82 FR 17711 - Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Implementation Date of Its Functionality Relating to Orders With Midpoint Pegging

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 69 (April 12, 2017)

Page Range		17711-17712
FR Document		2017-07309
Federal Register, Volume 82 Issue 69 (Wednesday, April 12, 2017)
[Federal Register Volume 82, Number 69 (Wednesday, April 12, 2017)]
[Notices]
[Pages 17711-17712]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-07309]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80393; File No. SR-BX-2017-018]


Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Extend the 
Implementation Date of Its Functionality Relating to Orders With 
Midpoint Pegging

April 6, 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 31, 2017, NASDAQ BX, Inc. (``BX'' or ``Exchange'') filed with 
the Securities and Exchange Commission (``SEC'' or ``Commission'') the 
proposed rule change as described in Items I 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.
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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 extend the implementation date of its 
functionality relating to Orders with Midpoint Pegging.
    There is no rule text for this proposed rule change.

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
    BX is filing this proposal to extend the implementation date of its 
functionality relating to Orders with Midpoint Pegging. The 
functionality relating to Orders with Midpoint Pegging was approved by 
the SEC on November 10, 2016.\3\
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    \3\ See Securities Exchange Act Release No. 79290 (November 10, 
2016), 81 FR 81184 (November 17, 2016) (SR-BX-2016-046).
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    BX proposed to amend Rule 4703 (Order Attributes) to change Orders 
with Midpoint Pegging so that, if the Inside Bid and Inside Offer are 
crossed, any existing Order with Midpoint Pegging would be cancelled 
and any new Order with Midpoint Pegging would be rejected.\4\
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    \4\ See Securities Exchange Act Release No. 79290 (November 10, 
2016), 81 FR 81184 (November 17, 2016) (SR-BX-2016-046).
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    BX initially proposed to implement the new Midpoint Pegging 
functionality on November 21, 2016.\5\ However, BX decided to delay the 
implementation of this new functionality to provide additional time for 
systems testing to no later than March 31, 2017.\6\
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    \5\ See Equity Trader Alert #2016-291.
    \6\ See Securities Exchange Act Release No. 80046 (February 15, 
2017), 82 FR 11385 (February 22, 2017) (SR-BX-2017-008).
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    BX has now determined to delay the implementation of the 
functionality relating to Orders with Midpoint Pegging to no later than 
May 31, 2017 to allow additional time for systems testing. BX will 
announce the new implementation date by an Equity Trader Alert, which 
shall be issued prior to the implementation date.
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 purpose of this proposal is to inform the SEC and market 
participants of the new implementation date for the Midpoint Pegging 
functionality. This functionality was previously proposed in a rule 
filing that was submitted to the SEC, and this proposal does not change 
the substance of this functionality. BX is delaying the implementation 
date of this functionality to provide for further systems testing prior 
to implementing this functionality.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 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. As noted above, the purpose of 
this proposal is to extend the implementation date for the Midpoint 
Pegging functionality so that BX may perform additional systems testing 
prior to implementing this functionality.

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) of the Act and Rule 19b-
4(f)(6) thereunder.\9\
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    \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.
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    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 so that 
the proposal may become operative immediately upon filing. The Exchange 
previously announced that it would implement the functionality relating 
to Orders with Midpoint Pegging no later than March

[[Page 17712]]

31, 2017.\12\ The Exchange now proposes to delay the implementation 
date to no later than May 31, 2017. Waiver of the 30-day operative 
delay would allow the Exchange to immediately extend the implementation 
date and provide additional time for systems testing. The Commission 
believes that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest. Therefore, the 
Commission hereby waives the 30-day operative delay and designates the 
proposal operative upon filing.\13\
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    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \12\ See supra note 6.
    \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. See 15 U.S.C. 
78c(f).
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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 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 Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-BX-2017-018 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-BX-2017-018. 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-BX-2017-018 and should be 
submitted on or before May 3, 2017.
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    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-07309 Filed 4-11-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 69 / Wednesday, April 12, 2017 / Notices 17711

Please direct your written comment to forth in sections A, B, and C below, of was previously proposed in a rule filing
Pamela Dyson, Director/Chief the most significant aspects of such that was submitted to the SEC, and this
Information Officer, Securities and statements. proposal does not change the substance
Exchange Commission, c/o Remi Pavlik- of this functionality. BX is delaying the
A. Self-Regulatory Organization’s
Simon, 100 F Street NE., Washington, implementation date of this
Statement of the Purpose of, and
DC 20549 or send an email to: PRA_ functionality to provide for further
Mailbox@sec.gov. Statutory Basis for, the Proposed Rule systems testing prior to implementing
Change this functionality.
Dated: April 6, 2017.
Eduardo A. Aleman, 1. Purpose B. Self-Regulatory Organization’s
Assistant Secretary. BX is filing this proposal to extend Statement on Burden on Competition
[FR Doc. 2017–07298 Filed 4–11–17; 8:45 am] the implementation date of its The Exchange does not believe that
BILLING CODE 8011–01–P functionality relating to Orders with the proposed rule change will impose
Midpoint Pegging. The functionality any burden on competition not
relating to Orders with Midpoint necessary or appropriate in furtherance
SECURITIES AND EXCHANGE Pegging was approved by the SEC on of the purposes of the Act. As noted
COMMISSION November 10, 2016.3 above, the purpose of this proposal is to
BX proposed to amend Rule 4703 extend the implementation date for the
[Release No. 34–80393; File No. SR–BX–
2017–018]
(Order Attributes) to change Orders with Midpoint Pegging functionality so that
Midpoint Pegging so that, if the Inside BX may perform additional systems
Self-Regulatory Organizations; Bid and Inside Offer are crossed, any testing prior to implementing this
NASDAQ BX, Inc.; Notice of Filing and existing Order with Midpoint Pegging functionality.
Immediate Effectiveness of Proposed would be cancelled and any new Order
Rule Change To Extend the with Midpoint Pegging would be C. Self-Regulatory Organization’s
Implementation Date of Its rejected.4 Statement on Comments on the
Functionality Relating to Orders With BX initially proposed to implement Proposed Rule Change Received From
Midpoint Pegging the new Midpoint Pegging functionality Members, Participants, or Others
on November 21, 2016.5 However, BX No written comments were either
April 6, 2017. decided to delay the implementation of solicited or received.
Pursuant to Section 19(b)(1) of the this new functionality to provide
Securities Exchange Act of 1934 additional time for systems testing to no III. Date of Effectiveness of the
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 later than March 31, 2017.6 Proposed Rule Change and Timing for
notice is hereby given that on March 31, BX has now determined to delay the Commission Action
2017, NASDAQ BX, Inc. (‘‘BX’’ or implementation of the functionality Because the foregoing proposed rule
‘‘Exchange’’) filed with the Securities relating to Orders with Midpoint change does not: (i) Significantly affect
and Exchange Commission (‘‘SEC’’ or Pegging to no later than May 31, 2017 the protection of investors or the public
‘‘Commission’’) the proposed rule to allow additional time for systems interest; (ii) impose any significant
change as described in Items I and II testing. BX will announce the new burden on competition; and (iii) become
below, which Items have been prepared implementation date by an Equity operative for 30 days from the date on
by the Exchange. The Commission is Trader Alert, which shall be issued which it was filed, or such shorter time
publishing this notice to solicit prior to the implementation date. as the Commission may designate, it has
comments on the proposed rule change become effective pursuant to Section
from interested persons. 2. Statutory Basis 19(b)(3)(A) of the Act and Rule 19b-
I. Self-Regulatory Organization’s The Exchange believes that its 4(f)(6) thereunder.9
Statement of the Terms of Substance of proposal is consistent with Section 6(b) A proposed rule change filed
the Proposed Rule Change of the Act,7 in general, and furthers the pursuant to Rule 19b–4(f)(6) under the
objectives of Section 6(b)(5) of the Act,8 Act 10 normally does not become
The Exchange proposes to extend the in particular, in that it is designed to operative for 30 days after the date of its
implementation date of its functionality promote just and equitable principles of filing. However, Rule 19b–4(f)(6)(iii) 11
relating to Orders with Midpoint trade, to remove impediments to and permits the Commission to designate a
Pegging. perfect the mechanism of a free and shorter time if such action is consistent
There is no rule text for this proposed open market and a national market with the protection of investors and the
rule change. system, and, in general to protect public interest. The Exchange has asked
II. Self-Regulatory Organization’s investors and the public interest. The the Commission to waive the 30-day
Statement of the Purpose of, and purpose of this proposal is to inform the operative delay so that the proposal may
Statutory Basis for, the Proposed Rule SEC and market participants of the new become operative immediately upon
Change implementation date for the Midpoint filing. The Exchange previously
Pegging functionality. This functionality announced that it would implement the
In its filing with the Commission, the
functionality relating to Orders with
Exchange included statements 3 See Securities Exchange Act Release No. 79290 Midpoint Pegging no later than March
concerning the purpose of and basis for (November 10, 2016), 81 FR 81184 (November 17,
the proposed rule change and discussed 2016) (SR–BX–2016–046). 9 17 CFR 240.19b–4(f)(6). As required under Rule
any comments it received on the
mstockstill on DSK30JT082PROD with NOTICES

4 See Securities Exchange Act Release No. 79290
19b–4(f)(6)(iii), the Exchange provided the
proposed rule change. The text of these (November 10, 2016), 81 FR 81184 (November 17, Commission with written notice of its intent to file
2016) (SR–BX–2016–046). the proposed rule change, along with a brief
statements may be examined at the 5 See Equity Trader Alert #2016–291.
description and the text of the proposed rule
places specified in Item IV below. The 6 See Securities Exchange Act Release No. 80046 change, at least five business days prior to the date
Exchange has prepared summaries, set (February 15, 2017), 82 FR 11385 (February 22, of filing of the proposed rule change, or such
2017) (SR–BX–2017–008). shorter time as designated by the Commission.
1 15 U.S.C. 78s(b)(1). 7 15 U.S.C. 78f(b). 10 17 CFR 240.19b–4(f)(6).
2 17 CFR 240.19b–4. 8 15 U.S.C. 78f(b)(5). 11 17 CFR 240.19b–4(f)(6)(iii).

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17712 Federal Register / Vol. 82, No. 69 / Wednesday, April 12, 2017 / Notices

31, 2017.12 The Exchange now proposes change that are filed with the I. Introduction
to delay the implementation date to no Commission, and all written Section 19(g)(1) of the Securities
later than May 31, 2017. Waiver of the communications relating to the Exchange Act of 1934 (‘‘Act’’),2 among
30-day operative delay would allow the proposed rule change between the other things, requires every self-
Exchange to immediately extend the Commission and any person, other than regulatory organization (‘‘SRO’’)
implementation date and provide those that may be withheld from the registered as either a national securities
additional time for systems testing. The public in accordance with the exchange or national securities
Commission believes that waiving the provisions of 5 U.S.C. 552, will be association to examine for, and enforce
30-day operative delay is consistent available for Web site viewing and compliance by, its members and persons
with the protection of investors and the printing in the Commission’s Public associated with its members with the
public interest. Therefore, the Reference Room, 100 F Street NE., Act, the rules and regulations
Commission hereby waives the 30-day Washington, DC 20549, on official thereunder, and the SRO’s own rules,
operative delay and designates the business days between the hours of unless the SRO is relieved of this
proposal operative upon filing.13 10:00 a.m. and 3:00 p.m. Copies of the responsibility pursuant to Section 17(d)
At any time within 60 days of the filing also will be available for or Section 19(g)(2) of the Act.3 Without
filing of the proposed rule change, the inspection and copying at the principal this relief, the statutory obligation of
Commission summarily may office of the Exchange. All comments each individual SRO could result in a
temporarily suspend such rule change if received will be posted without change; pattern of multiple examinations of
it appears to the Commission that such the Commission does not edit personal broker-dealers that maintain
action is necessary or appropriate in the identifying information from memberships in more than one SRO
public interest, for the protection of submissions. You should submit only (‘‘Common Members’’). Such regulatory
investors, or otherwise in furtherance of information that you wish to make duplication would add unnecessary
the purposes of the Act. If the available publicly. All submissions expenses for common members and
Commission takes such action, the should refer to File Number SR–BX– their SROs.
Commission shall institute proceedings 2017–018 and should be submitted on Section 17(d)(1) of the Act 4 was
to determine whether the proposed rule or before May 3, 2017. intended, in part, to eliminate
change should be approved or unnecessary multiple examinations and
disapproved. For the Commission, by the Division of
Trading and Markets, pursuant to delegated regulatory duplication.5 With respect to
IV. Solicitation of Comments authority.14 a common member, Section 17(d)(1)
Interested persons are invited to Eduardo A. Aleman, authorizes the Commission, by rule or
submit written data, views, and Assistant Secretary. order, to relieve an SRO of the
arguments concerning the foregoing, [FR Doc. 2017–07309 Filed 4–11–17; 8:45 am]
responsibility to receive regulatory
including whether the proposed rule reports, to examine for and enforce
BILLING CODE 8011–01–P
change is consistent with the Act. compliance with applicable statutes,
Comments may be submitted by any of rules, and regulations, or to perform
the following methods: SECURITIES AND EXCHANGE other specified regulatory functions.
COMMISSION To implement Section 17(d)(1), the
Electronic Comments Commission adopted two rules: Rule
• Use the Commission’s Internet 17d–1 and Rule 17d–2 under the Act.6
[Release No. 34–80388; File No. 4–709] Rule 17d–1 authorizes the Commission
comment form (http://www.sec.gov/
rules/sro.shtml); or Program for Allocation of Regulatory to name a single SRO as the designated
• Send an email to rule-comments@ Responsibilities Pursuant to Rule 17d– examining authority (‘‘DEA’’) to
sec.gov. Please include File Number SR– 2; Order Approving and Declaring examine common members for
BX–2017–018 on the subject line. Effective a Proposed Plan for the compliance with the financial
Allocation of Regulatory responsibility requirements imposed by
Paper Comments the Act, or by Commission or SRO
Responsibilities Between the Financial
• Send paper comments in triplicate rules.7 When an SRO has been named as
Industry Regulatory Authority, Inc. and
to Brent J. Fields, Secretary, Securities a common member’s DEA, all other
BOX Options Exchange LLC
and Exchange Commission, 100 F Street SROs to which the common member
NE., Washington, DC 20549–1090. April 6, 2017. belongs are relieved of the responsibility
All submissions should refer to File to examine the firm for compliance with
On March 3, 2017, BOX Options
Number SR–BX–2017–018. This file the applicable financial responsibility
Exchange LLC (‘‘BOX’’) and the
number should be included on the rules. On its face, Rule 17d–1 deals only
Financial Industry Regulatory
subject line if email is used. To help the with an SRO’s obligations to enforce
Authority, Inc. (‘‘FINRA’’) (collectively,
Commission process and review your member compliance with financial
the ‘‘Parties’’) filed with the Securities
comments more efficiently, please use responsibility requirements. Rule 17d–1
and Exchange Commission
only one method. The Commission will does not relieve an SRO from its
(‘‘Commission’’ or ‘‘SEC’’) a plan for the
post all comments on the Commission’s
allocation of regulatory responsibilities,
Internet Web site (http://www.sec.gov/ 2 15 U.S.C. 78s(g)(1).
dated March 2, 2017 (‘‘17d–2 Plan’’ or 3 15 U.S.C. 78q(d) and 15 U.S.C. 78s(g)(2),
rules/sro.shtml). Copies of the
the ‘‘Plan’’). The Plan was published for respectively.
submission, all subsequent
comment on March 21, 2017.1 The
mstockstill on DSK30JT082PROD with NOTICES

4 15 U.S.C. 78q(d)(1).
amendments, all written statements
Commission received no comments on 5 See Securities Act Amendments of 1975, Report
with respect to the proposed rule of the Senate Committee on Banking, Housing, and
the Plan. This order approves and
Urban Affairs to Accompany S. 249, S. Rep. No. 94–
12 See
declares effective the Plan. 75, 94th Cong., 1st Session 32 (1975).
supra note 6.
13 For 6 17 CFR 240.17d–1 and 17 CFR 240.17d–2,
purposes only of waiving the 30-day
14 17CFR 200.30–3(a)(12). respectively.
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition, 1 SeeSecurities Exchange Act Release No. 80240 7 See Securities Exchange Act Release No. 12352

and capital formation. See 15 U.S.C. 78c(f). (March 14, 2017), 82 FR 14560. (April 20, 1976), 41 FR 18808 (May 7, 1976).

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Document Created: 2017-04-12 00:23:37
Document Modified: 2017-04-12 00:23:37
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 17711