82 FR 56288 - Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Remove Directed Order Functionality

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 227 (November 28, 2017)

Page Range		56288-56289
FR Document		2017-25603
Federal Register, Volume 82 Issue 227 (Tuesday, November 28, 2017)
[Federal Register Volume 82, Number 227 (Tuesday, November 28, 2017)]
[Notices]
[Pages 56288-56289]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-25603]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82134; File No. SR-MRX-2017-25]


Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Remove Directed 
Order Functionality

November 21, 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 November 16, 2017, Nasdaq MRX, LLC (``MRX'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III, below, which 
Items have been prepared by the Exchange. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to remove Directed Order \3\ functionality on 
MRX.
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    \3\ A ``Directed Order'' is an order routed from an Electronic 
Access Member to an Exchange market maker through the Exchange's 
System.
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    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqmrx.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
    Last year the Exchange filed to delay the implementation of the 
Directed

[[Page 56289]]

Order functionality in conjunction with a replatform to INET.\4\ INET 
is the proprietary core technology utilized across Nasdaq's global 
markets and utilized on The Nasdaq Options Market LLC (``NOM''), Nasdaq 
PHLX LLC (``Phlx'') and Nasdaq BX, Inc. (``BX'') (collectively, 
``Nasdaq Exchanges''). MRX was migrated to INET technology in 2017. 
With the migration, MRX delayed the implementation of the Directed 
Order functionality to stage the re-platform to provide maximum benefit 
to its Members while also ensuring a successful rollout. At that time, 
the Exchange noted that the Exchange will introduce the Directed Order 
functionality within one year from the date of this filing, otherwise 
the Exchange will file a rule proposal with the Commission to remove 
these rules. The Exchange filed the initial rule change on May 17, 
2017.\5\ The Exchange has determined at this time not to offer Directed 
Order functionality. If the Exchange determines to offer this 
functionality at a later date a rule proposal will be filed at that 
time.
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    \4\ See Securities Exchange Act Release No. 81204 (July 25, 
2017), 82 FR 35557 (July 31, 2017) (SR-MRX-2017-02).
    \5\ Id.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\6\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\7\ 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 
because the Exchange will remove rule text related to functionality 
which will not be offered on MRX. The current rule text indicates the 
functionality is not offered today. The Exchange believes that removing 
Rule 811 from the Rulebook will avoid confusion as to whether this 
functionality will be enabled in the future.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange does not believe 
that the proposed rule change will impose any burden on intra-market 
competition because the Exchange is not offering this functionality 
today and believes there is no interest among Members for this 
functionality.

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 \8\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-MRX-2017-25 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-2017-25. 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. 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-2017-25 and should be 
submitted on or before December 19, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-25603 Filed 11-27-17; 8:45 am]
 BILLING CODE 8011-01-P
56288 Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Notices

change, C2 submitted Amendment No. 1 proposed rule changes submitted by SECURITIES AND EXCHANGE
to its proposed rule change, CBOE Bats BZX, Bats EDGX, BOX, C2, CBOE, COMMISSION
submitted Amendment No. 1 to its FINRA, IEX, ISE, MIAX, and PEARL;
[Release No. 34–82134; File No. SR–MRX–
proposed rule change, FINRA submitted both proposed rule changes submitted 2017–25]
Amendment No. 1 to its proposed rule by NYSE MKT; and one of the proposed
change, ISE submitted Amendment No. rule changes submitted by NYSE Arca Self-Regulatory Organizations; Nasdaq
2 to its proposed rule change, NASDAQ were published for comment in the MRX, LLC; Notice of Filing and
submitted Amendment No. 2 to its Federal Register on June 1, 2017. Immediate Effectiveness of Proposed
proposed rule change, NYSE submitted November 28, 2017, is 180 days from Rule Change To Remove Directed
Amendment No. 1 to its proposed rule Order Functionality
that date, and January 27, 2018, is 240
change, NYSE Arca submitted
days from that date. The proposed rule
Amendment No. 1 to each of its November 21, 2017.
change submitted by NYSE and the Pursuant to Section 19(b)(1) of the
proposed rule changes, NYSE MKT
submitted Amendment No. 1 to each of other proposed rule change submitted Securities Exchange Act of 1934
its proposed rule changes, and Phlx by NYSE Arca were published for (‘‘Act’’),1 and Rule 19b–4 thereunder,2
submitted Amendment No. 2 to its comment in the Federal Register on notice is hereby given that on November
proposed rule change. June 2, 2017. November 29, 2017, is 180 16, 2017, Nasdaq MRX, LLC (‘‘MRX’’ or
On August 30, 2017, the Commission days from that date, and January 28, ‘‘Exchange’’) filed with the Securities
instituted proceedings under Section 2018, is 240 days from that date. The and Exchange Commission
19(b)(2)(B) of the Act 18 to determine proposed rule changes submitted by (‘‘Commission’’) the proposed rule
whether to approve or disapprove the NASDAQ, BX, and Phlx were published change as described in Items I, II, and
proposed rule changes, as modified by for comment in the Federal Register on III, below, which Items have been
the respective amendments thereto.19 June 5, 2017. December 2, 2017, is 180 prepared by the Exchange. The
Since then, the Commission has days from that date, and January 31, Commission is publishing this notice to
received eight additional comment 2018, is 240 days from that date. solicit comments on the proposed rule
letters on the proposed rule changes, The Commission finds it appropriate change from interested persons.
including a response from FINRA and a
to designate a longer period within I. Self-Regulatory Organization’s
response from the CAT NMS Plan
which to issue an order approving or Statement of the Terms of Substance of
Operating Committee Chair on behalf of
disapproving the Systems Retirement the Proposed Rule Change
Bats BZX, Bats EDGX, BOX, C2, CBOE,
IEX, ISE, MIAX, NASDAQ, BX, Phlx, Proposals so that it has sufficient time The Exchange proposes to remove
NYSE, NYSE Arca, NYSE MKT, and to consider the Systems Retirement Directed Order 3 functionality on MRX.
PEARL.20 Proposals, as modified by the respective The text of the proposed rule change
Section 19(b)(2) of the Act 21 provides amendments thereto, the issues raised is available on the Exchange’s Web site
that, after initiating proceedings, the in the comment letters that have been at http://nasdaqmrx.cchwallstreet.com/,
Commission shall issue an order submitted in connection therewith, and at the principal office of the Exchange,
approving or disapproving a proposed FINRA’s response to the comments. and at the Commission’s Public
rule change not later than 180 days after Accordingly, the Commission, pursuant Reference Room.
the date of publication of notice of filing to Section 19(b)(2) of the Act,1 II. Self-Regulatory Organization’s
of the proposed rule change. The designates January 27, 2018, as the date Statement of the Purpose of, and
Commission may, however, extend the by which the Commission should either Statutory Basis for, the Proposed Rule
period for issuing an order approving or approve or disapprove the proposed Change
disapproving the proposed rule change rule changes, as modified by the
by not more than 60 days if the respective amendments thereto (File In its filing with the Commission, the
Commission determines that a longer Exchange included statements
Numbers SR–BatsBZX–2017–37; SR–
period is appropriate and publishes the concerning the purpose of and basis for
BatsEDGX–2017–23; SR–BOX–2017–17;
reasons for such determination. The the proposed rule change and discussed
SR–C2–2017–018; SR–CBOE–2017–041;
any comments it received on the
18 15
SR–FINRA–2017–013; SR–ISE–2017–46; proposed rule change. The text of these
U.S.C. 78s(b)(2)(B).
19 See
SR–IEX–2017–18; SR–MIAX–2017–20; statements may be examined at the
Securities Exchange Act Release No. 81499,
82 FR 42168 (September 6, 2017) (‘‘OIP’’). SR–PEARL–2017–23; SR–NASDAQ– places specified in Item IV below. The
20 Six substantive comment letters were 2017–055; SR–BX–2017–027; SR– Exchange has prepared summaries, set
submitted in response to the OIP. See letters from PHLX–2017–43; SR–NYSE–2017–23;
Manisha Kimmel, Chief Regulatory Officer, Wealth
forth in sections A, B, and C below, of
Management, Thomson Reuters, dated September
SR–NYSEArca–017–57; SR–NYSEArca– the most significant aspects of such
27, 2017; William H. Herbert, Managing Director, 2017–59; SR–NYSEMKT–2017–29; and statements.
FIF, dated September 29, 2017; Ellen Greene, SR–NYSEMKT–2017–30).
Managing Director and Theodore R. Lazo, Managing A. Self-Regulatory Organization’s
Director and Associate General Counsel, SIFMA, For the Commission, by the Division of Statement of the Purpose of, and
dated September 29, 2017; Brant K. Brown, Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule
Associate General Counsel, FINRA, dated October
11, 2017; William H. Herbert, Managing Director,
authority.22 Change
FIF, dated November 2, 2017; and Michael Simon, Eduardo A. Aleman,
CAT NMS Plan Operating Committee Chair, dated
1. Purpose
Assistant Secretary.
ethrower on DSK3G9T082PROD with NOTICES

November 2, 2017. A seventh letter in response to Last year the Exchange filed to delay
the OIP requested additional time to submit [FR Doc. 2017–25604 Filed 11–27–17; 8:45 am]
comments on the proposed rule changes. See letter
the implementation of the Directed
BILLING CODE 8011–01–P
from William H. Herbert, Managing Director, FIF,
1 15 U.S.C. 78s(b)(1).
dated September 27, 2017. The eighth comment
letter was submitted solely to File Number SR– 2 17 CFR 240.19b–4.
Phlx–2017–43. See letter from Michael Kitlas, dated 3 A ‘‘Directed Order’’ is an order routed from an
November 14, 2017. 22 17 CFR 200.30–3(a)(12); 17 CFR 200.30–
Electronic Access Member to an Exchange market
21 15 U.S.C. 78s(b)(2). 3(a)(57). maker through the Exchange’s System.

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Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Notices 56289

Order functionality in conjunction with no interest among Members for this All submissions should refer to File
a replatform to INET.4 INET is the functionality. Number SR–MRX–2017–25. This file
proprietary core technology utilized number should be included on the
C. Self-Regulatory Organization’s
across Nasdaq’s global markets and subject line if email is used. To help the
Statement on Comments on the
utilized on The Nasdaq Options Market Commission process and review your
Proposed Rule Change Received From
LLC (‘‘NOM’’), Nasdaq PHLX LLC comments more efficiently, please use
Members, Participants, or Others
(‘‘Phlx’’) and Nasdaq BX, Inc. (‘‘BX’’) only one method. The Commission will
(collectively, ‘‘Nasdaq Exchanges’’). No written comments were either
post all comments on the Commission’s
MRX was migrated to INET technology solicited or received.
Internet Web site (http://www.sec.gov/
in 2017. With the migration, MRX III. Date of Effectiveness of the rules/sro.shtml). Copies of the
delayed the implementation of the Proposed Rule Change and Timing for submission, all subsequent
Directed Order functionality to stage the Commission Action
re-platform to provide maximum benefit amendments, all written statements
to its Members while also ensuring a Because the foregoing proposed rule with respect to the proposed rule
successful rollout. At that time, the change does not: (i) Significantly affect change that are filed with the
Exchange noted that the Exchange will the protection of investors or the public Commission, and all written
introduce the Directed Order interest; (ii) impose any significant communications relating to the
functionality within one year from the burden on competition; and (iii) become proposed rule change between the
date of this filing, otherwise the operative for 30 days from the date on Commission and any person, other than
Exchange will file a rule proposal with which it was filed, or such shorter time those that may be withheld from the
the Commission to remove these rules. as the Commission may designate, it has public in accordance with the
The Exchange filed the initial rule become effective pursuant to Section provisions of 5 U.S.C. 552, will be
change on May 17, 2017.5 The Exchange 19(b)(3)(A)(iii) of the Act 8 and available for Web site viewing and
has determined at this time not to offer subparagraph (f)(6) of Rule 19b–4 printing in the Commission’s Public
Directed Order functionality. If the thereunder.9 Reference Room, 100 F Street NE.,
Exchange determines to offer this At any time within 60 days of the
Washington, DC 20549, on official
functionality at a later date a rule filing of the proposed rule change, the
Commission summarily may business days between the hours of
proposal will be filed at that time. 10:00 a.m. and 3:00 p.m. Copies of the
temporarily suspend such rule change if
2. Statutory Basis it appears to the Commission that such filing also will be available for
The Exchange believes that its action is: (i) Necessary or appropriate in inspection and copying at the principal
proposal is consistent with Section 6(b) the public interest; (ii) for the protection office of the Exchange. All comments
of the Act,6 in general, and furthers the of investors; or (iii) otherwise in received will be posted without change.
objectives of Section 6(b)(5) of the Act,7 furtherance of the purposes of the Act. Persons submitting comments are
in particular, in that it is designed to If the Commission takes such action, the cautioned that we do not redact or edit
promote just and equitable principles of Commission shall institute proceedings personal identifying information from
trade, to remove impediments to and to determine whether the proposed rule comment submissions. You should
perfect the mechanism of a free and should be approved or disapproved. submit only information that you wish
open market and a national market to make available publicly. All
IV. Solicitation of Comments
system, and, in general to protect submissions should refer to File
investors and the public interest Interested persons are invited to Number SR–MRX–2017–25 and should
because the Exchange will remove rule submit written data, views, and be submitted on or before December 19,
text related to functionality which will arguments concerning the foregoing, 2017.
not be offered on MRX. The current rule including whether the proposed rule
change is consistent with the Act. For the Commission, by the Division of
text indicates the functionality is not
Comments may be submitted by any of Trading and Markets, pursuant to delegated
offered today. The Exchange believes
the following methods: authority.10
that removing Rule 811 from the
Rulebook will avoid confusion as to Eduardo A. Aleman,
Electronic Comments
whether this functionality will be Assistant Secretary.
enabled in the future. • Use the Commission’s Internet [FR Doc. 2017–25603 Filed 11–27–17; 8:45 am]
comment form (http://www.sec.gov/
B. Self-Regulatory Organization’s rules/sro.shtml); or BILLING CODE 8011–01–P

Statement on Burden on Competition • Send an email to rule-comments@
The Exchange does not believe that sec.gov. Please include File Number SR–
the proposed rule change will impose MRX–2017–25 on the subject line.
any burden on competition not Paper Comments
necessary or appropriate in furtherance
of the purposes of the Act. The • Send paper comments in triplicate
Exchange does not believe that the to Brent J. Fields, Secretary, Securities
proposed rule change will impose any and Exchange Commission, 100 F Street
burden on intra-market competition NE., Washington, DC 20549–1090.
because the Exchange is not offering this
ethrower on DSK3G9T082PROD with NOTICES

8 15 U.S.C. 78s(b)(3)(A)(iii).
functionality today and believes there is 9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
4 See Securities Exchange Act Release No. 81204
the Commission written notice of its intent to file
(July 25, 2017), 82 FR 35557 (July 31, 2017) (SR– the proposed rule change at least five business days
MRX–2017–02). prior to the date of filing of the proposed rule
5 Id.
change, or such shorter time as designated by the
6 15 U.S.C. 78f(b).
Commission. The Exchange has satisfied this
7 15 U.S.C. 78f(b)(5). requirement. 10 17 CFR 200.30–3(a)(12).

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Document Created: 2017-11-28 01:51:13
Document Modified: 2017-11-28 01:51:13
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 56288