82 FR 32731 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Customer and Professional Penny Pilot Options Tier 8 Rebate To Add Liquidity
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 135 (July 17, 2017)
Federal Register Volume 82, Issue 135 (July 17, 2017)
| Page Range | 32731-32734 | |
| FR Document | 2017-14891 |
[Federal Register Volume 82, Number 135 (Monday, July 17, 2017)] [Notices] [Pages 32731-32734] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-14891] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81121; File No. SR-NASDAQ-2017-067] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Customer and Professional Penny Pilot Options Tier 8 Rebate To Add Liquidity July 11, 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 30, 2017, The NASDAQ Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to [[Page 32732]] 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 modify the NASDAQ Options Market LLC's (``NOM'') pricing at Chapter XV, Section 2(1), to amend the Customer \3\ and Professional \4\ Penny Pilot Options Tier 8 Rebate to Add Liquidity. --------------------------------------------------------------------------- \3\ The term ``Customer'' or (``C'') applies to any transaction that is identified by a Participant for clearing in the Customer range at The Options Clearing Corporation (``OCC'') which is not for the account of broker or dealer or for the account of a ``Professional.'' See Chapter XV. \4\ The term ``Professional'' or (``P'') means any person or entity that (i) is not a broker or dealer in securities, and (ii) places more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s) pursuant to Chapter I, Section 1(a)(48). All Professional orders shall be approximately marked by Participants. --------------------------------------------------------------------------- While changes to the Pricing Schedule pursuant to this proposal are effective upon filing, the Exchange has designated these changes to be operative on July 3, 2017. The text of the proposed rule change is available on the Exchange's Web site at http://nasdaq.cchwallstreet.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the Customer and Professional Penny Pilot Options Rebate to Add Liquidity tiers. Specifically, the Exchange proposes to amend the current qualifications related to the Tier 8 Customer and Professional Penny Pilot Options rebate. The proposed new Tier 8 qualifications should continue to attract Customer and Professional order flow to NOM. This order flow benefits other market participants through order interaction. Today, the Exchange pays Customer and Professional Penny Pilot Options Rebates to Add Liquidity as follows: ---------------------------------------------------------------------------------------------------------------- Rebate to add Tier Monthly volume liquidity ---------------------------------------------------------------------------------------------------------------- 1............................................ Participant adds Customer, Professional, Firm, $0.20 Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non- Penny Pilot Options of up to 0.10% of total industry customer equity and ETF option average daily volume (``ADV'') contracts per day in a month. 2............................................ Participant adds Customer, Professional, Firm, 0.25 Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non- Penny Pilot Options above 0.10% to 0.20% of total industry customer equity and ETF option ADV contracts per day in a month. 3............................................ Participant adds Customer, Professional, Firm, 0.42 Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non- Penny Pilot Options above 0.20% to 0.30% of total industry customer equity and ETF option ADV contracts per day in a month. 4............................................ Participant adds Customer, Professional, Firm, 0.43 Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non- Penny Pilot Options above 0.30% to 0.40% of total industry customer equity and ETF option ADV contracts per day in a month. 5............................................ Participant adds Customer, Professional, Firm, 0.45 Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non- Penny Pilot Options above 0.40% to 0.75% of total industry customer equity and ETF option ADV contracts per day in a month. 6............................................ Participant has Total Volume of 100,000 or 0.45 more contracts per day in a month, of which 25,000 or more contracts per day in a month must be Customer and/or Professional liquidity in Penny Pilot Options. 7............................................ Participant has Total Volume of 150,000 or 0.47 more contracts per day in a month, of which 50,000 or more contracts per day in a month must be Customer and/or Professional liquidity in Penny Pilot Options. 8............................................ Participant adds Customer, Professional, Firm, 0.48 Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non- Penny Pilot Options above 0.75% or more of total industry customer equity and ETF option ADV contracts per day in a month, or Participant adds: (1) Customer and/or Professional liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of 0.25% or more of total industry customer equity and ETF option ADV contracts per day in a month, and (2) has added liquidity in all securities through one or more of its Nasdaq Market Center MPIDs that represent 1.00% or more of Consolidated Volume in a month or qualifies for MARS (defined below). ---------------------------------------------------------------------------------------------------------------- Today, the Exchange pays a $0.48 per contract rebate \5\ to Participants that [[Page 32733]] qualify for a Tier 8 Customer or Professional Penny Pilot Options Rebate to Add Liquidity by adding Customer, Professional, Firm,\6\ Non- NOM Market Maker \7\ and/or Broker-Dealer \8\ liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 0.75% or more of total industry customer equity and ETF option ADV contracts per day in a month, or adding: (1) Customer and/or Professional liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of 0.25% or more of total industry customer equity and ETF option ADV contracts per day in a month, and (2) has added liquidity in all securities through one or more of its Nasdaq Market Center MPIDs that represent 1.00% or more of Consolidated Volume in a month or qualifies for MARS.\9\ --------------------------------------------------------------------------- \5\ Note ``c,'' which is applicable to the Tier 8 rebate, provides additional rebates to Participants that: (1) Add Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non- Penny Pilot Options of 1.15% or more of total industry customer equity and ETF option ADV contracts per day in a month will receive an additional $0.02 per contract Penny Pilot Options Customer and/or Professional Rebate to Add Liquidity for each transaction which adds liquidity in Penny Pilot Options in that month; or (2) add Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of 1.30% or more of total industry customer equity and ETF option ADV contracts per day in a month will receive an additional $0.05 per contract Penny Pilot Options Customer and/or Professional Rebate to Add Liquidity for each transaction which adds liquidity in Penny Pilot Options in that month; or (3) (a) add Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 0.80% of total industry customer equity and ETF option ADV contracts per day in a month, (b) add Customer, Professional, Firm, Non-NOM Market Maker and/or Broker- Dealer liquidity in Non-Penny Pilot Options above 0.15% of total industry customer equity and ETF option ADV contracts per day in a month, and (c) execute greater than 0.04% of Consolidated Volume (``CV'') via Market-on-Close/Limit-on-Close (``MOC/LOC'') volume within the NASDAQ Stock Market Closing Cross within a month will receive an additional $0.05 per contract Penny Pilot Options Customer and/or Professional Rebate to Add Liquidity for each transaction which adds liquidity in Penny Pilot Options in a month. Consolidated Volume shall mean the total consolidated volume reported to all consolidated transaction reporting plans by all exchanges and trade reporting facilities during a month in equity securities, excluding executed orders with a size of less than one round lot. For purposes of calculating Consolidated Volume and the extent of an equity member's trading activity, expressed as a percentage of or ratio to Consolidated Volume, the date of the annual reconstitution of the Russell Investments Indexes shall be excluded from both total Consolidated Volume and the member's trading activity. \6\ The term ``Firm'' or (``F'') applies to any transaction that is identified by a Participant for clearing in the Firm range at OCC. \7\ The term ``Non-NOM Market Maker'' or (``O'') is a registered market maker on another options exchange that is not a NOM Market Maker. A Non-NOM Market Maker must append the proper Non-NOM Market Maker designation to orders routed to NOM. \8\ The term ``Broker-Dealer'' or (``B'') applies to any transaction which is not subject to any of the other transaction fees applicable within a particular category. \9\ NOM Participants that have System Eligibility and have executed the requisite number of Eligible Contracts in a month are paid MARS rebates based on average daily volume in a month. See Chapter XV, Section 2(6). --------------------------------------------------------------------------- The Exchange is proposing to continue to pay a $0.48 per contract rebate provided, a NOM Participant adds Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 0.75% or more of total industry customer equity and ETF option ADV contracts per day in a month, or Participant adds: (1) Customer and/or Professional liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of 0.20% or more of total industry customer equity and ETF option ADV contracts per day in a month, and (2) has added liquidity in all securities through one or more of its Nasdaq Market Center MPIDs that represent 1.00% or more of Consolidated Volume in a month or qualifies for MARS. The Exchange's proposal to amend the current qualification from Customer and/or Professional liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of 0.25% or more of total industry customer equity and ETF option ADV contracts per day in a month to 0.20% or more of total industry customer equity and ETF option ADV contracts per day in a month should provide Participants the ability to qualify for this tier by executing less contracts which represent industry volume in a given month. The Exchange believes that this amendment should incentivize Participants to transact more volume to qualify for a Tier 8 rebate since one of the qualifiers requires a lower percentage of total industry customer equity and ETF option ADV contracts per day in a month as compared to the current percentage. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\10\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\11\ in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange's proposal to amend the current qualifications related to the Tier 8 Customer and Professional Penny Pilot Options Rebate to Add Liquidity is reasonable because the rebate should continue to attract Customer and Professional order flow to NOM. The additional Customer and Professional order flow to NOM benefits other market participants by providing additional liquidity with which to interact. Customer liquidity offers unique benefits to the market which benefits all market participants. Customer liquidity benefits all market participants by providing more trading opportunities, which attracts market makers. An increase in the activity of these market participants in turn facilitates tighter spreads, which may cause an additional corresponding increase in order flow from other market participants. The Exchange believes that encouraging Participants to add Professional liquidity creates competition among options exchanges because the Exchange believes that the rebates may cause market participants to select NOM as a venue to send Professional order flow. Amending the current qualification 0.25% or more of total industry customer equity and ETF option ADV contracts to 0.20% or more of total industry customer equity and ETF option ADV contracts affords Participants the ability to qualify for this Tier 8 because it requires less volume as a result of the proposed lower percentage of industry volume. With this proposal, Participants that consistently send order flow to the Exchange may continue to qualify for Tier 8 rebates and other Participants may send additional order flow to qualify for a Tier 8 rebate with the lower requirement. The Exchange's proposal to amend the current qualifications related to the Tier 8 Customer and Professional Penny Pilot Options Rebate to Add Liquidity is equitable and not unfairly discriminatory because all Participants are eligible to earn rebates. These rebates would be uniformly paid to all qualifying Participants. 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. In terms of inter-market competition, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive, or rebate opportunities available at other venues to be more favorable. The proposed pricing change is competitive and does not impose a burden on inter-market competition. If the change proposed herein is unattractive to market participants, it is likely that the Exchange will lose market share as a result. Accordingly, the Exchange does not believe that the proposed change will impair the ability of members or competing order execution venues to maintain their competitive standing in the financial markets. The Exchange's proposal to amend the current qualifications related to the Tier 8 Customer and Professional Penny Pilot Options Rebate to Add Liquidity does not impose an undue burden on intra-market competition because all Participants are eligible to earn rebates and these rebates would be uniformly paid to all qualifying Participants. [[Page 32734]] 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 The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.\12\ --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A)(ii). --------------------------------------------------------------------------- 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-NASDAQ-2017-067 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-NASDAQ-2017-067. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NASDAQ-2017-067 and should be submitted on or before August 7, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Jill M. Peterson, Assistant Secretary. [FR Doc. 2017-14891 Filed 7-14-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Notices 32731
(e.g., if the software can be downloaded product through distribution of free with respect to the proposed rule
over the internet after being samples. As such, the Exchange believes change that are filed with the
purchased).18 In the case of any that the proposed changes will enhance, Commission, and all written
exchange, it is costly to build and and not impair, competition in the communications relating to the
maintain a trading platform, but the financial markets. proposed rule change between the
incremental cost of trading each Commission and any person, other than
additional share on an existing platform, C. Self-Regulatory Organization’s
those that may be withheld from the
or distributing an additional instance of Statement on Comments on the
public in accordance with the
data, is very low. Market information Proposed Rule Change Received From
provisions of 5 U.S.C. 552, will be
and executions are each produced Members, Participants, or Others
available for Web site viewing and
jointly (in the sense that the activities of No written comments were either printing in the Commission’s Public
trading and placing orders are the solicited or received. Reference Room, 100 F Street NE.,
source of the information that is Washington, DC 20549 on official
III. Date of Effectiveness of the
distributed) and are each subject to business days between the hours of
Proposed Rule Change and Timing for
significant scale economies. 10:00 a.m. and 3:00 p.m. Copies of such
Competition among trading platforms Commission Action
filing also will be available for
can be expected to constrain the The foregoing rule change has become inspection and copying at the principal
aggregate return each platform earns effective pursuant to Section office of the Exchange. All comments
from the sale of its joint products. The 19(b)(3)(A)(ii) of the Act.19 received will be posted without change;
level of competition and contestability At any time within 60 days of the the Commission does not edit personal
in the market is evident in the filing of the proposed rule change, the identifying information from
numerous alternative venues that Commission summarily may submissions. You should submit only
compete for order flow, including SRO temporarily suspend such rule change if information that you wish to make
markets, as well as internalizing BDs it appears to the Commission that such available publicly. All submissions
and various forms of alternative trading action is: (i) Necessary or appropriate in should refer to File Number SR–Phlx–
systems (‘‘ATSs’’), including dark pools the public interest; (ii) for the protection 2017–53, and should be submitted on or
and electronic communication networks of investors; or (iii) otherwise in before August 7, 2017.
(‘‘ECNs’’). Each SRO market competes to furtherance of the purposes of the Act.
produce transaction reports via trade If the Commission takes such action, the For the Commission, by the Division of
executions. It is common for BDs to Commission shall institute proceedings Trading and Markets, pursuant to delegated
further and exploit this competition by to determine whether the proposed rule authority.20
sending their order flow and transaction should be approved or disapproved. Jill M. Peterson,
reports to multiple markets, rather than Assistant Secretary.
IV. Solicitation of Comments
providing them all to a single market. [FR Doc. 2017–14887 Filed 7–14–17; 8:45 am]
Competitive markets for order flow, Interested persons are invited to BILLING CODE 8011–01–P
executions, and transaction reports submit written data, views, and
provide pricing discipline for the inputs arguments concerning the foregoing,
of proprietary data products. The large including whether the proposed rule SECURITIES AND EXCHANGE
number of SROs, TRFs, BDs, and ATSs change is consistent with the Act. COMMISSION
that currently produce proprietary data Comments may be submitted by any of
or are currently capable of producing it the following methods:
[Release No. 34–81121; File No. SR–
provides further pricing discipline for Electronic Comments NASDAQ–2017–067]
proprietary data products. Each SRO,
TRF, ATS, and BD is currently • Use the Commission’s Internet
Self-Regulatory Organizations; The
permitted to produce proprietary data comment form (http://www.sec.gov/
NASDAQ Stock Market LLC; Notice of
products, and many currently do or rules/sro.shtml); or
• Send an email to rule-comments@ Filing and Immediate Effectiveness of
have announced plans to do so, Proposed Rule Change To Amend the
including Nasdaq, NYSE, NYSE MKT, sec.gov. Please include File Number SR–
Phlx–2017–53 on the subject line. Customer and Professional Penny
NYSE Arca, and the BATS exchanges. Pilot Options Tier 8 Rebate To Add
As noted above, the very fact that the Paper Comments Liquidity
Exchange is proposing to provide a
sample of PHOTO Historical Data free of • Send paper comments in triplicate July 11, 2017.
charge to generate potential customer to Secretary, Securities and Exchange
interest is itself evidence of a Commission, 100 F Street NE., Pursuant to Section 19(b)(1) of the
competitive market. Washington, DC 20549–1090. Securities Exchange Act of 1934
In this competitive environment, an All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2
‘‘excessive’’ price for one product will Number SR–Phlx–2017–53. This file notice is hereby given that on June 30,
have to be reflected in lower prices for number should be included on the 2017, The NASDAQ Stock Market LLC
other products sold by the Exchange, or subject line if email is used. To help the (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
otherwise the Exchange may experience Commission process and review your Securities and Exchange Commission
asabaliauskas on DSKBBXCHB2PROD with NOTICES
a loss in sales that may adversely affect comments more efficiently, please use (‘‘SEC’’ or ‘‘Commission’’) the proposed
its profitability. In this case, the only one method. The Commission will rule change as described in Items I, II,
proposed rule change enhances post all comments on the Commission’s and III, below, which Items have been
competition by lowering the price of the Internet Web site (http://www.sec.gov/ prepared by the Exchange. The
rules/sro.shtml). Copies of the Commission is publishing this notice to
18 See William J. Baumol and Daniel G. Swanson,
submission, all subsequent
‘‘The New Economy and Ubiquitous Competitive
Price Discrimination: Identifying Defensible Criteria
amendments, all written statements 20 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
of Market Power,’’ Antitrust Law Journal, Vol. 70,
No. 3 (2003). 19 15 U.S.C. 78s(b)(3)(A)(ii). 2 17 CFR 240.19b–4.
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![32734 Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Notices
C. Self-Regulatory Organization’s those that may be withheld from the inclusion of cash in an index or
Statement on Comments on the public in accordance with the portfolio underlying a series of Index
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be Fund Shares. This filing is substantively
Members, Participants, or Others available for Web site viewing and identical to a NYSE Arca, Inc. filing
No written comments were either printing in the Commission’s Public previously approved by the Commission
solicited or received. Reference Room, 100 F Street NE., (SR–NYSEArca–2017–30, as amended).3
Washington, DC 20549, on official The text of the proposed rule change
III. Date of Effectiveness of the business days between the hours of is available on the Exchange’s Web site
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of the at http://nasdaq.cchwallstreet.com, at
Commission Action filing also will be available for the principal office of the Exchange, and
The foregoing rule change has become inspection and copying at the principal at the Commission’s Public Reference
effective pursuant to Section office of the Exchange. All comments Room.
19(b)(3)(A)(ii) of the Act.12 received will be posted without change; II. Self-Regulatory Organization’s
At any time within 60 days of the the Commission does not edit personal Statement of the Purpose of, and
filing of the proposed rule change, the identifying information from Statutory Basis for, the Proposed Rule
Commission summarily may submissions. You should submit only Change
temporarily suspend such rule change if information that you wish to make
it appears to the Commission that such available publicly. All submissions In its filing with the Commission, the
action is: (i) Necessary or appropriate in should refer to File Number SR– Exchange included statements
the public interest; (ii) for the protection NASDAQ–2017–067 and should be concerning the purpose of and basis for
of investors; or (iii) otherwise in submitted on or before August 7, 2017. the proposed rule change and discussed
furtherance of the purposes of the Act. any comments it received on the
For the Commission, by the Division of
If the Commission takes such action, the Trading and Markets, pursuant to delegated proposed rule change. The text of these
Commission shall institute proceedings authority.13 statements may be examined at the
to determine whether the proposed rule Jill M. Peterson, places specified in Item IV below. The
should be approved or disapproved. Assistant Secretary.
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
IV. Solicitation of Comments [FR Doc. 2017–14891 Filed 7–14–17; 8:45 am]
the most significant aspects of such
BILLING CODE 8011–01–P
Interested persons are invited to statements.
submit written data, views, and A. Self-Regulatory Organization’s
arguments concerning the foregoing, SECURITIES AND EXCHANGE Statement of the Purpose of, and the
including whether the proposed rule COMMISSION Statutory Basis for, the Proposed Rule
change is consistent with the Act.
[Release No. 34–81120; File No. SR– Change
Comments may be submitted by any of
the following methods: NASDAQ–2017–062] 1. Purpose
Electronic Comments Self-Regulatory Organizations; The The Exchange proposes to amend
NASDAQ Stock Market LLC; Notice of Nasdaq Rule 5705(b)(3) and 5705(b)(4)
• Use the Commission’s Internet
Filing and Immediate Effectiveness of to provide for the inclusion of cash in
comment form (http://www.sec.gov/
Proposed Rule Change To Amend an index or portfolio underlying a series
rules/sro.shtml); or
Nasdaq Rule 5705(b) To Provide for the of Index Fund Shares.4 Nasdaq Rule
• Send an email to rule-comments@
sec.gov. Please include File Number SR– Inclusion of Cash in an Index or 5705(b) provides ‘‘generic’’ criteria
NASDAQ–2017–067 on the subject line. Portfolio Underlying a Series of Index permitting listing and trading of Index
Fund Shares Fund Shares pursuant to Rule 19b–4(e)
Paper Comments under the Act 5 when the underlying
July 11, 2017. index or portfolio satisfies the criteria
• Send paper comments in triplicate
Pursuant to Section 19(b)(1) of the set forth in Nasdaq Rule 5705(b).
to Secretary, Securities and Exchange
Securities Exchange Act of 1934 The Exchange understands that
Commission, 100 F Street NE.,
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 certain index providers have included,
Washington, DC 20549–1090.
notice is hereby given that on June 30, or intend to include, cash as a
All submissions should refer to File 2017, The NASDAQ Stock Market LLC
Number SR–NASDAQ–2017–067. This component in indexes or portfolios that
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the also include equity or fixed income
file number should be included on the Securities and Exchange Commission
subject line if email is used. To help the securities components. An index
(‘‘SEC’’ or ‘‘Commission’’) the proposed provider may, for example, provide a
Commission process and review your rule change as described in Items I and
comments more efficiently, please use certain index weighting allocation to
II below, which Items have been cash or may periodically change an
only one method. The Commission will prepared by the Exchange. The
post all comments on the Commission’s allocation to cash based on the index
Commission is publishing this notice to provider’s assessment of market risk
Internet Web site (http://www.sec.gov/ solicit comments on the proposed rule
rules/sro.shtml). Copies of the associated with other asset classes in the
change from interested persons. applicable index.6
submission, all subsequent
I. Self-Regulatory Organization’s
asabaliauskas on DSKBBXCHB2PROD with NOTICES
amendments, all written statements 3 See Securities Exchange Act Release No. 80777
with respect to the proposed rule Statement of the Terms of Substance of (May 25, 2017), 82 FR 25378 (June 1, 2017) (SR–
change that are filed with the the Proposed Rule Change NYSEArca–2017–30).
Commission, and all written The Exchange proposes to amend 4 See Nasdaq Rule 5705(b)(1)(A) and (B).
5 17 CFR 240.19b–4(e).
communications relating to the Nasdaq Rule 5705(b) to provide for the 6 The Exchange notes that shares of the following
proposed rule change between the
exchange-traded funds based on indexes or
Commission and any person, other than 13 17 CFR 200.30–3(a)(12). portfolios that include cash as a component are
1 15 U.S.C. 78s(b)(1). currently listed and traded on the BATS BZX
12 15 U.S.C. 78s(b)(3)(A)(ii). 2 17 CFR 240.19b–4. Exchange, Inc.: QuantX Risk Managed Growth ETF;
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Document Created: 2017-07-15 03:46:14
Document Modified: 2017-07-15 03:46:14
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| FR Citation | 82 FR 32731 |
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