81 FR 95241 - Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delay the Implementation of the Limit Order Protection

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 248 (December 27, 2016)

[Federal Register Volume 81, Number 248 (Tuesday, December 27, 2016)]
[Notices]
[Pages 95241-95243]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-31101]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79609; File No. SR-BX-2016-072]


Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Delay the 
Implementation of the Limit Order Protection

December 20, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\

[[Page 95242]]

notice is hereby given that on December 16, 2016, NASDAQ BX, Inc. 
(``BX'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``SEC'' or ``Commission'') the proposed rule change as 
described in Items I, II, and III, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to delay the implementation of the Limit 
Order Protection or ``LOP'' for members accessing the BX Market Center.

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
    The purpose of the proposal is to delay the implementation of the 
Exchange's mechanism to protect against erroneous Limit Orders, which 
are entered into BX Market Center, at Rule 4757(d).\3\ The Exchange 
received approval to implement this mechanism on August 24, 2016.\4\ 
Within that rule change, the Exchanges proposed to implement LOP within 
ninety days of the approval of the proposal, which was November 22, 
2016.\5\ The Exchange subsequently filed a modification to the original 
proposal and delayed the implementation an additional sixty (60) days 
from the original timeframe in order to implement the LOP, which was 
January 21, 2017.\6\
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    \3\ See Securities Exchange Act Release No. 78246 (August 24, 
2016), 81 FR 59672 (August 30, 2016) (SR-BX-2016-037). See also 
Securities Exchange Act Release No. 79329 (November 16, 2016), 81 FR 
83902 (November 22, 2016) (SR-BX-2016-058).
    \4\ See Securities Exchange Act Release No. 78246 (August 24, 
2016), 81 FR 59672 (August 30, 2016) (SR-BX-2016-037) (Notice of 
Filing of Amendments No. 1 and Order Granting Accelerated Approval 
of Proposed Rule Changes, as Modified by Amendments No. 1, To Adopt 
Limit Order Protections).
    \5\ Id at 45321.
    \6\ See Securities Exchange Act Release No. 79329 (November 16, 
2016), 81 FR 83902 (November 22, 2016) (SR-BX-2016-058) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
the Limit Order Protection).
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    At this time the Exchange proposes to delay the implementation from 
January 21, 2017 until a date no later than March 31, 2017 in order to 
allow additional time to complete testing. The Exchange will announce 
the specific date in advance through an Equities Trader Alert. For more 
information regarding LOP see the previous LOP rule changes.\7\
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    \7\ See note 3 above.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \8\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \9\ 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, 
by permitting the Exchange additional time to implement the LOP in 
accordance with the Exchange's processes. The Exchange's proposal does 
not significantly affect the protection of investors or the public 
interest because this proposal does not modify the manner in which LOP 
operates, only the implementation date is impacted. The Exchange will 
provide advance notice to members with respect to the new date.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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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 Exchange's proposal does 
not impose any significant burden on competition because LOP will apply 
to all BX market participants in a uniform manner once implemented.

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 \10\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-BX-2016-072 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-BX-2016-072. 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/

[[Page 95243]]

rules/sro.shtml). Copies of the submission, all subsequent amendments, 
all written statements with respect to the proposed rule change that 
are filed with the Commission, and all written communications relating 
to the proposed rule change between the Commission and any person, 
other than those that may be withheld from the public in accordance 
with the provisions of 5 U.S.C. 552, will be available for Web site 
viewing and printing in the Commission's Public Reference Room, 100 F 
Street NE., Washington, DC 20549, on official business days between the 
hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be 
available for inspection and copying at the principal office of the 
Exchange. All comments received will be posted without change; the 
Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-BX-
2016-072 and should be submitted on or before January 17, 2017.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016-31101 Filed 12-23-16; 8:45 am]
 BILLING CODE 8011-01-P