82 FR 8888 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Order Granting Approval of Proposed Rule Change, as Modified by Amendment Nos. 2 and 3, To Enhance the Reopening Auction Process Following a Trading Halt Declared Pursuant to the Plan To Address Extraordinary Market Volatility
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 19 (January 31, 2017)
Federal Register Volume 82, Issue 19 (January 31, 2017)
| Page Range | 8888-8890 | |
| FR Document | 2017-02001 |
[Federal Register Volume 82, Number 19 (Tuesday, January 31, 2017)] [Notices] [Pages 8888-8890] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-02001] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79876; File No. SR-NASDAQ-2016-131] Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Order Granting Approval of Proposed Rule Change, as Modified by Amendment Nos. 2 and 3, To Enhance the Reopening Auction Process Following a Trading Halt Declared Pursuant to the Plan To Address Extraordinary Market Volatility January 25, 2017. I. Introduction On October 13, 2016, The Nasdaq Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change related to the Exchange's re-opening process following a trading halt declared pursuant to the National Market System Plan to Address Extraordinary Market Volatility (``Plan''). The proposed rule change was published for comment in the Federal Register on November 1, 2016.\3\ On December 5, 2016, the Exchange filed Amendment No. 1 to the proposed rule change. On December 14, 2016, the Commission extended the time period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change to January 30, 2017.\4\ On December 21, 2016, the Exchange withdrew Amendment No. 1 and filed Amendment No. 2 to the proposed rule change. On January 19, 2017, the Exchange filed Amendment No. 3 to the proposed rule change.\5\ The Commission received no comments on the proposed rule change. This order approves the proposed rule change, as modified by Amendment Nos. 2 and 3. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 79158 (October 26, 2016), 81 FR 75879 (``Notice''). \4\ See Securities Exchange Act Release No. 79551, 81 FR 92885 (December 20, 2016). \5\ In Amendment No. 2, the Exchange proposed to use the Auction Reference Price to determine whether a security subject to a Trading Pause is priced at $3 or less, which would determine the method of calculating the Auction Collars. The Exchange also made a conforming change to Nasdaq Rule 4754(b)(6) relating to Trading Pauses that exist at or after 3:50 p.m. In Amendment No. 3, the Exchange proposed to implement the proposed rule change in the third quarter of 2017, following the Commission's approval of the Twelfth Amendment to the Plan. The Exchange also explained that this implementation is contingent on the Securities Information Processors successfully implementing changes to their systems to allow for the new re-opening process, and the other Primary Listing Exchanges gaining approval of their related filings and their ability to implement the changes concurrent with Nasdaq. Because Amendment Nos. 2 and 3 do not materially alter the substance of the proposed rule change or raise unique or novel regulatory issues, they are not subject to notice and comment. Both amendments are available at: https://www.sec.gov/comments/sr-nasdaq-2016-131/nasdaq2016131.shtml. --------------------------------------------------------------------------- II. Description of the Proposed Rule Change, as Modified by Amendment Nos. 2 and 3 In conjunction with the Twelfth Amendment to the Plan,\6\ the Exchange proposes to revise its re-opening process following a trading halt declared pursuant to the Plan (``Trading Pause'') and to make related changes. --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release No. 79845 (January 19, 2017) (File No. 4-631). --------------------------------------------------------------------------- Auction Reference Price and Auction Collar for the Re-Opening Process Following a Trading Pause The Exchange proposes to establish an ``Auction Reference Price'' and an ``Auction Collar'' for the re-opening process following a Trading Pause. Specifically, for a Limit Down triggered pause, the Auction Reference Price would be the Lower Band price of the LULD Band in place at the time the Trading Pause was triggered.\7\ For a Limit Up triggered pause, the Auction Reference Price would be the Upper Band price of the LULD Band in place at the time the Trading Pause was triggered.\8\ With respect to Auction Collars, for a Limit Down triggered pause, the lower Auction Collar price would be derived by subtracting 5% of the Auction Reference Price, rounded to the nearest minimum price increment, or in the case of securities with an Auction Reference Price of $3 or less, $0.15, from the Auction Reference Price, and the upper Auction Collar price would be the Upper Band price of the LULD Band in place at the time the Trading Pause was triggered.\9\ For a Limit Up triggered pause, the upper Auction Collar price would be derived by adding 5% of the Auction Reference Price, rounded to the nearest minimum price increment, or in the case of securities with an Auction Reference Price of $3 or less, $0.15, to the Auction Reference Price, and the lower Auction Collar price would be the Lower Band price of the LULD Band in place at the time the Trading Pause was triggered.\10\ --------------------------------------------------------------------------- \7\ See proposed Nasdaq Rule 4120(c)(10)(A)(i)(a). \8\ See proposed Nasdaq Rule 4120(c)(10)(A)(i)(b). The proposed definition of Auction Reference Price for a Trading Pause is designed to be consistent across listing exchanges. \9\ See proposed Nasdaq Rule 4120(c)(10)(A)(ii)(a). \10\ See proposed Nasdaq Rule 4120(c)(10)(A)(ii)(b). The proposed Auction Collars for a Trading Pause are designed to be consistent across listing exchanges. --------------------------------------------------------------------------- Extension of Re-Opening Time and Expansion of Auction Collars As proposed, for any security listed on the Exchange, prior to terminating a Trading Pause, there would be a 5-minute ``Initial Display Only Period'' during which market participants may enter quotations and orders in that security in Nasdaq systems.\11\ At the conclusion of the Initial Display Only Period, the security would be released for trading unless, at the end of the Initial Display Only Period, the Exchange detects an order imbalance in the security.\12\ In that case, the Exchange would extend the Display Only Period for an additional 5-minute period [[Page 8889]] (``Extended Display Only Period'') and the Auction Collars would be adjusted.\13\ Specifically, If the Display Only Period is extended because the calculated price at which the security would be released for trading is below the lower Auction Collar price or all sell market orders would not be executed in the cross, then the new lower Auction Collar price would be derived by subtracting 5% of the initial Auction Reference Price, which was rounded to the nearest minimum price increment, or in the case of securities with an Auction Reference Price of $3 or less, $0.15, from the previous lower Auction Collar price, and the upper Auction Collar price would not be changed.\14\ If the Display Only Period is extended because the calculated price at which the security would be released for trading is above the upper Auction Collar price or all buy market orders would not be executed in the cross, then the new upper Auction Collar price would be derived by adding 5% of the initial Auction Reference Price, which was rounded to the nearest minimum price increment, or in the case of securities with an Auction Reference Price of $3 or less, $0.15, to the previous upper Auction Collar price, and the lower Auction Collar price would not be changed.\15\ --------------------------------------------------------------------------- \11\ See proposed Nasdaq Rule 4120(c)(10). The proposed rule would also provide that the Trading Pause shall be terminated when Nasdaq releases the security for trading. See id. The Exchange proposes a conforming change in Nasdaq Rule 4120(c)(7)(A). \12\ See proposed Nasdaq Rule 4120(c)(10)(B). According to proposed Nasdaq Rule 4120(c)(10)(E), upon completion of the cross calculation, an order imbalance shall be established as follows: (i) The calculated price at which the security would be released for trading is above (below) the upper (lower) Auction Collar price calculated under paragraphs (A), (B), or (C) of Nasdaq Rule 4120(c)(10); or (ii) all market orders would not be executed in the cross. \13\ See proposed Nasdaq Rule 4120(c)(10)(B). \14\ See proposed Nasdaq Rule 4120(c)(10)(B)(i). \15\ See proposed Nasdaq Rule 4120(c)(10)(B)(ii). --------------------------------------------------------------------------- At the conclusion of the Extended Display Only Period, the security would be released for trading unless, at the end of the Extended Display Only Period, the Exchange detects an order imbalance in the security.\16\ In that case, the Exchange would further extend the Display Only Period and continue to adjust the Auction Collar prices every five minutes in the manner described in proposed Nasdaq Rule 4120(c)(10)(B) until the security is released for trading.\17\ With respect to these additional extensions, the Exchange would release the security for trading at the first point there is no order imbalance.\18\ --------------------------------------------------------------------------- \16\ See proposed Nasdaq Rule 4120(c)(10)(C). \17\ See id. \18\ See id. The proposed extensions and widening of the Auction Collars are designed to be consistent across listing exchanges. --------------------------------------------------------------------------- As proposed, if a Trading Pause for a security exists at or after 3:50 p.m., the Exchange would conduct a LULD Closing Cross pursuant to Nasdaq Rule 4754(b)(6).\19\ --------------------------------------------------------------------------- \19\ See proposed Nasdaq Rule 4120(a)(10)(D). The Exchange also proposes conforming changes to Nasdaq Rules 4120(a)(12)(H) and 4754(b)(6). The concept of holding a closing auction instead of a re-opening auction if a Trading Pause exists in the last ten minutes of trading is designed to be consistent across listing exchanges and to reflect the Twelfth Amendment to the Plan. --------------------------------------------------------------------------- Other Changes Related to the Re-Opening Process Following a Trading Pause Nasdaq Rule 4753(a)(3) currently defines ``Order Imbalance Indicator'' to mean a message disseminated by electronic means containing information about Eligible Interest and the price at which such interest would execute at the time of dissemination. The Exchange proposes to add that, for purposes of a Trading Pause initiated pursuant to Nasdaq Rule 4120(a)(12), ``Order Imbalance Indicator'' would also include Auction Reference Prices and Auction Collars, as defined in proposed Nasdaq Rule 4120(c)(10)(A).\20\ --------------------------------------------------------------------------- \20\ See proposed Nasdaq Rule 4753(a)(3)(F). --------------------------------------------------------------------------- The Exchange also proposes to amend Nasdaq Rule 11890 to provide that executions as a result of a Halt Auction under Nasdaq Rule 4120(c)(10) would not be eligible for a request to review as clearly erroneous under Nasdaq Rule 11890.\21\ --------------------------------------------------------------------------- \21\ The proposal to exclude re-opening auction trades from the clearly erroneous execution rule is designed to be consistent across listing exchanges. --------------------------------------------------------------------------- Other Changes Relating to Trading Pauses The Exchange proposes to amend Nasdaq Rule 4120(a)(12)(G) to state that if the Exchange is unable to re-open trading due to a systems or technology issue, it shall notify the Processor immediately.\22\ The Exchange also proposes to amend Nasdaq Rule 4120(a)(12)(H) to state that if a Trading Pause was initiated by another exchange, the Exchange may resume trading only upon receipt of Price Bands from the Processor.\23\ --------------------------------------------------------------------------- \22\ See proposed Nasdaq Rule 4120(a)(12)(G). This change is designed to be consistent across listing exchanges and to reflect the Twelfth Amendment to the Plan. The Exchange also proposes to delete rule text in Nasdaq Rule 4120(a)(12)(G) concerning phased implementation of the Plan, because the Plan has been fully implemented. \23\ See proposed Nasdaq Rule 4120(a)(12)(H). This change is designed to be consistent across listing exchanges and to reflect the Twelfth Amendment to the Plan. --------------------------------------------------------------------------- The Exchange proposes to implement this proposed rule change in the third quarter of 2017.\24\ The Exchange represents that it will announce the implementation date of this proposed rule change via a notice to be issued after this proposed rule change is approved by the Commission.\25\ --------------------------------------------------------------------------- \24\ The Exchange explains that implementation of the proposed changes is contingent on the Securities Information Processors successfully implementing changes to their systems to allow for the new re-opening process, and the other Primary Listing Exchanges gaining approval of their related filings and their ability to implement the changes concurrent with Nasdaq. See Amendment No. 3, supra note 5. \25\ See id. For a more detailed description of the proposed rule change, see Notice, supra note 3. --------------------------------------------------------------------------- III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change, as modified by Amendment Nos. 2 and 3, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.\26\ In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,\27\ which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, 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. As noted above, the Commission received no comment letters regarding the proposed rule change. --------------------------------------------------------------------------- \26\ In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \27\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Commission notes that the proposed rule change is designed, together with the Twelfth Amendment to the Plan,\28\ to address the issues experienced on August 24, 2015 by reducing the number of repeat Trading Pauses in a single NMS Stock.\29\ The Commission notes that the proposed rule change is also designed to further the goal of establishing a standardized approach for how Primary Listing Exchanges would conduct certain aspects of an automated re-opening following a Trading Pause, which should provide certainty for market participants regarding how a security would re-open following a Trading Pause, regardless of the listing exchange.\30\ --------------------------------------------------------------------------- \28\ See supra note 6. \29\ See Notice, supra note 3, at 75882. \30\ See id. --------------------------------------------------------------------------- With respect to the proposed Auction Reference Price and Auction Collars, the Commission finds reasonable the Exchange's belief that the price of the limit state that preceded the Trading Pause (i.e., either the Lower or Upper Price Band price) would better reflect the most recent price of the security, and therefore should be used as the [[Page 8890]] Auction Reference Price.\31\ Moreover, the Commission believes that the proposed method for calculating the initial Auction Collars (i.e., the Auction Collar on the opposite side of the trading pressure would be the Price Band in place before the Trading Pause was triggered) would address the concept of mean reversion, as well as avoid a security from trading outside of a price that it would have been permitted to trade before the Trading Pause.\32\ --------------------------------------------------------------------------- \31\ See Notice, supra note 3, at 75882-83. \32\ See Notice, supra note 3, at 75883. --------------------------------------------------------------------------- The Commission believes that extending the Trading Pause and widening the Auction Collar on the side of the order imbalance would be a measured approach to provide additional time to attract offsetting interest, to help to address an imbalance that may not be resolved within the prior Auction Collars, and to reduce the potential for triggering another Trading Pause.\33\ Also, as the Exchange noted, widening the Auction Collar only in the direction of the order imbalance would address issues relating to the concept of mean reversion.\34\ Moreover, the Commission notes that the proposal to conduct a LULD Closing Cross pursuant to Nasdaq Rule 4754(b)(6) should a Trading Pause exist at or after 3:50 p.m. would be consistent with the Twelfth Amendment to the Plan. --------------------------------------------------------------------------- \33\ See Notice, supra note 3, at 75882. \34\ See Notice, supra note 3, at 75883. --------------------------------------------------------------------------- The Commission believes that it is appropriate to preclude requests to review executions as a result of a Halt Auction under Nasdaq Rule 4120(c)(10) as clearly erroneous. The Commission notes that the proposed re-opening procedures would allow for widened collars, which may result in a re-opening price that would be away from prior trading prices, but the re-opening price would be the result of a measured and transparent process that reduces the potential that such a trade would be considered erroneous.\35\ --------------------------------------------------------------------------- \35\ See id. --------------------------------------------------------------------------- The Commission believes that the proposed enhancements to the Order Imbalance Indicator would further promote transparency around the re- opening process following a Trading Pause. Finally, the Commission notes that the proposed amendments to Nasdaq Rule 4210(a)(12)(G) and (H) would remove obsolete rule text and conform the remaining rule text to the Twelfth Amendment to the Plan. Based on the Exchange's representations mentioned above and in the Notice, and for the foregoing reasons, the Commission finds that the proposed rule change, as modified by Amendment Nos. 2 and 3, is consistent with Section 6(b)(5) of the Act \36\ and the rules and regulations thereunder applicable to a national securities exchange. --------------------------------------------------------------------------- \36\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\37\ that the proposed rule change (SR-NASDAQ-2016-131), as modified by Amendment Nos. 2 and 3, be, and hereby is, approved. --------------------------------------------------------------------------- \37\ 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\38\ --------------------------------------------------------------------------- \38\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-02001 Filed 1-30-17; 8:45 am] BILLING CODE 8011-01-P
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November 1, 2016.3 On December 14, Register on November 1, 2016.3 On Trading Pause was triggered.7 For a
2016, pursuant to Section 19(b)(2) of the December 5, 2016, the Exchange filed Limit Up triggered pause, the Auction
Act,4 the Commission designated a Amendment No. 1 to the proposed rule Reference Price would be the Upper
longer period within which to approve change. On December 14, 2016, the Band price of the LULD Band in place
the proposed rule change, disapprove Commission extended the time period at the time the Trading Pause was
the proposed rule change, or institute within which to approve the proposed triggered.8 With respect to Auction
proceedings to determine whether to rule change, disapprove the proposed Collars, for a Limit Down triggered
disapprove the proposed rule change.5 rule change, or institute proceedings to pause, the lower Auction Collar price
The Commission received one comment determine whether to disapprove the would be derived by subtracting 5% of
letter on the proposed rule change.6 On proposed rule change to January 30, the Auction Reference Price, rounded to
January 20, 2017, the Exchange 2017.4 On December 21, 2016, the the nearest minimum price increment,
withdrew the proposed rule change Exchange withdrew Amendment No. 1 or in the case of securities with an
(SR–NASDAQ–2016–141). and filed Amendment No. 2 to the Auction Reference Price of $3 or less,
For the Commission, by the Division of proposed rule change. On January 19, $0.15, from the Auction Reference Price,
Trading and Markets, pursuant to delegated 2017, the Exchange filed Amendment and the upper Auction Collar price
authority.7 No. 3 to the proposed rule change.5 The would be the Upper Band price of the
Eduardo A. Aleman, Commission received no comments on LULD Band in place at the time the
Assistant Secretary. the proposed rule change. This order Trading Pause was triggered.9 For a
[FR Doc. 2017–02000 Filed 1–30–17; 8:45 am] approves the proposed rule change, as Limit Up triggered pause, the upper
modified by Amendment Nos. 2 and 3. Auction Collar price would be derived
BILLING CODE 8011–01–P
by adding 5% of the Auction Reference
II. Description of the Proposed Rule Price, rounded to the nearest minimum
Change, as Modified by Amendment price increment, or in the case of
SECURITIES AND EXCHANGE Nos. 2 and 3
COMMISSION securities with an Auction Reference
In conjunction with the Twelfth Price of $3 or less, $0.15, to the Auction
[Release No. 34–79876; File No. SR– Amendment to the Plan,6 the Exchange Reference Price, and the lower Auction
NASDAQ–2016–131] Collar price would be the Lower Band
proposes to revise its re-opening process
Self-Regulatory Organizations; The following a trading halt declared price of the LULD Band in place at the
Nasdaq Stock Market LLC; Order pursuant to the Plan (‘‘Trading Pause’’) time the Trading Pause was triggered.10
Granting Approval of Proposed Rule and to make related changes. Extension of Re-Opening Time and
Change, as Modified by Amendment Auction Reference Price and Auction Expansion of Auction Collars
Nos. 2 and 3, To Enhance the Collar for the Re-Opening Process As proposed, for any security listed
Reopening Auction Process Following Following a Trading Pause on the Exchange, prior to terminating a
a Trading Halt Declared Pursuant to Trading Pause, there would be a
the Plan To Address Extraordinary The Exchange proposes to establish
an ‘‘Auction Reference Price’’ and an 5-minute ‘‘Initial Display Only Period’’
Market Volatility
‘‘Auction Collar’’ for the re-opening during which market participants may
January 25, 2017. process following a Trading Pause. enter quotations and orders in that
Specifically, for a Limit Down triggered security in Nasdaq systems.11 At the
I. Introduction conclusion of the Initial Display Only
pause, the Auction Reference Price
On October 13, 2016, The Nasdaq would be the Lower Band price of the Period, the security would be released
Stock Market LLC (‘‘Nasdaq’’ or LULD Band in place at the time the for trading unless, at the end of the
‘‘Exchange’’) filed with the Securities Initial Display Only Period, the
and Exchange Commission 3 See Securities Exchange Act Release No. 79158 Exchange detects an order imbalance in
(‘‘Commission’’), pursuant to Section (October 26, 2016), 81 FR 75879 (‘‘Notice’’). the security.12 In that case, the Exchange
19(b)(1) of the Securities Exchange Act 4 See Securities Exchange Act Release No. 79551, would extend the Display Only Period
of 1934 (‘‘Act’’),1 and Rule 19b–4 81 FR 92885 (December 20, 2016). for an additional 5-minute period
5 In Amendment No. 2, the Exchange proposed to
thereunder,2 a proposed rule change
use the Auction Reference Price to determine
related to the Exchange’s re-opening whether a security subject to a Trading Pause is
7 See proposed Nasdaq Rule 4120(c)(10)(A)(i)(a).
process following a trading halt priced at $3 or less, which would determine the
8 See proposed Nasdaq Rule 4120(c)(10)(A)(i)(b).
declared pursuant to the National method of calculating the Auction Collars. The The proposed definition of Auction Reference Price
Exchange also made a conforming change to Nasdaq for a Trading Pause is designed to be consistent
Market System Plan to Address across listing exchanges.
Rule 4754(b)(6) relating to Trading Pauses that exist
Extraordinary Market Volatility at or after 3:50 p.m. In Amendment No. 3, the
9 See proposed Nasdaq Rule 4120(c)(10)(A)(ii)(a).
(‘‘Plan’’). The proposed rule change was Exchange proposed to implement the proposed rule 10 See proposed Nasdaq Rule 4120(c)(10)(A)(ii)(b).
published for comment in the Federal change in the third quarter of 2017, following the The proposed Auction Collars for a Trading Pause
Commission’s approval of the Twelfth Amendment are designed to be consistent across listing
3 See Securities Exchange Act Release No. 79163 to the Plan. The Exchange also explained that this exchanges.
implementation is contingent on the Securities 11 See proposed Nasdaq Rule 4120(c)(10). The
(October 26, 2016), 81 FR 75862.
4 15 U.S.C. 78s(b)(2). Information Processors successfully implementing proposed rule would also provide that the Trading
5 See Securities Exchange Act Release No. 79554,
changes to their systems to allow for the new re- Pause shall be terminated when Nasdaq releases the
opening process, and the other Primary Listing security for trading. See id. The Exchange proposes
81 FR 92927 (December 20, 2016). The Commission Exchanges gaining approval of their related filings a conforming change in Nasdaq Rule 4120(c)(7)(A).
asabaliauskas on DSK3SPTVN1PROD with NOTICES
designated January 30, 2017, as the date by which and their ability to implement the changes 12 See proposed Nasdaq Rule 4120(c)(10)(B).
it shall approve, disapprove, or institute concurrent with Nasdaq. Because Amendment Nos. According to proposed Nasdaq Rule 4120(c)(10)(E),
proceedings to determine whether to disapprove the 2 and 3 do not materially alter the substance of the upon completion of the cross calculation, an order
proposed rule change. proposed rule change or raise unique or novel
6 See Letter from Joseph Saluzzi and Sal Arnuk,
imbalance shall be established as follows: (i) The
regulatory issues, they are not subject to notice and calculated price at which the security would be
Partners, Themis Trading LLC, to Brent J. Fields, comment. Both amendments are available at: released for trading is above (below) the upper
Secretary, Commission, dated November 7, 2016. https://www.sec.gov/comments/sr-nasdaq-2016-131 (lower) Auction Collar price calculated under
7 17 CFR 200.30–3(a)(12).
/nasdaq2016131.shtml. paragraphs (A), (B), or (C) of Nasdaq Rule
1 15 U.S.C. 78s(b)(1). 6 See Securities Exchange Act Release No. 79845 4120(c)(10); or (ii) all market orders would not be
2 17 CFR 240.19b–4. (January 19, 2017) (File No. 4–631). executed in the cross.
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![8890 Federal Register / Vol. 82, No. 19 / Tuesday, January 31, 2017 / Notices
Auction Reference Price.31 Moreover, reasons, the Commission finds that the For further information and to
the Commission believes that the proposed rule change, as modified by ascertain what, if any, matters have been
proposed method for calculating the Amendment Nos. 2 and 3, is consistent added, deleted or postponed; please
initial Auction Collars (i.e., the Auction with Section 6(b)(5) of the Act 36 and the contact Brent J. Fields from the Office of
Collar on the opposite side of the rules and regulations thereunder the Secretary at (202) 551–5400.
trading pressure would be the Price applicable to a national securities Dated: January 26, 2017.
Band in place before the Trading Pause exchange.
Brent J. Fields,
was triggered) would address the IV. Conclusion Secretary.
concept of mean reversion, as well as
avoid a security from trading outside of It is therefore ordered, pursuant to [FR Doc. 2017–02079 Filed 1–27–17; 11:15 am]
a price that it would have been Section 19(b)(2) of the Act,37 that the BILLING CODE 8011–01–P
permitted to trade before the Trading proposed rule change (SR–NASDAQ–
Pause.32 2016–131), as modified by Amendment
The Commission believes that Nos. 2 and 3, be, and hereby is,
approved. DEPARTMENT OF THE TREASURY
extending the Trading Pause and
widening the Auction Collar on the side For the Commission, by the Division of Internal Revenue Service
of the order imbalance would be a Trading and Markets, pursuant to delegated
measured approach to provide authority.38 Proposed Collection; Comment
additional time to attract offsetting Eduardo A. Aleman, Request for Form 706–NA
interest, to help to address an imbalance Assistant Secretary.
AGENCY: Internal Revenue Service (IRS),
that may not be resolved within the [FR Doc. 2017–02001 Filed 1–30–17; 8:45 am]
Treasury.
prior Auction Collars, and to reduce the BILLING CODE 8011–01–P
potential for triggering another Trading ACTION: Notice and request for
Pause.33 Also, as the Exchange noted, comments.
widening the Auction Collar only in the SECURITIES AND EXCHANGE
SUMMARY: The Department of the
direction of the order imbalance would COMMISSION
Treasury, as part of its continuing effort
address issues relating to the concept of
Sunshine Act Meeting to reduce paperwork and respondent
mean reversion.34 Moreover, the
burden, invites the general public and
Commission notes that the proposal to Notice is hereby given, pursuant to other Federal agencies to take this
conduct a LULD Closing Cross pursuant the provisions of the Government in the opportunity to comment on proposed
to Nasdaq Rule 4754(b)(6) should a Sunshine Act, Public Law 94–409, that and/or continuing information
Trading Pause exist at or after 3:50 p.m. the Securities and Exchange collections, as required by the
would be consistent with the Twelfth Commission will hold a closed meeting Paperwork Reduction Act of 1995.
Amendment to the Plan. on Thursday, February 2, 2017 at 2 p.m. Currently, the IRS is soliciting
The Commission believes that it is Commissioners, Counsel to the comments concerning Form 706–NA,
appropriate to preclude requests to Commissioners, the Secretary to the United States Estate (and Generation-
review executions as a result of a Halt Commission, and recording secretaries Skipping Transfer) Tax Return, Estate of
Auction under Nasdaq Rule 4120(c)(10) will attend the closed meeting. Certain nonresident not a citizen of the United
as clearly erroneous. The Commission staff members who have an interest in States.
notes that the proposed re-opening the matters also may be present.
procedures would allow for widened DATES: Written comments should be
The General Counsel of the
collars, which may result in a re- Commission, or her designee, has received on or before April 3, 2017 to
opening price that would be away from certified that, in her opinion, one or be assured of consideration.
prior trading prices, but the re-opening more of the exemptions set forth in 5 ADDRESSES: Direct all written comments
price would be the result of a measured U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) to Tuawana Pinkston, Room 6526, 1111
and transparent process that reduces the and 17 CFR 200.402(a)(3), (a)(5), (a)(7), Constitution Avenue NW., Washington,
potential that such a trade would be (a)(9)(ii) and (a)(10), permit DC 20224.
considered erroneous.35 consideration of the scheduled matter at FOR FURTHER INFORMATION CONTACT:
The Commission believes that the the closed meeting. Requests for additional information or
proposed enhancements to the Order Acting Chairman Piwowar, as duty copies of the form and instructions
Imbalance Indicator would further officer, voted to consider the items should be directed to Sara Covington, at
promote transparency around the re- listed for the closed meeting in closed Internal Revenue Service, Room 6526,
opening process following a Trading session. 1111 Constitution Avenue NW.,
Pause. The subject matter of the closed Washington DC 20224, or through the
Finally, the Commission notes that meeting will be: internet, at Sara.L.Covington@irs.gov.
the proposed amendments to Nasdaq Institution and settlement of SUPPLEMENTARY INFORMATION:
Rule 4210(a)(12)(G) and (H) would injunctive actions; Title: United States Estate (and
remove obsolete rule text and conform Institution and settlement of
Generation-Skipping Transfer) Tax
the remaining rule text to the Twelfth administrative proceedings;
Resolution of litigation claims; and Return, Estate of nonresident not a
Amendment to the Plan.
citizen of the United States.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Based on the Exchange’s Other matters relating to enforcement
representations mentioned above and in proceedings. OMB Number: 1545–0531.
the Notice, and for the foregoing At times, changes in Commission Form Number: 706–NA.
priorities require alterations in the Abstract: Form 706–NA is used to
31 See Notice, supra note 3, at 75882–83. scheduling of meeting items. compute estate and generation-skipping
32 See Notice, supra note 3, at 75883. transfer tax liability for nonresident
33 See Notice, supra note 3, at 75882. 36 15 U.S.C. 78f(b)(5). alien decedents in accordance with
34 See Notice, supra note 3, at 75883. 37 15 U.S.C. 78s(b)(2). section 6018 of the Internal Revenue
35 See id. 38 17 CFR 200.30–3(a)(12). Code. IRS uses the information on the
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Document Created: 2017-01-31 00:20:07
Document Modified: 2017-01-31 00:20:07
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| 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 8888 |
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