82 FR 50924 - Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to an Optional Kill Switch Protection

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 211 (November 2, 2017)

Page Range		50924-50926
FR Document		2017-23827
Federal Register, Volume 82 Issue 211 (Thursday, November 2, 2017)
[Federal Register Volume 82, Number 211 (Thursday, November 2, 2017)]
[Notices]
[Pages 50924-50926]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-23827]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81969; File No. SR-MRX-2017-23]


Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Relating to an 
Optional Kill Switch Protection

October 27, 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 October 18, 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 the 
Substance of the Proposed Rule Change

    The Exchange proposes to memorialize an optional Kill Switch 
protection.\3\ The Kill Switch allows Members to cancel open orders and 
prevent new order submission.
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    \3\ Today, this feature is offered to Members. MRX transitioned 
from its legacy trading system to INET, the current technology, in 
2017. While MRX offered this feature on its legacy system, the 
feature was not codified in the MRX Rulebook. At this time, the 
Exchange is codifying the Kill Switch feature to reflect the 
functionality.
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    The text of the proposed rule change is available on the Exchange's 
Web site at www.ise.com, at the principal office of the Exchange, and 
at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

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

1. Purpose
    The Exchange proposes to memorialize its Kill Switch risk 
protection which is applicable to all Members at MRX Rule 711(d). The 
Kill Switch allows Members to cancel open orders and prevent new order 
submission. This feature provides Members with a powerful risk 
management tool for immediate control of their order activity.
    The Kill Switch is an optional tool that enables Members to 
initiate a message(s) \4\ [sic] to the trading system (``System'') to 
promptly cancel orders and restrict entry of new orders until re-entry 
has been enabled. Members may submit a request to the System to cancel 
orders for that Member. Members may not remove orders by symbol using 
the Kill Switch. The System will send an automated message to the 
Member when a Kill Switch request has been processed by the Exchange's 
System.\5\
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    \4\ Members are able to send a message to the Exchange to 
initiate the Kill Switch or they may contact the Exchange directly. 
A message to remove orders may be sent through FIX, OTTO or Precise.
    \5\ Opening Sweep Orders will also be cancelled. Consistent with 
current auction functionality, PIM auction orders and responses will 
not be cancelled. See MRX Rule 723. Other auctions orders and 
responses would cancel. Quotes are unaffected.
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    The Member must send a message to the Exchange to request the 
cancellation of all orders for the Member. The Member is unable to 
enter additional orders until re-entry has been enabled pursuant to 
subsection (d)(2) of Rule 711.
    Proposed subsection (d)(2) stipulates that after orders are 
cancelled by the Member utilizing the Kill Switch, the Member is unable 
to enter additional orders until the Member has made a request to the 
Exchange and Exchange staff has set a re-entry indicator to enable re-
entry.\6\ Once enabled for re-entry, the System will send a Re-entry 
Notification Message to the Member. The applicable Clearing Member for 
that Member also is notified of the re-entry into the System after 
orders are cancelled as a result of the Kill Switch, provided the 
Clearing Member has requested to receive such notification.
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    \6\ The Member must directly and verbally contact the Exchange 
to request the re-set.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \8\ in particular, in that it is designed to promote 
just and equitable principles of trade, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general to protect investors and the public interest, 
by memorializing a risk protection available to Exchange Members. This 
risk feature promotes policy goals of the Commission which has 
encouraged execution venues, exchange and non-exchange alike, to offer 
risk protection tools and other mechanisms to decrease risk and 
increase stability. The

[[Page 50925]]

Exchange believes that memorializing this feature will provide Members 
with specific information on cancelling orders.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    The individual firm benefits of enhanced risk protections flow 
downstream to counter-parties both at the Exchange and at other options 
exchanges, thereby increasing systemic protections as well. This risk 
feature allows Members to enter orders without fear of inadvertent 
exposure to excessive risk, which in turn benefits investors through 
increased liquidity for the execution of their orders, thereby 
protecting investors and the public interest. By memorializing the 
features in this rule change, Members are aware of the impact of 
utilizing this risk tool.
    This optional risk tool as noted above is offered to all Members. 
The Exchange further represents that its proposal operates consistently 
with the firm quote obligations of a broker-dealer pursuant to Rule 602 
of Regulation NMS and that the functionality is not mandatory. 
Specifically, any interest that is executable against a Member's orders 
that are received \9\ by the Exchange, prior to the time the Kill 
Switch is processed by the System, will automatically execute at the 
price up to the Member's size prior to the removal of orders from the 
System as a result of the Kill Switch. The Kill Switch message is 
accepted by the System in the order of receipt in the queue and is 
processed in that order so that interest that is already accepted into 
the System is processed prior to the Kill Switch message.
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    \9\ The time of receipt for an order is the time such message is 
processed by the Exchange Order Book.
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    With respect to providing information regarding the cancellation of 
orders as a result of the Kill Switch to the Clearing Member, each 
Member that transacts through a Clearing Member on the Exchange accepts 
financial responsibility for all Exchange transactions made by the 
Member on whose behalf the Clearing Member agrees to clear.\10\ The 
Exchange believes that because Clearing Members guarantee all 
transactions on behalf of a Member, and therefore bear the risk 
associated with those transactions, it is appropriate for Clearing 
Members to have knowledge of the utilization by the member [sic] of the 
Kill Switch, should the Clearing Member request such notification.
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    \10\ See MRX Rule 808(b).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The proposal does not impose an 
undue burden on intra-market competition because all Members may avail 
themselves of the Kill Switch. The Kill Switch functionality is 
optional. The proposed rule change protects Members in the event the 
Member is suffering from a systems issue or from the occurrence of 
unusual or unexpected market activity that would require them to 
withdraw from the market in order to protect investors. Utilizing this 
Kill Switch will permit the Member to protect itself from inadvertent 
exposure to excessive risk. Reducing such risk will enable Members to 
enter orders without fear of inadvertent exposure to excessive risk, 
which in turn will benefit investors through increased liquidity for 
the execution of their orders. Such increased liquidity benefits 
investors because they receive better prices and because it lowers 
volatility in the options market. For these reasons, the Exchange does 
not believe this proposal imposes an undue burden on inter-market 
competition because other exchanges offer the same functionality, which 
is being memorialized herein.

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 \11\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \12\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative before 30 days from the date of the filing. 
However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission may 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
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    \13\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Exchange has asked the Commission to waive the 30-day operative 
delay. The Commission believes that waiving the 30-day operative delay 
is consistent with the protection of investors and the public interest 
because the proposal is similar to the rules of other options exchanges 
and the Exchange's proposal does not raise any new or novel issues. 
Therefore, the Commission hereby waives the 30-day operative delay and 
designates the proposed rule change to be operative upon filing with 
the Commission.\14\
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    \14\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (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-2017-23 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-2017-23. 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

[[Page 50926]]

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. Persons submitting comments are cautioned that we do 
not redact or edit personal identifying information from comment 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-MRX-
2017-23, and should be submitted on or before November 24, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
Eduardo A. Aleman,
Assistant Secretary.
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    \15\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2017-23827 Filed 11-1-17; 8:45 am]
 BILLING CODE 8011-01-P
50924 Federal Register / Vol. 82, No. 211 / Thursday, November 2, 2017 / Notices

Commission, 100 F Street NE., (‘‘Act’’),1 and Rule 19b–4 thereunder,2 The Kill Switch is an optional tool
Washington, DC 20549–1090. notice is hereby given that on October that enables Members to initiate a
All submissions should refer to File 18, 2017, Nasdaq MRX, LLC (‘‘MRX’’ or message(s) 4 [sic] to the trading system
Number SR–Phlx–2017–79. This file ‘‘Exchange’’) filed with the Securities (‘‘System’’) to promptly cancel orders
number should be included on the and Exchange Commission (‘‘SEC’’ or and restrict entry of new orders until re-
subject line if email is used. To help the ‘‘Commission’’) the proposed rule entry has been enabled. Members may
Commission process and review your change as described in Items I and II submit a request to the System to cancel
comments more efficiently, please use below, which Items have been prepared orders for that Member. Members may
only one method. The Commission will by the Exchange. The Commission is not remove orders by symbol using the
post all comments on the Commission’s publishing this notice to solicit Kill Switch. The System will send an
Internet Web site (http://www.sec.gov/ comments on the proposed rule change automated message to the Member when
rules/sro.shtml). Copies of the from interested persons. a Kill Switch request has been
submission, all subsequent processed by the Exchange’s System.5
I. Self-Regulatory Organization’s The Member must send a message to
amendments, all written statements Statement of the Terms of the Substance
with respect to the proposed rule the Exchange to request the cancellation
of the Proposed Rule Change of all orders for the Member. The
change that are filed with the
Commission, and all written The Exchange proposes to Member is unable to enter additional
communications relating to the memorialize an optional Kill Switch orders until re-entry has been enabled
proposed rule change between the protection.3 The Kill Switch allows pursuant to subsection (d)(2) of Rule
Commission and any person, other than Members to cancel open orders and 711.
prevent new order submission. Proposed subsection (d)(2) stipulates
those that may be withheld from the
The text of the proposed rule change that after orders are cancelled by the
public in accordance with the
is available on the Exchange’s Web site Member utilizing the Kill Switch, the
provisions of 5 U.S.C. 552, will be
at www.ise.com, at the principal office Member is unable to enter additional
available for Web site viewing and
of the Exchange, and at the orders until the Member has made a
printing in the Commission’s Public
Commission’s Public Reference Room. request to the Exchange and Exchange
Reference Room, 100 F Street NE.,
staff has set a re-entry indicator to
Washington, DC 20549, on official II. Self-Regulatory Organization’s enable re-entry.6 Once enabled for re-
business days between the hours of Statement of the Purpose of, and entry, the System will send a Re-entry
10:00 a.m. and 3:00 p.m. Copies of the Statutory Basis for, the Proposed Rule Notification Message to the Member.
filing also will be available for Change The applicable Clearing Member for that
inspection and copying at the principal Member also is notified of the re-entry
office of the Exchange. All comments In its filing with the Commission, the
into the System after orders are
received will be posted without change. Exchange included statements
cancelled as a result of the Kill Switch,
Persons submitting comments are concerning the purpose of and basis for
provided the Clearing Member has
cautioned that we do not redact or edit the proposed rule change and discussed
requested to receive such notification.
personal identifying information from any comments it received on the
comment submissions. You should proposed rule change. The text of these 2. Statutory Basis
submit only information that you wish statements may be examined at the The Exchange believes that its
to make available publicly. All places specified in Item IV below. The proposal is consistent with Section 6(b)
submissions should refer to File Exchange has prepared summaries, set of the Act 7 in general, and furthers the
Number SR–Phlx–2017–79, and should forth in sections A, B, and C below, of objectives of Section 6(b)(5) of the Act 8
be submitted on or before November 24, the most significant aspects of such in particular, in that it is designed to
2017. statements. promote just and equitable principles of
For the Commission, by the Division of A. Self-Regulatory Organization’s trade, to remove impediments to and
Trading and Markets, pursuant to delegated Statement of the Purpose of, and perfect the mechanism of a free and
authority.7 Statutory Basis for, the Proposed Rule open market and a national market
Eduardo A. Aleman, Change system, and, in general to protect
Assistant Secretary. investors and the public interest, by
1. Purpose memorializing a risk protection
[FR Doc. 2017–23831 Filed 11–1–17; 8:45 am]
BILLING CODE 8011–01–P The Exchange proposes to available to Exchange Members. This
memorialize its Kill Switch risk risk feature promotes policy goals of the
protection which is applicable to all Commission which has encouraged
SECURITIES AND EXCHANGE Members at MRX Rule 711(d). The Kill execution venues, exchange and non-
COMMISSION Switch allows Members to cancel open exchange alike, to offer risk protection
orders and prevent new order tools and other mechanisms to decrease
[Release No. 34–81969; File No. SR–MRX– risk and increase stability. The
2017–23] submission. This feature provides
Members with a powerful risk
4 Members are able to send a message to the
Self-Regulatory Organizations; Nasdaq management tool for immediate control
Exchange to initiate the Kill Switch or they may
MRX, LLC; Notice of Filing and of their order activity. contact the Exchange directly. A message to remove
asabaliauskas on DSKBBXCHB2PROD with NOTICES

Immediate Effectiveness of Proposed orders may be sent through FIX, OTTO or Precise.
Rule Change Relating to an Optional 1 15 U.S.C. 78s(b)(1). 5 Opening Sweep Orders will also be cancelled.

Kill Switch Protection 2 17 CFR 240.19b–4. Consistent with current auction functionality, PIM
3 Today, this feature is offered to Members. MRX auction orders and responses will not be cancelled.
October 27, 2017. transitioned from its legacy trading system to INET, See MRX Rule 723. Other auctions orders and
the current technology, in 2017. While MRX offered responses would cancel. Quotes are unaffected.
Pursuant to Section 19(b)(1) of the 6 The Member must directly and verbally contact
this feature on its legacy system, the feature was not
Securities Exchange Act of 1934 codified in the MRX Rulebook. At this time, the the Exchange to request the re-set.
7 15 U.S.C. 78f(b).
Exchange is codifying the Kill Switch feature to
7 17 CFR 200.30–3(a)(12). reflect the functionality. 8 15 U.S.C. 78f(b)(5).

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Federal Register / Vol. 82, No. 211 / Thursday, November 2, 2017 / Notices 50925

Exchange believes that memorializing any burden on competition not The Exchange has asked the
this feature will provide Members with necessary or appropriate in furtherance Commission to waive the 30-day
specific information on cancelling of the purposes of the Act. The proposal operative delay. The Commission
orders. does not impose an undue burden on believes that waiving the 30-day
The individual firm benefits of intra-market competition because all operative delay is consistent with the
enhanced risk protections flow Members may avail themselves of the protection of investors and the public
downstream to counter-parties both at Kill Switch. The Kill Switch interest because the proposal is similar
the Exchange and at other options functionality is optional. The proposed to the rules of other options exchanges
exchanges, thereby increasing systemic rule change protects Members in the and the Exchange’s proposal does not
protections as well. This risk feature event the Member is suffering from a raise any new or novel issues.
allows Members to enter orders without systems issue or from the occurrence of Therefore, the Commission hereby
fear of inadvertent exposure to excessive unusual or unexpected market activity waives the 30-day operative delay and
risk, which in turn benefits investors that would require them to withdraw designates the proposed rule change to
through increased liquidity for the from the market in order to protect be operative upon filing with the
execution of their orders, thereby investors. Utilizing this Kill Switch will Commission.14
protecting investors and the public permit the Member to protect itself from At any time within 60 days of the
interest. By memorializing the features inadvertent exposure to excessive risk. filing of the proposed rule change, the
in this rule change, Members are aware Reducing such risk will enable Members Commission summarily may
of the impact of utilizing this risk tool. to enter orders without fear of temporarily suspend such rule change if
This optional risk tool as noted above inadvertent exposure to excessive risk, it appears to the Commission that such
is offered to all Members. The Exchange which in turn will benefit investors action is: (i) Necessary or appropriate in
further represents that its proposal through increased liquidity for the the public interest; (ii) for the protection
operates consistently with the firm execution of their orders. Such of investors; or (iii) otherwise in
quote obligations of a broker-dealer increased liquidity benefits investors furtherance of the purposes of the Act.
pursuant to Rule 602 of Regulation NMS because they receive better prices and If the Commission takes such action, the
and that the functionality is not because it lowers volatility in the Commission shall institute proceedings
mandatory. Specifically, any interest options market. For these reasons, the to determine whether the proposed rule
that is executable against a Member’s Exchange does not believe this proposal should be approved or disapproved.
orders that are received 9 by the imposes an undue burden on inter- IV. Solicitation of Comments
Exchange, prior to the time the Kill market competition because other
Switch is processed by the System, will Interested persons are invited to
exchanges offer the same functionality,
automatically execute at the price up to submit written data, views, and
which is being memorialized herein. arguments concerning the foregoing,
the Member’s size prior to the removal
of orders from the System as a result of C. Self-Regulatory Organization’s including whether the proposed rule
the Kill Switch. The Kill Switch Statement on Comments on the change is consistent with the Act.
message is accepted by the System in Proposed Rule Change Received From Comments may be submitted by any of
the order of receipt in the queue and is Members, Participants, or Others the following methods:
processed in that order so that interest No written comments were either Electronic Comments
that is already accepted into the System solicited or received. • Use the Commission’s Internet
is processed prior to the Kill Switch comment form (http://www.sec.gov/
message. III. Date of Effectiveness of the
Proposed Rule Change and Timing for rules/sro.shtml); or
With respect to providing information • Send an email to rule-comments@
regarding the cancellation of orders as a Commission Action
sec.gov. Please include File Number SR–
result of the Kill Switch to the Clearing Because the foregoing proposed rule MRX–2017–23 on the subject line.
Member, each Member that transacts change does not: (i) Significantly affect
through a Clearing Member on the Paper Comments
the protection of investors or the public
Exchange accepts financial interest; (ii) impose any significant • Send paper comments in triplicate
responsibility for all Exchange burden on competition; and (iii) become to Secretary, Securities and Exchange
transactions made by the Member on operative for 30 days from the date on Commission, 100 F Street NE.,
whose behalf the Clearing Member which it was filed, or such shorter time Washington, DC 20549–1090.
agrees to clear.10 The Exchange believes as the Commission may designate, it has All submissions should refer to File
that because Clearing Members become effective pursuant to Section Number SR–MRX–2017–23. This file
guarantee all transactions on behalf of a 19(b)(3)(A)(iii) of the Act 11 and number should be included on the
Member, and therefore bear the risk subparagraph (f)(6) of Rule 19b–4 subject line if email is used. To help the
associated with those transactions, it is thereunder.12 Commission process and review your
appropriate for Clearing Members to comments more efficiently, please use
have knowledge of the utilization by the A proposed rule change filed under
Rule 19b–4(f)(6) normally does not only one method. The Commission will
member [sic] of the Kill Switch, should post all comments on the Commission’s
the Clearing Member request such become operative before 30 days from
the date of the filing. However, pursuant Internet Web site (http://www.sec.gov/
notification. rules/sro.shtml). Copies of the
asabaliauskas on DSKBBXCHB2PROD with NOTICES

to Rule 19b–4(f)(6)(iii),13 the
B. Self-Regulatory Organization’s Commission may designate a shorter submission, all subsequent
Statement on Burden on Competition time if such action is consistent with the amendments, all written statements
protection of investors and the public with respect to the proposed rule
The Exchange does not believe that
the proposed rule change will impose interest.
14 For purposes only of waiving the operative

delay for this proposal, the Commission has
9 The time of receipt for an order is the time such 11 15 U.S.C. 78s(b)(3)(A)(iii). considered the proposed rule’s impact on
message is processed by the Exchange Order Book. 12 17 CFR 240.19b–4(f)(6). efficiency, competition, and capital formation. See
10 See MRX Rule 808(b). 13 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f).

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50926 Federal Register / Vol. 82, No. 211 / Thursday, November 2, 2017 / Notices

change that are filed with the I. Self-Regulatory Organization’s any way. Accordingly, this filing is
Commission, and all written Statement of the Terms of Substance of being submitted under Rule 19b–4(f)(3).
communications relating to the the Proposed Rule Change
2. Statutory Basis
proposed rule change between the The Exchange proposes to remove
Commission and any person, other than The Exchange believes that its
references to Nasdaq Options Services. proposal is consistent with Section 6(b)
those that may be withheld from the The text of the proposed rule change
public in accordance with the of the Act,4 in general, and furthers the
is available on the Exchange’s Web site objectives of Section 6(b)(5) of the Act,5
provisions of 5 U.S.C. 552, will be at http://nasdaq.cchwallstreet.com, at
available for Web site viewing and in particular, in that it is designed to
the principal office of the Exchange, and promote just and equitable principles of
printing in the Commission’s Public at the Commission’s Public Reference
Reference Room, 100 F Street NE., trade, to remove impediments to and
Room. perfect the mechanism of a free and
Washington, DC 20549 on official
business days between the hours of II. Self-Regulatory Organization’s open market and a national market
10:00 a.m. and 3:00 p.m. Copies of the Statement of the Purpose of, and system, and, in general to protect
filing also will be available for Statutory Basis for, the Proposed Rule investors and the public interest by
inspection and copying at the principal Change avoiding confusion with the routing
office of the Exchange. All comments entity. The Exchange proposes to
In its filing with the Commission, the remove references to ‘‘Nasdaq Options
received will be posted without change. Exchange included statements
Persons submitting comments are Services’’ or ‘‘NOS’’ and in certain cases
concerning the purpose of and basis for replace those references with a reference
cautioned that we do not redact or edit the proposed rule change and discussed
personal identifying information from to ‘‘Nasdaq Execution Services’’ or
any comments it received on the ‘‘NES,’’ where applicable. The Exchange
comment submissions. You should proposed rule change. The text of these
submit only information that you wish previously filed a proposed rule change
statements may be examined at the which replaced Nasdaq Options
to make available publicly. All places specified in Item IV below. The
submissions should refer to File Services with Nasdaq Execution
Exchange has prepared summaries, set Services.6 This proposed change is non-
Number SR–MRX–2017–23, and should forth in sections A, B, and C below, of
be submitted on or before November 24, substantive.
the most significant aspects of such
2017. statements. B. Self-Regulatory Organization’s
For the Commission, by the Division of Statement on Burden on Competition
Trading and Markets, pursuant to delegated
A. Self-Regulatory Organization’s
Statement of the Purpose of, and The Exchange does not believe that
authority.15
Statutory Basis for, the Proposed Rule the proposed rule change will impose
Eduardo A. Aleman, any burden on competition not
Change
Assistant Secretary. necessary or appropriate in furtherance
[FR Doc. 2017–23827 Filed 11–1–17; 8:45 am] 1. Purpose of the purposes of the Act. The removal
BILLING CODE 8011–01–P The purpose of this filing is to remove of references to ‘‘Nasdaq Options
references to ‘‘Nasdaq Options Services’’ Services’’ or ‘‘NOS’’ and, where
or ‘‘NOS’’ and in certain cases replace applicable, replacement with ‘‘Nasdaq
SECURITIES AND EXCHANGE those references with a reference to Execution Services’’ or ‘‘NES’’ will
COMMISSION ‘‘Nasdaq Execution Services’’ or ‘‘NES.’’ avoid confusion.
[Release No. 34–81972; File No. SR– The Exchange previously filed a C. Self-Regulatory Organization’s
NASDAQ–2017–115] proposed rule change which replaced Statement on Comments on the
Nasdaq Options Services with Nasdaq Proposed Rule Change Received From
Self-Regulatory Organizations; The Execution Services.3 Some references to Members, Participants, or Others
Nasdaq Stock Market LLC; Notice of Nasdaq Options Services were not
Filing and Immediate Effectiveness of removed from the Exchange’s Rulebook. No written comments were either
Proposed Rule Change To Remove At this time, the Exchange proposes to solicited or received.
References to Nasdaq Options remove those references to ‘‘Nasdaq III. Date of Effectiveness of the
Services Options Services’’ and ‘‘NOS’’ and were Proposed Rule Change and Timing for
applicable change those references to Commission Action
October 27, 2017.
‘‘Nasdaq Execution Services’’ or ‘‘NES’’ Pursuant to Section 19(b)(3)(A) of the
Pursuant to Section 19(b)(1) of the if the entity is not already mentioned.
Securities Exchange Act of 1934 Act 7 and Rule 19b–4(f)(3) thereunder,8
Also, the Exchange proposes to make the Exchange has designated this
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 grammatical changes to the current
notice is hereby given that on October proposal as one that is concerned solely
sentence to accommodate the removal of with the administration of the self-
26, 2017, The Nasdaq Stock Market LLC the entity.
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the regulatory organization, and therefore
No other changes are being proposed has become effective.
Securities and Exchange Commission in this filing. The Exchange represents
(‘‘SEC’’ or ‘‘Commission’’) the proposed At any time within 60 days of the
that these changes are concerned solely filing of the proposed rule change, the
rule change as described in Items I, II, with the administration of the Exchange Commission summarily may
asabaliauskas on DSKBBXCHB2PROD with NOTICES

and III, below, which Items have been and do not affect the meaning,
prepared by the Exchange. The temporarily suspend such rule change if
administration, or enforcement of any
Commission is publishing this notice to rules of the Exchange or the rights, 4 15 U.S.C. 78f(b).
solicit comments on the proposed rule obligations, or privileges of Exchange 5 15 U.S.C. 78f(b)(5).
change from interested persons. members or their associated persons in 6 See Securities Exchange Act Release No. 71419

(January 28, 2014), 79 FR 6247 (February 3,
15 17 CFR 200.30–3(a)(12). 3 See Securities Exchange Act Release No. 71419 2014)(SR–NASDAQ–2014–007).
1 15 U.S.C. 78s(b)(1). 7 15 U.S.C. 78s(b)(3)(A).
(January 28, 2014), 79 FR 6247 (February 3,
2 17 CFR 240.19b–4. 2014)(SR–NASDAQ–2014–007). 8 17 CFR 240.19b–4(f)(3).

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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 50924