(b)(3)(A)(iii). submissions. You should submit only (May 6, 2015), 80 FR 27513 (May 13, 2015)
14 17 CFR 240.19b–4(f)(6). information that you wish to make (‘‘Approval Order’’).
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Document Created: 2018-02-14 09:02:13
Document Modified: 2018-02-14 09:02:13
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| FR Citation | 81 FR 87089 |
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