82 FR 14074 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 4703 and Rule 4753
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 50 (March 16, 2017)
Federal Register Volume 82, Issue 50 (March 16, 2017)
| Page Range | 14074-14076 | |
| FR Document | 2017-05223 |
[Federal Register Volume 82, Number 50 (Thursday, March 16, 2017)] [Notices] [Pages 14074-14076] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-05223] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80216; File No. SR-NASDAQ-2017-028] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 4703 and Rule 4753 March 10, 2017. 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 March 8, 2017, 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 4703 (Order Attributes) to specify the behavior of locked or crossed Orders during the Nasdaq Opening or Closing Cross. Nasdaq also proposes to make a corresponding change to Rule 4753, which governs the Halt Cross. 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 Nasdaq proposes to amend Rule 4703 (Order Attributes) to specify the behavior of locked or crossed Orders during the Nasdaq Opening or Closing Cross in light of recent changes to its Post-Only Order functionality. Nasdaq also proposes to make a corresponding change to Rule 4753, which governs the Halt Cross. Rule 4703(l) describes the application of the Nasdaq Opening and Closing Cross to Nasdaq Order Types. Rule 4703(l) states that all Order Types, except Supplemental Orders, Retail Orders, and RPI Orders participate in the Nasdaq Opening Cross and/or the Nasdaq Closing Cross if the Order has a Time-in-Force that would cause the Order to be in effect at the time of the Nasdaq Opening Cross and/or Nasdaq Closing Cross. Market on Open (``MOO'') Orders, Limit On Open (``LOO'') Orders, and IOI Orders participate in the Nasdaq Opening Cross in the manner specified in Rule 4752 (Opening Process). Other Order Types eligible to participate in the Nasdaq Opening Cross operate as ``Market Hours Orders'' or ``Open Eligible Interest'' as specified in Rule 4752. MOC Orders, LOC Orders and IO Orders participate in the Nasdaq Closing Cross in the manner specified in Rule 4754 (Nasdaq Closing Cross). Other Order Types eligible to participate in the Nasdaq Closing Cross operate as ``Close Eligible Interest'' in the manner specified in Rule 4754. Nasdaq proposes to add language to Rule 4703(l) to specify the treatment of Orders that are locked or crossed during the Opening or Closing Cross. Specifically, for purposes of selecting the Nasdaq Opening Cross or Closing Cross price, an Order to buy (sell) that is locked or crossed at its non-displayed price by a Post-Only Order on the Nasdaq Book shall be deemed to have a price at one minimum price increment below (above) the price of the Post-Only Order. This functionality will impact Non-Displayed Orders, Post-Only Orders, Price to Comply Orders and Midpoint Peg Post-Only Orders when [[Page 14075]] the non-displayed price of that Order is locked or crossed by a Post- Only Order.\3\ Thus, a Non-Displayed Order to buy that is locked by a Post-Only Order to sell at $11.03 would be deemed to have a price of $11.02 for purposes of selecting the Cross price. Nasdaq is proposing to re-price the non-displayed price of an Order that is locked or crossed, rather than the Post-Only Order, because re-pricing a non- displayed Order will produce less market impact than re-pricing an order that is already displayed. --------------------------------------------------------------------------- \3\ In this scenario, the Post-Only Order would have locked or crossed the Non-Displayed Order, Post-Only Order, Price to Comply Order, or Midpoint Peg Post-Only Order at its non-displayed price upon entry if the value of price improvement associated with executing against the Order is not met. --------------------------------------------------------------------------- The same functionality will apply to Orders that are locked or crossed during the Nasdaq Halt Cross.\4\ Accordingly, Nasdaq proposes to add Rule 4753(d), which states that, for purposes of selecting the Nasdaq Halt Cross price, an Order to buy (sell) that is locked or crossed at its non-displayed price by a Post-Only Order on the Nasdaq Book prior to the trading halt shall be deemed to have a price at one minimum price increment below (above) the price of the Post-Only Order. --------------------------------------------------------------------------- \4\ The Halt Cross is defined as the process for determining the price at which Eligible Interest shall be executed at the open of trading for a halted security and for executing that Eligible Interest. See Rule 4753(a)(4). --------------------------------------------------------------------------- The proposed change supplements the recently-approved changes to the Post-Only Order and the resulting modifications to Nasdaq systems.\5\ The change also reflects the intent of the Nasdaq Opening and Closing Cross functionality, which currently prices buy (sell) Opening Imbalance Only (``OIO'') Orders and Imbalance Only (``IO'') Orders to the highest bid (lowest offer) on the Nasdaq Book (but not beyond the Order's stated limit price), and prevents buy and sell OIO and IO Orders from being priced at the same price and executing against each other. --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 79290 (November 10, 2016), 81 FR 81184 (November 17, 2016) (SR-NASDAQ-2016-111). Nasdaq initially proposed to implement the new Post-Only functionality on November 21, 2016. See Equity Trader Alert #2016-291. However, following testing, Nasdaq has decided to delay the implementation of this new functionality to provide additional time for systems testing. The new functionality shall be implemented no later than March 31, 2017. See Securities Exchange Act Release No. 80045 (February 15, 2017), 82 FR 11389 (February 22, 2017) (SR-NASDAQ- 2017-013). Under the new Post-Only functionality, the behavior of Post-Only orders would be altered when the adjusted price of such orders lock or cross a non-displayed price on the Exchange's Book. Specifically, if the adjusted price of the Post-Only Order would lock or cross a non-displayed price on the Exchange's Book, the Post-Only order would be posted in the same manner as a Price to Comply Order. However, the Post-Only Order would execute if (i) it is priced below $1.00 and the value of price improvement associated with executing against an Order on the Nasdaq Book (as measured against the original limit price of the Order) equals or exceeds the sum of fees charged for such execution and the value of any rebate that would be provided if the Order posted to the Nasdaq Book and subsequently provided liquidity, or (ii) it is priced at $1.00 or more and the value of price improvement associated with executing against an Order on the Nasdaq Book (as measured against the original limit price of the Order) equals or exceeds $0.01 per share. Additionally, if the Post-Only Order would not lock or cross a Protected Quotation but would lock or cross a Non-Displayed Order on the Exchange's Book, the Post-Only Order would be posted, ranked, and displayed at its limit price. The Post-Only Order would execute if (i) it is priced below $1.00 and the value of price improvement associated with executing against an Order on the Nasdaq Book equals or exceeds the sum of fees charged for such execution and the value of any rebate that would be provided if the Order posted to the Nasdaq Book and subsequently provided liquidity, or (ii) it is priced at $1.00 or more and the value of price improvement associated with executing against an Order on the Nasdaq Book equals or exceeds $0.01 per share. --------------------------------------------------------------------------- The change is also similar to the treatment of Post-Only Orders with Midpoint Pegging during the Opening Cross, Closing Cross and Halt Cross.\6\ Rule 4702(b)(5)(A) provides that, for purposes of any cross in which a Midpoint Peg Post-Only Order participates, a Midpoint Peg Post-Only Order to buy (sell) that is locking a preexisting Order shall be deemed to have a price equal to the price of the highest sell Order (lowest buy Order) that would be eligible to execute against the Midpoint Peg Post-Only Order in such circumstances. Thus, a Midpoint Peg Post-Only Order to buy that locked a preexisting Non-Displayed Order to sell at $11.03 would be deemed to have a price of $11.02. With this change, Nasdaq will be adopting a similar functionality for an Order that is locked or crossed at its non-displayed price by a Post- Only Order for purposes of the Opening Cross, Closing Cross, and Halt Cross. --------------------------------------------------------------------------- \6\ Midpoint Pegging means Pegging with reference to the midpoint between the Inside Bid and the Inside Offer (the ``Midpoint''). Thus, if the Inside Bid was $11 and the Inside Offer was $11.06, an Order with Midpoint Pegging would be priced at $11.03. An Order with Midpoint Pegging is not displayed. An Order with Midpoint Pegging may be executed in sub-pennies if necessary to obtain a midpoint price. See Rule 4703(d). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\7\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\8\ 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 proposed change is consistent with the Act because it reflects the intent of the Nasdaq Opening and Closing Cross functionality, which currently prices buy (sell) OIO Orders and IO Orders to the highest bid (lowest offer) on the Nasdaq Book (but not beyond the Order's stated limit price), and prevents buy and sell OIO and IO Orders from being priced at the same price and executing against each other. The proposed change also adopts a re-pricing functionality that is similar to a re- pricing functionality that is currently in effect for Midpoint Peg Post-Only Orders during the Opening Cross, Closing Cross and Halt Cross. Finally, the proposed change supplements the recently-approved changes to the Post-Only Order and the resulting modifications to Nasdaq systems. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- 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 change adopts a re-pricing functionality that is similar to a re-pricing functionality that is currently in effect for Midpoint Peg Post-Only Orders during the Opening Cross, Closing Cross and Halt Cross. Moreover, the use of Exchange Order types and attributes is voluntary, and no member is required to use any specific Order type or attribute or even to use any Exchange Order type or attribute or any Exchange functionality at all. If an Exchange member believes for any reason that the proposed rule change will be detrimental, that perceived detriment can be avoided by choosing not to enter or interact with the Order types modified by this proposed rule change. Finally, the proposal will apply equally to all Orders that meet its criteria. 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 [[Page 14076]] 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) of the Act and Rule 19b-4(f)(6) thereunder.\9\ --------------------------------------------------------------------------- \9\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of 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. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \10\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay. The Exchange represents that the proposal supplements the recently-approved changes to the Post-Only Order type and the resulting modifications to Nasdaq systems, and that it will implement those previously approved changes no later than March 31, 2017.\12\ Waiver of the 30-day operative delay would allow the Exchange to implement the previously approved changes to the Post-Only Order type concurrently with the supplemental changes in this proposal. Accordingly, the Commission finds that waiving the 30-day operative delay is consistent with the protection of investors and the public interest and designates the proposal operative upon filing.\13\ --------------------------------------------------------------------------- \10\ 17 CFR 240.19b-4(f)(6). \11\ 17 CFR 240.19b-4(f)(6)(iii). \12\ See supra note 5 and accompanying text. The Exchange also notes that the proposed functionality reflects the intent of the Nasdaq Opening and Closing Cross functionality and is similar to a functionality that is currently in effect for Midpoint Peg Post-Only Orders. \13\ For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or 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 change 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-2017-028 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-2017-028. 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-2017-028 and should be submitted on or before April 6, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-05223 Filed 3-15-17; 8:45 am] BILLING CODE 8011-01-P
![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
VerDate Sep<11>2014 17:12 Mar 15, 2017 Jkt 241001 PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 E:\FR\FM\16MRN1.SGM 16MRN1](https://thefederalregister.org/doc/82_FR_14124/page/1.svg)
![14076 Federal Register / Vol. 82, No. 50 / Thursday, March 16, 2017 / Notices
burden on competition; and (iii) become IV. Solicitation of Comments For the Commission, by the Division of
operative for 30 days from the date on Trading and Markets, pursuant to delegated
which it was filed, or such shorter time Interested persons are invited to authority.14
as the Commission may designate, it has submit written data, views, and Eduardo A. Aleman,
become effective pursuant to Section arguments concerning the foregoing, Assistant Secretary.
19(b)(3)(A) of the Act and Rule 19b– including whether the proposed rule [FR Doc. 2017–05223 Filed 3–15–17; 8:45 am]
4(f)(6) thereunder.9 change is consistent with the Act. BILLING CODE 8011–01–P
A proposed rule change filed Comments may be submitted by any of
pursuant to Rule 19b–4(f)(6) under the the following methods:
Act 10 normally does not become SECURITIES AND EXCHANGE
Electronic Comments COMMISSION
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 11 • Use the Commission’s Internet
permits the Commission to designate a comment form (http://www.sec.gov/ [Release No. 34–80206; File No. SR–
shorter time if such action is consistent BatsBZX–2016–30]
rules/sro.shtml); or
with the protection of investors and the • Send an email to rule-comments@ Self-Regulatory Organizations; Bats
public interest. The Exchange has asked
sec.gov. Please include File Number SR– BZX Exchange, Inc.; Order
the Commission to waive the 30-day
NASDAQ–2017–028 on the subject line. Disapproving a Proposed Rule
operative delay. The Exchange
Change, as Modified by Amendments
represents that the proposal Paper Comments No. 1 and 2, to BZX Rule 14.11(e)(4),
supplements the recently-approved
• Send paper comments in triplicate Commodity-Based Trust Shares, To
changes to the Post-Only Order type and
to Brent J. Fields, Secretary, Securities List and Trade Shares Issued by the
the resulting modifications to Nasdaq
and Exchange Commission, 100 F Street Winklevoss Bitcoin Trust
systems, and that it will implement
those previously approved changes no NE., Washington, DC 20549–1090. March 10, 2017.
later than March 31, 2017.12 Waiver of All submissions should refer to File Bats BZX Exchange (‘‘Exchange’’ or
the 30-day operative delay would allow ‘‘BZX’’) has filed a proposed rule change
Number SR–NASDAQ–2017–028. This
the Exchange to implement the to list and trade shares of the
file number should be included on the
previously approved changes to the Winklevoss Bitcoin Trust.1 When an
Post-Only Order type concurrently with subject line if email is used. To help the
the supplemental changes in this Commission process and review your
14 17 CFR 200.30–3(a)(12).
proposal. Accordingly, the Commission comments more efficiently, please use 1 The Exchange filed notice of the proposed rule
finds that waiving the 30-day operative only one method. The Commission will change on June 30, 2016, and the Commission
delay is consistent with the protection post all comments on the Commission’s published the notice in the Federal Register on July
Internet Web site (http://www.sec.gov/ 14, 2016. See Exchange Act Release No. 78262 (July
of investors and the public interest and 8, 2016), 81 FR 45554 (July 14, 2016) (‘‘Notice’’). On
designates the proposal operative upon rules/sro.shtml). Copies of the August 23, 2016, the Commission designated a
filing.13 submission, all subsequent longer period within which to act on the proposed
At any time within 60 days of the amendments, all written statements rule change. See Exchange Act Release No. 78653
(Aug. 23, 2016), 81 FR 59256 (Aug. 29, 2016). On
filing of such proposed rule change, the with respect to the proposed rule October 12, 2016, the Commission instituted
Commission summarily may change that are filed with the proceedings under Section 19(b)(2)(B) of the
temporarily suspend such rule change if Commission, and all written Securities Exchange Act of 1934 (‘‘Exchange Act’’),
communications relating to the 15 U.S.C. 78s(b)(2)(B), to determine whether to
it appears to the Commission that such approve or disapprove the proposed rule change.
action is necessary or appropriate in the proposed rule change between the See Exchange Act Release No. 79084 (Oct. 12,
public interest, for the protection of Commission and any person, other than 2016), 81 FR 71778 (Oct. 18, 2016). On October 20,
investors, or otherwise in furtherance of those that may be withheld from the 2016, the Exchange filed Amendment No. 1 to the
proposed rule change, replacing the original filing
the purposes of the Act. If the public in accordance with the in its entirety, and Amendment No. 1 was
Commission takes such action, the provisions of 5 U.S.C. 552, will be published for comment in the Federal Register on
Commission shall institute proceedings available for Web site viewing and November 3, 2016. See Exchange Act Release No.
to determine whether the proposed rule 79183 (Oct. 28, 2016), 81 FR 76650 (Nov. 3, 2016)
printing in the Commission’s Public (‘‘Amendment No. 1’’). On January 4, 2017, the
change should be approved or Reference Room, 100 F Street NE., Commission designated a longer period for
disapproved. Washington, DC 20549, on official Commission action on the proposed rule change.
business days between the hours of See Exchange Act Release No. 79725 (Jan. 4, 2017),
82 FR 2425 (Jan. 9, 2017) (designating March 11,
9 17 CFR 240.19b–4(f)(6). As required under Rule
10:00 a.m. and 3:00 p.m. Copies of the 2017, as the date by which the Commission must
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
filing also will be available for either approve or disapprove the proposed rule
inspection and copying at the principal change). On February 22, 2017, the Exchange filed
the proposed rule change, along with a brief
Amendment No. 2 to the proposed rule change
description and the text of the proposed rule office of the Exchange. All comments (‘‘Amendment No. 2’’). Amendment No. 2 further
change, at least five business days prior to the date received will be posted without change; modified the Exchange’s proposal by (a) changing
of filing of the proposed rule change, or such
shorter time as designated by the Commission. the Commission does not edit personal the size of a creation and redemption basket from
10,000 shares to 100,000 shares, (b) changing the
10 17 CFR 240.19b–4(f)(6). identifying information from bitcoin value of a share from 0.1 bitcoin to 0.01
11 17 CFR 240.19b–4(f)(6)(iii). submissions. You should submit only bitcoin, and (c) changing the Exchange’s
12 See supra note 5 and accompanying text. The
information that you wish to make representation about the number of shares
mstockstill on DSK3G9T082PROD with NOTICES
Exchange also notes that the proposed functionality outstanding at the commencement of trading from
reflects the intent of the Nasdaq Opening and
available publicly. All submissions
100,000 shares to 500,000 shares. Because
Closing Cross functionality and is similar to a should refer to File Number SR– Amendment No. 2 does not materially alter the
functionality that is currently in effect for Midpoint NASDAQ–2017–028 and should be substance of the proposed rule change, Amendment
Peg Post-Only Orders. submitted on or before April 6, 2017. No. 2 is not subject to notice and comment.
13 For purposes only of waiving the 30-day Amendment No. 2 is available on the Commission’s
operative delay, the Commission has considered the Web site at https://www.sec.gov/comments/sr-
proposed rule’s impact on efficiency, competition, batsbzx-2016-30/batsbzx201630-1594698-
and capital formation. 15 U.S.C. 78c(f). 132357.pdf.
VerDate Sep<11>2014 17:12 Mar 15, 2017 Jkt 241001 PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 E:\FR\FM\16MRN1.SGM 16MRN1](https://thefederalregister.org/doc/82_FR_14124/page/3.svg)
Document Created: 2017-03-16 02:18:39
Document Modified: 2017-03-16 02:18:39
| 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 | 82 FR 14074 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR