83 FR 11276 - Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing of Proposed Rule Change To Introduce the ATR Protection for Orders That Are Routed to Away Markets
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 50 (March 14, 2018)
Federal Register Volume 83, Issue 50 (March 14, 2018)
| Page Range | 11276-11278 | |
| FR Document | 2018-05165 |
[Federal Register Volume 83, Number 50 (Wednesday, March 14, 2018)] [Notices] [Pages 11276-11278] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-05165] [[Page 11276]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82848; File No. SR-MRX-2018-08] Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing of Proposed Rule Change To Introduce the ATR Protection for Orders That Are Routed to Away Markets March 9, 2018. 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 February 23, 2018, Nasdaq MRX, LLC (``MRX'' 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 introduce its Acceptable Trade Range protection for orders that are routed to away markets pursuant to the Options Order Protection and Locked/Crossed Markets Plan. The text of the proposed rule change is available on the Exchange's website at http://nasdaqmrx.cchwallstreet.com/, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange offers an Acceptable Trade Range (``ATR'') protection that prevents the execution of quotes and orders on the regular order book outside of set thresholds. The purpose of the proposed rule change is to enhance this ATR protection for orders that are routed to away markets pursuant to the Options Order Protection and Locked/Crossed Markets Plan (``Linkage Plan'') instead of being executed immediately on the Exchange or resting on the regular order book. As codified in Rule 714(b)(1), the Exchange's trading system calculates an Acceptable Trade Range to limit the range of prices at which an order or quote will be allowed to execute.\3\ The Acceptable Trade Range is calculated by taking the reference price, plus or minus a value to be determined by the Exchange (i.e., the reference price-(x) for sell orders/quotes and the reference price + (x) for buy orders or quotes).\4\ Upon receipt of a new order or quote, the reference price is the national best bid (``NBB'') for sell orders/quotes and the national best offer (``NBO'') for buy orders/quotes. If an order or quote reaches the outer limit of the Acceptable Trade Range without being fully executed then any unexecuted balance will be cancelled. --------------------------------------------------------------------------- \3\ The ATR protection is not available for All-or-None orders. \4\ There are three categories of options for ATR: (1) Penny Pilot Options trading in one cent increments for options trading at less than $3.00 and increments of five cents for options trading at $3.00 or more, (2) Penny Pilot Options trading in one-cent increments for all prices, and (3) Non-Penny Pilot Options. --------------------------------------------------------------------------- Currently, the trading system calculates an appropriate reference price for an incoming order or quote when that order or quote rests or trades on the regular order book but not when orders are routed to an away market pursuant to the Linkage Plan without first trading on the Exchange. The Exchange now proposes to enhance its ATR protection by applying it to orders that are routed to away markets without first trading on the Exchange. As proposed, Rule 714(a)(1) will continue to provide that the reference price for the ATR protection is the NBB for sell orders/quotes and the NBO for buy orders/quotes. For clarity, however, the Exchange proposes to move this language to a separate bullet under proposed Rule 714(a)(1)(ii). In addition, proposed Rule 714(a)(1)(ii) will indicate that the reference price is calculated upon receipt of a new order or quote, provided that if the applicable NBB or NBO price is improved at the time an order is routed to an away market, a new reference price is calculated based on the NBB or NBO at that time. Although the Exchange will continue to use the NBB or NBO as the reference price for the ATR protection, the Exchange believes that it is appropriate to update the reference price if the applicable NBB or NBO price is improved at the time an order is routed to an away market. Orders that are routed to away markets are eligible for the ``Flash'' auction process described in Supplementary Material .02 to Rule 1901. When a Flash auction is initiated, members are given an opportunity to enter responses to trade with the order for a time period established by the Exchange not to exceed one (1) second.\5\ Because the applicable NBB or NBO price may change during the Flash auction, the Exchange believes that it is appropriate to consider the updated NBB or NBO price at the time the order is actually routed to an away market, if doing so would provide additional protection to the order--i.e., if the NBB or NBO price used as the reference price is improved at that time. If the NBB or NBO price is not improved, the ATR protection will continue to use the NBB or NBO price on entry as the reference price, thereby providing the maximum protection to the order. The following examples illustrate how the ATR protection will be applied to orders routed to away markets: --------------------------------------------------------------------------- \5\ Currently, the exposure period for the Flash auction is set to 150 milliseconds. --------------------------------------------------------------------------- Example 1 1. ATR threshold set to $0.15 for non-penny symbols 2. NBBO is $0.90 (35) x $1.00 (25): a. BATS: $0.90 (10) x $1.00 (25) b. CBOE: $0.90 (25) x $1.05 (25) c. MIAX: $0.85 (25) x $1.15 (25) d. MRX: $0.85 (50) x $1.20 (50) 3. Member enters a Limit Order to buy 200 contracts at $1.20 4. Flash auction initiated at a price of $1.00 5. CBOE quote improved establishing a new NBBO of $0.90 (35) x $0.95 (25): a. BATS: $0.90 (10) x $1.00 (25) b. CBOE: $0.90 (25) x $0.95 (25) c. MIAX: $0.85 (25) x $1.15 (25) d. MRX: $0.85 (50) x $1.20 (50) 6. No responses entered and Flash auction terminates and routes: a. 25 contracts to buy to CBOE at $0.95 b. 25 contracts to buy to BATS at $1.00 7. Because the NBO is improved at time of routing, the reference price is set to the improved NBO price of $0.95, establishing an Acceptable Trade Range of $1.10 8. The remaining balance of 150 contracts that cannot be executed within the [[Page 11277]] Acceptable Trade Range is cancelled Example 2 1. ATR threshold set to $0.15 for non-penny symbols 2. NBBO is $0.90 (35) x $1.00 (25): a. BATS: $0.90 (10) x $1.00 (25) b. CBOE: $0.90 (25) x $1.05 (25) c. MIAX: $0.85 (25) x $1.15 (25) d. MRX: $0.85 (50) x $1.20 (50) 3. Member enters a Limit Order to buy 200 contracts at $1.20 4. Flash auction initiated at a price of $1.00 5. BATS quote worsened establishing a new NBBO of $0.90 (35) x $1.05 (50): a. BATS: $0.90 (10) x $1.05 (25) b. CBOE: $0.90 (25) x $1.05 (25) c. MIAX: $0.85 (25) x $1.15 (25) d. MRX: $0.85 (50) x $1.20 (50) 6. No responses entered and Flash auction terminates and routes: a. 25 contracts to buy to BATS at $1.05 b. 25 contracts to buy to CBOE at $1.05 c. 25 contracts to buy to MIAX at $1.15 7. Because the NBO is worsened at time of routing, the reference price is set to the initial NBO price of $1.00, establishing an Acceptable Trade Range of $1.15 8. The remaining balance of 125 contracts that cannot be executed within the Acceptable Trade Range is cancelled Implementation The Exchange proposes to launch the ATR functionality described in this proposed rule change no later than October 31, 2018. The Exchange will announce the implementation date of this functionality in an Options Trader Alert issued to members prior to the launch date. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\6\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\7\ in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Specifically, the Exchange believes that the proposed rule change would remove impediments to and perfect the mechanism of a free and open market by enhancing the Exchange's ATR protection. The ATR functionality is designed to ensure that orders and quotes entered on the Exchange are executed at reasonable prices based on the applicable NBBO price on receipt. Currently, the Exchange's ATR protection calculates a reference price at the time an order or quote rests or trades locally but not when an order is routed to an away market pursuant to the Linkage Plan without first trading on the Exchange. To further protect orders that are subject to routing that have not traded on the Exchange, the Exchange is proposing to implement the ATR protection for those orders. The Exchange will continue to use the NBBO as the reference price for the ATR protection but now that the Exchange is protecting orders that are routed away pursuant to the Linkage Plan without trading on the Exchange, the Exchange proposes to use the NBBO price on routing instead of the NBBO on receipt only in those circumstances where the NBBO is improved at the time of routing. As described earlier in this proposed rule change, the Exchange operates a Flash auction that provides an opportunity for Members to match or improve the NBBO price prior to routing eligible orders to away markets. Since the NBBO price may change during the Flash auction's exposure period, the Exchange believes that the ATR protection should take improved NBBO prices into account when determining whether a particular price is a reasonable execution price. The Exchange believes, however, that a worsened NBBO price should not be considered as this would decrease rather than increase the protection provided to such an order. In sum, the proposed changes to the ATR protection will protect investors and the public interest by providing additional protections designed to ensure that quotes and orders entered on the Exchange are executed at reasonable prices, and thereby perfect the mechanism of a free and open market and a national market system. 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 that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is designed to enhance the Exchange's ATR protection by extending that protection to orders that are routed to away markets that did not first trade on the Exchange. The proposed protection will apply equally to all orders that are routed to away markets pursuant to the Linkage Plan. The Exchange believes that this change is the result of a competitive market where exchanges must continually improve the functionality offered to market participants in order to remain competitive. 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 Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove such proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be 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 rule-comments@sec.gov. Please include File Number SR-MRX-2018-08 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-MRX-2018-08. 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 [[Page 11278]] 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 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-MRX- 2018-08 and should be submitted on or before April 4, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\8\ --------------------------------------------------------------------------- \8\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-05165 Filed 3-13-18; 8:45 am] BILLING CODE 8011-01-P
![11276 Federal Register / Vol. 83, No. 50 / Wednesday, March 14, 2018 / Notices
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s that the reference price is calculated
COMMISSION Statement of the Purpose of, and upon receipt of a new order or quote,
Statutory Basis for, the Proposed Rule provided that if the applicable NBB or
[Release No. 34–82848; File No. SR–MRX– Change NBO price is improved at the time an
2018–08]
order is routed to an away market, a
1. Purpose new reference price is calculated based
Self-Regulatory Organizations; Nasdaq The Exchange offers an Acceptable on the NBB or NBO at that time.
MRX, LLC; Notice of Filing of Proposed Trade Range (‘‘ATR’’) protection that Although the Exchange will continue
prevents the execution of quotes and to use the NBB or NBO as the reference
Rule Change To Introduce the ATR
orders on the regular order book outside price for the ATR protection, the
Protection for Orders That Are Routed
of set thresholds. The purpose of the Exchange believes that it is appropriate
to Away Markets to update the reference price if the
proposed rule change is to enhance this
March 9, 2018. ATR protection for orders that are applicable NBB or NBO price is
routed to away markets pursuant to the improved at the time an order is routed
Pursuant to Section 19(b)(1) of the Options Order Protection and Locked/ to an away market. Orders that are
Securities Exchange Act of 1934 Crossed Markets Plan (‘‘Linkage Plan’’) routed to away markets are eligible for
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 instead of being executed immediately the ‘‘Flash’’ auction process described
notice is hereby given that on February on the Exchange or resting on the in Supplementary Material .02 to Rule
23, 2018, Nasdaq MRX, LLC (‘‘MRX’’ or regular order book. 1901. When a Flash auction is initiated,
‘‘Exchange’’) filed with the Securities As codified in Rule 714(b)(1), the members are given an opportunity to
and Exchange Commission Exchange’s trading system calculates an enter responses to trade with the order
(‘‘Commission’’) the proposed rule Acceptable Trade Range to limit the for a time period established by the
change as described in Items I and II, range of prices at which an order or Exchange not to exceed one (1) second.5
below, which Items have been prepared quote will be allowed to execute.3 The Because the applicable NBB or NBO
by the Exchange. The Commission is Acceptable Trade Range is calculated by price may change during the Flash
publishing this notice to solicit taking the reference price, plus or minus auction, the Exchange believes that it is
comments on the proposed rule change a value to be determined by the appropriate to consider the updated
from interested persons. Exchange (i.e., the reference price¥(x) NBB or NBO price at the time the order
for sell orders/quotes and the reference is actually routed to an away market, if
I. Self-Regulatory Organization’s price + (x) for buy orders or quotes).4 doing so would provide additional
Statement of the Terms of Substance of Upon receipt of a new order or quote, protection to the order—i.e., if the NBB
the Proposed Rule Change the reference price is the national best or NBO price used as the reference price
bid (‘‘NBB’’) for sell orders/quotes and is improved at that time. If the NBB or
The Exchange proposes to introduce the national best offer (‘‘NBO’’) for buy NBO price is not improved, the ATR
its Acceptable Trade Range protection orders/quotes. If an order or quote protection will continue to use the NBB
for orders that are routed to away reaches the outer limit of the Acceptable or NBO price on entry as the reference
markets pursuant to the Options Order Trade Range without being fully price, thereby providing the maximum
Protection and Locked/Crossed Markets executed then any unexecuted balance protection to the order. The following
Plan. will be cancelled. examples illustrate how the ATR
The text of the proposed rule change Currently, the trading system protection will be applied to orders
is available on the Exchange’s website at calculates an appropriate reference price routed to away markets:
http://nasdaqmrx.cchwallstreet.com/, at for an incoming order or quote when Example 1
that order or quote rests or trades on the 1. ATR threshold set to $0.15 for non-penny
the principal office of the Exchange, and symbols
at the Commission’s Public Reference regular order book but not when orders
2. NBBO is $0.90 (35) × $1.00 (25):
are routed to an away market pursuant
Room. a. BATS: $0.90 (10) × $1.00 (25)
to the Linkage Plan without first trading b. CBOE: $0.90 (25) × $1.05 (25)
II. Self-Regulatory Organization’s on the Exchange. The Exchange now c. MIAX: $0.85 (25) × $1.15 (25)
Statement of the Purpose of, and proposes to enhance its ATR protection d. MRX: $0.85 (50) × $1.20 (50)
Statutory Basis for, the Proposed Rule by applying it to orders that are routed 3. Member enters a Limit Order to buy 200
Change to away markets without first trading on contracts at $1.20
the Exchange. As proposed, Rule 4. Flash auction initiated at a price of $1.00
In its filing with the Commission, the 714(a)(1) will continue to provide that 5. CBOE quote improved establishing a new
Exchange included statements NBBO of $0.90 (35) × $0.95 (25):
the reference price for the ATR a. BATS: $0.90 (10) × $1.00 (25)
concerning the purpose of and basis for protection is the NBB for sell orders/ b. CBOE: $0.90 (25) × $0.95 (25)
the proposed rule change and discussed quotes and the NBO for buy orders/ c. MIAX: $0.85 (25) × $1.15 (25)
any comments it received on the quotes. For clarity, however, the d. MRX: $0.85 (50) × $1.20 (50)
proposed rule change. The text of these Exchange proposes to move this 6. No responses entered and Flash auction
statements may be examined at the language to a separate bullet under terminates and routes:
proposed Rule 714(a)(1)(ii). In addition, a. 25 contracts to buy to CBOE at $0.95
places specified in Item IV below. The
b. 25 contracts to buy to BATS at $1.00
Exchange has prepared summaries, set proposed Rule 714(a)(1)(ii) will indicate 7. Because the NBO is improved at time of
forth in sections A, B, and C below, of routing, the reference price is set to the
daltland on DSKBBV9HB2PROD with NOTICES
3 The ATR protection is not available for All-or-
the most significant aspects of such improved NBO price of $0.95,
None orders. establishing an Acceptable Trade Range
statements. 4 There are three categories of options for ATR: (1)
of $1.10
Penny Pilot Options trading in one cent increments
8. The remaining balance of 150 contracts
for options trading at less than $3.00 and
increments of five cents for options trading at $3.00 that cannot be executed within the
or more, (2) Penny Pilot Options trading in one-cent
1 15 U.S.C. 78s(b)(1). increments for all prices, and (3) Non-Penny Pilot 5 Currently, the exposure period for the Flash
2 17 CFR 240.19b–4. Options. auction is set to 150 milliseconds.
VerDate Sep<11>2014 18:17 Mar 13, 2018 Jkt 244001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 E:\FR\FM\14MRN1.SGM 14MRN1](https://thefederalregister.org/doc/83_FR_11326/page/1.svg)
![11278 Federal Register / Vol. 83, No. 50 / Wednesday, March 14, 2018 / Notices
available for website viewing and The text of the proposed rule change will be the price over the prior three (3)
printing in the Commission’s Public is available on the Exchange’s website at consecutive business day period
Reference Room, 100 F Street NE, http://www.miaxoptions.com/rule- preceding the submission of the listing
Washington, DC 20549, on official filings/ at MIAX Options’ principal certificate to OCC, instead of the prior
business days between the hours of office, and at the Commission’s Public five (5) business day period.
10:00 a.m. and 3:00 p.m. Copies of the Reference Room. The Exchange acknowledges that the
filing also will be available for
II. Self-Regulatory Organization’s Options Listing Procedures Plan 4
inspection and copying at the principal
Statement of the Purpose of, and requires that the listing certificate be
office of the Exchange. All comments
Statutory Basis for, the Proposed Rule provided to OCC no earlier than 12:01
received will be posted without change.
Change a.m. and no later than 11:00 a.m.
Persons submitting comments are
cautioned that we do not redact or edit In its filing with the Commission, the (Chicago time) on the trading day prior
personal identifying information from Exchange included statements to the day on which trading is to begin.5
comment submissions. You should concerning the purpose of and basis for The proposed amendment will still
submit only information that you wish the proposed rule change and discussed comport with that requirement. For
to make available publicly. All any comments it received on the example, if an initial public offering
submissions should refer to File proposed rule change. The text of these (‘‘IPO’’) occurs at 11:00 a.m. on Monday,
Number SR–MRX–2018–08 and should statements may be examined at the the earliest date the Exchange could
be submitted on or before April 4, 2018. places specified in Item IV below. The submit its listing certificate to OCC
Exchange has prepared summaries, set would be on Thursday by 12:01 a.m.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated forth in sections A, B, and C below, of (Chicago time), with the market price
authority.8 the most significant aspects of such determined by the closing price over the
Eduardo A. Aleman, statements. three-day period from Monday through
Assistant Secretary. A. Self-Regulatory Organization’s Wednesday. The option on the IPO
[FR Doc. 2018–05165 Filed 3–13–18; 8:45 am] Statement of the Purpose of, and the would then be eligible for trading on the
BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule Exchange on Friday. The proposed
Change amendment would essentially enable
options trading within four (4) business
1. Purpose days of an IPO becoming available
SECURITIES AND EXCHANGE
COMMISSION The Exchange proposes to amend instead of six (6) business days (five (5)
Exchange Rule 402, Criteria for consecutive days plus the day the listing
[Release No. 34–82828; File No. SR–MIAX– Underlying Securities, to modify the certificate is submitted to OCC).
2018–06]
criteria for listing options on an The Exchange’s initial listing
Self-Regulatory Organizations; Miami underlying security as defined in standards for equity options in Rule 402
International Securities Exchange, Section 18(b)(1)(A) of the Securities Act (including the current price/time
LLC; Notice of Filing and Immediate of 1933 (hereinafter ‘‘covered security’’ standard of $3.00 per share for five (5)
Effectiveness of a Proposed Rule or ‘‘covered securities’’). This is a consecutive business days) are
Change To Amend Exchange Rule 402, competitive filing that is based on a substantially similar to the initial listing
Criteria for Underlying Securities proposal recently submitted by Nasdaq standards adopted by other options
PHLX LLC (‘‘Nasdaq Phlx’’) and exchanges.6 At the time the Exchange
March 8, 2018. approved by the Commission.3
Pursuant to the provisions of Section received its initial approval from the
In particular, the Exchange proposes
19(b)(1) of the Securities Exchange Act Commission, as part of its Rules, the
to modify Rule 402(b)(5)(i) to permit the
of 1934 (‘‘Act’’) 1 and Rule 19b–4 Exchange adopted the ‘‘look back’’
listing of an option on an underlying
thereunder,2 notice is hereby given that period of five (5) consecutive business
covered security that has a market price
on February 22, 2018, Miami days, it determined that the five-day
of at least $3.00 per share for the
International Securities Exchange, LLC period was sufficient to protect against
previous three (3) consecutive business
(‘‘MIAX Options’’ or the ‘‘Exchange’’) days preceding the date on which the attempts to manipulate the market price
filed with the Securities and Exchange Exchange submits a certificate to the of the underlying security and would
Commission (‘‘Commission’’) a Options Clearing Corporation (‘‘OCC’’)
4 The Plan for the Purpose of Developing and
proposed rule change as described in for listing and trading. The Exchange
Implementing Procedures Designed to Facilitate the
Items I and II below, which Items have does not intend to amend any other Listing and Trading of Standardized Options
been prepared by the Exchange. The criteria for listing options on an Submitted Pursuant to Section 11a(2)(3)(B) of the
Commission is publishing this notice to underlying security in Rule 402. Securities Exchange Act of 1934 (a/k/a the Options
solicit comments on the proposed rule Currently the underlying covered Listing Procedures Plan (‘‘OLPP’’)) is a national
market system plan that, among other things, sets
change from interested persons. security must have a closing market forth procedures governing the listing of new
price of $3.00 per share for the previous options series. See Securities Exchange Act Release
I. Self-Regulatory Organization’s
five (5) consecutive business days No. 44521 (July 6, 2001), 66 FR 36809 (July 13,
Statement of the Terms of Substance of 2001) (Order approving OLPP). The sponsors of
preceding the date on which the
the Proposed Rule Change OLPP include OCC; BATS Exchange, Inc.; BOX
Exchange submits a listing certificate to Options Exchange LLC; C2 Options Exchange,
The Exchange is filing a proposal to OCC. In the proposed amendment, the Incorporated; Chicago Board Options Exchange,
amend Exchange Rule 402, Criteria for market price will still be measured by
daltland on DSKBBV9HB2PROD with NOTICES
Incorporated; EDGX Exchange, Inc.; Miami
Underlying Securities, to modify the the closing price reported in the primary International Securities Exchange, LLC; MIAX
criteria for listing an option on an PEARL, LLC; The Nasdaq Stock Market LLC;
market in which the underlying covered NASDAQ BX, Inc.; Nasdaq PHLX LLC; Nasdaq
underlying covered security. security is traded, but the measurement GEMX, LLC; Nasdaq ISE, LLC; Nasdaq MRX, LLC;
NYSE American, LLC; and NYSE Arca, Inc.
8 17 CFR 200.30–3(a)(12). 3 See Securities Exchange Act Release No. 82474 5 See OLPP at page 3.
1 15 U.S.C. 78s(b)(1). (January 9, 2018), 83 FR 2240 (January 16, 2018) 6 See, e.g., Phlx Rule 1009, Commentary .01; see
2 17 CFR 240.19b–4. (Order Approving SR–Phlx–2017–75). also BOX Rule 5020(b)(5).
VerDate Sep<11>2014 18:17 Mar 13, 2018 Jkt 244001 PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 E:\FR\FM\14MRN1.SGM 14MRN1](https://thefederalregister.org/doc/83_FR_11326/page/3.svg)
Document Created: 2018-03-14 01:06:24
Document Modified: 2018-03-14 01:06:24
| 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 | 83 FR 11276 |
2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR