82 FR 57321 - Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Implementation Delay of Qualified Contingent Cross Order Functionalities

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 231 (December 4, 2017)

Page Range		57321-57322
FR Document		2017-25992
Federal Register, Volume 82 Issue 231 (Monday, December 4, 2017)
[Federal Register Volume 82, Number 231 (Monday, December 4, 2017)]
[Notices]
[Pages 57321-57322]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-25992]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82159; File No. SR-GEMX-2017-53]


Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Extend the 
Implementation Delay of Qualified Contingent Cross Order 
Functionalities

November 28, 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 GEMX, LLC (``GEMX'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``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 extend the implementation delay of 
Qualified Contingent Cross Order \3\ functionalities on GEMX.
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    \3\ A Qualified Contingent Cross Order is comprised of an 
originating order to buy or sell at least 1000 contracts that is 
identified as being part of a qualified contingent trade, as that 
term is defined in Supplementary Material .01 below [sic], coupled 
with a contra-side order or orders totaling an equal number of 
contracts. See GEMX Rules 715(j).
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    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqgemx.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 extend the implementation delay of 
Qualified Contingent Cross Order \4\ functionalities on GEMX. During 
the replatform to INET, the Exchange initially delayed the 
implementation of Qualified Contingent Cross Order functionality.\5\ At 
that time, the Exchange noted the Exchange would introduce the 
Qualified Contingent Cross on GEMX within one year from the date of 
filing SR-ISEGemini-2016-17, otherwise the Exchange would file a rule 
proposal with the Commission to remove this rule. The Exchange filed 
the initial rule change on December 16, 2016.\6\ The proposed extended 
delay will permit the Exchange additional time to test and implement 
this functionality on INET. The Exchange proposes to amend the rule 
text in GEMX Rule 721 (Crossing Orders) to note that this QCC 
functionality will be available on or before March 31, 2018, to be 
announced to Members in an Options Trader Alert.\7\
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    \4\ Id.
    \5\ See Securities Exchange Act Release No. 80011 (February 10, 
2017), 82 FR 10927 (February 16, 2017) (SR-ISEGemini-2016-17).
    \6\ Id.
    \7\ The Exchange issued on Options Trader Alert on November 15, 
2017. See Options Trader Alert 2017-17 [sic].
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\8\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\9\ 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 desires additional time to test and implement this 
functionality on INET.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that further delaying the implementation of 
the Qualified Contingent Cross Order functionality on GEMX is 
consistent with the Act and protects investors and public interest 
because the Exchange is allowing additional time to test this 
technology before implementing it on INET. The Exchange believes that 
additional testing will ensure a successful roll-out. Members are 
already aware that this functionality is delayed. The Exchange will 
provide Members notice of the date when the functionality will be 
available. This functionality will be available on or before March 31, 
2018. This proposed delay was announced to Members recently in an 
Options Traders Alert.\10\
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    \10\ See note 7 above.
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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 all Members uniformly will not be able to submit 
Qualified Contingent Cross Orders during the extended implementation 
delay.

[[Page 57322]]

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). 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, along 
with a brief description and 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. 
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-GEMX-2017-53 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-GEMX-2017-53. 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-GEMX-2017-53 and should be 
submitted on or before December 26, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
Eduardo A. Aleman,
Assistant Secretary.
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    \13\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2017-25992 Filed 12-1-17; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 231 / Monday, December 4, 2017 / Notices 57321

each respondent would spend comments on the proposed rule change time to test and implement this
approximately 10 hours annually from interested persons. functionality on INET. The Exchange
complying with the collection of proposes to amend the rule text in
I. Self-Regulatory Organization’s
information requirement (approximately GEMX Rule 721 (Crossing Orders) to
Statement of the Terms of Substance of
3,940 hours in aggregate). the Proposed Rule Change note that this QCC functionality will be
An agency may not conduct or available on or before March 31, 2018,
The Exchange proposes to extend the
sponsor, and a person is not required to to be announced to Members in an
implementation delay of Qualified
respond to, a collection of information Options Trader Alert.7
Contingent Cross Order 3 functionalities
under the PRA unless it displays a on GEMX. 2. Statutory Basis
currently valid OMB control number. The text of the proposed rule change
The public may view background is available on the Exchange’s Web site The Exchange believes that its
documentation for this information at http:// proposal is consistent with Section 6(b)
collection at the following Web site: nasdaqgemx.cchwallstreet.com/, at the of the Act,8 in general, and furthers the
www.reginfo.gov. Comments should be principal office of the Exchange, and at objectives of Section 6(b)(5) of the Act,9
directed to: (i) Desk Officer for the the Commission’s Public Reference in particular, in that it is designed to
Securities and Exchange Commission, Room. promote just and equitable principles of
Office of Information and Regulatory II. Self-Regulatory Organization’s trade, to remove impediments to and
Affairs, Office of Management and Statement of the Purpose of, and perfect the mechanism of a free and
Budget, Room 10102, New Executive Statutory Basis for, the Proposed Rule open market and a national market
Office Building, Washington, DC 20503, Change system, and, in general to protect
or by sending an email to: Shagufta_ investors and the public interest
Ahmed@omb.eop.gov; and (ii) Pamela In its filing with the Commission, the
Exchange included statements because the Exchange desires additional
Dyson, Director/Chief Information time to test and implement this
Officer, Securities and Exchange concerning the purpose of and basis for
the proposed rule change and discussed functionality on INET.
Commission, c/o Remi Pavlik-Simon,
100 F Street NE., Washington, DC any comments it received on the The Exchange believes that further
20549, or by sending an email to: PRA_ proposed rule change. The text of these delaying the implementation of the
Mailbox@sec.gov. Comments must be statements may be examined at the Qualified Contingent Cross Order
submitted to OMB within 30 days of places specified in Item IV below. The functionality on GEMX is consistent
this notice. Exchange has prepared summaries, set with the Act and protects investors and
forth in sections A, B, and C below, of public interest because the Exchange is
Dated: November 28, 2017. the most significant aspects of such
Eduardo A. Aleman,
allowing additional time to test this
statements. technology before implementing it on
Assistant Secretary.
A. Self-Regulatory Organization’s INET. The Exchange believes that
[FR Doc. 2017–25977 Filed 12–1–17; 8:45 am]
Statement of the Purpose of, and additional testing will ensure a
BILLING CODE 8011–01–P
Statutory Basis for, the Proposed Rule successful roll-out. Members are already
Change aware that this functionality is delayed.
SECURITIES AND EXCHANGE 1. Purpose The Exchange will provide Members
COMMISSION notice of the date when the
The Exchange proposes to extend the
functionality will be available. This
implementation delay of Qualified
functionality will be available on or
[Release No. 34–82159; File No. SR–GEMX– Contingent Cross Order 4 functionalities
2017–53] on GEMX. During the replatform to before March 31, 2018. This proposed
INET, the Exchange initially delayed the delay was announced to Members
Self-Regulatory Organizations; Nasdaq implementation of Qualified Contingent recently in an Options Traders Alert.10
GEMX, LLC; Notice of Filing and Cross Order functionality.5 At that time, B. Self-Regulatory Organization’s
Immediate Effectiveness of Proposed the Exchange noted the Exchange would
Rule Change To Extend the Statement on Burden on Competition
introduce the Qualified Contingent
Implementation Delay of Qualified Cross on GEMX within one year from The Exchange does not believe that
Contingent Cross Order the date of filing SR–ISEGemini–2016– the proposed rule change will impose
Functionalities 17, otherwise the Exchange would file a any burden on competition not
November 28, 2017. rule proposal with the Commission to necessary or appropriate in furtherance
remove this rule. The Exchange filed the of the purposes of the Act. The
Pursuant to Section 19(b)(1) of the initial rule change on December 16, Exchange does not believe that the
Securities Exchange Act of 1934 2016.6 The proposed extended delay proposed rule change will impose any
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 will permit the Exchange additional
notice is hereby given that on November burden on intra-market competition
16, 2017, Nasdaq GEMX, LLC (‘‘GEMX’’ 3 A Qualified Contingent Cross Order is
because all Members uniformly will not
or ‘‘Exchange’’) filed with the Securities comprised of an originating order to buy or sell at be able to submit Qualified Contingent
and Exchange Commission least 1000 contracts that is identified as being part Cross Orders during the extended
of a qualified contingent trade, as that term is implementation delay.
(‘‘Commission’’) the proposed rule
sradovich on DSK3GMQ082PROD with NOTICES

defined in Supplementary Material .01 below [sic],
change as described in Items I and II coupled with a contra-side order or orders totaling
below, which Items have been prepared an equal number of contracts. See GEMX Rules 7 The Exchange issued on Options Trader Alert
by the Exchange. The Commission is 715(j).
4 Id.
on November 15, 2017. See Options Trader Alert
publishing this notice to solicit 5 See Securities Exchange Act Release No. 80011
2017–17 [sic].
8 15 U.S.C. 78f(b).
(February 10, 2017), 82 FR 10927 (February 16,
1 15 9 15 U.S.C. 78f(b)(5).
U.S.C. 78s(b)(1). 2017) (SR–ISEGemini–2016–17).
2 17 CFR 240.19b–4. 6 Id. 10 See note 7 above.

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57322 Federal Register / Vol. 82, No. 231 / Monday, December 4, 2017 / Notices

C. Self-Regulatory Organization’s number should be included on the 17, 2017, NYSE American LLC (the
Statement on Comments on the subject line if email is used. To help the ‘‘Exchange’’ or ‘‘NYSE American’’) filed
Proposed Rule Change Received From Commission process and review your with the Securities and Exchange
Members, Participants, or Others comments more efficiently, please use Commission (the ‘‘Commission’’) the
No written comments were either only one method. The Commission will proposed rule change as described in
solicited or received. post all comments on the Commission’s Items I, II, and III below, which Items
Internet Web site (http://www.sec.gov/ have been prepared by the self-
III. Date of Effectiveness of the rules/sro.shtml). Copies of the regulatory organization. The
Proposed Rule Change and Timing for submission, all subsequent Commission is publishing this notice to
Commission Action amendments, all written statements solicit comments on the proposed rule
Because the foregoing proposed rule with respect to the proposed rule change from interested persons.
change does not: (i) Significantly affect change that are filed with the
Commission, and all written I. Self-Regulatory Organization’s
the protection of investors or the public
communications relating to the Statement of the Terms of Substance of
interest; (ii) impose any significant
proposed rule change between the the Proposed Rule Change
burden on competition; and (iii) become
operative for 30 days from the date on Commission and any person, other than The Exchange proposes to amend
which it was filed, or such shorter time those that may be withheld from the Rule 971.1NY (Electronic Cross
as the Commission may designate, it has public in accordance with the Transactions) to amend the duration of
become effective pursuant to Section provisions of 5 U.S.C. 552, will be a Customer Best Execution (‘‘CUBE’’)
19(b)(3)(A)(iii) of the Act 11 and available for Web site viewing and Auction. The proposed rule change is
subparagraph (f)(6) of Rule 19b–4 printing in the Commission’s Public available on the Exchange’s Web site at
thereunder.12 Reference Room, 100 F Street NE., www.nyse.com, at the principal office of
At any time within 60 days of the Washington, DC 20549, on official the Exchange, and at the Commission’s
filing of the proposed rule change, the business days between the hours of Public Reference Room.
Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the
temporarily suspend such rule change if filing also will be available for II. Self-Regulatory Organization’s
it appears to the Commission that such inspection and copying at the principal Statement of the Purpose of, and
action is: (i) Necessary or appropriate in office of the Exchange. All comments Statutory Basis for, the Proposed Rule
the public interest; (ii) for the protection received will be posted without change. Change
of investors; or (iii) otherwise in Persons submitting comments are In its filing with the Commission, the
furtherance of the purposes of the Act. cautioned that we do not redact or edit self-regulatory organization included
If the Commission takes such action, the personal identifying information from statements concerning the purpose of,
Commission shall institute proceedings comment submissions. You should and basis for, the proposed rule change
to determine whether the proposed rule submit only information that you wish and discussed any comments it received
should be approved or disapproved. to make available publicly. All on the proposed rule change. The text
submissions should refer to File of those statements may be examined at
IV. Solicitation of Comments Number SR–GEMX–2017–53 and the places specified in Item IV below.
Interested persons are invited to should be submitted on or before The Exchange has prepared summaries,
submit written data, views, and December 26, 2017. set forth in sections A, B, and C below,
arguments concerning the foregoing, For the Commission, by the Division of of the most significant parts of such
including whether the proposed rule Trading and Markets, pursuant to delegated statements.
change is consistent with the Act. authority.13
Comments may be submitted by any of A. Self-Regulatory Organization’s
Eduardo A. Aleman,
the following methods: Statement of the Purpose of, and the
Assistant Secretary.
Statutory Basis for, the Proposed Rule
Electronic Comments [FR Doc. 2017–25992 Filed 12–1–17; 8:45 am] Change
• Use the Commission’s Internet BILLING CODE 8011–01–P
1. Purpose
comment form (http://www.sec.gov/
rules/sro.shtml); or The Exchange proposes to amend
• Send an email to rule-comments@ SECURITIES AND EXCHANGE Rule 971.1NY to modify the parameters
sec.gov. Please include File Number SR– COMMISSION for the duration of a CUBE Auction. The
GEMX–2017–53 on the subject line. [Release No. 34–82162; File No. SR– CUBE Auction is an electronic crossing
NYSEAMER–2017–26] mechanism for single-leg orders with a
Paper Comments
price improvement auction on the
• Send paper comments in triplicate Self-Regulatory Organizations; NYSE Exchange.
to Secretary, Securities and Exchange American LLC; Notice of Filing of An ATP Holder (‘‘Initiating
Commission, 100 F Street NE., Proposed Rule Change To Amend Rule Participant’’) may initiate a CUBE
Washington, DC 20549–1090. 971.1NY To Amend the Duration of a Auction by electronically submitting for
All submissions should refer to File Customer Best Execution Auction execution a limit order it represents as
Number SR–GEMX–2017–53. This file agent on behalf of a public customer,
November 28, 2017.
Pursuant to Section 19(b)(1) 1 of the broker dealer, or any other entity
11 15 U.S.C. 78s(b)(3)(A)(iii). (‘‘CUBE Order’’) against principal
sradovich on DSK3GMQ082PROD with NOTICES

12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 interest or against any other order it
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file notice is hereby given that on November represents as agent, provided the
the proposed rule change, along with a brief Initiating Participant complies with
description and text of the proposed rule change, 13 17 Rule 971.1NY. When the Exchange
at least five business days prior to the date of filing CFR 200.30–3(a)(12).
of the proposed rule change, or such shorter time
1 15 U.S.C.78s (b)(1). receives a valid CUBE Order for auction
as designated by the Commission. The Exchange 2 15 U.S.C. 78a. processing, a Request for Responses
has satisfied this requirement. 3 17 CFR 240.19b–4. (‘‘RFR’’) detailing the series, the side of

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Document Created: 2017-12-02 00:41:11
Document Modified: 2017-12-02 00:41:11
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 57321