82 FR 14072 - Self-Regulatory Organizations; ISE Mercury, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Harmonize Liability Caps and Related Reimbursement Requirements
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 50 (March 16, 2017)
Federal Register Volume 82, Issue 50 (March 16, 2017)
| Page Range | 14072-14074 | |
| FR Document | 2017-05218 |
[Federal Register Volume 82, Number 50 (Thursday, March 16, 2017)] [Notices] [Pages 14072-14074] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-05218] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80211; File No. SR-ISEMercury-2017-04] Self-Regulatory Organizations; ISE Mercury, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Harmonize Liability Caps and Related Reimbursement Requirements March 10, 2017. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on February 27, 2017, ISE Mercury, LLC (``ISE Mercury'' 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. --------------------------------------------------------------------------- \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 705 (Limitation of Liability) to harmonize its liability caps and related reimbursement requirements with those of NASDAQ BX, Inc. (``BX''), NASDAQ PHLX LLC (``Phlx'') and NASDAQ Stock Market LLC (``NSM'' and together with BX and Phlx, the ``Nasdaq Exchanges''). The text of the proposed rule change is available on the Exchange's Web site at www.ise.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 The purpose of this proposed rule change is to amend Rule 705 (Limitation of Liability) to harmonize the Exchange's existing liability caps and related reimbursement requirements for claims under Rule 705(d) with the caps and requirements set forth in the rules of the Nasdaq Exchanges.\3\ The Exchange and its affiliates, International Securities Exchange, LLC and ISE Gemini, LLC (together, the ``ISE Exchanges''), were recently acquired (the ``Acquisition'') by Nasdaq, Inc. (``HoldCo'').\4\ In the context of the Acquisition, the ISE Exchanges are working to align certain rules with rules of the Nasdaq Exchanges in order to provide consistent standards across the six exchanges operated by HoldCo (the ``HoldCo Affiliated Exchanges''). As part of this effort, the proposal set forth below harmonizes the Exchange's liability caps and the related reimbursement requirements with those of the Nasdaq Exchanges in order to provide uniform standards and requirements for users of the HoldCo Affiliated Exchanges.\5\ --------------------------------------------------------------------------- \3\ See BX Rule 4626(b) and Phlx Rule 1015. See also NSM Rule 4626(b). \4\ See Securities Exchange Act Release No. 78119 (June 21, 2016), 81 FR 41611 (June 27, 2016) (SR-ISE-2016-11; SR-ISEGemini- 2016-05; SR-ISEMercury-2016-10). \5\ International Securities Exchange, LLC and ISE Gemini, LLC will each file a proposed rule change with the Commission to adopt similar requirements. --------------------------------------------------------------------------- Rule 705 in its current form generally states that the Exchange is not liable for any losses due to the Exchange's negligence or unintentional actions, but also provides in Rule 705(d) that notwithstanding this general limitation on liability, the Exchange may compensate its members for losses resulting directly from the malfunction of the Exchange's physical equipment, devices and/or programming. Subsections (d)(1)-(d)(3) of Rule 705 contains express conditions governing the voluntary payments made by the Exchange under these limited circumstances. Specifically, the Exchange's payments for any and all system failures on a single trading day are capped at $250,000 under subsection (d)(1). The rule text states that for the aggregate of all claims made by all market participants related to the use of the Exchange on a single trading day, the Exchange's payments shall not exceed $250,000. Subsection (d)(2) further provides that if the cumulative claims exceed the $250,000 cap, this amount would be proportionally allocated among all such claims. Finally, subsection (d)(3) specifies that in order for a member to be eligible to receive payment under this Rule, claims for payment must be made in writing and submitted no later than the opening of trading on the next business day after the loss. Once in receipt of a claim, the Exchange is required to verify that: (i) A valid order was accepted into the Exchange's systems; and (ii) an Exchange system failure occurred during the execution or handling of that order. A system failure will be deemed to have occurred when there is a malfunction of the Exchange's physical systems, devices or software. The Exchange now proposes to amend the existing rule text in Rule 705(d) to adopt the same liability caps and reimbursement requirements as the Nasdaq Exchanges.\6\ Proposed Rule 705(d) would provide that the Exchange may, notwithstanding the general limitations on liability contained in Rule 705(a), compensate users of the Exchange for losses directly resulting from the actual failure of the System,\7\ or any other Exchange quotation, transaction reporting, execution, order routing or other systems or facility to correctly process an order, quote, message, or other data, provided that the Exchange has acknowledged receipt of the order, quote, message, or data. This limited exception in proposed Rule 705(d) would be subject to certain conditions and requirements contained in proposed subsections (d)(1)- (3). --------------------------------------------------------------------------- \6\ See note 4 above. \7\ ``System'' means the electronic system operated by the Exchange that receives and disseminates quotes, executes orders and reports transactions. See the Constitution of ISE Mercury, Section 13.1(ee). --------------------------------------------------------------------------- Subsection (d)(1) proposes that the aggregate payments for all compensation claims made by all market participants [[Page 14073]] related to the use of the Exchange during a single calendar month would not exceed the larger of $500,000, or the amount of the recovery obtained by the Exchange under any applicable insurance policy.\8\ Under this proposal, the Exchange will eliminate the existing $250,000 daily cap on liability and consider all such claims on a monthly basis, subject to proposed $500,000 monthly liability cap. Each Nasdaq Exchange currently analyzes total eligible liability claims on a per- month look-back basis. The Exchange's proposal to adopt an identical claims process, in effect, would allow ISE Mercury an increased capability to compensate a market participant up to the monthly cap of $500,000 even though the losses occurred on a single day or were across multiple days for a single participant. --------------------------------------------------------------------------- \8\ See BX Rule 4626(b)(1), Phlx Rule 1015(1), and NSM Rule 4626(b)(1) for substantially similar provisions. --------------------------------------------------------------------------- Proposed subsection (d)(2) specifies how the reimbursement funds would be allocated in the event all of the compensation claims submitted during a single calendar month exceed the $500,000 monthly cap. Specifically, if all of the claims arising out of the use of the Exchange cannot be fully satisfied because in the aggregate they exceed the limitations provided for in the Rule ($500,000), then the maximum permitted amount would be proportionally allocated among all such claims arising during a single calendar month.\9\ This is substantially similar to the existing process where the maximum amount is proportionally allocated among all such claims, except it would be for all claims arising during a one-month period under the proposed rule change rather than during a single trading day under the existing Rule. --------------------------------------------------------------------------- \9\ See BX Rule 4626(b)(2), Phlx Rule 1015(2), and NSM Rule 4626(b)(5) for substantially similar provisions. --------------------------------------------------------------------------- Finally, proposed subsection (d)(3) specifies the requirements and procedures applicable to the submission of reimbursement claims. Specifically, all claims for compensation must be submitted in writing no later than 12:00 p.m. ET on the next business day following the day on which the use of the Exchange gave rise to such claims.\10\ As such, the Exchange is proposing to extend the deadline to submit compensation claims from the opening of trading on the next business day to 12:00 p.m. ET. The Exchange believes that the extension of time to make such compensation claims increases the ability of market participants to submit claims in a timely manner. Proposed subsection (d)(3) also states that nothing in the Rule obligates the Exchange to seek recovery under any applicable insurance policy. If the Exchange does seek and receive an insurance recovery that is larger than $500,000, the amount of that recovery would limit the reimbursement funds available for the incident supporting the recovery to the greater recovery amount.\11\ --------------------------------------------------------------------------- \10\ See BX Rule 4626(b)(3) and Phlx Rule 1015(3) for substantially similar provisions. See also NSM Rule 4626(b)(6). \11\ There are no other practical differences between the Exchange's existing reimbursement rule and this proposal than as described above. Specifically these differences are: The liability caps (i.e. the greater of $500,000 or, if the Exchange opts to seek recovery, the recovery amount under any applicable insurance policy), the look-back analysis period of one month, and the later claims deadline of 12:00 p.m. ET. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\12\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\13\ in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest. The proposal supports this policy by establishing a fair and transparent process by which the Exchange can accommodate claims for reimbursement for the failure of specified systems in specified facilities and under specified conditions. The Exchange believes that its proposal to amend Rule 705(d) will continue to promote fairness in the marketplace in situations where one or more firm's claim results from a problem in a function performed by the Exchange's trading system that is solely the fault of the Exchange. As noted above, the proposal would allow the Exchange an increased capability to compensate a market participant up to the monthly cap of $500,000 even though the losses occurred on a single day or were across multiple days for a single participant. Furthermore, the proposed expansion of time to make such compensation claims would increase the ability of market participants to submit claims in a timely manner. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f(b). \13\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Lastly, the proposed rule change is intended to align the liability caps and compensation claims requirements with the caps and requirements currently provided by the Nasdaq Exchanges in order to provide consistent rules across the six HoldCo Affiliated Exchanges.\14\ Consistent rules, in turn, would simplify the regulatory requirements for members of the Exchange that are also participants on the Nasdaq Exchanges. The Exchange believes that the proposed rule change would provide greater harmonization among similar rules of the HoldCo Affiliated Exchanges, resulting in greater uniformity and more efficient regulatory compliance. As such, the proposed rule change would foster cooperation and coordination with persons engaged in facilitating transactions in securities and would remove impediments to and perfect the mechanism of a free and open market and a national market system. --------------------------------------------------------------------------- \14\ See note 4 above. --------------------------------------------------------------------------- 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 because all members would be subject to the same liability caps and reimbursement requirements. The proposed rule change is designed to provide greater harmonization among similar rules across the six HoldCo Affiliated Exchanges, resulting in more efficient regulatory compliance for common members. 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 \15\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\16\ --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A)(iii). \16\ 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. --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may [[Page 14074]] 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-ISEMercury-2017-04 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-ISEMercury-2017-04. 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 such 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-ISEMercury-2017-04, and should be submitted on or before April 6, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-05218 Filed 3-15-17; 8:45 am] BILLING CODE 8011-01-P
![14072 Federal Register / Vol. 82, No. 50 / Thursday, March 16, 2017 / Notices
technology. Consideration will be given of the Exchange, and at the compensate its members for losses
to comments and suggestions submitted Commission’s Public Reference Room. resulting directly from the malfunction
in writing within 60 days of this of the Exchange’s physical equipment,
II. Self-Regulatory Organization’s
publication. devices and/or programming.
Statement of the Purpose of, and
An agency may not conduct or Subsections (d)(1)–(d)(3) of Rule 705
Statutory Basis for, the Proposed Rule
sponsor, and a person is not required to contains express conditions governing
Change
respond to, a collection of information the voluntary payments made by the
unless it displays a currently valid In its filing with the Commission, the Exchange under these limited
control number. Exchange included statements circumstances. Specifically, the
Please direct your written comment to concerning the purpose of and basis for Exchange’s payments for any and all
Pamela Dyson, Director/Chief the proposed rule change and discussed system failures on a single trading day
Information Officer, Securities and any comments it received on the are capped at $250,000 under
Exchange Commission, c/o Remi Pavlik- proposed rule change. The text of these subsection (d)(1). The rule text states
Simon, 100 F Street NE., Washington, statements may be examined at the that for the aggregate of all claims made
DC 20549 or send an email to: PRA_ places specified in Item IV below. The by all market participants related to the
Mailbox@sec.gov. Exchange has prepared summaries, set use of the Exchange on a single trading
forth in sections A, B, and C below, of day, the Exchange’s payments shall not
Dated: March 13, 2017. the most significant aspects of such exceed $250,000. Subsection (d)(2)
Eduardo A. Aleman, statements. further provides that if the cumulative
Assistant Secretary. claims exceed the $250,000 cap, this
A. Self-Regulatory Organization’s
[FR Doc. 2017–05271 Filed 3–15–17; 8:45 am] amount would be proportionally
Statement of the Purpose of, and
BILLING CODE 8011–01–P
Statutory Basis for, the Proposed Rule allocated among all such claims.
Change Finally, subsection (d)(3) specifies that
in order for a member to be eligible to
SECURITIES AND EXCHANGE 1. Purpose receive payment under this Rule, claims
COMMISSION The purpose of this proposed rule for payment must be made in writing
[Release No. 34–80211; File No. SR– change is to amend Rule 705 (Limitation and submitted no later than the opening
ISEMercury–2017–04] of Liability) to harmonize the of trading on the next business day after
Exchange’s existing liability caps and the loss. Once in receipt of a claim, the
Self-Regulatory Organizations; ISE related reimbursement requirements for Exchange is required to verify that: (i) A
Mercury, LLC; Notice of Filing and claims under Rule 705(d) with the caps valid order was accepted into the
Immediate Effectiveness of Proposed and requirements set forth in the rules Exchange’s systems; and (ii) an
Rule Change To Harmonize Liability of the Nasdaq Exchanges.3 The Exchange system failure occurred
Caps and Related Reimbursement Exchange and its affiliates, International during the execution or handling of that
Requirements Securities Exchange, LLC and ISE order. A system failure will be deemed
Gemini, LLC (together, the ‘‘ISE to have occurred when there is a
March 10, 2017. malfunction of the Exchange’s physical
Exchanges’’), were recently acquired
Pursuant to Section 19(b)(1) of the (the ‘‘Acquisition’’) by Nasdaq, Inc. systems, devices or software.
Securities Exchange Act of 1934 (the (‘‘HoldCo’’).4 In the context of the The Exchange now proposes to amend
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Acquisition, the ISE Exchanges are the existing rule text in Rule 705(d) to
notice is hereby given that on February working to align certain rules with rules adopt the same liability caps and
27, 2017, ISE Mercury, LLC (‘‘ISE of the Nasdaq Exchanges in order to reimbursement requirements as the
Mercury’’ or ‘‘Exchange’’) filed with the provide consistent standards across the Nasdaq Exchanges.6 Proposed Rule
Securities and Exchange Commission six exchanges operated by HoldCo (the 705(d) would provide that the Exchange
(‘‘SEC’’ or ‘‘Commission’’) the proposed ‘‘HoldCo Affiliated Exchanges’’). As part may, notwithstanding the general
rule change as described in Items I, II, of this effort, the proposal set forth limitations on liability contained in
and III below, which Items have been below harmonizes the Exchange’s Rule 705(a), compensate users of the
prepared by the Exchange. The liability caps and the related Exchange for losses directly resulting
Commission is publishing this notice to reimbursement requirements with those from the actual failure of the System,7
solicit comments on the proposed rule of the Nasdaq Exchanges in order to or any other Exchange quotation,
change from interested persons. provide uniform standards and transaction reporting, execution, order
requirements for users of the HoldCo routing or other systems or facility to
I. Self-Regulatory Organization’s
Affiliated Exchanges.5 correctly process an order, quote,
Statement of the Terms of Substance of
Rule 705 in its current form generally message, or other data, provided that the
the Proposed Rule Change Exchange has acknowledged receipt of
states that the Exchange is not liable for
The Exchange proposes to amend any losses due to the Exchange’s the order, quote, message, or data. This
Rule 705 (Limitation of Liability) to negligence or unintentional actions, but limited exception in proposed Rule
harmonize its liability caps and related also provides in Rule 705(d) that 705(d) would be subject to certain
reimbursement requirements with those notwithstanding this general limitation conditions and requirements contained
of NASDAQ BX, Inc. (‘‘BX’’), NASDAQ on liability, the Exchange may in proposed subsections (d)(1)–(3).
PHLX LLC (‘‘Phlx’’) and NASDAQ Stock Subsection (d)(1) proposes that the
aggregate payments for all compensation
mstockstill on DSK3G9T082PROD with NOTICES
Market LLC (‘‘NSM’’ and together with 3 See BX Rule 4626(b) and Phlx Rule 1015. See
BX and Phlx, the ‘‘Nasdaq Exchanges’’). also NSM Rule 4626(b). claims made by all market participants
The text of the proposed rule change 4 See Securities Exchange Act Release No. 78119
is available on the Exchange’s Web site (June 21, 2016), 81 FR 41611 (June 27, 2016) (SR– 6 See note 4 above.
ISE–2016–11; SR–ISEGemini–2016–05; SR– 7 ‘‘System’’means the electronic system operated
at www.ise.com, at the principal office ISEMercury–2016–10). by the Exchange that receives and disseminates
5 International Securities Exchange, LLC and ISE quotes, executes orders and reports transactions.
1 15 U.S.C. 78s(b)(1). Gemini, LLC will each file a proposed rule change See the Constitution of ISE Mercury, Section
2 17 CFR 240.19b–4. with the Commission to adopt similar requirements. 13.1(ee).
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![14074 Federal Register / Vol. 82, No. 50 / Thursday, March 16, 2017 / Notices
temporarily suspend such rule change if available publicly. All submissions any comments it received on the
it appears to the Commission that such should refer to File Number SR– proposed rule change. The text of these
action is: (i) Necessary or appropriate in ISEMercury-2017–04, and should be statements may be examined at the
the public interest; (ii) for the protection submitted on or before April 6, 2017. places specified in Item IV below. The
of investors; or (iii) otherwise in For the Commission, by the Division of Exchange has prepared summaries, set
furtherance of the purposes of the Act. Trading and Markets, pursuant to delegated forth in sections A, B, and C below, of
If the Commission takes such action, the authority.17 the most significant aspects of such
Commission shall institute proceedings Eduardo A. Aleman, statements.
to determine whether the proposed rule Assistant Secretary.
should be approved or disapproved. A. Self-Regulatory Organization’s
[FR Doc. 2017–05218 Filed 3–15–17; 8:45 am] Statement of the Purpose of, and
IV. Solicitation of Comments BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule
Interested persons are invited to Change
submit written data, views, and 1. Purpose
SECURITIES AND EXCHANGE
arguments concerning the foregoing,
COMMISSION Nasdaq proposes to amend Rule 4703
including whether the proposed rule
change is consistent with the Act. [Release No. 34–80216; File No. SR– (Order Attributes) to specify the
Comments may be submitted by any of NASDAQ–2017–028] behavior of locked or crossed Orders
the following methods: during the Nasdaq Opening or Closing
Self-Regulatory Organizations; The Cross in light of recent changes to its
Electronic Comments NASDAQ Stock Market LLC; Notice of Post-Only Order functionality. Nasdaq
• Use the Commission’s Internet Filing and Immediate Effectiveness of also proposes to make a corresponding
comment form (http://www.sec.gov/ Proposed Rule Change To Amend Rule change to Rule 4753, which governs the
rules/sro.shtml); or 4703 and Rule 4753 Halt Cross.
• Send an email to rule-comments@ Rule 4703(l) describes the application
March 10, 2017. of the Nasdaq Opening and Closing
sec.gov. Please include File Number SR–
ISEMercury–2017–04 on the subject Pursuant to Section 19(b)(1) of the Cross to Nasdaq Order Types. Rule
line. Securities Exchange Act of 1934 4703(l) states that all Order Types,
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 except Supplemental Orders, Retail
Paper Comments notice is hereby given that on March 8, Orders, and RPI Orders participate in
• Send paper comments in triplicate 2017, The NASDAQ Stock Market LLC the Nasdaq Opening Cross and/or the
to Brent J. Fields, Secretary, Securities (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the Nasdaq Closing Cross if the Order has a
and Exchange Commission, 100 F Street Securities and Exchange Commission Time-in-Force that would cause the
NE., Washington, DC 20549–1090. (‘‘SEC’’ or ‘‘Commission’’) the proposed Order to be in effect at the time of the
All submissions should refer to File rule change as described in Items I and Nasdaq Opening Cross and/or Nasdaq
Number SR–ISEMercury–2017–04. This II below, which Items have been Closing Cross. Market on Open
file number should be included on the prepared by the Exchange. The (‘‘MOO’’) Orders, Limit On Open
subject line if email is used. To help the Commission is publishing this notice to (‘‘LOO’’) Orders, and IOI Orders
Commission process and review your solicit comments on the proposed rule participate in the Nasdaq Opening Cross
comments more efficiently, please use change from interested persons. in the manner specified in Rule 4752
only one method. The Commission will I. Self-Regulatory Organization’s (Opening Process). Other Order Types
post all comments on the Commission’s Statement of the Terms of Substance of eligible to participate in the Nasdaq
Internet Web site (http://www.sec.gov/ the Proposed Rule Change Opening Cross operate as ‘‘Market
rules/sro.shtml). Copies of the Hours Orders’’ or ‘‘Open Eligible
The Exchange proposes to amend
submission, all subsequent Interest’’ as specified in Rule 4752.
Rule 4703 (Order Attributes) to specify
amendments, all written statements MOC Orders, LOC Orders and IO Orders
the behavior of locked or crossed Orders
with respect to the proposed rule participate in the Nasdaq Closing Cross
during the Nasdaq Opening or Closing
change that are filed with the in the manner specified in Rule 4754
Cross. Nasdaq also proposes to make a
Commission, and all written (Nasdaq Closing Cross). Other Order
corresponding change to Rule 4753,
communications relating to the Types eligible to participate in the
which governs the Halt Cross.
proposed rule change between the The text of the proposed rule change Nasdaq Closing Cross operate as ‘‘Close
Commission and any person, other than is available on the Exchange’s Web site Eligible Interest’’ in the manner
those that may be withheld from the at http://nasdaq.cchwallstreet.com, at specified in Rule 4754.
public in accordance with the the principal office of the Exchange, and Nasdaq proposes to add language to
provisions of 5 U.S.C. 552, will be at the Commission’s Public Reference Rule 4703(l) to specify the treatment of
available for Web site viewing and Room. Orders that are locked or crossed during
printing in the Commission’s Public the Opening or Closing Cross.
Reference Room, 100 F Street NE., II. Self-Regulatory Organization’s Specifically, for purposes of selecting
Washington, DC 20549 on official Statement of the Purpose of, and the Nasdaq Opening Cross or Closing
business days between the hours of Statutory Basis for, the Proposed Rule Cross price, an Order to buy (sell) that
10:00 a.m. and 3:00 p.m. Copies of such Change is locked or crossed at its non-displayed
filing also will be available for price by a Post-Only Order on the
mstockstill on DSK3G9T082PROD with NOTICES
In its filing with the Commission, the
inspection and copying at the principal Exchange included statements Nasdaq Book shall be deemed to have a
office of the Exchange. All comments concerning the purpose of and basis for price at one minimum price increment
received will be posted without change; the proposed rule change and discussed below (above) the price of the Post-Only
the Commission does not edit personal Order. This functionality will impact
identifying information from 17 17 CFR 200.30–3(a)(12). Non-Displayed Orders, Post-Only
submissions. You should submit only 1 15 U.S.C. 78s(b)(1). Orders, Price to Comply Orders and
information that you wish to make 2 17 CFR 240.19b–4. Midpoint Peg Post-Only Orders when
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Document Created: 2017-03-16 02:18:28
Document Modified: 2017-03-16 02:18:28
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 14072 |
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