82 FR 57516 - Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt a Shell Structure for the GEMX Rulebook
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 232 (December 5, 2017)
Federal Register Volume 82, Issue 232 (December 5, 2017)
| Page Range | 57516-57518 | |
| FR Document | 2017-26125 |
[Federal Register Volume 82, Number 232 (Tuesday, December 5, 2017)] [Notices] [Pages 57516-57518] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-26125] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82171; File No. SR-GEMX-2017-54] Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt a Shell Structure for the GEMX Rulebook November 29, 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 17, 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to adopt a shell structure for the GEMX rulebook (``Rulebook'') as part of its initiative to structure its Rulebook. 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 On March 9, 2016, Nasdaq, Inc. acquired the capital stock of U.S. Exchange Holdings, thereby indirectly acquiring all of the interests of the International Securities Exchange, LLC (now Nasdaq ISE, LLC), ISE Gemini, LLC (now GEMX) and ISE Mercury, LLC (now Nasdaq MRX, LLC)(``MRX'').\3\ The acquisition resulted in a total of six self- regulatory organization licenses for Nasdaq, Inc. which, in addition to the three aforementioned exchanges, also include The Nasdaq Stock Market LLC (``Nasdaq''), Nasdaq PHLX LLC (``Phlx'') and Nasdaq BX, Inc. (``BX'') (collectively, ``Nasdaq Entities''). --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 78119 (June 21, 2016), 81 FR 41611 (June 27, 2016) (SR-ISE-2016-11; SR-ISE Gemini- 2016-05; SR-ISE Mercury-2016-10) (Order Granting Accelerated Approval of Proposed Rule Changes, Each as Modified by Amendment No. 1 Thereto, Relating to a Corporate Transaction in Which Nasdaq, Inc. Will Become the Indirect Parent of ISE, ISE Gemini, and ISE Mercury). --------------------------------------------------------------------------- The Exchange is planning to conform the chapters of the various Nasdaq Entity rulebooks for efficiency, and conformity of certain Nasdaq Entity processes. The Exchange believes that aligning the rules of the Nasdaq Entities will assist market participants in navigating the various rulebooks. Specifically, the Exchange proposes to add a shell structure which would reside alongside the current rulebook. The proposed shell would outline the various chapters of the future rulebook [[Page 57517]] and contains new chapter numbering. A similar shell would be filed to add the same structure to each of the other Nasdaq Entities. The proposed chapters would be similar for each shell filed for each of the Nasdaq Entities. In subsequent rule changes, each of the Nasdaq Entities would file rule changes to move their current rules into the various chapters of the proposed shells for all six markets and delete the migrated rule from the current location in the Rulebook.\4\ The proposed shell would contain a general rule section and product specific section, in this case options, which would encompass all the rules of the Exchange. --------------------------------------------------------------------------- \4\ When relocating the current rule text into the new shell, the Exchange shall not amend the rule text but simply move existing rule text. --------------------------------------------------------------------------- The Exchange believes this new structure would align the Nasdaq Entities' rulebooks for ease of use by Members, who are members of more than one Nasdaq Entity. This proposal would not amend the current Rulebook and is therefore not a substantive change. A Member would continue to be able to view the current Rulebook alongside the proposed reorganized Rulebook. Subsequent rule changes will be filed to move the rule text into the shell Rulebook. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\5\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\6\ 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 starting the process of organizing its rules in a manner which is clear and consistent across the Nasdaq Entities. The Exchange believes that coordinating the chapters of the rulebooks among the Nasdaq Entities will provide Members, who are members of more than one Nasdaq Entity, with consistency and ease of reference in locating rules. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- 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 proposed changes do not impose a burden on competition because the proposed amendments are non- substantive, are intended to start the process to organize the rules of the Exchange in a manner that will be more user-friendly to Nasdaq Entity members. 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 \7\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\8\ --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A)(iii). \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. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \9\ 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 requested that the Commission waive the 30-day operative delay so that the proposed rule change will become operative upon filing. The Exchange states that such waiver will enable the Exchange to start the process to reorganize the rulebooks of the Nasdaq Entities. The Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest because the proposal does not raise any novel issues and waiver will allow the Exchange to begin the reorganization of its Rulebook without delay. Therefore, the Commission hereby waives the operative delay and designates the proposed rule change operative upon filing.\10\ --------------------------------------------------------------------------- \9\ 17 CFR 240.19b-4(f)(6)(iii). \10\ For purposes only of waiving the 30-day operative delay, the Commission also has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-GEMX-2017-54 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-2017-54. 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 [[Page 57518]] submit only information that you wish to make available publicly. All submissions should refer to File Number SR-GEMX-2017-54, and should be submitted on or before December 26, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-26125 Filed 12-4-17; 8:45 am] BILLING CODE 8011-01-P
![57516 Federal Register / Vol. 82, No. 232 / Tuesday, December 5, 2017 / Notices
limit orders, that is not available for Commission and any person, other than (‘‘Rulebook’’) as part of its initiative to
conventionally traded ETFs. those that may be withheld from the structure its Rulebook.
These developments could public in accordance with the The text of the proposed rule
significantly enhance competition to the provisions of 5 U.S.C. 552, will be change is available on the Exchange’s
benefit of the markets and investors. available for Web site viewing and Web site at http://nasdaqgemx.
printing in the Commission’s Public cchwallstreet.com/, at the principal
C. Self-Regulatory Organization’s office of the Exchange, and at the
Reference Room, 100 F Street NE.,
Statement on Comments on the Commission’s Public Reference Room.
Washington, DC 20549, on official
Proposed Rule Change Received From
business days between the hours of II. Self-Regulatory Organization’s
Members, Participants, or Others
10:00 a.m. and 3:00 p.m. Copies of the Statement of the Purpose of, and
No written comments were either filing also will be available for
solicited or received. Statutory Basis for, the Proposed Rule
inspection and copying at the principal Change
III. Date of Effectiveness of the office of the Exchange. All comments
received will be posted without change. In its filing with the Commission, the
Proposed Rule Change and Timing for Exchange included statements
Commission Action Persons submitting comments are
cautioned that we do not redact or edit concerning the purpose of and basis for
Within 45 days of the date of personal identifying information from the proposed rule change and discussed
publication of this notice in the Federal comment submissions. You should any comments it received on the
Register or within such longer period submit only information that you wish proposed rule change. The text of these
up to 90 days (i) as the Commission may to make available publicly. All statements may be examined at the
designate if it finds such longer period submissions should refer to File places specified in Item IV below. The
to be appropriate and publishes its Number SR–NASDAQ–2017–124 and Exchange has prepared summaries, set
reasons for so finding or (ii) as to which should be submitted on or before forth in sections A, B, and C below, of
the Exchange consents, the Commission December 26, 2017. the most significant aspects of such
shall: (a) By order approve or statements.
For the Commission, by the Division of
disapprove such proposed rule change, Trading and Markets, pursuant to delegated A. Self-Regulatory Organization’s
or (b) institute proceedings to determine authority.40 Statement of the Purpose of, and
whether the proposed rule change Eduardo A. Aleman, Statutory Basis for, the Proposed Rule
should be disapproved. Assistant Secretary. Change
IV. Solicitation of Comments [FR Doc. 2017–26121 Filed 12–4–17; 8:45 am]
1. Purpose
Interested persons are invited to BILLING CODE 8011–01–P
On March 9, 2016, Nasdaq, Inc.
submit written data, views, and
acquired the capital stock of U.S.
arguments concerning the foregoing,
SECURITIES AND EXCHANGE Exchange Holdings, thereby indirectly
including whether the proposed rule
COMMISSION acquiring all of the interests of the
change is consistent with the Act.
International Securities Exchange, LLC
Comments may be submitted by any of [Release No. 34–82171; File No. SR–GEMX–
2017–54] (now Nasdaq ISE, LLC), ISE Gemini,
the following methods:
LLC (now GEMX) and ISE Mercury, LLC
Electronic Comments Self-Regulatory Organizations; Nasdaq (now Nasdaq MRX, LLC)(‘‘MRX’’).3 The
• Use the Commission’s Internet GEMX, LLC; Notice of Filing and acquisition resulted in a total of six self-
comment form (http://www.sec.gov/ Immediate Effectiveness of Proposed regulatory organization licenses for
rules/sro.shtml); or Rule Change To Adopt a Shell Nasdaq, Inc. which, in addition to the
• Send an email to rule-comments@ Structure for the GEMX Rulebook three aforementioned exchanges, also
sec.gov. Please include File Number SR– include The Nasdaq Stock Market LLC
November 29, 2017. (‘‘Nasdaq’’), Nasdaq PHLX LLC (‘‘Phlx’’)
NASDAQ–2017–124 on the subject line. Pursuant to Section 19(b)(1) of the and Nasdaq BX, Inc. (‘‘BX’’)
Paper Comments Securities Exchange Act of 1934 (collectively, ‘‘Nasdaq Entities’’).
• Send paper comments in triplicate (‘‘Act’’),1 and Rule 19b–4 thereunder,2 The Exchange is planning to conform
to Secretary, Securities and Exchange notice is hereby given that on November the chapters of the various Nasdaq
Commission, 100 F Street NE., 17, 2017, Nasdaq GEMX, LLC (‘‘GEMX’’ Entity rulebooks for efficiency, and
Washington, DC 20549–1090. or ‘‘Exchange’’) filed with the Securities conformity of certain Nasdaq Entity
and Exchange Commission processes. The Exchange believes that
All submissions should refer to File
(‘‘Commission’’) the proposed rule aligning the rules of the Nasdaq Entities
Number SR–NASDAQ–2017–124. This
change as described in Items I and II will assist market participants in
file number should be included on the
below, which Items have been prepared navigating the various rulebooks.
subject line if email is used. To help the
by the Exchange. The Commission is Specifically, the Exchange proposes to
Commission process and review your
publishing this notice to solicit add a shell structure which would
comments more efficiently, please use
comments on the proposed rule change reside alongside the current rulebook.
only one method. The Commission will
from interested persons. The proposed shell would outline the
post all comments on the Commission’s
Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s various chapters of the future rulebook
rules/sro.shtml). Copies of the Statement of the Terms of the Substance
sradovich on DSK3GMQ082PROD with NOTICES
3 See Securities Exchange Act Release No. 78119
submission, all subsequent of the Proposed Rule Change
(June 21, 2016), 81 FR 41611 (June 27, 2016) (SR–
amendments, all written statements The Exchange proposes to adopt a ISE–2016–11; SR–ISE Gemini–2016–05; SR–ISE
with respect to the proposed rule shell structure for the GEMX rulebook Mercury–2016–10) (Order Granting Accelerated
change that are filed with the Approval of Proposed Rule Changes, Each as
Modified by Amendment No. 1 Thereto, Relating to
Commission, and all written 40 17 CFR 200.30–3(a)(12). a Corporate Transaction in Which Nasdaq, Inc. Will
communications relating to the 1 15 U.S.C. 78s(b)(1). Become the Indirect Parent of ISE, ISE Gemini, and
proposed rule change between the 2 17 CFR 240.19b–4. ISE Mercury).
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![57518 Federal Register / Vol. 82, No. 232 / Tuesday, December 5, 2017 / Notices
submit only information that you wish II. Self-Regulatory Organization’s Rule 1017 does provide in great detail
to make available publicly. All Statement of the Purpose of, and for a fully automated opening of trading
submissions should refer to File Statutory Basis for, the Proposed Rule when there is buying or selling interest
Number SR–GEMX–2017–54, and Change in all options series, including long term
should be submitted on or before option series. Generally speaking, the
In its filing with the Commission, the
December 26, 2017. fully automated opening process begins
Exchange included statements
when either (1) a ‘‘valid width’’
For the Commission, by the Division of concerning the purpose of and basis for
specialist quote is submitted, (2) valid
Trading and Markets, pursuant to delegated the proposed rule change and discussed
width quotes are received from at least
authority.11 any comments it received on the
two Exchange market makers within
Eduardo A. Aleman, proposed rule change. The text of these
two minutes of the opening trade or
statements may be examined at the
Assistant Secretary. quote in the underlying security or (3)
places specified in Item IV below. The
[FR Doc. 2017–26125 Filed 12–4–17; 8:45 am] after two minutes of the opening trade
Exchange has prepared summaries, set
or quote in the underlying, valid width
BILLING CODE 8011–01–P forth in sections A, B, and C below, of
quotes are received from one Exchange
the most significant aspects of such market maker. If an opening imbalance
statements. exists outside of an acceptable range,
SECURITIES AND EXCHANGE
COMMISSION A. Self-Regulatory Organization’s the system will initiate an imbalance
Statement of the Purpose of, and process. During this process the
Statutory Basis for, the Proposed Rule Exchange will consider interest on the
[Release No. 34–82170; File No. SR–PHLX–
Change Exchange as well as interest on away
2017–96]
exchanges. If there is not an opening
1. Purpose imbalance outside of an acceptable
Self-Regulatory Organizations; Nasdaq
Section (a)(i)(D) of Rule 1012 range on the Exchange, the system will
PHLX LLC; Notice of Filing and
currently provides that the Exchange verify that a ‘‘quality opening market’’
Immediate Effectiveness of Proposed exists in order to validate the opening
may list, with respect to any class of
Rule Change To Amend Section price prior to executing interest on the
stock or Exchange-Traded Fund Share
(a)(i)(D) of Rule 1012, Series of Options options series, options having from opening. A quality opening market is a
Open for Trading twelve up to thirty-nine months from bid/ask spread with an acceptable
November 29, 2017. the time they are listed until expiration. differential as defined by the Exchange.
There may be up to six expiration The bid/ask spread is made up of the
Pursuant to Section 19(b)(1) of the months. Strike price interval, bid/ask best available bid, on the Exchange as
Securities Exchange Act of 1934 differential and continuity rules shall well as away markets, and the best
(‘‘Act’’) 1, and Rule 19b–4 thereunder,2 not apply to such options series until available offer, on the Exchange as well
notice is hereby given that on November the time to expiration is less than nine as away market. The acceptable bid/ask
17, 2017, Nasdaq PHLX LLC (‘‘Phlx’’ or months. spread differentials can be found on the
‘‘Exchange’’) filed with the Securities Section (a)(i)(D) also provides in its Exchange’s Web site.
and Exchange Commission last two sentences that such option Rule 1017 does not provide for the
(‘‘Commission’’) the proposed rule series will open for trading either when opening of long term option series 40
change as described in Items I, II, and there is buying or selling interest, or 40 minutes prior to the close. The
III, below, which Items have been minutes prior to the close, whichever Exchange proposes to remove this
prepared by the Exchange. The occurs first, and that no quotations need inconsistent anachronism, still found in
to be posted for such option series until Rule 1012(A)(i)(D), as the Exchange no
Commission is publishing this notice to
they are opened for trading. The longer believes that long term options
solicit comments on the proposed rule
Exchange proposes to delete the warrant special opening treatment but
change from interested persons. should open like other options under
outdated provision of Section (a)(i)(D)
I. Self-Regulatory Organization’s regarding the time of opening as Rule 1017, pursuant to a fully
Statement of the Terms of Substance of inconsistent with, and unnecessary in automated process in which options
the Proposed Rule Change view of, Rule 1017, Openings in open once certain precise conditions
Options, which governs in detail all have been met. Although removing the
The Exchange proposes to amend openings on the Exchange, including provision that long term option series
Section (a)(i)(D) of Rule 1012, Series of openings in long term option series.3 must open forty minutes prior to the
Options Open for Trading, to delete two The Exchange proposes to delete the close of trading even if there is no
sentences regarding opening for trading Section (a)(i)(D) provision that no buying or selling interest, the Exchange
of long term option series, which quotations need to be posted for such believes it will be rare for a long term
sentences have effectively been option series until they are opened for option series not to have buying or
superseded by another rule. trading as superfluous, given that no selling interest in any event, due to
quotations need to be posted for any Exchange members’ quoting obligations.
The text of the proposed rule change
is available on the Exchange’s Web site series of options traded on the Exchange
provides that ‘‘[t]he Specialist assigned in a
at http://nasdaqphlx.cchwallstreet.com/, until they are opened for trading.4 particular equity or index option must enter a Valid
at the principal office of the Exchange, Width Quote, in 90% of their assigned series, not
sradovich on DSK3GMQ082PROD with NOTICES
3 The Exchange recently amended Rule 1017,
later than one minute following the dissemination
and at the Commission’s Public Openings in Options, which clarified the manner in of a quote or trade by the market for the underlying
Reference Room. which the opening process occurs on Phlx. See security or, in the case of index options, following
Securities Exchange Act Release No. 80820 (May the receipt of the opening price in the underlying
31, 2017), 82 FR 26171 (June 6, 2017) (SR–Phlx– index.’’ The quote resulting from the Specialist’s
2017–40). obligation under Rule 1017(d)(iii) is considered in
11 17 CFR 200.30–3(a)(12). 4 The Exchange interprets ‘‘posted’’ in Section the opening process of Rule 1017, and the Exchange
1 15 U.S.C. 78s(b)(1). (a)(i)(D) as meaning published on the Options Price publishes a quote in the option series once the
2 17 CFR 240.19b–4. Reporting Authority (‘‘OPRA’’). Rule 1017(d)(iii) option has been opened pursuant to that rule.
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Document Created: 2017-12-04 23:44:54
Document Modified: 2017-12-04 23:44:54
| 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 57516 |
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