82 FR 25035 - Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Cancel and Replace Rule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 103 (May 31, 2017)

Page Range		25035-25036
FR Document		2017-11150
Federal Register, Volume 82 Issue 103 (Wednesday, May 31, 2017)
[Federal Register Volume 82, Number 103 (Wednesday, May 31, 2017)]
[Notices]
[Pages 25035-25036]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-11150]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80761; File No. SR-GEMX-2017-16]


Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Cancel and 
Replace Rule

May 24, 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 May 11, 2017, Nasdaq GEMX, LLC (``GEMX'' or ``Exchange'') filed with 
the Securities and Exchange Commission (``Commission'') the proposed 
rule change as described in Items I, II, and III, below, which Items 
have been prepared by the Exchange. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to conform its cancel and replace rule change 
with that of Nasdaq ISE, LLC (``ISE'') which was recently filed.\3\
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    \3\ See Securities Exchange Act Release No. 80432 (April 11, 
2017), 82 FR 18191 (April 17, 2017) (SR-ISE-2017-03) (Order 
Approving Proposed Rule Change, as Modified by Amendment No. 1, to 
Amend Various Rules in Connection with a System Migration to Nasdaq 
INET Technology).
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    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.

[[Page 25036]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing to amend Supplementary Material .02 to 
GEMX Rule 715 to conform this rule to ISE's recently approved rule. ISE 
recently received approval for a similar cancel and replace rule at 
Supplementary Material .02 to ISE Rule 715.\4\ The ISE rule includes 
additional information concerning the handling of cancel and replace 
orders. With this amendment, the Exchange is memorializing the same 
additional detail within its rule as to the manner in which the System 
handles cancel and replace orders. Specifically, the Exchange proposes 
to make clear that if the replacement portion of a Cancel and Replace 
order does not satisfy the system's price or other reasonability checks 
(e.g. Nasdaq GEMX Rule 710; Nasdaq GEMX Rule 711(c); and Nasdaq GEMX 
Rule 714(b)(2)) the existing order shall be cancelled and not replaced. 
This additional language serves to add detail to the current rule.
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    \4\ Id.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\5\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\6\ 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 Exchange believes that memorializing what happens to a cancel and 
replace order that does not meet the price checks will add transparency 
and specificity to the Rules thereby protecting investors and the 
public interest by reducing the potential for investor confusion.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange's proposal to make 
clear that if the replacement portion of a Cancel and Replace order 
does not satisfy the system's price or other reasonability [sic], the 
existing order shall be cancelled and not replaced will bring more 
clarity to market participants with respect to the operation of a 
cancel and replace. The rule is not being substantively amended, rather 
more detail is being added to the rule text.

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 \7\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-GEMX-2017-16 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-GEMX-2017-16. 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-GEMX-2017-16 and should be 
submitted on or before June 21, 2017.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-11150 Filed 5-30-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 103 / Wednesday, May 31, 2017 / Notices 25035

relates to the submission of reports to Electronic Comments SECURITIES AND EXCHANGE
the Exchange for regulatory purposes. COMMISSION
The proposed rule amends obsolete rule • Use the Commission’s Internet
language. The daily order and position comment form (http://www.sec.gov/
[Release No. 34–80761; File No. SR–GEMX–
reports from Market-Makers are no rules/sro.shtml); or
2017–16]
longer needed to conduct any routine • Send an email to rule-comments@
regulatory surveillances or examinations sec.gov. Please include File Number SR– Self-Regulatory Organizations; Nasdaq
or fulfill any other of the Exchange’s C2–2017–019 on the subject line. GEMX, LLC; Notice of Filing and
regulatory obligations. The proposed Immediate Effectiveness of Proposed
Paper Comments
rule change removes this undue burden Rule Change To Amend Cancel and
on Market-Makers and replaces it with • Send paper comments in triplicate Replace Rule
a requirement substantially similar to to Secretary, Securities and Exchange
May 24, 2017.
that of other options exchanges.8 The Commission, 100 F Street NE.,
proposed requirement will apply to Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the
equally to all Market-Makers on the Securities Exchange Act of 1934
All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Exchange.
Number SR–C2–2017–019. This file notice is hereby given that on May 11,
C. Self-Regulatory Organization’s number should be included on the 2017, Nasdaq GEMX, LLC (‘‘GEMX’’ or
Statement on Comments on the subject line if email is used. To help the ‘‘Exchange’’) filed with the Securities
Proposed Rule Change Received From Commission process and review your and Exchange Commission
Members, Participants, or Others comments more efficiently, please use (‘‘Commission’’) the proposed rule
only one method. The Commission will change as described in Items I, II, and
The Exchange neither solicited nor post all comments on the Commission’s
received comments on the proposed III, below, which Items have been
Internet Web site (http://www.sec.gov/ prepared by the Exchange. The
rule change. rules/sro.shtml). Copies of the Commission is publishing this notice to
III. Date of Effectiveness of the submission, all subsequent solicit comments on the proposed rule
Proposed Rule Change and Timing for amendments, all written statements change from interested persons.
Commission Action with respect to the proposed rule
change that are filed with the I. Self-Regulatory Organization’s
Because the foregoing proposed rule Commission, and all written Statement of the Terms of Substance of
change does not: (i) Significantly affect communications relating to the the Proposed Rule Change
the protection of investors or the public proposed rule change between the
interest; (ii) impose any significant Commission and any person, other than The Exchange proposes to conform its
burden on competition; and (iii) become those that may be withheld from the cancel and replace rule change with that
operative for 30 days from the date on public in accordance with the of Nasdaq ISE, LLC (‘‘ISE’’) which was
which it was filed, or such shorter time provisions of 5 U.S.C. 552, will be recently filed.3
as the Commission may designate, it has available for Web site viewing and The text of the proposed rule change
become effective pursuant to Section printing in the Commission’s Public is available on the Exchange’s Web site
19(b)(3)(A) of the Act 9 and Rule 19b– Reference Room, 100 F Street NE., at www.ise.com, at the principal office
4(f)(6) 10 thereunder. At any time within Washington, DC 20549 on official of the Exchange, and at the
60 days of the filing of the proposed rule business days between the hours of Commission’s Public Reference Room.
change, the Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the
temporarily suspend such rule change if II. Self-Regulatory Organization’s
filing also will be available for Statement of the Purpose of, and
it appears to the Commission that such inspection and copying at the principal
action is necessary or appropriate in the Statutory Basis for, the Proposed Rule
office of the Exchange. All comments Change
public interest, for the protection of received will be posted without change;
investors, or otherwise in furtherance of the Commission does not edit personal In its filing with the Commission, the
the purposes of the Act. identifying information from Exchange included statements
IV. Solicitation of Comments submissions. You should submit only concerning the purpose of and basis for
information that you wish to make the proposed rule change and discussed
Interested persons are invited to available publicly. All submissions any comments it received on the
submit written data, views, and should refer to File Number SR–C2– proposed rule change. The text of these
arguments concerning the foregoing, 2017–019 and should be submitted on statements may be examined at the
including whether the proposed rule or before June 21, 2017. places specified in Item IV below. The
change is consistent with the Act. For the Commission, by the Division of Exchange has prepared summaries, set
Comments may be submitted by any of Trading and Markets, pursuant to delegated forth in sections A, B, and C below, of
the following methods: authority.11 the most significant aspects of such
Eduardo A. Aleman, statements.
8 Id.
Assistant Secretary.
nlaroche on DSK30NT082PROD with NOTICES

9 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
10 17 CFR 240.19b–4(f)(6)(iii). As required under [FR Doc. 2017–11148 Filed 5–30–17; 8:45 am] 2 17 CFR 240.19b–4.
Rule 19b–4(f)(6)(iii), the Exchange provided the BILLING CODE 8011–01–P 3 See Securities Exchange Act Release No. 80432
Commission with written notice of its intent to file
the proposed rule change, along with a brief (April 11, 2017), 82 FR 18191 (April 17, 2017) (SR–
description and the text of the proposed rule ISE–2017–03) (Order Approving Proposed Rule
change, at least five business days prior to the date Change, as Modified by Amendment No. 1, to
of filing of the proposed rule change, or such Amend Various Rules in Connection with a System
shorter time as designated by the Commission. 11 17 CFR 200.30–3(a)(12). Migration to Nasdaq INET Technology).

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25036 Federal Register / Vol. 82, No. 103 / Wednesday, May 31, 2017 / Notices

A. Self-Regulatory Organization’s more clarity to market participants with Paper Comments
Statement of the Purpose of, and respect to the operation of a cancel and • Send paper comments in triplicate
Statutory Basis for, the Proposed Rule replace. The rule is not being to Secretary, Securities and Exchange
Change substantively amended, rather more Commission, 100 F Street NE.,
detail is being added to the rule text. Washington, DC 20549–1090.
1. Purpose
The Exchange is proposing to amend C. Self-Regulatory Organization’s All submissions should refer to File
Supplementary Material .02 to GEMX Statement on Comments on the Number SR–GEMX–2017–16. This file
Rule 715 to conform this rule to ISE’s Proposed Rule Change Received From number should be included on the
recently approved rule. ISE recently Members, Participants, or Others subject line if email is used. To help the
received approval for a similar cancel Commission process and review your
No written comments were either comments more efficiently, please use
and replace rule at Supplementary solicited or received.
Material .02 to ISE Rule 715.4 The ISE only one method. The Commission will
rule includes additional information III. Date of Effectiveness of the post all comments on the Commission’s
concerning the handling of cancel and Proposed Rule Change and Timing for Internet Web site (http://www.sec.gov/
replace orders. With this amendment, Commission Action rules/sro.shtml). Copies of the
the Exchange is memorializing the same submission, all subsequent
additional detail within its rule as to the Because the foregoing proposed rule amendments, all written statements
manner in which the System handles change does not: (i) Significantly affect with respect to the proposed rule
cancel and replace orders. Specifically, the protection of investors or the public change that are filed with the
the Exchange proposes to make clear interest; (ii) impose any significant Commission, and all written
that if the replacement portion of a burden on competition; and (iii) become communications relating to the
Cancel and Replace order does not operative for 30 days from the date on proposed rule change between the
satisfy the system’s price or other which it was filed, or such shorter time Commission and any person, other than
reasonability checks (e.g. Nasdaq GEMX as the Commission may designate, it has those that may be withheld from the
Rule 710; Nasdaq GEMX Rule 711(c); become effective pursuant to Section public in accordance with the
and Nasdaq GEMX Rule 714(b)(2)) the 19(b)(3)(A)(iii) of the Act 7 and provisions of 5 U.S.C. 552, will be
existing order shall be cancelled and not subparagraph (f)(6) of Rule 19b–4 available for Web site viewing and
replaced. This additional language thereunder.8 printing in the Commission’s Public
serves to add detail to the current rule. At any time within 60 days of the Reference Room, 100 F Street NE.,
filing of the proposed rule change, the Washington, DC 20549, on official
2. Statutory Basis business days between the hours of
Commission summarily may
The Exchange believes that its temporarily suspend such rule change if 10:00 a.m. and 3:00 p.m. Copies of the
proposal is consistent with Section 6(b) it appears to the Commission that such filing also will be available for
of the Act,5 in general, and furthers the action is: (i) Necessary or appropriate in inspection and copying at the principal
objectives of Section 6(b)(5) of the Act,6 the public interest; (ii) for the protection office of the Exchange. All comments
in particular, in that it is designed to of investors; or (iii) otherwise in received will be posted without change;
promote just and equitable principles of furtherance of the purposes of the Act. the Commission does not edit personal
trade, to remove impediments to and If the Commission takes such action, the identifying information from
perfect the mechanism of a free and Commission shall institute proceedings submissions. You should submit only
open market and a national market to determine whether the proposed rule information that you wish to make
system, and, in general to protect should be approved or disapproved. available publicly. All submissions
investors and the public interest. The should refer to File Number SR–GEMX–
Exchange believes that memorializing IV. Solicitation of Comments 2017–16 and should be submitted on or
what happens to a cancel and replace before June 21, 2017.
Interested persons are invited to
order that does not meet the price submit written data, views, and For the Commission, by the Division of
checks will add transparency and arguments concerning the foregoing, Trading and Markets, pursuant to delegated
specificity to the Rules thereby including whether the proposed rule
authority.9
protecting investors and the public change is consistent with the Act. Eduardo A. Aleman,
interest by reducing the potential for Comments may be submitted by any of Assistant Secretary.
investor confusion. the following methods: [FR Doc. 2017–11150 Filed 5–30–17; 8:45 am]
B. Self-Regulatory Organization’s Electronic Comments
BILLING CODE 8011–01–P
Statement on Burden on Competition
The Exchange does not believe that • Use the Commission’s Internet
SECURITIES AND EXCHANGE
the proposed rule change will impose comment form (http://www.sec.gov/
COMMISSION
any burden on competition not rules/sro.shtml); or
necessary or appropriate in furtherance • Send an email to rule-comments@ [Investment Company Act Release No.
of the purposes of the Act. The 32660; 812–14717]
sec.gov. Please include File Number SR–
Exchange’s proposal to make clear that GEMX–2017–16 on the subject line. Series Portfolios Trust and Highmore
if the replacement portion of a Cancel
Group Advisors, LLC
and Replace order does not satisfy the
nlaroche on DSK30NT082PROD with NOTICES

7 15 U.S.C. 78s(b)(3)(A)(iii).
system’s price or other reasonability 8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– May 24, 2017.
[sic], the existing order shall be 4(f)(6) requires a self-regulatory organization to give AGENCY: Securities and Exchange
cancelled and not replaced will bring the Commission written notice of its intent to file
the proposed rule change at least five business days
Commission (‘‘Commission’’).
prior to the date of filing of the proposed rule ACTION: Notice.
4 Id.
change, or such shorter time as designated by the
5 15 U.S.C. 78f(b). Commission. The Exchange has satisfied this
6 15 U.S.C. 78f(b)(5). requirement. 9 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 14:54 May 30, 2017 Jkt 241001 PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 E:\FR\FM\31MYN1.SGM 31MYN1
Document Created: 2017-05-31 05:59:31
Document Modified: 2017-05-31 05:59:31
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 25035