82 FR 43597 - Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Remove Language From Chapter 19 of the Rulebook

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 179 (September 18, 2017)

Page Range		43597-43598
FR Document		2017-19806
Federal Register, Volume 82 Issue 179 (Monday, September 18, 2017)
[Federal Register Volume 82, Number 179 (Monday, September 18, 2017)]
[Notices]
[Pages 43597-43598]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-19806]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81597; File No. SR-MRX-2017-17]


Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Remove Language 
From Chapter 19 of the Rulebook

September 13, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on August 31, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to remove language from Chapter 19 related to 
a systems issue that has been resolved with the completed migration of 
the Exchange to Nasdaq INET.
    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 remove language from 
Chapter 19 related to a systems issue that has been resolved with the 
completed migration of the Exchange to Nasdaq INET. On June 6, 2017, 
the Exchange filed a proposed rule change 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'').\3\ 
As explained in that proposed rule change, due to a systems issue, 
Flash auction allocations pursuant to Supplementary Material .02(a)-(b) 
to Rule 1901 were not being provided as described in that rule, and 
instead Primary Market Maker quotes were being 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. This systems issue 
has been resolved with the Exchange's migration to Nasdaq INET, which 
was completed on Monday, August 21, 2017. As all symbols are now 
trading on INET, contracts executed in a Flash auction will be 
allocated correctly pursuant to Supplementary Material .02 to Rule 
1901. The Exchange therefore proposes to remove the language described 
above from its rulebook.
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    \3\ See Securities Exchange Act Release No. 80965 (June 19, 
2017), 82 FR 28716 (June 23, 2017) (SR-MRX-2017-07).
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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\ 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. The Exchange believes that the 
proposed rule change is consistent with the protection of investors and 
the public interest because the systems issue described in Chapter 19 
has been resolved. Due to a systems issue, allocations in the Flash 
auction were not being done in the manner described in Supplementary 
Material .02(a)-(b) to Rule 1901. As a temporary measure, the Exchange 
therefore added language to that effect to Chapter 19. With the 
migration of the Exchange's trading system to Nasdaq INET, this systems 
issue has been eliminated, and the Exchange therefore believes that it 
is appropriate to remove this language from Chapter 19.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
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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 eliminates outdated text reflecting a systems issue related 
to Flash auction allocations, and is not designed to have any 
competitive impact.
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    \6\ 15 U.S.C. 78f(b)(8).
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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 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

[[Page 43598]]

19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \9\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \10\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has asked the Commission to waive the 30-day operative delay. The 
Exchange states 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 remove outdated language from Chapter 19 
and thereby avoid member confusion about how Flash auction allocations 
are performed on the Exchange. The Commission believes the waiver of 
the operative delay is consistent with the protection of investors and 
the public interest. Accordingly, the Commission hereby waives the 
operative delay and designates the proposed rule change operative upon 
filing.\11\
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    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule 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-2017-17 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-MRX-2017-17. 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 such 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-2017-17, and should be 
submitted on or before October 10, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-19806 Filed 9-15-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 179 / Monday, September 18, 2017 / Notices 43597

filing also will be available for II. Self-Regulatory Organization’s exchange, and, in particular, with the
inspection and copying at the principal Statement of the Purpose of, and requirements of Section 6(b) of the Act.4
office of the Exchange. All comments Statutory Basis for, the Proposed Rule In particular, the proposal is consistent
received will be posted without change; Change with Section 6(b)(5) of the Act,5 because
the Commission does not edit personal In its filing with the Commission, the is designed to promote just and
identifying information from Exchange included statements equitable principles of trade, remove
submissions. You should submit only concerning the purpose of and basis for impediments to and perfect the
information that you wish to make the proposed rule change and discussed mechanisms of a free and open market
available publicly. All submissions any comments it received on the and a national market system and, in
should refer to File Number SR– proposed rule change. The text of these general, to protect investors and the
BatsBZX–2017–57 and should be statements may be examined at the public interest. The Exchange believes
submitted on or before October 10, places specified in Item IV below. The that the proposed rule change is
2017. Exchange has prepared summaries, set consistent with the protection of
For the Commission, by the Division of forth in sections A, B, and C below, of investors and the public interest
Trading and Markets, pursuant to delegated the most significant aspects of such because the systems issue described in
authority.17 statements. Chapter 19 has been resolved. Due to a
Eduardo A. Aleman, systems issue, allocations in the Flash
A. Self-Regulatory Organization’s auction were not being done in the
Assistant Secretary. Statement of the Purpose of, and manner described in Supplementary
[FR Doc. 2017–19803 Filed 9–15–17; 8:45 am] Statutory Basis for, the Proposed Rule Material .02(a)–(b) to Rule 1901. As a
BILLING CODE 8011–01–P Change temporary measure, the Exchange
1. Purpose therefore added language to that effect
SECURITIES AND EXCHANGE to Chapter 19. With the migration of the
The purpose of the proposed rule Exchange’s trading system to Nasdaq
COMMISSION change is to remove language from INET, this systems issue has been
Chapter 19 related to a systems issue eliminated, and the Exchange therefore
[Release No. 34–81597; File No. SR–MRX– that has been resolved with the
believes that it is appropriate to remove
2017–17] completed migration of the Exchange to
this language from Chapter 19.
Nasdaq INET. On June 6, 2017, the
Self-Regulatory Organizations; Nasdaq Exchange filed a proposed rule change B. Self-Regulatory Organization’s
MRX, LLC; Notice of Filing and to amend Chapter 19 to notify members Statement on Burden on Competition
Immediate Effectiveness of Proposed of a systems issue related to allocations
Rule Change To Remove Language made pursuant to Supplementary In accordance with Section 6(b)(8) of
From Chapter 19 of the Rulebook Material .02(a)–(b) to Rule 1901 (‘‘Flash the Act,6 the Exchange does not believe
auction’’).3 As explained in that that the proposed rule change will
September 13, 2017. impose any burden on intermarket or
proposed rule change, due to a systems
Pursuant to Section 19(b)(1) of the issue, Flash auction allocations intramarket competition that is not
Securities Exchange Act of 1934 (the pursuant to Supplementary Material necessary or appropriate in furtherance
‘‘Act’’),1 and Rule 19b–4 thereunder,2 .02(a)–(b) to Rule 1901 were not being of the purposes of the Act. The
notice is hereby given that on August provided as described in that rule, and proposed rule change eliminates
31, 2017, Nasdaq MRX, LLC (‘‘MRX’’ or instead Primary Market Maker quotes outdated text reflecting a systems issue
‘‘Exchange’’) filed with the Securities were being given a Flash auction related to Flash auction allocations, and
and Exchange Commission (‘‘SEC’’ or allocation pursuant to Supplementary is not designed to have any competitive
‘‘Commission’’) the proposed rule Material .01(b)–(c) to Rule 713 after impact.
change as described in Items I and II Priority Customer Orders on the book,
C. Self-Regulatory Organization’s
below, which Items have been prepared and ahead of Responses, Professional
by the Exchange. The Commission is Statement on Comments on the
Orders, and other market maker quotes.
publishing this notice to solicit Proposed Rule Change Received From
This systems issue has been resolved
comments on the proposed rule change Members, Participants, or Others
with the Exchange’s migration to
from interested persons. Nasdaq INET, which was completed on No written comments were either
Monday, August 21, 2017. As all solicited or received.
I. Self-Regulatory Organization’s
symbols are now trading on INET,
Statement of the Terms of Substance of III. Date of Effectiveness of the
contracts executed in a Flash auction
the Proposed Rule Change Proposed Rule Change and Timing for
will be allocated correctly pursuant to
The Exchange proposes to remove Supplementary Material .02 to Rule Commission Action
language from Chapter 19 related to a 1901. The Exchange therefore proposes
Because the proposed rule change
systems issue that has been resolved to remove the language described above
does not (i) significantly affect the
with the completed migration of the from its rulebook.
protection of investors or the public
Exchange to Nasdaq INET. 2. Statutory Basis interest; (ii) impose any significant
The text of the proposed rule change The Exchange believes that the burden on competition; and (iii) become
sradovich on DSKBBY8HB2PROD with NOTICES

is available on the Exchange’s Web site proposed rule change is consistent with operative for 30 days from the date on
at www.ise.com, at the principal office the requirements of the Act and the which it was filed, or such shorter time
of the Exchange, and at the rules and regulations thereunder that as the Commission may designate, it has
Commission’s Public Reference Room. are applicable to a national securities become effective pursuant to Section

17 17 CFR 200.30–3(a)(12). 3 See Securities Exchange Act Release No. 80965 4 15 U.S.C. 78f(b).
1 15 U.S.C. 78s(b)(1). 5 15 U.S.C. 78f(b)(5).
(June 19, 2017), 82 FR 28716 (June 23, 2017) (SR–
2 17 CFR 240.19b–4. MRX–2017–07). 6 15 U.S.C. 78f(b)(8).

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43598 Federal Register / Vol. 82, No. 179 / Monday, September 18, 2017 / Notices

19(b)(3)(A) of the Act 7 and Rule 19b– • Send an email to rule-comments@ SECURITIES AND EXCHANGE
4(f)(6) thereunder.8 sec.gov. Please include File Number SR– COMMISSION
A proposed rule change filed MRX–2017–17 on the subject line.
pursuant to Rule 19b–4(f)(6) under the [Release No. 34–81600; File No. SR–
Paper Comments BatsEDGA–2017–23]
Act 9 normally does not become
operative for 30 days after the date of its
• Send paper comments in triplicate Self-Regulatory Organizations; Bats
filing. However, Rule 19b–4(f)(6)(iii) 10 EDGA Exchange, Inc.; Notice of Filing
permits the Commission to designate a to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street and Immediate Effectiveness of a
shorter time if such action is consistent Proposed Rule Change Related to
with the protection of investors and the NE., Washington, DC 20549–1090.
Transaction Fees
public interest. The Exchange has asked All submissions should refer to File
the Commission to waive the 30-day Number SR–MRX–2017–17. This file September 13, 2017.
operative delay. The Exchange states number should be included on the Pursuant to Section 19(b)(1) of the
that waiver of the operative delay is subject line if email is used. To help the Securities Exchange Act of 1934 (the
consistent with the protection of ‘‘Act’’),1 and Rule 19b–4 thereunder,2
Commission process and review your
investors and the public interest as it notice is hereby given that on August
comments more efficiently, please use
will allow the Exchange to immediately 31, 2017, Bats EDGA Exchange, Inc. (the
only one method. The Commission will
remove outdated language from Chapter ‘‘Exchange’’ or ‘‘EDGA’’) filed with the
19 and thereby avoid member confusion post all comments on the Commission’s Securities and Exchange Commission
about how Flash auction allocations are Internet Web site (http://www.sec.gov/ (‘‘Commission’’) the proposed rule
performed on the Exchange. The rules/sro.shtml). Copies of the change as described in Items I, II and III
Commission believes the waiver of the submission, all subsequent below, which Items have been prepared
operative delay is consistent with the amendments, all written statements by the Exchange. The Exchange has
protection of investors and the public with respect to the proposed rule designated the proposed rule change as
interest. Accordingly, the Commission change that are filed with the one establishing or changing a member
hereby waives the operative delay and Commission, and all written due, fee, or other charge imposed by the
designates the proposed rule change communications relating to the Exchange under Section 19(b)(3)(A)(ii)
operative upon filing.11 proposed rule change between the of the Act 3 and Rule 19b–4(f)(2)
At any time within 60 days of the Commission and any person, other than thereunder,4 which renders the
filing of the proposed rule change, the those that may be withheld from the proposed rule change effective upon
Commission summarily may public in accordance with the filing with the Commission. The
temporarily suspend such rule change if provisions of 5 U.S.C. 552, will be Commission is publishing this notice to
it appears to the Commission that such available for Web site viewing and solicit comments on the proposed rule
action is necessary or appropriate in the printing in the Commission’s Public change from interested persons.
public interest, for the protection of Reference Room, 100 F Street NE.,
investors, or otherwise in furtherance of I. Self-Regulatory Organization’s
Washington, DC 20549 on official Statement of the Terms of Substance of
the purposes of the Act. If the
business days between the hours of the Proposed Rule Change
Commission takes such action, the
Commission shall institute proceedings 10:00 a.m. and 3:00 p.m. Copies of such
The Exchange filed a proposal to
to determine whether the proposed rule filing also will be available for amend the fee schedule applicable to
should be approved or disapproved. inspection and copying at the principal Members 5 and non-Members of the
office of the Exchange. All comments Exchange pursuant to EDGA Rules
IV. Solicitation of Comments received will be posted without change; 15.1(a) and (c).
Interested persons are invited to the Commission does not edit personal The text of the proposed rule change
submit written data, views, and identifying information from is available at the Exchange’s Web site
arguments concerning the foregoing, submissions. You should submit only at www.bats.com, at the principal office
including whether the proposed rule information that you wish to make of the Exchange, and at the
change is consistent with the Act. available publicly. All submissions Commission’s Public Reference Room.
Comments may be submitted by any of should refer to File Number SR–MRX–
the following methods: II. Self-Regulatory Organization’s
2017–17, and should be submitted on or Statement of the Purpose of, and
Electronic Comments before October 10, 2017. Statutory Basis for, the Proposed Rule
• Use the Commission’s Internet For the Commission, by the Division of Change
comment form (http://www.sec.gov/ Trading and Markets, pursuant to delegated In its filing with the Commission, the
rules/sro.shtml); or authority.12 Exchange included statements
Eduardo A. Aleman, concerning the purpose of and basis for
7 15 U.S.C. 78s(b)(3)(A).
8 17
Assistant Secretary. the proposed rule change and discussed
CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the [FR Doc. 2017–19806 Filed 9–15–17; 8:45 am] any comments it received on the
Commission with written notice of its intent to file BILLING CODE 8011–01–P proposed rule change. The text of these
the proposed rule change, along with a brief statements may be examined at the
description and the text of the proposed rule places specified in Item IV below. The
change, at least five business days prior to the date
sradovich on DSKBBY8HB2PROD with NOTICES

of filing of the proposed rule change, or such
1 15 U.S.C. 78s(b)(1).
shorter time as designated by the Commission.
9 17 CFR 240.19b–4(f)(6). 2 17 CFR 240.19b–4.
10 17 CFR 240.19b–4(f)(6)(iii). 3 15 U.S.C. 78s(b)(3)(A)(ii).

11 For purposes only of waiving the 30-day 4 17 CFR 240.19b–4(f)(2).

operative delay, the Commission has also 5 The term ‘‘Member’’ is defined as ‘‘any

considered the proposed rule’s impact on registered broker or dealer that has been admitted
efficiency, competition, and capital formation. See to membership in the Exchange.’’ See Exchange
15 U.S.C. 78c(f). 12 17 CFR 200.30–3(a)(12). Rule 1.5(n).

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Document Created: 2017-09-16 00:52:07
Document Modified: 2017-09-16 00:52:07
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		82 FR 43597