82 FR 60439 - Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Primary Market Maker Obligations
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 243 (December 20, 2017)
Federal Register Volume 82, Issue 243 (December 20, 2017)
| Page Range | 60439-60442 | |
| FR Document | 2017-27347 |
[Federal Register Volume 82, Number 243 (Wednesday, December 20, 2017)] [Notices] [Pages 60439-60442] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-27347] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82326; File No. SR-GEMX-2017-56] Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Primary Market Maker Obligations December 14, 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 29, 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 Substance of the Proposed Rule Change The Exchange proposes to amend Rule 701, entitled ``Openings,'' to specify the obligations of a Primary Market Maker (``PMM'') when entering Valid Width Quotes \3\ during the Opening Process. --------------------------------------------------------------------------- \3\ A ``Valid Width Quote'' is a two-sided electronic quotation submitted by a Market Maker that consists of a bid/ask differential that is compliant with Rule 803(b)(4). See Rule 701(a)(8). --------------------------------------------------------------------------- The text of the proposed rule change is available on the Exchange's website 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 [[Page 60440]] 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 is proposing to amend Rule 701, Openings, to amend the obligations of a PMM when entering Valid Width Quotes during the Opening Process. In addition, the Exchange proposes to make clear the obligations of a PMM and a Competitive Market Maker (``CMM'') once an options series has opened. Currently, Rule 701(c)(1) provides, the Opening Process for an option series will be conducted pursuant to paragraphs (f)-(j) of GEMX Rule 701 on or after 9:30 a.m. Eastern Time if: The ABBO, if any, is not crossed; and the system has received, within two minutes (or such shorter time as determined by the Exchange and disseminated to membership on the Exchange's website) of the opening trade or quote on the market for the underlying security in the case of equity options or, in the case of index options, within two minutes of the receipt of the opening price in the underlying index (or such shorter time as determined by the Exchange and disseminated to membership on the Exchange's website), or within two minutes of market opening for the underlying security in the case of U.S. dollar-settled foreign currency options (or such shorter time as determined by the Exchange and disseminated to membership on the Exchange's website) any of the following: (i) The PMM's Valid Width Quote; (ii) the Valid Width Quotes of at least two CMM or (iii) if neither the PMM's Valid Width Quote nor the Valid Width Quotes of two CMMs have been submitted within such timeframe, one CMM has submitted a Valid Width Quote. Thereafter, Rule 701(c)(3) specifies that the PMM assigned in a particular equity or index option must enter a Valid Width Quote, in 90% of their assigned series, not later than one minute following the dissemination of a quote or trade by the market for the underlying security or, in the case of index options, following the receipt of the opening price in the underlying index. The PMM assigned in a particular U.S. dollar-settled foreign currency option must enter a Valid Width Quote, in 90% of their assigned series, not later than one minute after the announced market opening. PMMs must promptly enter a Valid Width Quote in the remainder of their assigned series, which did not open within one minute following the dissemination of a quote or trade by the market for the underlying security or, in the case of index options, following the receipt of the opening price in the underlying index or, with respect to U.S. dollar-settled foreign currency options, following the announced market opening. The Exchange proposes to make clear that a PMM has the obligations specified in GEMX Rule 701(c)(3) to promptly enter a Valid Width Quote in the remainder of their assigned series in cases where the PMM's assigned series was not already opened by a CMM as permitted by Rule 701(c)(1)(ii) and (iii) as noted herein. The PMM would continue to have the ultimate obligation to open each assigned series, however this rule change would not require the PMM to enter a Valid Width Quote for the 10% of their assigned series, not later than one minute following the dissemination of a quote or trade by the market for the underlying security or, in the case of index options, following the receipt of the opening price in the underlying index during the Opening Process if an options series has opened pursuant to Rule 701(c)(1)(ii) and (iii) within the timeframe specified for the PMM to enter a Valid Width Quote as noted in Rule 701(c)(3). Also, the PMM assigned in a particular U.S. dollar-settled foreign currency option would not be required to enter a Valid Width Quote for 10% of their assigned series, not later than one minute after the announced market opening during the Opening Process if an options series opened pursuant to Rule 701(c)(1)(ii) and (iii) within the timeframe specified for the PMM to enter a Valid Width Quote as noted in Rule 701(c)(3). Today GEMX Rule 701 requires a PMM to open the market and provides an alternative mechanism to permit an alternative opening by a CMM.\4\ The proposal seeks to make clear the obligations of the PMM with respect to options series that were open by a CMM as well as the quoting obligations of a CMM that opened the options series. The Exchange proposes to amend GEMX Rule 701(c)(3) to state that once an option series has opened pursuant to Rule 701(c)(1)(i)-(iii), a PMM must submit continuous, two-sided quotes in such option series pursuant to Supplementary .01 to GEMX Rule 804. The Exchange also proposes to amend Rule 701(c)(4) to state that a CMM that submits a quote during the opening in any option series pursuant to Rule 701(c)(1)(ii) or (iii) must submit continuous, two-sided quotes in such options series pursuant to GEMX Rule 804(e)(2)(iii) once an option series has opened. Specifically, the Exchange proposes to add rule text to Rule 701(c)(3) to provide that ``once an options series has opened f pursuant to Rule 701(c)(1)(i)-(iii), a PMM must submit continuous, two-sided quotes in such options series pursuant to Supplementary Material .01 to Rule 804.'' Further, the Exchange proposes to add rule text to Rule 701(c)(4) to states that ``A CMM that submits a quote pursuant to Rule 701 in any option series when the PMM's quote has not been submitted shall be required, once an options series has opened, to submit continuous, two-sided quotes in such option series pursuant to Rule 804(e)(2)(iii).'' --------------------------------------------------------------------------- \4\ See GEMX Rule 701(c)(1)(i)-(iii). --------------------------------------------------------------------------- The Exchange proposes to make clear that a PMM has an obligation to enter Valid Width Quotes during the Opening Process within the timeframes specified in Rule 701(c)(3). In the event that an options series opened pursuant to Rule 701(c)(1)(ii) and (iii), a PMM would be required to submit continuous, two-sided quotes in such options series pursuant to Supplementary Material .01 to Rule 804. Also, in this instance, a CMM would be required to submit continuous, two-sided quotes in such option series pursuant to Rule 804(e)(2)(iii). The Exchange notes that a CMM would not have an obligation to quote in such option series pursuant to Rule 804(e)(2)(iii), unless the CMM submitted a quote pursuant to Rule 701 or otherwise submitted a quote intra- day.\5\ The purpose of this new rule text is to make clear the quoting obligations for both PMMs and CMMs during the opening and the manner in which Rule 701, relating to the Opening Process, and Rule 804, relating to Market Maker quoting obligations, interact with each other. --------------------------------------------------------------------------- \5\ See GEMX Rule 804(e)(2)(i) which states, ``On any given day, a Competitive Market Maker is not required to enter quotations in the options classes to which it is appointed.'' --------------------------------------------------------------------------- 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 [[Page 60441]] system, and, in general to protect investors and the public interest by amending GEMX Rule 701(c)(3) to further specify a PMM's obligations during the Opening Process and once an options series as opened as well as the obligations of a CMM to the extent that an options series opened pursuant to Rule 701(c)(1)(ii) and (iii). The Exchange believes that this proposal is consistent with the Act because a PMM continues to be responsible to enter Valid Width Quotes during the Opening Process and thereafter submit continuous, two-sided quotes in such options series pursuant to Supplementary Material .01 to Rule 804. In the event that an options series opened pursuant to Rule 701(c)(1)(ii) and (iii), the CMM must submit continuous, two-sided quotes in such option series, once the options series has opened, pursuant to Rule 804(e)(2)(iii). The Exchange believes that this proposed rule change will make clear the obligations of the PMM with respect to submitting Valid Width Quotes and thereafter, once an options series has opened, submitting continuous two-sided quotes, when a CMM may have already entered a quote to open an options series. The Exchange's proposal to add rule text to clearly specify the quoting obligations of a PMM and CMM during the Opening Process and once an option series has opened will provide greater clarity to the Opening Process and also to the interplay between quoting obligations during the Opening Process and intra-day quoting obligations noted within Rule 804. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 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. Once an options series has opened, [sic] a PMM continues to be responsible to enter Valid Width Quotes during the Opening Process and thereafter submit continuous, two-sided quotes in such options series pursuant to Supplementary Material .01 to Rule 804. Also, if an options series opened pursuant to GEMX Rule 701(c)(1)(ii) or (iii), a CMM shall be required to submit continuous, two-sided quotes in such option series, once an option series has opened. pursuant to Rule 804(e)(2)(iii). This proposed rule text makes clear that CMMs are required to submit continuous, two-sided quotes in such option series pursuant to Rule 804(e)(2)(iii), in the event an options series opened pursuant to Rule 701(c)(1)(ii) and (iii). The proposal provides greater clarity to the Opening Process and also to the interplay between quoting obligations during the Opening Process and intra-day quoting obligations noted within Rule 804. 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\ --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) normally does not become operative prior to 30 days after the date of filing. However, Rule 19b-4(f)(6)(iii) \10\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. In its filing with the Commission, the Exchange requests that the Commission waive the 30-day operative delay. The Exchange represents that the proposed rule change would clarify the quoting obligations for both PMMs and CMMs during the Opening Process and the manner in which Rule 701, relating to the Opening Process, and Rule 804, relating to Market Maker quoting obligations, interact with each other. According to the Exchange, these obligations should be immediately clarified to prevent confusion and uncertainty for Market Makers quoting on the Exchange. For the reasons articulated by the Exchange, the Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission designates the proposed rule change to be operative upon filing.\11\ --------------------------------------------------------------------------- \10\ 17 CFR 240.19b-4(f)(6)(iii). \11\ 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 necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic 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-2017-56 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-2017-56. 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 website (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 website 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 [[Page 60442]] 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-2017-56 and should be submitted on or before January 10, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-27347 Filed 12-19-17; 8:45 am] BILLING CODE 8011-01-P
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advisors would know with greater obligations, or the municipal securities For the Commission, pursuant to delegated
certainty when application for a CUSIP being purchased are used to fully or authority.121
number is required in private placement partially secure or pay the purchasing Eduardo A. Aleman,
transactions. Similarly, the Commission entity’s issue of municipal obligations. Assistant Secretary.
believes that while in practice some For consistency, Amendment No. 1 also [FR Doc. 2017–27342 Filed 12–19–17; 8:45 am]
non-dealer municipal advisors may be would apply the same amendments to BILLING CODE 8011–01–P
applying for CUSIP numbers in a the principles-based exception for
competitive offering before the final dealers from the depository eligibility
award is made, the proposed rule requirements of the rule set forth in SECURITIES AND EXCHANGE
change, as modified by Amendment No. COMMISSION
subparagraph Rule G–34(a)(ii)(A)(3).116
1,would ensure that this is the case,
The MSRB stated that the only [Release No. 34–82326; File No. SR–GEMX–
thus reducing the risk of delays in 2017–56]
secondary market trading where a substantive change made by
competitive offering is awarded but no Amendment No. 1 to the proposed rule Self-Regulatory Organizations; Nasdaq
CUSIP number has been assigned. The change is responsive to commenters and GEMX, LLC; Notice of Filing and
Commission notes that the MSRB that Amendment No. 1 expands the Immediate Effectiveness of Proposed
considered the impact of the proposed application of the previously proposed Rule Change Relating to Primary
rule change on non-dealer municipal principles-based exception to include Market Maker Obligations
advisors and concluded that, while non- sales of new issue municipal securities
dealer municipal advisors are likely to December 14, 2017.
to municipal entities that are purchasing
incur up-front costs associated with Pursuant to Section 19(b)(1) of the
the underlying municipal securities
compliance with the proposed rule Securities Exchange Act of 1934
with funds that are at least in part
change, the cost would be justified by (‘‘Act’’),1 and Rule 19b–4 thereunder,2
proceeds of the purchasing entity’s issue notice is hereby given that on November
the likely benefits of the proposed rule of municipal obligations, or the
change over time.115 29, 2017, Nasdaq GEMX, LLC (‘‘GEMX’’
municipal securities being purchased or ‘‘Exchange’’) filed with the Securities
As noted above, the Commission
received eleven comment letters on the are used to fully or partially secure or and Exchange Commission
Notice of Filing and two comment pay the purchasing entity’s issue of (‘‘Commission’’) the proposed rule
letters on Amendment No. 1. The municipal obligations.117 The MSRB change as described in Items I and II
Commission believes that the MSRB, further noted that the other amendment below, which Items have been prepared
through its responses and through to the proposed rule change made by by the Exchange. The Commission is
Amendment No. 1, has addressed Amendment No. 1 merely clarifies that publishing this notice to solicit
commenters’ concerns. in a direct purchase transaction there comments on the proposed rule change
For the reasons noted above, the may be a redemption or mandatory from interested persons.
Commission believes that the proposed tender that occurs prior to the I. Self-Regulatory Organization’s
rule change, as modified by Amendment municipal security’s maturity.118 Statement of the Terms of Substance of
No. 1, is consistent with the Act. Additionally, the MSRB stated that, in the Proposed Rule Change
VI. Accelerated Approval of Proposed light of one of the purposes of the
principles-based exception in the The Exchange proposes to amend
Rule Change, as Modified by Rule 701, entitled ‘‘Openings,’’ to
Amendment No. 1 proposed rule change—to allow dealers
specify the obligations of a Primary
and municipal advisors to provide
The Commission finds good cause for Market Maker (‘‘PMM’’) when entering
approving the proposed rule change, as services without inhibiting their issuer
Valid Width Quotes 3 during the
modified by Amendment No. 1, prior to clients’ access to certain financings—the Opening Process.
the 30th day after the date of revisions are consistent with the The text of the proposed rule change
publication of the Notice of Amendment proposed rule change.119 is available on the Exchange’s website at
No. 1 in the Federal Register. As For the foregoing reasons, the http://nasdaqgemx.cchwallstreet.com/,
discussed above, Amendment No. 1 Commission finds good cause for at the principal office of the Exchange,
modifies the proposed rule change by approving the proposed rule change, as and at the Commission’s Public
amending proposed paragraph Rule G– modified by Amendment No. 1, on an Reference Room.
34(a)(i)(F) of the proposed rule change accelerated basis, pursuant to Section II. Self-Regulatory Organization’s
to require dealers (and municipal 19(b)(2) of the Act. Statement of the Purpose of, and
advisors in a competitive sale) seeking
VIII. Conclusion Statutory Basis for, the Proposed Rule
to rely on the principles-based
Change
exception to reasonably believe the
It is therefore ordered, pursuant to In its filing with the Commission, the
purchaser’s present intent is to hold the
municipal securities to maturity ‘‘or Section 19(b)(2) of the Act,120 that the Exchange included statements
earlier redemption or mandatory proposed rule change (SR–MSRB–2017– concerning the purpose of and basis for
tender.’’ Amendment No. 1 also would 06), as modified by Amendment No. 1, the proposed rule change and discussed
modify the proposed rule change to be, and hereby is, approved on an any comments it received on the
expand the principles-based exception accelerated basis. proposed rule change. The text of these
statements may be examined at the
sradovich on DSK3GMQ082PROD with NOTICES
in proposed paragraph Rule G–
34(a)(i)(F) to include cases where a places specified in Item IV below. The
municipal entity purchases the 116 See Amendment No. 1.
1 15 U.S.C. 78s(b)(1).
municipal securities with funds that are 117 Id.
2 17 CFR 240.19b–4.
at least in part proceeds of the 118 Id.
3 A ‘‘Valid Width Quote’’ is a two-sided electronic
purchasing entity’s issue of municipal 119 Id.
quotation submitted by a Market Maker that
120 15 U.S.C. 78s(b)(2). consists of a bid/ask differential that is compliant
115 See November Response Letter. 121 17 CFR 200.30–3(a)(12). with Rule 803(b)(4). See Rule 701(a)(8).
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system, and, in general to protect 701(c)(1)(ii) and (iii). The proposal rule change to be operative upon
investors and the public interest by provides greater clarity to the Opening filing.11
amending GEMX Rule 701(c)(3) to Process and also to the interplay At any time within 60 days of the
further specify a PMM’s obligations between quoting obligations during the filing of the proposed rule change, the
during the Opening Process and once an Opening Process and intra-day quoting Commission summarily may
options series as opened as well as the obligations noted within Rule 804. temporarily suspend such rule change if
obligations of a CMM to the extent that it appears to the Commission that such
an options series opened pursuant to C. Self-Regulatory Organization’s action is necessary or appropriate in the
Rule 701(c)(1)(ii) and (iii). The Statement on Comments on the public interest, for the protection of
Exchange believes that this proposal is Proposed Rule Change Received From investors, or otherwise in furtherance of
consistent with the Act because a PMM Members, Participants, or Others the purposes of the Act. If the
continues to be responsible to enter No written comments were either Commission takes such action, the
Valid Width Quotes during the Opening solicited or received. Commission shall institute proceedings
Process and thereafter submit to determine whether the proposed rule
III. Date of Effectiveness of the should be approved or disapproved.
continuous, two-sided quotes in such
Proposed Rule Change and Timing for
options series pursuant to IV. Solicitation of Comments
Supplementary Material .01 to Rule 804. Commission Action
In the event that an options series Because the foregoing proposed rule Interested persons are invited to
opened pursuant to Rule 701(c)(1)(ii) change does not: (i) Significantly affect submit written data, views, and
and (iii), the CMM must submit the protection of investors or the public arguments concerning the foregoing,
continuous, two-sided quotes in such interest; (ii) impose any significant including whether the proposed rule
option series, once the options series burden on competition; and (iii) become change is consistent with the Act.
has opened, pursuant to Rule operative for 30 days from the date on Comments may be submitted by any of
804(e)(2)(iii). The Exchange believes which it was filed, or such shorter time the following methods:
that this proposed rule change will as the Commission may designate, it has Electronic Comments
make clear the obligations of the PMM become effective pursuant to Section
with respect to submitting Valid Width • Use the Commission’s internet
19(b)(3)(A)(iii) of the Act 8 and
Quotes and thereafter, once an options comment form (http://www.sec.gov/
subparagraph (f)(6) of Rule 19b–4
series has opened, submitting rules/sro.shtml); or
thereunder.9 • Send an email to rule-comments@
continuous two-sided quotes, when a A proposed rule change filed under sec.gov. Please include File Number SR–
CMM may have already entered a quote Rule 19b–4(f)(6) normally does not GEMX–2017–56 on the subject line.
to open an options series. The become operative prior to 30 days after
Exchange’s proposal to add rule text to the date of filing. However, Rule 19b– Paper Comments
clearly specify the quoting obligations of 4(f)(6)(iii) 10 permits the Commission to • Send paper comments in triplicate
a PMM and CMM during the Opening designate a shorter time if such action to Secretary, Securities and Exchange
Process and once an option series has is consistent with the protection of Commission, 100 F Street NE,
opened will provide greater clarity to investors and the public interest. In its Washington, DC 20549–1090.
the Opening Process and also to the filing with the Commission, the All submissions should refer to File
interplay between quoting obligations Exchange requests that the Commission Number SR–GEMX–2017–56. This file
during the Opening Process and intra- waive the 30-day operative delay. The number should be included on the
day quoting obligations noted within Exchange represents that the proposed subject line if email is used. To help the
Rule 804. rule change would clarify the quoting Commission process and review your
B. Self-Regulatory Organization’s obligations for both PMMs and CMMs comments more efficiently, please use
Statement on Burden on Competition during the Opening Process and the only one method. The Commission will
manner in which Rule 701, relating to post all comments on the Commission’s
The Exchange does not believe that the Opening Process, and Rule 804,
the proposed rule change will impose internet website (http://www.sec.gov/
relating to Market Maker quoting rules/sro.shtml). Copies of the
any burden on competition not obligations, interact with each other.
necessary or appropriate in furtherance submission, all subsequent
According to the Exchange, these amendments, all written statements
of the purposes of the Act. Once an
obligations should be immediately with respect to the proposed rule
options series has opened, [sic] a PMM
clarified to prevent confusion and change that are filed with the
continues to be responsible to enter
uncertainty for Market Makers quoting Commission, and all written
Valid Width Quotes during the Opening
on the Exchange. For the reasons communications relating to the
Process and thereafter submit
articulated by the Exchange, the proposed rule change between the
continuous, two-sided quotes in such
Commission believes that waiver of the Commission and any person, other than
options series pursuant to
30-day operative delay is consistent those that may be withheld from the
Supplementary Material .01 to Rule 804.
with the protection of investors and the public in accordance with the
Also, if an options series opened
public interest. Therefore, the provisions of 5 U.S.C. 552, will be
pursuant to GEMX Rule 701(c)(1)(ii) or
(iii), a CMM shall be required to submit Commission designates the proposed available for website viewing and
continuous, two-sided quotes in such printing in the Commission’s Public
8 15 U.S.C. 78s(b)(3)(A)(iii).
option series, once an option series has Reference Room, 100 F Street NE,
sradovich on DSK3GMQ082PROD with NOTICES
9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
opened. pursuant to Rule 804(e)(2)(iii). 4(f)(6) requires a self-regulatory organization to give
Washington, DC 20549, on official
This proposed rule text makes clear that the Commission written notice of its intent to file business days between the hours of
CMMs are required to submit the proposed rule change at least five business days
continuous, two-sided quotes in such prior to the date of filing of the proposed rule 11 For purposes only of waiving the 30-day
change, or such shorter time as designated by the operative delay, the Commission also has
option series pursuant to Rule Commission. The Exchange has satisfied this considered the proposed rule’s impact on
804(e)(2)(iii), in the event an options requirement. efficiency, competition, and capital formation. See
series opened pursuant to Rule 10 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f).
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10:00 a.m. and 3:00 p.m. Copies of the party of $250 million in market value of change, which superseded and replaced
filing also will be available for publicly-held shares; (ii) amend Rule 15 the proposed rule change in its entirety.
inspection and copying at the principal to add a Reference Price for when a Section 19(b)(2) of the Act 10 provides
office of the Exchange. All comments security is listed under Footnote (E) to that, after initiating proceedings, the
received will be posted without change. Section 102.01B; (iii) amend Rule 104 to Commission shall issue an order
Persons submitting comments are specify Designated Market Maker approving or disapproving the proposed
cautioned that we do not redact or edit (‘‘DMM’’) requirements when a security
personal identifying information from rule change not later than 180 days after
is listed under Footnote (E) to Section the date of publication of notice of the
comment submissions. You should 102.01B and there has been no trading
submit only information that you wish filing of the proposed rule change. The
in the private market for such security;
to make available publicly. All Commission may extend the period for
and (iv) amend Rule 123D to specify
submissions should refer to File issuing an order approving or
that the Exchange may declare a
Number SR–GEMX–2017–56 and disapproving the proposed rule change,
regulatory halt in a security that is the
should be submitted on or before however, by not more than 60 days if
subject of an initial listing on the
January 10, 2018. the Commission determines that a
Exchange.
For the Commission, by the Division of longer period is appropriate and
Trading and Markets, pursuant to delegated
The proposed rule change was publishes the reasons for such
authority.12 published for comment in the Federal determination. The proposed rule
Eduardo A. Aleman, Register on June 20, 2017.3 The change was published for notice and
Assistant Secretary.
Commission received one comment in comment in the Federal Register on
response to the Original Notice.4 The June 20, 2017.11 The 180th day after
[FR Doc. 2017–27347 Filed 12–19–17; 8:45 am]
Exchange filed Amendment No. 1 to the publication of the Original Notice is
BILLING CODE 8011–01–P
proposed rule change on July 28, 2017, December 17, 2017. The Commission is
which, as noted below, was later extending the time period for approving
SECURITIES AND EXCHANGE withdrawn. On August 3, 2017, the
or disapproving the proposal for an
COMMISSION Commission extended the time period
additional 60 days.
within which to approve the proposed
[Release No. 34–82332; File No. SR–NYSE– rule change, disapprove the proposed The Commission finds that it is
2017–30] appropriate to designate a longer period
rule change, or institute proceedings to
determine whether to approve or within which to issue an order
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of disapprove the proposed rule change to approving or disapproving the proposed
Designation of Longer Period for September 18, 2017.5 rule change so that it has sufficient time
Commission Action on Proceedings To On August 16, 2017, the Exchange to consider the proposed rule change, as
Determine Whether To Approve or withdrew Amendment No. 1 and filed modified by Amendment No. 3.
Disapprove a Proposed Rule Change, Amendment No. 2 to the proposed rule Accordingly, the Commission, pursuant
as Modified by Amendment No. 3, To change, which superseded and replaced to Section 19(b)(2) of the Act,12
Amend Section 102.01B of the NYSE the proposed rule change in its designates February 15, 2018 as the date
Listed Company Manual To Provide for entirety.6 The Commission published by which the Commission should either
the Listing of Companies That List Amendment No. 2 for comment in the approve or disapprove the proposed
Without a Prior Exchange Act Federal Register on August 24, 2017.7 rule change (File No. SR–NYSE–2017–
Registration and That Are Not Listing On September 15, 2017, the 30), as modified by Amendment No. 3.
in Connection With an Underwritten Commission instituted proceedings to For the Commission, by the Division of
Initial Public Offering and Related determine whether to approve or Trading and Markets, pursuant to delegated
Changes to Rules 15, 104, and 123D disapprove the proposed rule change, as authority.13
December 14, 2017. modified by Amendment No. 2.8 Eduardo A. Aleman,
On June 13, 2017, the New York Stock Following the Order Instituting
Assistant Secretary.
Exchange LLC (‘‘NYSE’’ or the Proceedings, the Commission received
[FR Doc. 2017–27351 Filed 12–19–17; 8:45 am]
‘‘Exchange’’) filed with the Securities one additional comment letter.9 On
and Exchange Commission December 8, 2017, the Exchange filed BILLING CODE 8011–01–P
(‘‘Commission’’), pursuant to Section Amendment No. 3 to the proposed rule
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and 3 See Securities Exchange Act Release No. 80933
Rule 19b–4 thereunder,2 a proposed rule (June 15, 2017), 82 FR 28200 (June 20, 2017)
(‘‘Original Notice’’).
change to amend Section 102.01B of the 4 See letter to the Commission from James J.
NYSE Listed Company Manual to Angel, Ph.D., CFA, Georgetown University, dated
modify the provisions relating to the July 28, 2017.
qualification of companies listing 5 See Securities Exchange Act Release No. 81309
without a prior Exchange Act (August 3, 2017), 82 FR 37244 (August 9, 2017).
6 See Notice, infra note 7, at n. 8, which describes
registration in connection with an the changes proposed in Amendment No. 2 from
underwritten initial public offering. The the original proposal.
sradovich on DSK3GMQ082PROD with NOTICES
proposal also would (i) eliminate the 7 See Securities Exchange Act Release No. 81440
requirement to have a private placement (August 18, 2017), 82 FR 40183 (August 24, 2017)
market trading price if there is a (‘‘Notice’’).
8 See Securities Exchange Act Release No. 81640
valuation from an independent third- (September 15, 2017), 82 FR 44229 (September 21, 10 15 U.S.C. 78s(b)(2).
2017) (‘‘Order Instituting Proceedings’’).
12 17 11 See supra note 3.
CFR 200.30–3(a)(12). 9 See letter to Brent J. Fields, Commission, from
1 15 U.S.C. 78s(b)(1). 12 15 U.S.C. 78s(b)(2).
Cleary Gottlieb Steen & Hamilton, dated October 12,
2 17 CFR 240.19b–4. 2017. 13 17 CFR 200.30–3(a)(57).
VerDate Sep<11>2014 21:36 Dec 19, 2017 Jkt 244001 PO 00000 Frm 00074 Fmt 4703 Sfmt 9990 E:\FR\FM\20DEN1.SGM 20DEN1](https://thefederalregister.org/doc/82_FR_60682/page/4.svg)
Document Created: 2018-10-25 10:55:39
Document Modified: 2018-10-25 10:55:39
| 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 60439 |
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