82_FR_28836 82 FR 28716 - Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Chapter 19

82 FR 28716 - Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Chapter 19

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 120 (June 23, 2017)

Page Range28716-28718
FR Document2017-13096

Federal Register, Volume 82 Issue 120 (Friday, June 23, 2017)
[Federal Register Volume 82, Number 120 (Friday, June 23, 2017)]
[Notices]
[Pages 28716-28718]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-13096]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80965; File No. SR-MRX-2017-07]


Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Chapter 19

June 19, 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 June 6, 2017, Nasdaq MRX, LLC (``MRX'' 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 Chapter 19 to notify members of a 
systems issue related to allocations made pursuant to Supplementary 
Material .02(a)-(b) to Rule 1901.
    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 the proposed rule change is to amend Chapter 19 to 
notify members of a systems issue related to allocations made pursuant 
to Supplementary Material .02(a)-(b) to Rule 1901 (``Flash auction''). 
Pursuant to Supplementary Material .02 to Rule 1901, when the automatic 
execution of an incoming order would result in an impermissible Trade 
Through,\3\ such order is exposed at the current national best bid or 
offer (``NBBO'') to all members, and members are given an opportunity 
to enter responses up to the size of the order being exposed. 
Supplementary Material .02(a)-(b) to Rule 1901 provides that interest 
executed in the Flash auction is allocated in price priority, and, at 
the same price, Priority Customer orders will be executed first in time 
priority and then all other interest (orders, quotes, and responses) 
will be allocated pro-rata based on size. Currently, however, the 
system is erroneously providing the Primary Market Maker (``PMM'') an 
enhanced allocation after Priority Customer Orders on the book, and 
ahead of Responses, Professional Orders, and other market maker quotes. 
Specifically, the PMM is being erroneously given participation rights 
in a Flash auction pursuant to Supplementary Material .01(b)-(c) to 
Rule 713, which results in the PMM receiving a potentially larger share 
of the order to be executed. That is, if the PMM is quoting at the best 
price and the conditions in Supplementary Material .01(b)-(c) to Rule 
713 are satisfied, the PMM is given participation rights equal to the 
greater of (i) the proportion of the total size at the best price 
represented by the size of its quote, or (ii) sixty percent (60%) of 
the contracts to be allocated if there is only one (1) other 
Professional Order or market maker quotation at the best price, forty 
percent (40%) if there are two (2) other Professional Orders and/or 
market maker quotes at the best price, and thirty percent (30%) if 
there are more than two (2) other Professional Orders and/or market 
maker quotes at the best price. Alternatively, orders for five (5) 
contracts or fewer will be executed first by the PMM, if he is present 
at that price.
---------------------------------------------------------------------------

    \3\ ``Trade-Through'' means a transaction in an option series at 
a price that is lower than a Protected Bid or higher than a 
Protected Offer. See Rule 1900(q).
---------------------------------------------------------------------------

    This enhanced allocation was intended for the PMM when orders are 
allocated in the regular market, and not for the allocation of an order 
exposed pursuant to Supplementary Material .02 to Rule 1901 (i.e., the 
Flash auction). The Exchange has notified members and the Commission of 
this systems issue pursuant to Regulation SCI. The purpose of the 
proposed rule change is to provide additional notification to members 
by noting in Chapter 19 of the Exchange's rulebook the discrepancy 
between the allocation described in the rule and the allocation 
currently being given by the Exchange's trading system. The Exchange is 
currently migrating its trading system to the Nasdaq INET architecture, 
and the allocation issue will be resolved as symbols start trading on 
INET in Q3 2017. In the interim, the Exchange proposes to add language 
to Chapter 19 to notify members that until such time as symbols are 
migrated to INET, Flash auction allocations pursuant to Supplementary 
Material .02(a)-(b) to Rule 1901 will not be provided as described in 
that rule. Instead, PMM quotes will be given a Flash auction allocation 
pursuant to Supplementary Material .01(b)-(c) to Rule 713 after 
Priority Customer Orders on the book, and ahead of Responses, 
Professional Orders, and other market maker quotes, until such time as 
symbols are migrated to the INET trading system. The Exchange believes 
that this language will reduce member confusion regarding how 
allocations will be processed prior to the resolution of this systems 
issue.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder that are applicable to a national securities exchange, and, 
in particular, with the requirements of Section 6(b) of the Act.\4\

[[Page 28717]]

In particular, the proposal is consistent with Section 6(b)(5) of the 
Act,\5\ because is designed to promote just and equitable principles of 
trade, remove impediments to and perfect the mechanisms of a free and 
open market and a national market system and, in general, to protect 
investors and the public interest.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is consistent 
with the protection of investors and the public interest because the 
proposed rule language more accurately reflects the way contracts will 
be allocated in the Flash auction until the systems issue is resolved. 
Due to a systems issue, allocations in the Flash auction do not take 
place in the manner described in Supplementary Material .02(a)-(b) to 
Rule 1901. The proposed rule change makes this clear in the Exchange's 
rules, and supplements notifications given to members and the 
Commission pursuant to Regulation SCI. While the Exchange intends to 
allocate contracts in the Flash auction as described in Supplementary 
Material .02(a)-(b) to Rule 1901, the Exchange is taking this temporary 
measure to ensure that members are properly notified of the current 
system behavior. The proposed rule change does not make any permanent 
changes to the Exchange's treatment of Flash auction allocations, which 
will be processed correctly when the Exchange migrates its trading 
system to INET in Q3 2017. The Exchange believes that the proposed rule 
change will promote just and equitable principles of trade since it is 
a temporary change, and is designed solely to provide additional 
notification and clarity to members of the Flash auction allocation 
issue. The Exchange intends to amend the manner in which the system 
operates to conform to the current rule text as symbols migrate to INET 
in Q3 2017.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\6\ the Exchange does 
not believe that the proposed rule change will impose any burden on 
intermarket or intramarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The proposed 
rule change is designed to more accurately reflect the way the trading 
system allocates contracts in the Flash auction today, and is not 
intended to be a permanent rule of the Exchange. The Flash auction 
allocation will be corrected with the migration of the Exchange to INET 
technology, and the proposed rule change is being filed solely to 
provide additional notice to members in the interim. The proposed rule 
change is therefore not designed to impose any significant burden on 
competition.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days after the date of filing. However, 
Rule 19b-4(f)(6)(iii) \9\ permits the Commission to designate a shorter 
time if such action is consistent with the protection of investors and 
the public interest. In its filing with the Commission, the Exchange 
requests that the Commission waive the 30-day operative delay. The 
Exchange represents that it filed the proposed rule change to provide 
additional notice to members concerning the current handling of orders 
and quotes executed in a Flash auction, and that waiver of the 
operative delay is consistent with the protection of investors and the 
public interest as it will allow the Exchange to immediately reflect in 
its rules the allocation methodology currently in place for Flash 
auctions. The Exchange further represents that the allocation 
methodology will be fixed once the Exchange migrates to the INET 
platform. The Commission believes that waiving the 30-day operative 
delay is consistent with the protection of investors and the public 
interest. Therefore, the Commission designates the proposed rule change 
operative upon filing.\10\
---------------------------------------------------------------------------

    \9\ 17 CFR 240.19b-4(f)(6)(iii).
    \10\ 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).
---------------------------------------------------------------------------

    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-MRX-2017-07 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-MRX-2017-07. 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

[[Page 28718]]

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-MRX-2017-07 and should be 
submitted on or before July 14, 2017.
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-13096 Filed 6-22-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                    28716                              Federal Register / Vol. 82, No. 120 / Friday, June 23, 2017 / Notices

                                                      The public may view the background                       II. Self-Regulatory Organization’s                     to the greater of (i) the proportion of the
                                                    documentation for this information                         Statement of the Purpose of, and                       total size at the best price represented
                                                    collection at the following Web site,                      Statutory Basis for, the Proposed Rule                 by the size of its quote, or (ii) sixty
                                                    www.reginfo.gov . Comments should be                       Change                                                 percent (60%) of the contracts to be
                                                    directed to: (i) Desk Officer for the                        In its filing with the Commission, the               allocated if there is only one (1) other
                                                    Securities and Exchange Commission,                                                                               Professional Order or market maker
                                                                                                               Exchange included statements
                                                    Office of Information and Regulatory                                                                              quotation at the best price, forty percent
                                                                                                               concerning the purpose of and basis for
                                                    Affairs, Office of Management and                                                                                 (40%) if there are two (2) other
                                                                                                               the proposed rule change and discussed
                                                    Budget, Room 10102, New Executive                                                                                 Professional Orders and/or market
                                                                                                               any comments it received on the
                                                    Office Building, Washington, DC 20503,                                                                            maker quotes at the best price, and
                                                                                                               proposed rule change. The text of these
                                                    or by sending an email to: Shagufta_                                                                              thirty percent (30%) if there are more
                                                                                                               statements may be examined at the
                                                    Ahmed@omb.eop.gov; and (ii) Pamela                                                                                than two (2) other Professional Orders
                                                                                                               places specified in Item IV below. The
                                                    Dyson, Director/Chief Information                                                                                 and/or market maker quotes at the best
                                                                                                               Exchange has prepared summaries, set
                                                    Officer, Securities and Exchange                                                                                  price. Alternatively, orders for five (5)
                                                                                                               forth in sections A, B, and C below, of
                                                    Commission, c/o Remi Pavlik-Simon,                                                                                contracts or fewer will be executed first
                                                                                                               the most significant aspects of such                   by the PMM, if he is present at that
                                                    100 F Street NE., Washington, DC 20549                     statements.
                                                    or send an email to: PRA_Mailbox@                                                                                 price.
                                                    sec.gov. Comments must be submitted to                     A. Self-Regulatory Organization’s                         This enhanced allocation was
                                                    OMB within 30 days of this notice.                         Statement of the Purpose of, and                       intended for the PMM when orders are
                                                                                                               Statutory Basis for, the Proposed Rule                 allocated in the regular market, and not
                                                      Dated: June 19, 2017.
                                                                                                               Change                                                 for the allocation of an order exposed
                                                    Eduardo A. Aleman,                                                                                                pursuant to Supplementary Material .02
                                                    Assistant Secretary.                                       1. Purpose                                             to Rule 1901 (i.e., the Flash auction).
                                                    [FR Doc. 2017–13144 Filed 6–22–17; 8:45 am]                   The purpose of the proposed rule                    The Exchange has notified members and
                                                    BILLING CODE 8011–01–P                                     change is to amend Chapter 19 to notify                the Commission of this systems issue
                                                                                                               members of a systems issue related to                  pursuant to Regulation SCI. The
                                                                                                               allocations made pursuant to                           purpose of the proposed rule change is
                                                    SECURITIES AND EXCHANGE                                    Supplementary Material .02(a)–(b) to                   to provide additional notification to
                                                    COMMISSION                                                 Rule 1901 (‘‘Flash auction’’). Pursuant                members by noting in Chapter 19 of the
                                                    [Release No. 34–80965; File No. SR–MRX–                    to Supplementary Material .02 to Rule                  Exchange’s rulebook the discrepancy
                                                    2017–07]                                                   1901, when the automatic execution of                  between the allocation described in the
                                                                                                               an incoming order would result in an                   rule and the allocation currently being
                                                    Self-Regulatory Organizations; Nasdaq                      impermissible Trade Through,3 such                     given by the Exchange’s trading system.
                                                    MRX, LLC; Notice of Filing and                             order is exposed at the current national               The Exchange is currently migrating its
                                                    Immediate Effectiveness of Proposed                        best bid or offer (‘‘NBBO’’) to all                    trading system to the Nasdaq INET
                                                    Rule Change To Amend Chapter 19                            members, and members are given an                      architecture, and the allocation issue
                                                                                                               opportunity to enter responses up to the               will be resolved as symbols start trading
                                                    June 19, 2017.                                                                                                    on INET in Q3 2017. In the interim, the
                                                                                                               size of the order being exposed.
                                                       Pursuant to Section 19(b)(1) of the                     Supplementary Material .02(a)–(b) to                   Exchange proposes to add language to
                                                    Securities Exchange Act of 1934                            Rule 1901 provides that interest                       Chapter 19 to notify members that until
                                                    (‘‘Act’’),1 and Rule 19b–4 thereunder,2                    executed in the Flash auction is                       such time as symbols are migrated to
                                                    notice is hereby given that on June 6,                     allocated in price priority, and, at the               INET, Flash auction allocations
                                                    2017, Nasdaq MRX, LLC (‘‘MRX’’ or                          same price, Priority Customer orders                   pursuant to Supplementary Material
                                                    ‘‘Exchange’’) filed with the Securities                    will be executed first in time priority                .02(a)–(b) to Rule 1901 will not be
                                                    and Exchange Commission (‘‘SEC’’ or                        and then all other interest (orders,                   provided as described in that rule.
                                                    ‘‘Commission’’) the proposed rule                          quotes, and responses) will be allocated               Instead, PMM quotes will be given a
                                                    change as described in Items I and II                      pro-rata based on size. Currently,                     Flash auction allocation pursuant to
                                                    below, which Items have been prepared                      however, the system is erroneously                     Supplementary Material .01(b)–(c) to
                                                    by the Exchange. The Commission is                         providing the Primary Market Maker                     Rule 713 after Priority Customer Orders
                                                    publishing this notice to solicit                          (‘‘PMM’’) an enhanced allocation after                 on the book, and ahead of Responses,
                                                    comments on the proposed rule change                       Priority Customer Orders on the book,                  Professional Orders, and other market
                                                    from interested persons.                                   and ahead of Responses, Professional                   maker quotes, until such time as
                                                                                                               Orders, and other market maker quotes.                 symbols are migrated to the INET
                                                    I. Self-Regulatory Organization’s
                                                                                                               Specifically, the PMM is being                         trading system. The Exchange believes
                                                    Statement of the Terms of Substance of
                                                                                                               erroneously given participation rights in              that this language will reduce member
                                                    the Proposed Rule Change
                                                                                                               a Flash auction pursuant to                            confusion regarding how allocations
                                                       The Exchange proposes to amend                          Supplementary Material .01(b)–(c) to                   will be processed prior to the resolution
                                                    Chapter 19 to notify members of a                          Rule 713, which results in the PMM                     of this systems issue.
                                                    systems issue related to allocations                       receiving a potentially larger share of
                                                    made pursuant to Supplementary                                                                                    2. Statutory Basis
                                                                                                               the order to be executed. That is, if the
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    Material .02(a)–(b) to Rule 1901.                                                                                    The Exchange believes that the
                                                                                                               PMM is quoting at the best price and the               proposed rule change is consistent with
                                                       The text of the proposed rule change                    conditions in Supplementary Material
                                                    is available on the Exchange’s Web site                                                                           the requirements of the Act and the
                                                                                                               .01(b)–(c) to Rule 713 are satisfied, the              rules and regulations thereunder that
                                                    at www.ise.com, at the principal office                    PMM is given participation rights equal
                                                    of the Exchange, and at the                                                                                       are applicable to a national securities
                                                    Commission’s Public Reference Room.                          3 ‘‘Trade-Through’’ means a transaction in an
                                                                                                                                                                      exchange, and, in particular, with the
                                                                                                               option series at a price that is lower than a          requirements of Section 6(b) of the Act.4
                                                      1 15   U.S.C. 78s(b)(1).                                 Protected Bid or higher than a Protected Offer. See
                                                      2 17   CFR 240.19b–4.                                    Rule 1900(q).                                           4 15   U.S.C. 78f(b).



                                               VerDate Sep<11>2014      19:21 Jun 22, 2017   Jkt 241001   PO 00000   Frm 00099   Fmt 4703   Sfmt 4703   E:\FR\FM\23JNN1.SGM    23JNN1


                                                                                       Federal Register / Vol. 82, No. 120 / Friday, June 23, 2017 / Notices                                                      28717

                                                    In particular, the proposal is consistent                  proposed rule change is being filed                       Commission designates the proposed
                                                    with Section 6(b)(5) of the Act,5 because                  solely to provide additional notice to                    rule change operative upon filing.10
                                                    is designed to promote just and                            members in the interim. The proposed                         At any time within 60 days of the
                                                    equitable principles of trade, remove                      rule change is therefore not designed to                  filing of the proposed rule change, the
                                                    impediments to and perfect the                             impose any significant burden on                          Commission summarily may
                                                    mechanisms of a free and open market                       competition.                                              temporarily suspend such rule change if
                                                    and a national market system and, in                                                                                 it appears to the Commission that such
                                                    general, to protect investors and the                      C. Self-Regulatory Organization’s
                                                                                                                                                                         action is: (i) Necessary or appropriate in
                                                    public interest.                                           Statement on Comments on the
                                                                                                                                                                         the public interest; (ii) for the protection
                                                       The Exchange believes that the                          Proposed Rule Change Received From
                                                                                                                                                                         of investors; or (iii) otherwise in
                                                    proposed rule change is consistent with                    Members, Participants, or Others
                                                                                                                                                                         furtherance of the purposes of the Act.
                                                    the protection of investors and the                          No written comments were either                         If the Commission takes such action, the
                                                    public interest because the proposed                       solicited or received.                                    Commission shall institute proceedings
                                                    rule language more accurately reflects                                                                               to determine whether the proposed rule
                                                    the way contracts will be allocated in                     III. Date of Effectiveness of the
                                                                                                               Proposed Rule Change and Timing for                       should be approved or disapproved.
                                                    the Flash auction until the systems issue
                                                    is resolved. Due to a systems issue,                       Commission Action                                         IV. Solicitation of Comments
                                                    allocations in the Flash auction do not                       Because the foregoing proposed rule                      Interested persons are invited to
                                                    take place in the manner described in                      change does not: (i) Significantly affect                 submit written data, views, and
                                                    Supplementary Material .02(a)–(b) to                       the protection of investors or the public                 arguments concerning the foregoing,
                                                    Rule 1901. The proposed rule change                        interest; (ii) impose any significant                     including whether the proposed rule
                                                    makes this clear in the Exchange’s rules,                  burden on competition; and (iii) become                   change is consistent with the Act.
                                                    and supplements notifications given to                     operative for 30 days from the date on                    Comments may be submitted by any of
                                                    members and the Commission pursuant                        which it was filed, or such shorter time                  the following methods:
                                                    to Regulation SCI. While the Exchange                      as the Commission may designate, it has
                                                    intends to allocate contracts in the Flash                 become effective pursuant to Section                      Electronic Comments
                                                    auction as described in Supplementary                      19(b)(3)(A)(iii) of the Act 7 and                           • Use the Commission’s Internet
                                                    Material .02(a)–(b) to Rule 1901, the                      subparagraph (f)(6) of Rule 19b–4                         comment form (http://www.sec.gov/
                                                    Exchange is taking this temporary                          thereunder.8                                              rules/sro.shtml); or
                                                    measure to ensure that members are                            A proposed rule change filed under                       • Send an email to rule-comments@
                                                    properly notified of the current system                    Rule 19b–4(f)(6) normally does not                        sec.gov. Please include File Number SR–
                                                    behavior. The proposed rule change                         become operative for 30 days after the                    MRX–2017–07 on the subject line.
                                                    does not make any permanent changes                        date of filing. However, Rule 19b–
                                                    to the Exchange’s treatment of Flash                                                                                 Paper Comments
                                                                                                               4(f)(6)(iii) 9 permits the Commission to
                                                    auction allocations, which will be                         designate a shorter time if such action                     • Send paper comments in triplicate
                                                    processed correctly when the Exchange                      is consistent with the protection of                      to Secretary, Securities and Exchange
                                                    migrates its trading system to INET in                     investors and the public interest. In its                 Commission, 100 F Street NE.,
                                                    Q3 2017. The Exchange believes that the                    filing with the Commission, the                           Washington, DC 20549–1090.
                                                    proposed rule change will promote just                     Exchange requests that the Commission                     All submissions should refer to File
                                                    and equitable principles of trade since                    waive the 30-day operative delay. The                     Number SR–MRX–2017–07. This file
                                                    it is a temporary change, and is                           Exchange represents that it filed the                     number should be included on the
                                                    designed solely to provide additional                      proposed rule change to provide                           subject line if email is used. To help the
                                                    notification and clarity to members of                     additional notice to members                              Commission process and review your
                                                    the Flash auction allocation issue. The                    concerning the current handling of                        comments more efficiently, please use
                                                    Exchange intends to amend the manner                       orders and quotes executed in a Flash                     only one method. The Commission will
                                                    in which the system operates to conform                    auction, and that waiver of the operative                 post all comments on the Commission’s
                                                    to the current rule text as symbols                        delay is consistent with the protection                   Internet Web site (http://www.sec.gov/
                                                    migrate to INET in Q3 2017.                                of investors and the public interest as it                rules/sro.shtml). Copies of the
                                                    B. Self-Regulatory Organization’s                          will allow the Exchange to immediately                    submission, all subsequent
                                                    Statement on Burden on Competition                         reflect in its rules the allocation                       amendments, all written statements
                                                                                                               methodology currently in place for                        with respect to the proposed rule
                                                       In accordance with Section 6(b)(8) of                   Flash auctions. The Exchange further                      change that are filed with the
                                                    the Act,6 the Exchange does not believe                    represents that the allocation                            Commission, and all written
                                                    that the proposed rule change will                         methodology will be fixed once the                        communications relating to the
                                                    impose any burden on intermarket or                        Exchange migrates to the INET platform.                   proposed rule change between the
                                                    intramarket competition that is not                        The Commission believes that waiving                      Commission and any person, other than
                                                    necessary or appropriate in furtherance                    the 30-day operative delay is consistent                  those that may be withheld from the
                                                    of the purposes of the Act. The                            with the protection of investors and the                  public in accordance with the
                                                    proposed rule change is designed to                        public interest. Therefore, the                           provisions of 5 U.S.C. 552, will be
                                                    more accurately reflect the way the
                                                                                                                                                                         available for Web site viewing and
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    trading system allocates contracts in the                    7 15  U.S.C. 78s(b)(3)(A)(iii).                         printing in the Commission’s Public
                                                    Flash auction today, and is not intended                     8 17  CFR 240.19b–4(f)(6). In addition, Rule 19b-       Reference Room, 100 F Street NE.,
                                                    to be a permanent rule of the Exchange.                    4(f)(6) requires a self-regulatory organization to give
                                                                                                                                                                         Washington, DC 20549, on official
                                                    The Flash auction allocation will be                       the Commission written notice of its intent to file
                                                                                                               the proposed rule change at least five business days      business days between the hours of
                                                    corrected with the migration of the
                                                                                                               prior to the date of filing of the proposed rule
                                                    Exchange to INET technology, and the                       change, or such shorter time as designated by the           10 For purposes only of waiving the 30-day
                                                                                                               Commission. The Exchange has satisfied this               operative delay, the Commission has considered the
                                                      5 15   U.S.C. 78f(b)(5).                                 requirement.                                              proposed rule’s impact on efficiency, competition,
                                                      6 15   U.S.C. 78f(b)(8).                                   9 17 CFR 240.19b–4(f)(6)(iii).                          and capital formation. See 15 U.S.C. 78c(f).



                                               VerDate Sep<11>2014      19:21 Jun 22, 2017   Jkt 241001   PO 00000   Frm 00100   Fmt 4703   Sfmt 4703   E:\FR\FM\23JNN1.SGM     23JNN1


                                                    28718                           Federal Register / Vol. 82, No. 120 / Friday, June 23, 2017 / Notices

                                                    10:00 a.m. and 3:00 p.m. Copies of the                  II. Self-Regulatory Organization’s                       public interest. As such, BOX believes
                                                    filing also will be available for                       Statement of the Purpose of, and                         the proposed rule change is in the
                                                    inspection and copying at the principal                 Statutory Basis for, the Proposed Rule                   public interest, and therefore, consistent
                                                    office of the Exchange. All comments                    Change                                                   with the Act.
                                                    received will be posted without change;                    In its filing with the Commission, the                B. Self-Regulatory Organization’s
                                                    the Commission does not edit personal                   self-regulatory organization included                    Statement on Burden on Competition
                                                    identifying information from                            statements concerning the purpose of,
                                                    submissions. You should submit only                                                                                The Exchange does not believe that
                                                                                                            and basis for, the proposed rule change
                                                    information that you wish to make                                                                                the proposed rule change will impose
                                                                                                            and discussed any comments it received
                                                    available publicly. All submissions                                                                              any burden on competition not
                                                                                                            on the proposed rule change. The text
                                                    should refer to File Number SR–MRX–                                                                              necessary or appropriate in furtherance
                                                                                                            of these statements may be examined at
                                                    2017–07 and should be submitted on or                                                                            of the purposes of the Act. The
                                                                                                            the places specified in Item IV below.                   Exchange believes that the proposed
                                                    before July 14, 2017.                                   The self-regulatory organization has                     change will not impose a burden on
                                                      For the Commission, by the Division of                prepared summaries, set forth in                         competition, as the changes are purely
                                                    Trading and Markets, pursuant to delegated              Sections A, B, and C below, of the most                  clerical and do not amend any fee or
                                                    authority.11                                            significant aspects of such statements.                  rebate within the BOX Fee Schedule.
                                                    Eduardo A. Aleman,                                      A. Self-Regulatory Organization’s                        C. Self-Regulatory Organization’s
                                                    Assistant Secretary.                                    Statement of the Purpose of, and                         Statement on Comments on the
                                                    [FR Doc. 2017–13096 Filed 6–22–17; 8:45 am]             Statutory Basis for, the Proposed Rule                   Proposed Rule Change Received From
                                                    BILLING CODE 8011–01–P                                  Change                                                   Members, Participants, or Others
                                                                                                            1. Purpose                                                 The Exchange has neither solicited
                                                    SECURITIES AND EXCHANGE                                    The Exchange proposes to make                         nor received comments on the proposed
                                                    COMMISSION                                              certain clarifying and non-substantive                   rule change.
                                                                                                            changes to its fee schedule in order to                  III. Date of Effectiveness of the
                                                                                                            improve formatting and increase overall                  Proposed Rule Change and Timing for
                                                    [Release No. 34–80969; File No. SR–BOX–
                                                                                                            readability. The Exchange notes that                     Commission Action
                                                    2017–21]
                                                                                                            these changes are purely clerical and do
                                                                                                            not substantively amend any fee or                          Because the proposed rule change
                                                    Self-Regulatory Organizations; BOX                                                                               does not (i) significantly affect the
                                                    Options Exchange LLC; Notice of                         rebate, nor do they alter the manner in
                                                                                                            which the Exchange assesses fees or                      protection of investors or the public
                                                    Filing and Immediate Effectiveness of                                                                            interest; (ii) impose any significant
                                                    a Proposed Rule Change To Amend                         calculates rebates. The proposed
                                                                                                            changes are simply intended to increase                  burden on competition; and (iii) become
                                                    the Fee Schedule To Make Several                                                                                 operative for 30 days from the date on
                                                    Non-Substantive Changes                                 overall readability and improve
                                                                                                            formatting. Specifically, the Exchange                   which it was filed, or such shorter time
                                                                                                            proposes to add a title page and table of                as the Commission may designate, it has
                                                    June 19, 2017.
                                                                                                            contents page to the fee schedule.                       become effective pursuant to Section
                                                       Pursuant to Section 19(b)(1) of the                                                                           19(b)(3)(A) of the Act 5 and Rule 19b–
                                                    Securities Exchange Act of 1934                         2. Statutory Basis                                       4(f)(6) thereunder.6
                                                    (‘‘Act’’),1 and Rule 19b–4 thereunder,2                    The Exchange believes that the                           A proposed rule change filed
                                                    notice is hereby given that on June 7,                  proposal is consistent with the                          pursuant to Rule 19b–4(f)(6) under the
                                                    2017, BOX Options Exchange LLC (the                     requirements of Section 6(b) of the Act,3                Act 7 normally does not become
                                                    ‘‘Exchange’’) filed with the Securities                 in general, and Section 6(b)(5) of the                   operative for 30 days after the date of its
                                                    and Exchange Commission                                 Act,4 in particular, in that the proposed                filing. However, Rule 19b–4(f)(6)(iii) 8
                                                    (‘‘Commission’’) the proposed rule                      change is designed to promote just and                   permits the Commission to designate a
                                                    change as described in Items I and II                   equitable principles of trade, remove                    shorter time if such action is consistent
                                                    below, which Items have been prepared                   impediments to and perfect the                           with the protection of investors and the
                                                    by the self-regulatory organization. The                mechanism of a free and open market                      public interest. The Exchange has asked
                                                    Commission is publishing this notice to                 and a national market system, and, in                    the Commission to waive the 30-day
                                                    solicit comments on the proposed rule                   general protect investors and the public                 operative delay so that the proposal may
                                                    from interested persons.                                interest, by increasing the readability of               become operative immediately upon
                                                                                                            BOX’s Fee Schedule. Further, the                         filing, which the Exchange states would
                                                    I. Self-Regulatory Organization’s                                                                                immediately add clarity to the Fee
                                                    Statement of the Terms of Substance of                  Exchange notes that the proposed
                                                                                                            changes do not substantively amend any                   Schedule. The Commission notes that
                                                    the Proposed Rule Change                                                                                         the proposed rule change merely adopts
                                                                                                            fee or rebate, nor do they alter the
                                                      The Exchange proposes to amend the                    manner in which the Exchange assesses                    a table of contents and makes formatting
                                                    Fee Schedule to make several non-                       fees or calculates rebates. Finally, the                 changes that are designed to increase
                                                    substantive changes. The text of the                    Exchange believes that the proposed                      overall readability of the fee schedule
                                                    proposed rule change is available from                  changes will make the fee schedule                         5 15  U.S.C. 78s(b)(3)(A).
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    the principal office of the Exchange, at                clearer and eliminate investor                             6 17  CFR 240.19b–4(f)(6). As required under Rule
                                                    the Commission’s Public Reference                       confusion, thereby removing                              19b–4(f)(6)(iii), the Exchange provided the
                                                    Room and also on the Exchange’s                         impediments to and perfecting the                        Commission with written notice of its intent to file
                                                    Internet Web site at http://                            mechanism of a free and open market                      the proposed rule change, along with a brief
                                                    boxexchange.com.                                                                                                 description and the text of the proposed rule
                                                                                                            and a national market system, and, in                    change, at least five business days prior to the date
                                                                                                            general, protecting investors and the                    of filing of the proposed rule change, or such
                                                      11 17 CFR 200.30–3(a)(12).                                                                                     shorter time as designated by the Commission.
                                                      1 15 U.S.C. 78s(b)(1).                                  3 15   U.S.C. 78f(b).                                    7 17 CFR 240.19b–4(f)(6).
                                                      2 17 CFR 240.19b–4.                                     4 15   U.S.C. 78f(b)(5).                                 8 17 CFR 240.19b–4(f)(6)(iii).




                                               VerDate Sep<11>2014   19:21 Jun 22, 2017   Jkt 241001   PO 00000   Frm 00101     Fmt 4703   Sfmt 4703   E:\FR\FM\23JNN1.SGM    23JNN1



Document Created: 2017-06-23 03:37:30
Document Modified: 2017-06-23 03:37:30
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 28716 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR