81 FR 95703 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 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 249 (December 28, 2016)

Page Range		95703-95704
FR Document		2016-31303
Federal Register, Volume 81 Issue 249 (Wednesday, December 28, 2016)
[Federal Register Volume 81, Number 249 (Wednesday, December 28, 2016)]
[Notices]
[Pages 95703-95704]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-31303]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79641; File No. SR-NASDAQ-2016-179]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Delay the Implementation of the Limit Order Protection

December 21, 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 20, 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, 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 Nasdaq 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 the Nasdaq Market

[[Page 95704]]

Center, at Rule 4757(c).\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-NASDAQ-2016-067). See also 
Securities Exchange Act Release No. 79330 (November 16, 2016), 81 FR 
83892 (November 22, 2016) (SR-NASDAQ-2016-155).
    \4\ See Securities Exchange Act Release No. 78246 (August 24, 
2016), 81 FR 59672 (August 30, 2016) (SR-NASDAQ-2016-067) (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 45333.
    \6\ See Securities Exchange Act Release No. 79330 (November 16, 
2016), 81 FR 83892 (November 22, 2016) (SR-NASDAQ-2016-155) (Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend the Limit Order Protection for Members Accessing the Nasdaq 
Market Center).
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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 Nasdaq 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-NASDAQ-2016-179 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-2016-179. 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-2016-179 and should 
be submitted on or before January 18, 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. 2016-31303 Filed 12-27-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices 95703

C. Self-Regulatory Organization’s Electronic Comments SECURITIES AND EXCHANGE
Statement on Comments on the COMMISSION
Proposed Rule Change Received From • Use the Commission’s Internet
Members, Participants, or Others comment form (http://www.sec.gov/
[Release No. 34–79641; File No. SR–
rules/sro.shtml); or NASDAQ–2016–179]
No written comments were solicited
• Send an email to rule-comments@
or received with respect to the proposed Self-Regulatory Organizations; The
sec.gov. Please include File Number SR–
rule change. NASDAQ Stock Market LLC; Notice of
NYSEMKT–2016–117 on the subject
III. Date of Effectiveness of the line. Filing and Immediate Effectiveness of
Proposed Rule Change and Timing for Proposed Rule Change To Delay the
Commission Action Paper Comments Implementation of the Limit Order
Protection
The Exchange has filed the proposed • Send paper comments in triplicate
rule change pursuant to Section to Brent J. Fields, Secretary, Securities December 21, 2016.
19(b)(3)(A)(iii) of the Act 17 and Rule and Exchange Commission, 100 F Street Pursuant to Section 19(b)(1) of the
19b–4(f)(6) thereunder.18 Because the NE., Washington, DC 20549–1090. Securities Exchange Act of 1934
proposed rule change does not: (i) All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Significantly affect the protection of Number SR–NYSEMKT–2016–117. This notice is hereby given that on December
investors or the public interest; (ii) file number should be included on the 20, 2016, The NASDAQ Stock Market
impose any significant burden on LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
subject line if email is used. To help the
competition; and (iii) become operative with the Securities and Exchange
Commission process and review your
prior to 30 days from the date on which Commission (‘‘SEC’’ or ‘‘Commission’’)
it was filed, or such shorter time as the comments more efficiently, please use the proposed rule change as described
Commission may designate, if only one method. The Commission will in Items I, II, and III, below, which Items
consistent with the protection of post all comments on the Commission’s have been prepared by the Exchange.
investors and the public interest, the Internet Web site (http://www.sec.gov/ The Commission is publishing this
proposed rule change has become rules/sro.shtml). Copies of the notice to solicit comments on the
effective pursuant to Section 19(b)(3)(A) submission, all subsequent proposed rule change from interested
of the Act and Rule 19b–4(f)(6)(iii) amendments, all written statements persons.
thereunder. with respect to the proposed rule
change that are filed with the I. Self-Regulatory Organization’s
A proposed rule change filed under Statement of the Terms of Substance of
Rule 19b–4(f)(6) 19 normally does not Commission, and all written
the Proposed Rule Change
become operative prior to 30 days after communications relating to the
the date of the filing. However, pursuant proposed rule change between the The Exchange proposes to delay the
to Rule 19b4(f)(6)(iii),20 the Commission Commission and any person, other than implementation of the Limit Order
may designate a shorter time if such those that may be withheld from the Protection or ‘‘LOP’’ for members
action is consistent with the protection public in accordance with the accessing the Nasdaq Market Center.
of investors and the public interest. provisions of 5 U.S.C. 552, will be II. Self-Regulatory Organization’s
At any time within 60 days of the available for Web site viewing and Statement of the Purpose of, and
filing of such proposed rule change, the printing in the Commission’s Public Statutory Basis for, the Proposed Rule
Commission summarily may Reference Room, 100 F Street, NE., Change
temporarily suspend such rule change if Washington, DC 20549 on official
In its filing with the Commission, the
it appears to the Commission that such business days between the hours of
Exchange included statements
action is necessary or appropriate in the 10:00 a.m. and 3:00 p.m. Copies of the
concerning the purpose of and basis for
public interest, for the protection of filing also will be available for
the proposed rule change and discussed
investors, or otherwise in furtherance of inspection and copying at the principal any comments it received on the
the purposes of the Act. If the office of the Exchange. All comments proposed rule change. The text of these
Commission takes such action, the received will be posted without change; statements may be examined at the
Commission shall institute proceedings the Commission does not edit personal places specified in Item IV below. The
under Section 19(b)(2)(B) 21 of the Act to identifying information from Exchange has prepared summaries, set
determine whether the proposed rule submissions. You should submit only forth in sections A, B, and C below, of
change should be approved or information that you wish to make the most significant aspects of such
disapproved. available publicly. All submissions statements.
IV. Solicitation of Comments should refer to File Number SR–
NYSEMKT–2016–117 and should be A. Self-Regulatory Organization’s
Interested persons are invited to Statement of the Purpose of, and
submitted on or before January 18, 2017.
submit written data, views, and Statutory Basis for, the Proposed Rule
For the Commission, by the Division of Change
arguments concerning the foregoing,
Trading and Markets, pursuant to delegated
including whether the proposed rule 1. Purpose
authority.22
change is consistent with the Act.
The purpose of the proposal is to
sradovich on DSK3GMQ082PROD with NOTICES

Comments may be submitted by any of Eduardo A. Aleman,
the following methods: Assistant Secretary. delay the implementation of the
[FR Doc. 2016–31302 Filed 12–27–16; 8:45 am] Exchange’s mechanism to protect
17 15 U.S.C. 78s(b)(3)(A)(iii).
against erroneous Limit Orders, which
BILLING CODE 8011–01–P
18 17 CFR 240.19b–4(f)(6). are entered into the Nasdaq Market
19 17 CFR 240.19b–4(f)(6).
20 17 CFR 240.19b–4(f)(6)(iii). 1 15 U.S.C. 78s(b)(1).
21 15 U.S.C. 78s(b)(2)(B). 22 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00149 Fmt 4703 Sfmt 4703 E:\FR\FM\28DEN1.SGM 28DEN1
95704 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices

Center, at Rule 4757(c).3 The Exchange B. Self-Regulatory Organization’s Electronic Comments
received approval to implement this Statement on Burden on Competition
mechanism on August 24, 2016.4 Within • Use the Commission’s Internet
that rule change, the Exchanges The Exchange does not believe that comment form (http://www.sec.gov/
proposed to implement LOP within the proposed rule change will impose rules/sro.shtml); or
ninety days of the approval of the any burden on competition not • Send an email to rule-comments@
proposal, which was November 22, necessary or appropriate in furtherance sec.gov. Please include File Number SR–
2016.5 The Exchange subsequently filed of the purposes of the Act. The NASDAQ–2016–179 on the subject line.
a modification to the original proposal Exchange’s proposal does not impose
and delayed the implementation an any significant burden on competition Paper Comments
additional sixty (60) days from the because LOP will apply to all Nasdaq
market participants in a uniform • Send paper comments in triplicate
original timeframe in order to
manner once implemented. to Brent J. Fields, Secretary, Securities
implement the LOP, which was January
21, 2017.6 and Exchange Commission, 100 F Street
C. Self-Regulatory Organization’s NE., Washington, DC 20549–1090.
At this time the Exchange proposes to
Statement on Comments on the
delay the implementation from January All submissions should refer to File
Proposed Rule Change Received From
21, 2017 until a date no later than Number SR–NASDAQ–2016–179. This
March 31, 2017 in order to allow Members, Participants, or Others
file number should be included on the
additional time to complete testing. The No written comments were either subject line if email is used. To help the
Exchange will announce the specific solicited or received. Commission process and review your
date in advance through an Equities comments more efficiently, please use
Trader Alert. For more information III. Date of Effectiveness of the
only one method. The Commission will
regarding LOP see the previous LOP Proposed Rule Change and Timing for
post all comments on the Commission’s
rule changes.7 Commission Action
Internet Web site (http://www.sec.gov/
2. Statutory Basis Because the foregoing proposed rule rules/sro.shtml). Copies of the
The Exchange believes that its change does not: (i) Significantly affect submission, all subsequent
proposal is consistent with Section 6(b) the protection of investors or the public amendments, all written statements
of the Act 8 in general, and furthers the interest; (ii) impose any significant with respect to the proposed rule
objectives of Section 6(b)(5) of the Act 9 burden on competition; and (iii) become change that are filed with the
in particular, in that it is designed to operative for 30 days from the date on Commission, and all written
promote just and equitable principles of which it was filed, or such shorter time communications relating to the
trade, to remove impediments to and as the Commission may designate, it has proposed rule change between the
perfect the mechanism of a free and become effective pursuant to Section Commission and any person, other than
open market and a national market 19(b)(3)(A)(iii) of the Act 10 and those that may be withheld from the
system, and, in general to protect subparagraph (f)(6) of Rule 19b–4 public in accordance with the
investors and the public interest, by thereunder.11 provisions of 5 U.S.C. 552, will be
permitting the Exchange additional time At any time within 60 days of the available for Web site viewing and
to implement the LOP in accordance filing of the proposed rule change, the printing in the Commission’s Public
with the Exchange’s processes. The Commission summarily may Reference Room, 100 F Street NE.,
Exchange’s proposal does not temporarily suspend such rule change if Washington, DC 20549, on official
significantly affect the protection of it appears to the Commission that such business days between the hours of
investors or the public interest because action is: (i) Necessary or appropriate in 10:00 a.m. and 3:00 p.m. Copies of the
this proposal does not modify the the public interest; (ii) for the protection filing also will be available for
manner in which LOP operates, only the of investors; or (iii) otherwise in inspection and copying at the principal
implementation date is impacted. The furtherance of the purposes of the Act. office of the Exchange. All comments
Exchange will provide advance notice to If the Commission takes such action, the received will be posted without change;
members with respect to the new date. Commission shall institute proceedings the Commission does not edit personal
to determine whether the proposed rule identifying information from
3 See Securities Exchange Act Release No. 78246
should be approved or disapproved. submissions. You should submit only
(August 24, 2016), 81 FR 59672 (August 30, 2016)
(SR–NASDAQ–2016–067). See also Securities IV. Solicitation of Comments information that you wish to make
Exchange Act Release No. 79330 (November 16, available publicly. All submissions
2016), 81 FR 83892 (November 22, 2016) (SR– Interested persons are invited to
NASDAQ–2016–155).
should refer to File Number SR–
4 See Securities Exchange Act Release No. 78246 submit written data, views, and NASDAQ–2016–179 and should be
(August 24, 2016), 81 FR 59672 (August 30, 2016) arguments concerning the foregoing, submitted on or before January 18, 2017.
(SR–NASDAQ–2016–067) (Notice of Filing of including whether the proposed rule
Amendments No. 1 and Order Granting Accelerated For the Commission, by the Division of
change is consistent with the Act. Trading and Markets, pursuant to delegated
Approval of Proposed Rule Changes, as Modified by
Amendments No. 1, To Adopt Limit Order Comments may be submitted by any of authority.12
Protections). the following methods:
5 Id at 45333.
Eduardo A. Aleman,
sradovich on DSK3GMQ082PROD with NOTICES

6 See Securities Exchange Act Release No. 79330 10 15 U.S.C. 78s(b)(3)(A)(iii). Assistant Secretary.
(November 16, 2016), 81 FR 83892 (November 22, 11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– [FR Doc. 2016–31303 Filed 12–27–16; 8:45 am]
2016) (SR–NASDAQ–2016–155) (Notice of Filing 4(f)(6) requires a self-regulatory organization to give
and Immediate Effectiveness of Proposed Rule BILLING CODE 8011–01–P
the Commission written notice of its intent to file
Change To Amend the Limit Order Protection for the proposed rule change at least five business days
Members Accessing the Nasdaq Market Center). prior to the date of filing of the proposed rule
7 See note 3 above.
change, or such shorter time as designated by the
8 15 U.S.C. 78f(b).
Commission. The Exchange has satisfied this
9 15 U.S.C. 78f(b)(5). requirement. 12 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00150 Fmt 4703 Sfmt 9990 E:\FR\FM\28DEN1.SGM 28DEN1
Document Created: 2016-12-28 02:16:42
Document Modified: 2016-12-28 02:16:42
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 95703