83 FR 31004 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Exchange's Penny Pilot Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 127 (July 2, 2018)
Federal Register Volume 83, Issue 127 (July 2, 2018)
| Page Range | 31004-31006 | |
| FR Document | 2018-14118 |
[Federal Register Volume 83, Number 127 (Monday, July 2, 2018)] [Notices] [Pages 31004-31006] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-14118] [[Page 31004]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83527; File No. SR-NASDAQ-2018-048] Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Exchange's Penny Pilot Program June 26, 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 June 25, 2018, The Nasdaq Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``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 Chapter VI, Section 5 (Minimum Increments) \3\ of the rules of The Nasdaq Options Market (``NOM'') to extend through December 31, 2018 or the date of permanent approval, if earlier, the Penny Pilot Program in options classes in certain issues (``Penny Pilot'' or ``Pilot''), and to change the date when delisted classes may be replaced in the Penny Pilot. --------------------------------------------------------------------------- \3\ References herein to Chapter and Series refer to rules of the NASDAQ Options Market (``NOM''), unless otherwise noted. --------------------------------------------------------------------------- The text of the proposed rule change is set forth below. Proposed new language is italicized and proposed deleted language is in brackets. * * * * * The Nasdaq Stock Market Rules Options Rules * * * * * Chapter VI Trading Systems * * * * * Sec. 5 Minimum Increments (a) The Board may establish minimum quoting increments for options contracts traded on NOM. Such minimum increments established by the Board will be designated as a stated policy, practice, or interpretation with respect to the administration of this Section within the meaning of Section 19 of the Exchange Act and will be filed with the SEC as a rule change for effectiveness upon filing. Until such time as the Board makes a change in the increments, the following principles shall apply: (1)-(2) No Change. (3) For a pilot period scheduled to expire on [June 30, 2018] December 31, 2018 or the date of permanent approval, if earlier, if the options series is trading pursuant to the Penny Pilot program one (1) cent if the options series is trading at less than $3.00, five (5) cents if the options series is trading at $3.00 or higher, unless for QQQQs, SPY and IWM where the minimum quoting increment will be one cent for all series regardless of price. A list of such options shall be communicated to membership via an Options Trader Alert (``OTA'') posted on the Exchange's website. The Exchange may replace any pilot issues that have been delisted with the next most actively traded multiply listed options classes that are not yet included in the pilot, based on trading activity in the previous six months. The replacement issues may be added to the pilot on the second trading day following [January 1, 2018] July 1, 2018. (4) No Change. (b) No Change. * * * * * The text of the proposed rule change is also available on the Exchange's website at http://nasdaqomxbx.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 purpose of this filing is to amend Chapter VI, Section 5, to extend the Penny Pilot through December 31, 2018 or the date of permanent approval, if earlier,\4\ and to change the date when delisted classes may be replaced in the Penny Pilot. The Exchange believes that extending the Penny Pilot will allow for further analysis of the Penny Pilot and a determination of how the program should be structured in the future. --------------------------------------------------------------------------- \4\ The options exchanges in the U.S. that have pilot programs similar to the Penny Pilot (together ``pilot programs'') are currently working on a proposal for permanent approval of the respective pilot programs. --------------------------------------------------------------------------- Under the Penny Pilot, the minimum price variation for all participating options classes, except for the Nasdaq-100 Index Tracking Stock (``QQQQ''), the SPDR S&P 500 Exchange Traded Fund (``SPY'') and the iShares Russell 2000 Index Fund (``IWM''), is $0.01 for all quotations in options series that are quoted at less than $3 per contract and $0.05 for all quotations in options series that are quoted at $3 per contract or greater. QQQQ, SPY and IWM are quoted in $0.01 increments for all options series. The Penny Pilot is currently scheduled to expire on June 30, 2018.\5\ --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 82365 (December 19, 2017), 82 FR 61070 (December 26, 2017) (SR-NASDAQ-2017-130). --------------------------------------------------------------------------- The Exchange proposes to extend the time period of the Penny Pilot through December 31, 2018 or the date of permanent approval, if earlier, and to provide a revised date for adding replacement issues to the Penny Pilot. The Exchange proposes that any Penny Pilot Program issues that have been delisted may be replaced on the second trading day following July 1, 2018. The replacement issues will be selected based on trading activity in the previous six months.\6\ --------------------------------------------------------------------------- \6\ The replacement issues will be announced to the Exchange's membership via an Options Trader Alert (OTA) posted on the Exchange's website. Penny Pilot replacement issues will be selected based on trading activity in the previous six months, as is the case today. The replacement issues would be identified based on The Options Clearing Corporation's trading volume data. For example, for the July replacement, trading volume from December 1, 2017 through May 31, 2018 would be analyzed. The month immediately preceding the replacement issues' addition to the Pilot Program (i.e., June) would not be used for purposes of the six-month analysis. --------------------------------------------------------------------------- This filing does not propose any substantive changes to the Penny Pilot Program; all classes currently participating in the Penny Pilot will remain the same and all minimum increments will remain unchanged. The Exchange believes the benefits to public customers and other market participants who will be able to express their true prices to buy and sell options have been demonstrated to outweigh the potential increase in quote traffic. [[Page 31005]] 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\7\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\8\ in particular, in that it is 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, and 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. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the proposed rule change, which extends the Penny Pilot for an additional six months through December 31, 2018 or the date of permanent approval, if earlier, and changes the date for replacing Penny Pilot issues that were delisted to the second trading day following July 1, 2018, will enable public customers and other market participants to express their true prices to buy and sell options for the benefit of all market participants. This is consistent with the Act. 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. To the contrary, this proposal is pro-competitive because it allows Penny Pilot issues to continue trading on the Exchange. Moreover, the Exchange believes that the proposed rule change will allow for further analysis of the Pilot and a determination of how the Pilot should be structured in the future; and will serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. The Pilot is an industry-wide initiative supported by all other option exchanges. The Exchange believes that extending the Pilot will allow for continued competition between market participants on the Exchange trading similar products as their counterparts on other exchanges, while at the same time allowing the Exchange to continue to compete for order flow with other exchanges in option issues trading as part of the Pilot. 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 The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\ Because the 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 prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A)(iii). \10\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally does not become operative prior to 30 days after the date of the filing.\12\ However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because doing so will allow the Pilot Program to continue without interruption in a manner that is consistent with the Commission's prior approval of the extension and expansion of the Pilot Program and will allow the Exchange and the Commission additional time to analyze the impact of the Pilot Program.\14\ Accordingly, the Commission designates the proposed rule change as operative upon filing with the Commission.\15\ --------------------------------------------------------------------------- \11\ 17 CFR 240.19b-4(f)(6). \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange's intent to file the proposed rule change along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this pre-filing requirement. \13\ 17 CFR 240.19b-4(f)(6)(iii). \14\ See Securities Exchange Act Release No. 61061 (November 24, 2009), 74 FR 62857 (December 1, 2009) (SR-NYSEArca-2009-44). \15\ For purposes only of waiving the operative delay for this proposal, the Commission 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 such 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 under Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \16\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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-NASDAQ-2018-048 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-NASDAQ-2018-048. 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 [[Page 31006]] 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- NASDAQ-2018-048 and should be submitted on or before July 23, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-14118 Filed 6-29-18; 8:45 am] BILLING CODE 8011-01-P
![31004 Federal Register / Vol. 83, No. 127 / Monday, July 2, 2018 / Notices
SECURITIES AND EXCHANGE Exchange Act and will be filed with the or the date of permanent approval, if
COMMISSION SEC as a rule change for effectiveness earlier,4 and to change the date when
upon filing. Until such time as the delisted classes may be replaced in the
[Release No. 34–83527; File No. SR–
NASDAQ–2018–048]
Board makes a change in the Penny Pilot. The Exchange believes that
increments, the following principles extending the Penny Pilot will allow for
Self-Regulatory Organizations; The shall apply: further analysis of the Penny Pilot and
Nasdaq Stock Market LLC; Notice of (1)–(2) No Change. a determination of how the program
Filing and Immediate Effectiveness of (3) For a pilot period scheduled to should be structured in the future.
Proposed Rule Change To Extend the expire on [June 30, 2018] December 31, Under the Penny Pilot, the minimum
Exchange’s Penny Pilot Program 2018 or the date of permanent approval, price variation for all participating
if earlier, if the options series is trading options classes, except for the Nasdaq-
June 26, 2018 pursuant to the Penny Pilot program one 100 Index Tracking Stock (‘‘QQQQ’’),
Pursuant to Section 19(b)(1) of the (1) cent if the options series is trading the SPDR S&P 500 Exchange Traded
Securities Exchange Act of 1934 at less than $3.00, five (5) cents if the Fund (‘‘SPY’’) and the iShares Russell
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 options series is trading at $3.00 or 2000 Index Fund (‘‘IWM’’), is $0.01 for
notice is hereby given that on June 25, higher, unless for QQQQs, SPY and all quotations in options series that are
2018, The Nasdaq Stock Market LLC IWM where the minimum quoting quoted at less than $3 per contract and
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the increment will be one cent for all series $0.05 for all quotations in options series
Securities and Exchange Commission regardless of price. A list of such that are quoted at $3 per contract or
(‘‘SEC’’ or ‘‘Commission’’) the proposed options shall be communicated to greater. QQQQ, SPY and IWM are
rule change as described in Items I and membership via an Options Trader Alert quoted in $0.01 increments for all
II below, which Items have been (‘‘OTA’’) posted on the Exchange’s options series. The Penny Pilot is
prepared by the Exchange. The website. currently scheduled to expire on June
Commission is publishing this notice to The Exchange may replace any pilot 30, 2018.5
solicit comments on the proposed rule issues that have been delisted with the The Exchange proposes to extend the
change from interested persons. next most actively traded multiply time period of the Penny Pilot through
listed options classes that are not yet December 31, 2018 or the date of
I. Self-Regulatory Organization’s
included in the pilot, based on trading permanent approval, if earlier, and to
Statement of the Terms of Substance of
activity in the previous six months. The provide a revised date for adding
the Proposed Rule Change
replacement issues may be added to the replacement issues to the Penny Pilot.
The Exchange proposes to amend pilot on the second trading day The Exchange proposes that any Penny
Chapter VI, Section 5 (Minimum following [January 1, 2018] July 1, 2018. Pilot Program issues that have been
Increments) 3 of the rules of The Nasdaq (4) No Change. delisted may be replaced on the second
Options Market (‘‘NOM’’) to extend (b) No Change. trading day following July 1, 2018. The
through December 31, 2018 or the date * * * * * replacement issues will be selected
of permanent approval, if earlier, the The text of the proposed rule change based on trading activity in the previous
Penny Pilot Program in options classes is also available on the Exchange’s six months.6
in certain issues (‘‘Penny Pilot’’ or website at http:// This filing does not propose any
‘‘Pilot’’), and to change the date when nasdaqomxbx.cchwallstreet.com, at the substantive changes to the Penny Pilot
delisted classes may be replaced in the principal office of the Exchange, and at Program; all classes currently
Penny Pilot. the Commission’s Public Reference participating in the Penny Pilot will
The text of the proposed rule change Room. remain the same and all minimum
is set forth below. Proposed new
II. Self-Regulatory Organization’s increments will remain unchanged. The
language is italicized and proposed
Statement of the Purpose of, and Exchange believes the benefits to public
deleted language is in brackets.
Statutory Basis for, the Proposed Rule customers and other market participants
* * * * * who will be able to express their true
Change
The Nasdaq Stock Market Rules prices to buy and sell options have been
In its filing with the Commission, the demonstrated to outweigh the potential
Options Rules Exchange included statements increase in quote traffic.
* * * * * concerning the purpose of and basis for
the proposed rule change and discussed 4 The options exchanges in the U.S. that have
Chapter VI Trading Systems any comments it received on the pilot programs similar to the Penny Pilot (together
* * * * * proposed rule change. The text of these ‘‘pilot programs’’) are currently working on a
statements may be examined at the proposal for permanent approval of the respective
Sec. 5 Minimum Increments places specified in Item IV below. The pilot programs.
5 See Securities Exchange Act Release No. 82365
(a) The Board may establish minimum Exchange has prepared summaries, set (December 19, 2017), 82 FR 61070 (December 26,
quoting increments for options contracts forth in sections A, B, and C below, of 2017) (SR–NASDAQ–2017–130).
traded on NOM. Such minimum the most significant aspects of such 6 The replacement issues will be announced to
increments established by the Board statements. the Exchange’s membership via an Options Trader
Alert (OTA) posted on the Exchange’s website.
will be designated as a stated policy,
A. Self-Regulatory Organization’s Penny Pilot replacement issues will be selected
practice, or interpretation with respect based on trading activity in the previous six
Statement of the Purpose of, and
daltland on DSKBBV9HB2PROD with NOTICES
to the administration of this Section months, as is the case today. The replacement
Statutory Basis for, the Proposed Rule issues would be identified based on The Options
within the meaning of Section 19 of the
Change Clearing Corporation’s trading volume data. For
example, for the July replacement, trading volume
1 15
U.S.C. 78s(b)(1). 1. Purpose from December 1, 2017 through May 31, 2018
2 17
CFR 240.19b–4. would be analyzed. The month immediately
3 References herein to Chapter and Series refer to The purpose of this filing is to amend preceding the replacement issues’ addition to the
rules of the NASDAQ Options Market (‘‘NOM’’), Chapter VI, Section 5, to extend the Pilot Program (i.e., June) would not be used for
unless otherwise noted. Penny Pilot through December 31, 2018 purposes of the six-month analysis.
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![31006 Federal Register / Vol. 83, No. 127 / Monday, July 2, 2018 / Notices
Reference Room, 100 F Street NE, Exchange, at the Commission’s Public Preferred Market Maker must maintain
Washington, DC 20549, on official Reference Room and also on the a continuous two-sided market,
business days between the hours of Exchange’s internet website at http:// throughout the trading day, in 99% of
10:00 a.m. and 3:00 p.m. Copies of the boxoptions.com. the non-adjusted option series of each
filing also will be available for class for which it accepts Preferenced
II. Self-Regulatory Organization’s
inspection and copying at the principal Orders, for 90% of the time the
office of the Exchange. All comments Statement of the Purpose of, and Exchange is open for trading in each
received will be posted without change. Statutory Basis for, the Proposed Rule such option class.6 A Preferred Market
Persons submitting comments are Change Maker is not required to quote in intra-
cautioned that we do not redact or edit In its filing with the Commission, the day add-on series or series that have a
personal identifying information from self-regulatory organization included time to expiration of nine months or
comment submissions. You should statements concerning the purpose of, more in the classes for which it receives
submit only information that you wish and basis for, the proposed rule change Preferenced Orders.
to make available publicly. All and discussed any comments it received
Small Size Orders
submissions should refer to File on the proposed rule change. The text
Number SR–NASDAQ–2018–048 and of these statements may be examined at The Exchange is now proposing to
should be submitted on or before July the places specified in Item IV below. amend Rule 7300 to provide an
23, 2018. The self-regulatory organization has additional allocation preference to
prepared summaries, set forth in Preferred Market Makers. Specifically,
For the Commission, by the Division of
Trading and Markets, pursuant to delegated Sections A, B, and C below, of the most the Exchange is proposing that small
authority.17 significant aspects of such statements. size Preferenced Orders will be
Eduardo A. Aleman, allocated in full to the Preferred Market
A. Self-Regulatory Organization’s Maker, subject to certain conditions
Assistant Secretary. Statement of the Purpose of, and described below.7 Small size orders are
[FR Doc. 2018–14118 Filed 6–29–18; 8:45 am] Statutory Basis for, the Proposed Rule defined as five (5) or fewer contracts.
BILLING CODE 8011–01–P Change In order for the Preferred Market
1. Purpose Makers to be allocated the small size
order, they must be quoting at the NBBO
SECURITIES AND EXCHANGE The Exchange proposes to amend when they receive the Preferenced
COMMISSION BOX Rule 7300 (Preferenced Orders) to Order. As is the case with the current
[Release No. 34–83525; File No. SR–BOX– provide an additional allocation allocation of Preferenced Orders, all
2018–20] preference to Preferred Market Makers. orders from the account of Public
Specifically, the Exchange is proposing Customers, if any, will continue to be
Self-Regulatory Organizations; BOX to provide Preferred Market Makers allocated for execution against the
Options Exchange LLC; Notice of with a small size order allocation Preferenced Order first. The Preferred
Filing of Proposed Rule Change To preference. Market Maker will only receive the
Amend BOX Rule 7300 (Preferenced small size order allocation if there are
Orders) To Provide an Additional Background
contracts remaining after any Public
Allocation Preference to Preferred The Exchange has rules to allow BOX Customer orders receive an allocation
Market Makers Options Participants (‘‘Participants’’) to against the Preferenced Order. A
submit orders for which a Market Maker Preferred Market Maker may only be
June 26, 2018.
is designated to receive an allocation allocated up to the size of their quote.
Pursuant to Section 19(b)(1) of the
preference on the Exchange The Exchange will monitor the
Securities Exchange Act of 1934 (the
(‘‘Preferenced Orders’’).3 The rules frequency in which Preferred Market
‘‘Act’’),1 and Rule 19b–4 thereunder,2
provide for the enhanced allocation to Makers receive the small size order
notice is hereby given that on June 13,
the Preferred Market Maker 4 only when allocation. Specifically, the Exchange
2018, BOX Options Exchange LLC (the
the Preferred Market Maker is quoting at will review the proposed provision
‘‘Exchange’’) filed with the Securities
NBBO. quarterly and will maintain the small
and Exchange Commission A Preferenced Order is any order
(‘‘Commission’’) the proposed rule order size at a level that will not allow
submitted by a Participant to the small size orders executed by Preferred
change as described in Items I and II Exchange for which a Preferred Market
below, which Items have been prepared Market Makers to account for more than
Maker is designated to receive execution 40% of the volume executed on the
by the self-regulatory organization. The priority, with respect to a portion of the
Commission is publishing this notice to Exchange.
Preferenced Order, upon meeting The Exchange does not believe the
solicit comments on the proposed rule certain qualifications.5 Preferenced
change from interested persons. proposal raises any new or novel issues.
Orders are submitted by a Participant by Currently, the vast majority of options
I. Self-Regulatory Organization’s designating an order as such and exchanges provide a small lot allocation
Statement of the Terms of the Substance identifying a Preferred Market Maker preference to specialists,8 with the
of the Proposed Rule Change when entering the order.
The Exchange proposes to amend In order for a Preferred Market Maker 6 See Rule 7300(a)(2).
BOX Rule 7300 (Preferenced Orders) to to be eligible to receive Preferenced 7 See proposed Rule 7300(e).
provide an additional allocation Orders, they must maintain heightened 8 Cboe EDGX Rule 21.8(g)(2) provides a small lot
daltland on DSKBBV9HB2PROD with NOTICES
quoting activity. Specifically, a allocation preference to Primary Market Makers,
preference to Preferred Market Makers. Nasdaq ISE Rule 713.01(c) provides a small lot
The text of the proposed rule change is 3 See
allocation preference for Primary Market Makers,
Rule 7300. NYSE American Rule 964.2NY provides a small lot
available from the principal office of the 4 The term ‘‘Preferred Market Maker’’ means a allocation preference to the Primary Specialist,
Market Maker designated as such by a Participant Nasdaq BX Chap. VI, Section 10(c)(2) provides a
17 17 CFR 200.30–3(a)(12). with respect to an order submitted by such small lot allocation preference for the Lead Market
1 15 U.S.C. 78s(b)(1). Participant to BOX. See Rule 7300(a)(2). Maker, Nasdaq GEM [sic] Rule 713.01(c) provides
2 17 CFR 240.19b–4. 5 See Rule 7300. a small lot allocation preference for Primary Market
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Document Created: 2018-06-30 00:17:57
Document Modified: 2018-06-30 00:17:57
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 31004 |
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