81 FR 95243 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 4770 (Compliance With Regulation NMS Plan To Implement a Tick Size Pilot)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 248 (December 27, 2016)
Federal Register Volume 81, Issue 248 (December 27, 2016)
| Page Range | 95243-95247 | |
| FR Document | 2016-31108 |
[Federal Register Volume 81, Number 248 (Tuesday, December 27, 2016)] [Notices] [Pages 95243-95247] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-31108] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79616; File No. SR-NASDAQ-2016-171] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 4770 (Compliance With Regulation NMS Plan To Implement a Tick Size Pilot) December 20, 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 December 13, 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 Rule 4770 (Compliance with Regulation NMS Plan to Implement a Tick Size Pilot) relating to the handling to certain Order Types in Test Group Three Pilot Securities in connection with the Regulation NMS Plan to Implement a Tick Size Pilot Program (``Plan'' or ``Pilot'').\3\ Relatedly, Nasdaq also proposes to delete Commentary .14, which addresses the current handling of those Order Types. Finally, Nasdaq proposes to add language to Rule 4770(d)(1) to clarify the treatment of orders in a Test Group Three Security entered through the RASH, QIX or FIX protocols. --------------------------------------------------------------------------- \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 available on the Exchange's Web site at http://nasdaq.cchwallstreet.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and 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 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) (Notice of filing of SR- NASDAQ-2016-126). \5\ See Securities Exchange Act Release No. 79075 (October 7, 2016) (Order approving 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 Test Group Three Pilot 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 Test Group Three Pilot 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 Pilot Securities may be adjusted repeatedly to reflect changes to the NBBO and/or the best price on the [[Page 95244]] 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 Pilot 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 Pilot 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\ As Nasdaq continued to re-program its systems to eliminate the re- pricing functionality in Test Group Three Pilot 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, it extended the date by which the re-programming shall be complete to the current date of December 12, 2016.\9\ --------------------------------------------------------------------------- \7\ See Securities Exchange Act Release No. 79155 (October 25, 2016), 81 FR 75471 (October 31, 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 amended Commentary .14 to indicate that Price to Display Orders will be treated in the same manner as Price to Comply Orders under the re-pricing functionality. Id. \8\ Id. \9\ See Securities Exchange Release Nos. 79263 (November 8, 2016), 81 FR 80154 (November 15, 2016) (SR-NASDAQ-2016-151) (extending current re-pricing functionality to November 14, 2016); 79408 (November 28, 2016), 81 FR 87106 (December 2, 2016) (SR- NASDAQ-2016-159) (extending the current re-pricing functionality to December 12, 2016). --------------------------------------------------------------------------- Nasdaq has now completed re-programming its systems to eliminate the re-pricing functionality in Test Group Three Pilot 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. However, as a result of removing the re-pricing functionality, there are instances, due to the different functionality of the OUCH and FLITE protocols in comparison to the other applicable Nasdaq protocols, where the behavior of certain Order Types entered through the OUCH and FLITE protocols in Test Group Three Pilot Securities will differ from the behavior of those Order Types as set forth in Rule 4770; specifically, the behavior of Price to Comply Orders, Non-Displayed Orders, and Post-Only Orders entered through the OUCH and FLITE protocols when the Order locks or crosses a Protected Quotation. Nasdaq is therefore amending Rule 4770 to clarify these differences. Although the changes made to Price to Comply Orders, Non- Displayed Orders, and Post-Only Orders entered through OUCH and FLITE reflect the different functionality of the OUCH and FLITE protocols in comparison with the other Nasdaq protocols, the proposed changes treat Price to Comply Orders, Non-Displayed Orders and Post-Only Orders entered through OUCH and FLITE protocols in Test Group Three Securities as consistently as possible with such orders entered through OUCH and FLITE in Control Group Securities, and Test Group One and Test Group Two Securities. These changes will adjust Price to Comply Orders, Non- Displayed Orders, and Post-Only Orders entered through OUCH and FLITE when the Order has been ranked at a midpoint of the NBBO that then becomes impermissible due to changes in the NBBO. Price To Comply Orders Currently, Rule 4770(d)(2) states that a Price to Comply Order in a Test Group Pilot Security will operate as described in Rule 4702(b)(1) except as provided under this paragraph. If a Price to Comply Order for a Test Group Three Pilot Security is partially executed upon entry and the remainder would lock a Protected Quotation of another market center, the unexecuted portion of the Order will be cancelled. If the Order is not executable against any previously posted orders on the Nasdaq Book, and the limit price of a buy (sell) Price to Comply Order in a Test Group Three Pilot Security would lock or cross a Protected Quotation of another market center, the Order will display at one minimum price increment below (above) the Protected Quotation, and the Order will be ranked on the Nasdaq Book at the current midpoint of the NBBO. Nasdaq proposes to augment this provision to clarify the behavior of Price to Comply Orders entered through the OUCH or FLITE protocols in Test Group Three Pilot Securities that lock or cross a Protected Quotation. Specifically, a Price to Comply Order in a Test Group Three Pilot Security entered through OUCH or FLITE may be adjusted in the following manner after initial entry and posting to the Nasdaq Book. If entered at a price that locked a Protected Quotation, and if the NBBO changes such that its price will no longer lock a Protected Quotation, the Price to Comply Order will be adjusted to rank and display at its original entered limit price.\10\ --------------------------------------------------------------------------- \10\ Nasdaq notes that a Price to Comply Order will always be adjusted in this scenario, regardless of its port setting. --------------------------------------------------------------------------- If entered at a price that crossed a Protected Quotation, and if the NBBO changes such that it can be ranked at the price of the Protected Quotation it crossed, the Price to Comply Order, based on the participant's choice, may either be (i) cancelled or (ii) adjusted to rank at the price of the Protected Quotation it crossed upon entry with its displayed price remaining unchanged. If, after being posted on the Nasdaq Book, the non-displayed price of a Price to Comply Order becomes locked or crossed by a Protected Quotation due to a change in the NBBO, or if the Price to Comply Order is at an impermissible price under Regulation NMS or the Plan and it cannot otherwise be adjusted as above, the Price to Comply Order will be cancelled.\11\ --------------------------------------------------------------------------- \11\ For example, if the National Best Bid is $10.00 and the National Best Offer is $10.10, and a Price to Comply Order to buy at $10.15 is entered, the Price to Comply Order will be displayed at $10.05 and ranked at $10.075. If the National Best Offer then changes to $10.15, the Price to Comply Order will be adjusted to rank at $10.10, and will remain displayed at $10.05. If the National Best Offer subsequently changes to $10.10, the Price to Comply Order will be cancelled. Nasdaq notes that a Price to Comply Order, Non-Displayed Order, or Post-Only Order entered through OUCH or FLITE in either a Control Group Security, a Test Group One Pilot Security or a Test Group Two Pilot Security would only cancel if the resting order is crossed (not locked) by a Protected Quotation due to a change in the NBBO. --------------------------------------------------------------------------- Non-Displayed Orders Currently, Rule 4770(d)(3) states that a Non-Displayed Order in a Test Group Pilot Security will operate as described in Rule 4702(b)(3) except as provided under this paragraph. A resting Non-Displayed Order in a Test Group Three Pilot security cannot execute at the price of a Protected Quotation of another market center unless the [[Page 95245]] incoming Order otherwise qualifies for an exception to the Trade-at prohibition provided under Rule 4770(c)(3)(D). If the limit price of a buy (sell) Non-Displayed Order in a Test Group Three Pilot Security would lock or cross a Protected Quotation of another market center, the Order will be ranked on the Nasdaq Book at either one minimum price increment below (above) the National Best Offer (National Best Bid) or at the midpoint of the NBBO, whichever is higher (lower). For a Non- Displayed Order in a Test Group Three Pilot Security entered through RASH, QIX, or FIX, if after being posted to the Nasdaq Book, the NBBO changes so that the Non-Displayed Order would no longer be executable at its posted price due to the requirements of Regulation NMS or the Plan, the Non-Displayed Order will be repriced to a price that is at either one minimum price increment below (above) the National Best Offer (National Best Bid) or at the midpoint of the NBBO, whichever is higher (lower) and will receive a new timestamp.\12\ For a Non- Displayed Order in a Test Group Three Pilot Security entered through OUCH or FLITE, if after such a Non-Displayed Order is posted to the Nasdaq Book, the NBBO changes so that the Non-Displayed Order would no longer be executable at its posted price due to the requirements of Regulation NMS or the Plan, the Non-Displayed Order will be cancelled back to the Participant. --------------------------------------------------------------------------- \12\ As part of this proposal, Nasdaq also proposes to clarify the operation of this provision so that it is structurally consistent with provisions in the descriptions of Price to Comply and Post-Only Orders. Specifically, Nasdaq will amend this language to provide that, if a resting Non-Displayed Order in a Test Group Three Pilot Security entered through RASH, QIX, or FIX becomes locked or crossed by a Protected Quotation due to a change in the NBBO, or if the Non-Displayed Order is at an impermissible price under Regulation NMS or the Plan, the Non-Displayed Order will be repriced to a price that is at either one minimum price increment below (above) the National Best Offer (National Best Bid) or at the midpoint of the NBBO, whichever is higher (lower) and will receive a new timestamp. --------------------------------------------------------------------------- Nasdaq proposes to amend this provision to clarify the behavior of Non-Displayed Orders entered through the OUCH or FLITE protocols in Test Group Three Pilot Securities that lock or cross a Protected Quotation. Specifically, a Non-Displayed Order in a Test Group Three Pilot Security entered through OUCH or FLITE may be adjusted in the following manner after initial entry and posting to the Nasdaq Book. If entered at a price that locked a Protected Quotation, and if the NBBO changes such that its price would no longer lock a Protected Quotation, the Non-Displayed Order will be adjusted to rank at its original entered limit price.\13\ --------------------------------------------------------------------------- \13\ Nasdaq notes that a Non-Displayed Order will always be adjusted in this scenario, regardless of its port setting. --------------------------------------------------------------------------- If entered at a price that crossed a Protected Quotation, and if the NBBO changes such that it can be ranked at the price of the Protected Quotation it crossed, the Order, based on the Participant's choice, may either be (i) cancelled or (ii) adjusted to rank at the price of the Protected Quotation it crossed.\14\ --------------------------------------------------------------------------- \14\ For example, if the National Best Bid is $10.00 and the National Best Offer is $10.10, and a Non-Displayed Order to buy at $10.15 is entered, the Non-Displayed Order will be ranked at $10.05. If the National Best Offer then changes to $10.15, the Non-Displayed Order may either be adjusted to rank at $10.10, or may be cancelled back to the Participant. --------------------------------------------------------------------------- If entered at a price that locked or crossed a Protected Quotation, and if the NBBO changes such that it cannot be ranked at the price of the Protected Quotation it locked or crossed but can be ranked closer to its original limit price, the Non-Displayed Order will be adjusted to the new midpoint of the NBBO.\15\ --------------------------------------------------------------------------- \15\ For example, if the National Best Bid is $10.00 and the National Best Offer is $10.10, and a Non-Displayed Order to buy at $10.10 is entered, the Non-Displayed Order will be ranked at $10.05. If the National Best Bid then changes to $10.05, the price of the Non-Displayed Order will be adjusted to $10.075. Nasdaq notes that a Non-Displayed Order entered through OUCH or FLITE in either a Control Group Security, a Test Group One Pilot Security or a Test Group Two Pilot Security would be ranked at the locking price upon entry. --------------------------------------------------------------------------- If, after being posted on the Nasdaq Book, the Non-Displayed Order becomes locked or crossed by a Protected Quotation due to a change in the NBBO, or if the Non-Displayed Order is at an impermissible price under Regulation NMS or the Plan and it cannot otherwise be adjusted as above, the Non-Displayed Order will be cancelled.\16\ --------------------------------------------------------------------------- \16\ For example, if the National Best Bid is $10.00 and the National Best Offer is $10.10, and a Non-Displayed Order to buy at $10.10 is entered, the Non-Displayed Order will be ranked at $10.05. If the National Best Offer then changes to $10.05, the Non-Displayed Order will be cancelled back to the Participant. --------------------------------------------------------------------------- Post-Only Orders Currently, Rule 4770(d)(4) states that a Post-Only Order in a Test Group Pilot Security will operate as described in Rule 4702(b)(4) except as provided under this paragraph. For orders that are not attributable, if the limit price of a buy (sell) Post-Only Order in a Test Group Three Pilot Security would lock or cross a Protected Quotation of another market center, the Order will display at one minimum price increment below (above) the Protected Quotation, and the Order will be ranked on the Nasdaq Book at the current midpoint of the NBBO. Nasdaq proposes to augment this provision to clarify the behavior of Post-Only Orders entered through the OUCH or FLITE protocols in Test Group Three Pilot Securities that lock or cross a Protected Quotation. Specifically, a Non-Attributable Post-Only Order in a Test Group Three Pilot Security entered through OUCH or FLITE may be adjusted in the following manner after initial entry and posting to the Nasdaq Book. If entered at a price that locked a Protected Quotation, and if the NBBO changes such that its price will no longer lock a Protected Quotation, the Post-Only Order will be adjusted to rank and display at its original entered limit price.\17\ --------------------------------------------------------------------------- \17\ Nasdaq notes that a Post-Only Order will always be adjusted in this scenario, regardless of its port setting. --------------------------------------------------------------------------- If entered at a price that crossed a Protected Quotation, and if the NBBO changes such that it can be ranked at the price of the Protected Quotation it crossed, the Post-Only Order, based on the Participant's choice, may either be (i) cancelled or (ii) adjusted to rank at the price of the Protected Quotation it crossed upon entry with its displayed price remaining unchanged. If, after being posted on the Nasdaq Book, the non-displayed price of a resting Post-Only Order becomes locked or crossed by a Protected Quotation due to a change in the NBBO, or if the Post-Only Order is at an impermissible price under Regulation NMS or the Plan and it cannot otherwise be adjusted as above, the Post-Only Order will be cancelled. Commentary .14 In removing the current re-pricing functionality, Commentary .014 [sic], which addresses the behavior of 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 Pilot Securities, is no longer necessary.\18\ The [[Page 95246]] Exchange therefore proposes to delete this Commentary from the Rule. --------------------------------------------------------------------------- \18\ Under Commentary .14, 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 is 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. --------------------------------------------------------------------------- Finally, Nasdaq proposes to add language to Rule 4770(d)(1) to clarify the treatment of orders in a Test Group Three Security entered through the RASH, QIX or FIX protocols. Specifically, subject to the provisions set forth in the remainder of Rule 4770(d), if the entered limit price of an Order in a Test Group Three Pilot Security, entered through RASH, QIX, or FIX, locked or crossed a Protected Quotation and the NBBO changes so that the Order can be ranked closer to its original entered limit price, the price of the Order will be adjusted repeatedly in accordance with changes to the NBBO. Nasdaq is proposing to make this change to clarify the current treatment of orders in Test Group Three Pilot Securities entered through RASH, QIX or FIX. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\19\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\20\ 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. --------------------------------------------------------------------------- \19\ 15 U.S.C. 78f(b). \20\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed rule change is consistent with the Act because it clarifies the changes the Exchange is making to the handling of certain Order Types necessary to implement the requirements of the Plan on its System and, in the case of the changes of Rule 4770(d)(1), to clarify the current treatment of orders in Test Group Three Pilot Securities entered through RASH, QIX or FIX. As a result of removing the current re-pricing functionality that applies to certain Order Types in Test Group Three Securities entered through the OUCH and FLITE protocols, and due to the different functionality of the OUCH and FLITE protocols in comparison to the other applicable Nasdaq protocols, these Order Types will behave differently than is currently set forth in Rule 4770 when entered through the OUCH or FLITE protocols in certain instances. As noted above, these changes will adjust Price to Comply Orders, Non-Displayed Orders, and Post-Only Orders entered through OUCH and FLITE when the Order has been ranked at a midpoint of the NBBO that then becomes impermissible due to changes in the NBBO. These changes also will adjust Price to Comply Orders, Non-Displayed Orders, and Post-Only Orders entered through OUCH and FLITE in scenarios where the subsequent movement of the NBBO implicates the Trade-at prohibition with respect to the resting order. By clarifying the behavior of certain Order Types in Test Group Three Pilot Securities entered through the OUCH or FLITE protocols, the proposal will help allow market participants to continue to trade NMS Stocks, within quoting and trading requirements that are in compliance with the Plan, with certainty on how certain orders and trading interests would be treated. This, in turn, will help encourage market participants to continue to provide liquidity in the marketplace. More generally, Nasdaq also notes that the Plan, which was approved by the Commission pursuant to an order issued by the Commission in reliance on Section 11A of the Act,\21\ provides the Exchange authority to establish, maintain, and enforce written policies and procedures that are reasonably designed to comply with applicable quoting and trading requirements specified in the Plan. The Exchange believes that the proposed rule change is consistent with the authority granted to it by the Plan to establish specifications and procedures for the implementation and operation of the Plan that are consistent with the provisions of the Plan. Likewise, the Exchange believes that the proposed rule change provides interpretations of the Plan that are consistent with the Act, in general, and furthers the objectives of the Act, in particular. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78k-1. --------------------------------------------------------------------------- Finally, Nasdaq believes that the proposal is consistent with the Act because the proposed functionality will more closely align the handling of Price to Comply Orders, Non-Displayed Orders, and Post-Only Orders that are entered through the OUCH or FLITE protocols for Test Group Three Pilot Securities with the handling of such Orders entered through the OUCH or FLITE protocols for Control Group, Test Group One and Test Group Two Securities than the current functionality in place for these Orders. 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 proposed changes are being made to establish, maintain, and enforce written policies and procedures that are reasonably designed to comply with the trading and quoting requirements specified in the Plan, of which other equities exchanges are also Participants. Other competing national securities exchanges are subject to the same trading and quoting requirements specified in the Plan, and must take the same steps that the Exchange has to conform its existing rules to the requirements of the Plan. Therefore, the proposed changes would not impose any burden on competition, while providing certainty of treatment and execution of trading interests on the Exchange to market participants in NMS Stocks that are acting in compliance with the requirements specified in the Plan. 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 \22\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\23\ --------------------------------------------------------------------------- \22\ 15 U.S.C. 78s(b)(3)(A)(iii). \23\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \24\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\25\ the Commission may designate a shorter time if such action is consistent with the [[Page 95247]] protection of investors and the public interest. In this filing, the Exchange has asked that the Commission waive the requirement that the proposed rule change not become operative for 30 days after the date of the filing. --------------------------------------------------------------------------- \24\ Id. \25\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- The Exchange notes the proposed rule is intended to clarify the differences in the handling of certain orders entered into the system by different protocols. The Exchange notes that orders will be treated as consistently as possible across the Test Groups and the Control Group while complying with each grouping's varied quoting and trading requirements. Additionally, the Exchange proposed to remove Commentary .14 because it is no longer necessary. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because the proposal clarifies the Exchange's rules and provides transparency to members with regards to the handling of certain orders entered via OUCH and FLITE as well as RASH, QIX, or FIX protocols for locked or crossed orders in Test Group Three Pilot Securities. The Commission notes that the Exchange proposed to remove the functionality described in Commentary .14 and make the necessary corresponding systems changes in Partial Amendment No. 2 to Nasdaq-2016-126, which the Commission approved.\26\ The Exchange notes that it was able to implement the systems changes and that they became fully operational on the December 14, 2016. Therefore, the Commission hereby waives the 30- day operative delay and designates the proposed rule change to be operative on December 14, 2016.\27\ --------------------------------------------------------------------------- \26\ See supra note 5. \27\ 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-2016-171 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-NASDAQ-2016-171. 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-2016-171 and should be submitted on or before January 17, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\28\ --------------------------------------------------------------------------- \28\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2016-31108 Filed 12-23-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 248 / Tuesday, December 27, 2016 / Notices 95243
rules/sro.shtml). Copies of the notice to solicit comments on the be satisfied. The SEC published the
submission, all subsequent proposed rule change from interested Proposal in the Federal Register for
amendments, all written statements persons. notice and comment on September 20,
with respect to the proposed rule 2016.4 Nasdaq subsequently filed three
I. Self-Regulatory Organization’s
change that are filed with the Partial Amendments to clarify aspects of
Statement of the Terms of Substance of
Commission, and all written the Proposal. The Commission approved
the Proposed Rule Change
communications relating to the the Proposal, as amended, on October 7,
proposed rule change between the The Exchange proposes to amend 2016.5
Commission and any person, other than Rule 4770 (Compliance with Regulation In SR–NASDAQ–2016–126, Nasdaq
those that may be withheld from the NMS Plan to Implement a Tick Size had initially proposed a re-pricing
public in accordance with the Pilot) relating to the handling to certain functionality for Price to Comply
provisions of 5 U.S.C. 552, will be Order Types in Test Group Three Pilot Orders, Non-Displayed Orders, and
available for Web site viewing and Securities in connection with the Post-Only Orders entered through the
printing in the Commission’s Public Regulation NMS Plan to Implement a OUCH and FLITE protocols in Test
Reference Room, 100 F Street NE., Tick Size Pilot Program (‘‘Plan’’ or Group Three Pilot securities.6 Nasdaq
Washington, DC 20549, on official ‘‘Pilot’’).3 Relatedly, Nasdaq also subsequently determined that it would
business days between the hours of proposes to delete Commentary .14, not offer this re-pricing functionality for
10:00 a.m. and 3:00 p.m. Copies of the which addresses the current handling of Price to Comply Orders, Non-Displayed
filing also will be available for those Order Types. Finally, Nasdaq Orders, and Post-Only Orders entered
inspection and copying at the principal proposes to add language to Rule through the OUCH and FLITE protocols
office of the Exchange. All comments 4770(d)(1) to clarify the treatment of in Test Group Three Pilot securities. As
received will be posted without change; orders in a Test Group Three Security part of Partial Amendment No. 2 to SR–
the Commission does not edit personal entered through the RASH, QIX or FIX NASDAQ–2016–126, Nasdaq proposed
identifying information from protocols. to delete the relevant language from
submissions. You should submit only The text of the proposed rule change Rule 4770 related to this re-pricing
information that you wish to make is available on the Exchange’s Web site functionality.
available publicly. All submissions at http://nasdaq.cchwallstreet.com, at In that amendment, Nasdaq noted that
should refer to File Number SR–BX– the principal office of the Exchange, and this change would only impact the
2016–072 and should be submitted on at the Commission’s Public Reference treatment of Price to Comply Orders,
or before January 17, 2017. Room. Non-Displayed Orders, and Post-Only
For the Commission, by the Division of II. Self-Regulatory Organization’s orders that are submitted through the
Trading and Markets, pursuant to delegated Statement of the Purpose of, and OUCH and FLITE protocols in Test
authority.12 Statutory Basis for, the Proposed Rule Group Three Pilot Securities, as these
Eduardo A. Aleman, Change types of Orders that are currently
Assistant Secretary. submitted to Nasdaq through the RASH,
In its filing with the Commission, the QIX or FIX protocols are already subject
[FR Doc. 2016–31101 Filed 12–23–16; 8:45 am]
Exchange included statements to this re-pricing functionality and will
BILLING CODE 8011–01–P concerning the purpose of and basis for remain subject to this functionality
the proposed rule change and discussed under the Pilot.
any comments it received on the In the Amendment, Nasdaq further
SECURITIES AND EXCHANGE
proposed rule change. The text of these noted that its systems are currently
COMMISSION
statements may be examined at the programmed so that Price to Comply
[Release No. 34–79616; File No. SR– places specified in Item IV below. The Orders, Non-Displayed Orders and Post-
NASDAQ–2016–171] Exchange has prepared summaries, set Only Orders entered through the OUCH
forth in sections A, B, and C below, of and FLITE protocols in Test Group
Self-Regulatory Organizations; The the most significant aspects of such
NASDAQ Stock Market LLC; Notice of Three Pilot Securities may be adjusted
statements. repeatedly to reflect changes to the
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule A. Self-Regulatory Organization’s NBBO and/or the best price on the
4770 (Compliance With Regulation Statement of the Purpose of, and
4 See Securities Exchange Act Release No. 78837
NMS Plan To Implement a Tick Size Statutory Basis for, the Proposed Rule
(September 14, 2016), 81 FR 64544 (September 20,
Pilot) Change 2016) (Notice of filing of SR–NASDAQ–2016–126).
5 See Securities Exchange Act Release No. 79075
December 20, 2016. 1. Purpose
(October 7, 2016) (Order approving SR–NASDAQ–
Pursuant to Section 19(b)(1) of the On September 7, 2016, The Nasdaq 2016–126).
Securities Exchange Act of 1934 Stock Market LLC (‘‘Nasdaq’’ or 6 As originally proposed, Rule 4770(d)(2) stated
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 ‘‘Exchange’’) filed with the Securities that Price to Comply Orders in a Test Group Three
notice is hereby given that on December Pilot Security will be adjusted repeatedly in
and Exchange Commission (‘‘SEC’’ or accordance with changes to the NBBO until such
13, 2016, The NASDAQ Stock Market ‘‘Commission’’) a proposed rule change time as the Price to Comply Order is able to be
LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed (‘‘Proposal’’) to adopt paragraph (d) and ranked and displayed at its original entered limit
with the Securities and Exchange Commentary .12 to Exchange Rule 4770 price. Rule 4770(d)(3) stated that, if market
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Commission (‘‘SEC’’ or ‘‘Commission’’) conditions allow, a Non-Displayed Order in a Test
to describe changes to system Group Three Pilot Security will be adjusted
the proposed rule change as described functionality necessary to implement repeatedly in accordance with changes to the NBBO
in Items I and II below, which Items the Plan. The Exchange also proposed up (down) to the Order’s limit price. Rule
have been prepared by the Exchange. amendments to Rule 4770(a) and (c) to 4770(d)(4) stated that, if market conditions allow,
The Commission is publishing this the Post-Only Order in a Test Group Three Pilot
clarify how the Trade-at exception may Security will be adjusted repeatedly in accordance
with changes to the NBBO or the best price on the
12 17 CFR 200.30–3(a)(12). 3 See Securities Exchange Act Release No. 74892 Nasdaq Book, as applicable until such time as the
1 15 U.S.C. 78s(b)(1). (May 6, 2015), 80 FR 27513 (May 13, 2015) Post-Only Order is able to be ranked and displayed
2 17 CFR 240.19b–4. (‘‘Approval Order’’). at its original entered limit price.
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![Federal Register / Vol. 81, No. 248 / Tuesday, December 27, 2016 / Notices 95245
incoming Order otherwise qualifies for Non-Displayed Order will be adjusted to increment below (above) the Protected
an exception to the Trade-at prohibition rank at its original entered limit price.13 Quotation, and the Order will be ranked
provided under Rule 4770(c)(3)(D). If If entered at a price that crossed a on the Nasdaq Book at the current
the limit price of a buy (sell) Non- Protected Quotation, and if the NBBO midpoint of the NBBO.
Displayed Order in a Test Group Three changes such that it can be ranked at the Nasdaq proposes to augment this
Pilot Security would lock or cross a price of the Protected Quotation it provision to clarify the behavior of Post-
Protected Quotation of another market crossed, the Order, based on the Only Orders entered through the OUCH
center, the Order will be ranked on the Participant’s choice, may either be (i) or FLITE protocols in Test Group Three
Nasdaq Book at either one minimum cancelled or (ii) adjusted to rank at the Pilot Securities that lock or cross a
price increment below (above) the price of the Protected Quotation it Protected Quotation. Specifically, a
National Best Offer (National Best Bid) crossed.14 Non-Attributable Post-Only Order in a
or at the midpoint of the NBBO, If entered at a price that locked or Test Group Three Pilot Security entered
whichever is higher (lower). For a Non- crossed a Protected Quotation, and if the through OUCH or FLITE may be
NBBO changes such that it cannot be adjusted in the following manner after
Displayed Order in a Test Group Three
ranked at the price of the Protected initial entry and posting to the Nasdaq
Pilot Security entered through RASH,
Quotation it locked or crossed but can Book.
QIX, or FIX, if after being posted to the If entered at a price that locked a
Nasdaq Book, the NBBO changes so that be ranked closer to its original limit
price, the Non-Displayed Order will be Protected Quotation, and if the NBBO
the Non-Displayed Order would no changes such that its price will no
adjusted to the new midpoint of the
longer be executable at its posted price longer lock a Protected Quotation, the
NBBO.15
due to the requirements of Regulation Post-Only Order will be adjusted to rank
If, after being posted on the Nasdaq
NMS or the Plan, the Non-Displayed Book, the Non-Displayed Order becomes and display at its original entered limit
Order will be repriced to a price that is locked or crossed by a Protected price.17
at either one minimum price increment Quotation due to a change in the NBBO, If entered at a price that crossed a
below (above) the National Best Offer or if the Non-Displayed Order is at an Protected Quotation, and if the NBBO
(National Best Bid) or at the midpoint of impermissible price under Regulation changes such that it can be ranked at the
the NBBO, whichever is higher (lower) NMS or the Plan and it cannot price of the Protected Quotation it
and will receive a new timestamp.12 For otherwise be adjusted as above, the crossed, the Post-Only Order, based on
a Non-Displayed Order in a Test Group Non-Displayed Order will be the Participant’s choice, may either be
Three Pilot Security entered through cancelled.16 (i) cancelled or (ii) adjusted to rank at
OUCH or FLITE, if after such a Non- the price of the Protected Quotation it
Displayed Order is posted to the Nasdaq Post-Only Orders crossed upon entry with its displayed
Book, the NBBO changes so that the Currently, Rule 4770(d)(4) states that price remaining unchanged.
Non-Displayed Order would no longer a Post-Only Order in a Test Group Pilot If, after being posted on the Nasdaq
be executable at its posted price due to Security will operate as described in Book, the non-displayed price of a
the requirements of Regulation NMS or Rule 4702(b)(4) except as provided resting Post-Only Order becomes locked
the Plan, the Non-Displayed Order will under this paragraph. For orders that are or crossed by a Protected Quotation due
be cancelled back to the Participant. not attributable, if the limit price of a to a change in the NBBO, or if the Post-
Nasdaq proposes to amend this buy (sell) Post-Only Order in a Test Only Order is at an impermissible price
Group Three Pilot Security would lock under Regulation NMS or the Plan and
provision to clarify the behavior of Non-
or cross a Protected Quotation of it cannot otherwise be adjusted as
Displayed Orders entered through the
another market center, the Order will above, the Post-Only Order will be
OUCH or FLITE protocols in Test Group
display at one minimum price cancelled.
Three Pilot Securities that lock or cross
a Protected Quotation. Specifically, a Commentary .14
13 Nasdaq notes that a Non-Displayed Order will
Non-Displayed Order in a Test Group In removing the current re-pricing
always be adjusted in this scenario, regardless of its
Three Pilot Security entered through port setting. functionality, Commentary .014 [sic],
OUCH or FLITE may be adjusted in the 14 For example, if the National Best Bid is $10.00
which addresses the behavior of current
following manner after initial entry and and the National Best Offer is $10.10, and a Non- treatment of Price to Comply Orders,
posting to the Nasdaq Book. Displayed Order to buy at $10.15 is entered, the
Non-Displayed Order will be ranked at $10.05. If Price to Display Orders, Non-Displayed
If entered at a price that locked a the National Best Offer then changes to $10.15, the Orders, and Post-Only Orders that are
Protected Quotation, and if the NBBO Non-Displayed Order may either be adjusted to rank entered through the OUCH or FLITE
at $10.10, or may be cancelled back to the protocols in Test Group Three Pilot
changes such that its price would no Participant.
longer lock a Protected Quotation, the 15 For example, if the National Best Bid is $10.00 Securities, is no longer necessary.18 The
and the National Best Offer is $10.10, and a Non-
17 Nasdaq notes that a Post-Only Order will
12 As part of this proposal, Nasdaq also proposes Displayed Order to buy at $10.10 is entered, the
to clarify the operation of this provision so that it Non-Displayed Order will be ranked at $10.05. If always be adjusted in this scenario, regardless of its
is structurally consistent with provisions in the the National Best Bid then changes to $10.05, the port setting.
descriptions of Price to Comply and Post-Only price of the Non-Displayed Order will be adjusted 18 Under Commentary .14, the current treatment
Orders. Specifically, Nasdaq will amend this to $10.075. of Price to Comply Orders, Price to Display Orders,
language to provide that, if a resting Non-Displayed Nasdaq notes that a Non-Displayed Order entered Non-Displayed Orders, and Post-Only Orders that
through OUCH or FLITE in either a Control Group are entered through the OUCH or FLITE protocols
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Order in a Test Group Three Pilot Security entered
through RASH, QIX, or FIX becomes locked or Security, a Test Group One Pilot Security or a Test in Test Group Three securities is as follows:
crossed by a Protected Quotation due to a change Group Two Pilot Security would be ranked at the Following entry, and if market conditions allow,
in the NBBO, or if the Non-Displayed Order is at locking price upon entry. a Price to Comply Order in a Test Group Three Pilot
an impermissible price under Regulation NMS or 16 For example, if the National Best Bid is $10.00 Security will be adjusted repeatedly in accordance
the Plan, the Non-Displayed Order will be repriced and the National Best Offer is $10.10, and a Non- with changes to the NBBO until such time as the
to a price that is at either one minimum price Displayed Order to buy at $10.10 is entered, the Price to Comply Order is able to be ranked and
increment below (above) the National Best Offer Non-Displayed Order will be ranked at $10.05. If displayed at its original entered limit price.
(National Best Bid) or at the midpoint of the NBBO, the National Best Offer then changes to $10.05, the Following entry, and if market conditions allow,
whichever is higher (lower) and will receive a new Non-Displayed Order will be cancelled back to the a Price to Display Order in a Test Group Three Pilot
timestamp. Participant. Continued
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![Federal Register / Vol. 81, No. 248 / Tuesday, December 27, 2016 / Notices 95247
protection of investors and the public including whether the proposed rule SECURITIES AND EXCHANGE
interest. In this filing, the Exchange has change is consistent with the Act. COMMISSION
asked that the Commission waive the Comments may be submitted by any of
requirement that the proposed rule the following methods: [Release No. 34–79620; File No. SR–FINRA–
change not become operative for 30 days 2016–046]
Electronic Comments
after the date of the filing. Self-Regulatory Organizations;
The Exchange notes the proposed rule • Use the Commission’s Internet Financial Industry Regulatory
is intended to clarify the differences in comment form (http://www.sec.gov/ Authority, Inc.; Notice of Filing and
the handling of certain orders entered rules/sro.shtml); or
into the system by different protocols. Immediate Effectiveness of a Proposed
The Exchange notes that orders will be • Send an email to rule-comments@ Rule Change Relating to Reporting
treated as consistently as possible across sec.gov. Please include File Number SR– Transactions in U.S. Treasury
the Test Groups and the Control Group NASDAQ–2016–171 on the subject line. Securities to the Trade Reporting and
while complying with each grouping’s Compliance Engine
Paper Comments
varied quoting and trading December 20, 2016.
requirements. Additionally, the • Send paper comments in triplicate Pursuant to Section 19(b)(1) of the
Exchange proposed to remove to Brent J. Fields, Secretary, Securities Securities Exchange Act of 1934
Commentary .14 because it is no longer and Exchange Commission, 100 F Street (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
necessary. NE., Washington, DC 20549–1090. notice is hereby given that on December
The Commission believes that 14, 2016, Financial Industry Regulatory
waiving the 30-day operative delay is All submissions should refer to File
Number SR–NASDAQ–2016–171. This Authority, Inc. (‘‘FINRA’’) filed with the
consistent with the protection of Securities and Exchange Commission
investors and the public interest file number should be included on the
subject line if email is used. To help the (‘‘Commission’’) the proposed rule
because the proposal clarifies the
Commission process and review your change as described in Items I and II
Exchange’s rules and provides
comments more efficiently, please use below, which Items have been prepared
transparency to members with regards
only one method. The Commission will by FINRA. The Commission is
to the handling of certain orders entered
post all comments on the Commission’s publishing this notice to solicit
via OUCH and FLITE as well as RASH,
Internet Web site (http://www.sec.gov/ comments on the proposed rule change
QIX, or FIX protocols for locked or
rules/sro.shtml). from interested persons.
crossed orders in Test Group Three Pilot
Securities. The Commission notes that Copies of the submission, all I. Self-Regulatory Organization’s
the Exchange proposed to remove the subsequent amendments, all written Statement of the Terms of Substance of
functionality described in Commentary statements with respect to the proposed the Proposed Rule Change
.14 and make the necessary rule change that are filed with the FINRA is proposing to amend FINRA
corresponding systems changes in Commission, and all written Rule 6710 to clarify the definitions of
Partial Amendment No. 2 to Nasdaq– communications relating to the ‘‘Auction Transaction’’ and ‘‘When-
2016–126, which the Commission proposed rule change between the Issued Transaction’’ for the purposes of
approved.26 The Exchange notes that it Commission and any person, other than reporting transactions in U.S. Treasury
was able to implement the systems those that may be withheld from the Securities to the Trade Reporting and
changes and that they became fully public in accordance with the Compliance Engine (‘‘TRACE’’).
operational on the December 14, 2016. provisions of 5 U.S.C. 552, will be Below is the text of the proposed rule
Therefore, the Commission hereby available for Web site viewing and
waives the 30-day operative delay and change. Proposed new language is in
printing in the Commission’s Public italics; proposed deletions are in
designates the proposed rule change to Reference Room, 100 F Street NE.,
be operative on December 14, 2016.27 brackets.
Washington, DC 20549, on official
At any time within 60 days of the business days between the hours of * * * * *
filing of the proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of the 6000. QUOTATION AND
Commission summarily may filing also will be available for TRANSACTION REPORTING
temporarily suspend such rule change if inspection and copying at the principal FACILITIES
it appears to the Commission that such office of the Exchange. All comments
action is: (i) Necessary or appropriate in * * * * *
received will be posted without change;
the public interest; (ii) for the protection the Commission does not edit personal 6700. TRADE REPORTING AND
of investors; or (iii) otherwise in identifying information from COMPLIANCE ENGINE (TRACE)
furtherance of the purposes of the Act. submissions. You should submit only
If the Commission takes such action, the 6710. Definitions
information that you wish to make
Commission shall institute proceedings available publicly. All submissions The terms used in this Rule 6700
to determine whether the proposed rule should refer to File Number SR– Series shall have the same meaning as
should be approved or disapproved. NASDAQ–2016–171 and should be those defined in the FINRA By-Laws
IV. Solicitation of Comments submitted on or before January 17, 2017. and rules unless otherwise specified.
For the purposes of this Rule 6700
Interested persons are invited to For the Commission, by the Division of
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Trading and Markets, pursuant to delegated
Series, the following terms have the
submit written data, views, and following meaning:
authority.28
arguments concerning the foregoing, (a) through (ee) No Change.
Eduardo A. Aleman,
(ff) ‘‘Collateralized Debt Obligation’’
26 See supra note 5. Assistant Secretary.
27 For
(‘‘CDO’’) means a type of Securitized
purposes only of waiving the operative [FR Doc. 2016–31108 Filed 12–23–16; 8:45 am]
delay for this proposal, the Commission has
Product backed by fixed-income assets
BILLING CODE 8011–01–P
considered the proposed rule’s impact on
1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 28 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
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Document Created: 2018-02-14 09:13:34
Document Modified: 2018-02-14 09:13:34
| 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 95243 |
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