83 FR 34632 - Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend MRX Rule 723
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 140 (July 20, 2018)
Federal Register Volume 83, Issue 140 (July 20, 2018)
| Page Range | 34632-34635 | |
| FR Document | 2018-15504 |
[Federal Register Volume 83, Number 140 (Friday, July 20, 2018)] [Notices] [Pages 34632-34635] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-15504] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83646; File No. SR-MRX-2018-24] Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend MRX Rule 723 July 16, 2018, Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on July 5, 2018, Nasdaq MRX, LLC (``MRX'' 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 MRX Rule 723, entitled ``Price Improvement Mechanism for Crossing Transactions.'' 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 MRX proposes to amend Rule 723, entitled ``Price Improvement Mechanism for Crossing Transactions.'' Specifically, the Exchange proposes to amend Rule 723(c)(2) to expand the types of Improvement Orders \3\ that may be entered into the Price Improvement Mechanism or ``PIM.'' The Exchange also proposes to amend Rule 723(d)(1)-(3) to more specifically clarify terms such as ``orders'' and ``responses'' in that section. --------------------------------------------------------------------------- \3\ Rule 723(c)(1) defines an Improvement Order. The Exchange will designate via circular a time of no less than 100 milliseconds and no more than 1 second for Members to indicate the size and price at which they want to participate in the execution of the Agency Order (``Improvement Orders''). --------------------------------------------------------------------------- Background The Exchange adopted PIM as part of its application to be registered as a national securities exchange.\4\ In approving PIM, the Commission noted that it was largely based on a similar functionality offered by the International Securities Exchange, LLC (now Nasdaq ISE, LLC) (``ISE'').\5\ ISE received approval to establish its PIM in 2004 that would allow an ISE Electronic Access Member (``EAM'') to enter matched trades (``Crossing Transactions'').\6\ As noted in the Adopting Filing, a Crossing Transaction would be comprised of an order that the EAM represents as agent (``Agency Order'') and an order that is executable against the Agency Order for the full size of the Agency Order (the ``Counter-Side Order'').\7\ In the Adopting Filing, ISE specified in Rule 723(c)(2) that Improvement Orders may be for the account of a Public Customer or for the Member's own account.\8\ The Adopting Filing noted that ISE would broadcast [[Page 34633]] Crossing Orders to all Members.\9\ Further, it was noted in the Adopting Filing that during a three second auction, all ISE Members could enter ``Improvement Orders,'' in penny increments, to improve the price of the Agency Order.\10\ The Adopting Filing stated that Improvement Orders may be for the account of a Public Customer or for the Member's own account.\11\ Finally, the Adopting Filing noted that during the exposure period, the aggregate size of the best prices, including the Counter-Side Order, Improvement Orders, and any change to either, would continually be updated and broadcast to all Members.\12\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 76998 (January 29, 2016), 81 FR 6066 (February 4, 2016) (File No. 10-221) (Exchange Approval Order).The Exchange subsequently changed its name to ISE Mercury and then later Nasdaq MRX. \5\ Id. \6\ See Securities Exchange Act Release No. 50819 (December 8, 2004), 69 FR 75093 (December 15, 2004) (SR-ISE-2003-06) (Order Granting Approval of Proposed Rule Change and Amendment No. 1 Thereto and Notice of Filing and Order Granting Accelerated Approval to Amendments No. 2 and 3 Thereto by the International Securities Exchange, Inc. To Establish Rules Implementing a Price Improvement Mechanism) (``Adopting Filing''). \7\ The Counter-Side Order may represent interest for the EAM's own account, or interest the EAM has solicited from one or more other parties, or a combination of both. \8\ Id. \9\ The broadcast message would include the series, price, and size of the Agency Order and whether it is to buy or sell. \10\ The ISE would broadcast Improvement Orders to all Members. Crossing Transactions and Improvement Orders would not be displayed in the ISE BBO and would not be disseminated to the Options Price Reporting Authority. \11\ MRX Rule 723(c)(2). \12\ MRX Rule 723(c)(4). --------------------------------------------------------------------------- Rule 723(c)(2) With respect to the current limitation of Improvement Orders for the account of a Public Customer or for the Member's own account, ISE noted in its Adopting Filing that ``all ISE Members would be permitted to participate in a PIM . . . unrelated orders could compete in standard increments to trade with the Agency Order in the PIM. Such unrelated orders could include agency orders on behalf of Public Customers, market makers on other exchanges, and non-ISE member broker- dealers, as well as non-Improvement orders submitted by ISE members.'' At this time, the Exchange proposes to permit any MRX Member to enter an Improvement Order marked as a response to a PIM auction similar to Nasdaq PHLX LLC (``Phlx'') \13\ and Nasdaq BX, Inc. (``BX'') \14\ rules. The Exchange no longer desires to limit Members who may enter Improvement Orders into PIM to simply those orders for the account of a Public Customer or for the Member's own account. The Exchange desires to expand the types of orders that may be entered as Improvement Orders similar to Phlx and BX. The Exchange is therefore removing this limitation in Rule 723(c)(2) so that the proposed rule text would read: ``Improvement Orders may be entered by all Members in one-cent increments at the same price as the Crossing Transaction or at an improved price for the Agency Order, and for any size up to the size of the Agency Order.'' --------------------------------------------------------------------------- \13\ Phlx Rule 1087 permits any member to submit for execution an order it represents as agent on behalf of a public customer, broker-dealer, or any other entity (``PIXL Order''). \14\ BX Rules at Chapter VI, Section 9 provides that ``A Participant may electronically submit for execution an order it represents as agent on behalf of a Public Customer, broker dealer, or any other entity (``PRISM Order''). --------------------------------------------------------------------------- Rule 723(d)(1)-(3) The Exchange proposes to amend MRX Rule 723(d)(1), which explains the manner in which a PIM Order shall be allocated to conform this text to the change which is proposed in Rule 723(c)(2). Rule 723(d)(1) currently provides, ``At a given price, Priority Customer interest is executed in full before Professional Orders \15\ and any other interest of Members (i.e., proprietary interest from Electronic Access Members and Exchange market makers).'' The Exchange proposes to expand upon the term interest by adopting the defined terms ``Priority Customer Interest'' for Priority Customer Orders and Improvement Orders from Priority Customers, and ``Professional Interest'' for Professional Orders, Improvement Orders from non-Priority Customers, and Market Maker quotes. The Exchange believes that adding these defined terms would clarify what is meant by interest. As proposed, Professional Interest identifies all orders (including Improvement Orders) that are not for the account of a Priority Customer as well as Market Maker quotes, thereby incorporating the current reference to ``Professional Orders'' within its terms and eliminating the necessity to include the current rule text which provides, ``any other interest of Members (i.e., proprietary interest from Electronic Access Members and Exchange market makers).'' --------------------------------------------------------------------------- \15\ MRX Rule 100(a)(54) provides the term ``Professional Order'' means an order that is for the account of a person or entity that is not a Priority Customer. --------------------------------------------------------------------------- The Exchange proposes to amend Rule 723(d)(2) which currently provides, ``After Priority Customer interest at a given price, Professional Orders and Members' interest will participate in the execution of the Agency Order based upon the percentage of the total number of contracts available at the price that is represented by the size of the Members' interest.'' The Exchange proposes to replace the reference to ``Priority Customer interest'' with the defined term ``Priority Customer Interest'' proposed to be added in Rule 723(d)(1), as described above. The Exchange also proposes to change ``Professional Orders'' to ``Professional Interest'' which will be defined in Rule 723(d)(1) to include Professional Orders as well as Improvement Orders from non-Priority Customers and Market Maker quotes. Since Professional Interest is defined in this manner, the Exchange also proposes to remove the language referring to ``Members' interest'' from the sentence because Professional Interest would include all orders from non-Priority Customers and Market Maker quotes. The Exchange proposes to amend Rule 723(d)(3) to again remove the rule text relating to ``Members' interest'' and instead utilize the defined ``Professional Interest'' term consistent with proposed changes to Rule 723(d)(1) and (2). The Exchange also proposes to make similar changes to add the term ``Professional Interest'' to the sentence in Rule 723(d)(3) that currently reads: ``Thereafter, all other orders, Responses, and quotes at the price point will participate in the execution of the Agency Order based upon the percentage of the total number of contracts available at the price that is represented by the size of the order, Response or quote.'' In particular, the language related to ``other orders, Responses, and quotes'' in this sentence will be replaced with ``Professional Interest'' since this term includes all orders from non-Priority Customers and Market Maker quotes, as described above. The Exchange notes that the references in this sentence to ``Responses,'' currently an undefined term, should instead refer to the defined term ``Improvement Orders,'' and the proposed changes should therefore clarify how Rule 723(d)(3) will apply. Finally, the Exchange proposes to replace the word ``Priority Customer Orders'' with ``Priority Customer Interest'' as defined in proposed Rule 723(d)(1) to clarify that those orders as well as responses (i.e., Improvement Orders from Priority Customers) are applicable. The proposed amendments add more specificity to the exact order/quotes and responses which apply in this section. The amendments to Rule 723(d)(1)-(3) conform to the proposed amendment to Rule 723(c)(2) and other proposed amendments as described above which do not change the manner in which PIM operates today, rather the other word changes seek to bring specificity to the manner in which order, quotes and responses are treated. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\16\ in general, and furthers the [[Page 34634]] objectives of Section 6(b)(5) of the Act,\17\ 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. --------------------------------------------------------------------------- \16\ 15 U.S.C. 78f(b). \17\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange's proposal to amend Rule 723(c)(2) seeks to broaden the types of orders that may be submitted as Improvement Orders into PIM. As ISE previously noted, in its Adopting Filing, all Members are able to participate in a PIM today as an unrelated order that rests on the Order Book. Unrelated orders that rest on the Order Book can participate in PIM and trade with the Agency Order in the PIM. The Exchange proposes to allow all Members to submit Improvement Orders directly into PIM to provide an even greater number of MRX Members to more directly participate in PIM and provide price improvement. The Exchange's proposal is consistent with the Act because allowing a greater number of Members to directly respond with an Improvement Order in a PIM will increase the likelihood of price improvement in that auction thereby removing impediments to and perfecting the mechanism of a free and open market and a national market system. This approach will enable greater participation in PIM auctions. The Exchange's proposal to amend Rule 723(d) conforms the text with changes made with respect to the proposal to amend Rule 723(c)(2) for consistency. The proposed changes to remove the more generic ``Members' interest'' and instead substitute very specific terms to define interest and add quotes provide more specificity as to the manner in which interest entered into PIM will be allocated. The Exchange's proposed amendments to Rule 723(d)(1)-(3) are consistent with the Act because the amendments seek to conform the rule text to the proposed Rule 723(c)(2) amendment and describe in greater detail how interest will be allocated by defining terms and eligible interest and this transparency benefits investors and the public interest. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange's proposal to amend Rule 723(c)(2) to broaden the types of orders that may be submitted as Improvement Orders into PIM does not unduly burden competition because all Members will be permitted to submit Improvement Orders directly into PIM to provide an even greater number of MRX Members to more directly participate in PIM. The amendments to Rule 723(d) will conform the rule text and bring clarity to the allocation method for PIM. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change does not (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act \18\ and Rule 19b-4(f)(6) thereunder.\19\ --------------------------------------------------------------------------- \18\ 15 U.S.C. 78s(b)(3)(A). \19\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \20\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \21\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that it may allow all Members to submit Improvement Orders directly into PIM to provide an even greater number of MRX Members an opportunity to more directly participate in PIM and provide price improvement. The Exchange states that it will issue an Options Trader Alert to notify Members of the date within which this functionality will be implemented. The Commission believes the waiver of the operative delay is consistent with the protection of investors and the public interest. Accordingly, the Commission hereby waives the operative delay and designates the proposed rule change operative upon filing.\22\ --------------------------------------------------------------------------- \20\ 17 CFR 240.19b-4(f)(6). \21\ 17 CFR 240.19b-4(f)(6)(iii). \22\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-MRX-2018-24 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-MRX-2018-24. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's internet website (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549 on official business days between the hours of [[Page 34635]] 10:00 a.m. and 3:00 p.m. Copies of such 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-2018-24, and should be submitted on or before August 10, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\23\ --------------------------------------------------------------------------- \23\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-15504 Filed 7-19-18; 8:45 am] BILLING CODE 8011-01-P
![34632 Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices
investors, or otherwise in furtherance of For the Commission, by the Division of A. Self-Regulatory Organization’s
the purposes of the Act. Trading and Markets, pursuant to delegated Statement of the Purpose of, and
authority.13 Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments Eduardo A. Aleman, Change
Interested persons are invited to Assistant Secretary.
1. Purpose
submit written data, views, and [FR Doc. 2018–15505 Filed 7–19–18; 8:45 am]
arguments concerning the foregoing, BILLING CODE 8011–01–P MRX proposes to amend Rule 723,
including whether the proposed rule entitled ‘‘Price Improvement
change is consistent with the Act. Mechanism for Crossing Transactions.’’
Comments may be submitted by any of SECURITIES AND EXCHANGE Specifically, the Exchange proposes to
the following methods: COMMISSION amend Rule 723(c)(2) to expand the
Electronic Comments [Release No. 34–83646; File No. SR–MRX– types of Improvement Orders 3 that may
2018–24] be entered into the Price Improvement
• Use the Commission’s internet Mechanism or ‘‘PIM.’’ The Exchange
comment form (http://www.sec.gov/ Self-Regulatory Organizations; Nasdaq also proposes to amend Rule 723(d)(1)–
rules/sro.shtml); or MRX, LLC; Notice of Filing and (3) to more specifically clarify terms
• Send an email to rule-comments@ Immediate Effectiveness of Proposed such as ‘‘orders’’ and ‘‘responses’’ in
sec.gov. Please include File Number SR– Rule Change to Amend MRX Rule 723 that section.
CboeEDGA–2018–012 on the subject July 16, 2018, Background
line. Pursuant to Section 19(b)(1) of the
Paper Comments Securities Exchange Act of 1934 (the The Exchange adopted PIM as part of
‘‘Act’’),1 and Rule 19b–4 thereunder,2 its application to be registered as a
• Send paper comments in triplicate notice is hereby given that on July 5, national securities exchange.4 In
to Secretary, Securities and Exchange 2018, Nasdaq MRX, LLC (‘‘MRX’’ or approving PIM, the Commission noted
Commission, 100 F Street NE, ‘‘Exchange’’) filed with the Securities that it was largely based on a similar
Washington, DC 20549–1090. and Exchange Commission (‘‘SEC’’ or functionality offered by the
All submissions should refer to File ‘‘Commission’’) the proposed rule International Securities Exchange, LLC
Number SR-CboeEDGA–2018–012. This change as described in Items I and II (now Nasdaq ISE, LLC) (‘‘ISE’’).5 ISE
file number should be included on the below, which Items have been prepared received approval to establish its PIM in
subject line if email is used. To help the by the Exchange. The Commission is 2004 that would allow an ISE Electronic
Commission process and review your publishing this notice to solicit Access Member (‘‘EAM’’) to enter
comments more efficiently, please use comments on the proposed rule change matched trades (‘‘Crossing
only one method. The Commission will from interested persons. Transactions’’).6 As noted in the
post all comments on the Commission’s Adopting Filing, a Crossing Transaction
I. Self-Regulatory Organization’s would be comprised of an order that the
internet website (http://www.sec.gov/ Statement of the Terms of Substance of
rules/sro.shtml). Copies of the EAM represents as agent (‘‘Agency
the Proposed Rule Change Order’’) and an order that is executable
submission, all subsequent
amendments, all written statements The Exchange proposes to amend against the Agency Order for the full
with respect to the proposed rule MRX Rule 723, entitled ‘‘Price size of the Agency Order (the ‘‘Counter-
change that are filed with the Improvement Mechanism for Crossing Side Order’’).7 In the Adopting Filing,
Commission, and all written Transactions.’’ ISE specified in Rule 723(c)(2) that
communications relating to the The text of the proposed rule change Improvement Orders may be for the
proposed rule change between the is available on the Exchange’s website at account of a Public Customer or for the
Commission and any person, other than http://nasdaqmrx.cchwallstreet.com/, at Member’s own account.8 The Adopting
those that may be withheld from the the principal office of the Exchange, and Filing noted that ISE would broadcast
public in accordance with the at the Commission’s Public Reference
provisions of 5 U.S.C. 552, will be Room. 3 Rule 723(c)(1) defines an Improvement Order.
The Exchange will designate via circular a time of
available for website viewing and II. Self-Regulatory Organization’s no less than 100 milliseconds and no more than 1
printing in the Commission’s Public Statement of the Purpose of, and second for Members to indicate the size and price
Reference Room, 100 F Street NE, Statutory Basis for, the Proposed Rule at which they want to participate in the execution
Washington, DC 20549, on official of the Agency Order (‘‘Improvement Orders’’).
Change 4 See Securities Exchange Act Release No. 76998
business days between the hours of
In its filing with the Commission, the (January 29, 2016), 81 FR 6066 (February 4, 2016)
10:00 a.m. and 3:00 p.m. Copies of the (File No. 10–221) (Exchange Approval Order).The
Exchange included statements
filing also will be available for Exchange subsequently changed its name to ISE
concerning the purpose of and basis for Mercury and then later Nasdaq MRX.
inspection and copying at the principal
the proposed rule change and discussed 5 Id.
office of the Exchange. All comments
any comments it received on the 6 See Securities Exchange Act Release No. 50819
received will be posted without change.
proposed rule change. The text of these (December 8, 2004), 69 FR 75093 (December 15,
Persons submitting comments are 2004) (SR–ISE–2003–06) (Order Granting Approval
statements may be examined at the
cautioned that we do not redact or edit of Proposed Rule Change and Amendment No. 1
places specified in Item IV below. The Thereto and Notice of Filing and Order Granting
personal identifying information from
Exchange has prepared summaries, set
daltland on DSKBBV9HB2PROD with NOTICES
Accelerated Approval to Amendments No. 2 and 3
comment submissions. You should
forth in sections A, B, and C below, of Thereto by the International Securities Exchange,
submit only information that you wish Inc. To Establish Rules Implementing a Price
the most significant aspects of such
to make available publicly. All Improvement Mechanism) (‘‘Adopting Filing’’).
statements.
submissions should refer to File 7 The Counter-Side Order may represent interest
Number SR–CboeEDGA–2018–012 and for the EAM’s own account, or interest the EAM has
13 17 CFR 200.30–3(a)(12). solicited from one or more other parties, or a
should be submitted on or before 1 15 U.S.C. 78s(b)(1). combination of both.
August 10, 2018. 2 17 CFR 240.19b–4. 8 Id.
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![Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices 34635
10:00 a.m. and 3:00 p.m. Copies of such self-regulatory organization consents, I. Self-Regulatory Organization’s
filing also will be available for the Commission shall either approve the Statement of the Terms of Substance of
inspection and copying at the principal proposed rule change, disapprove the the Proposed Rule Change
office of the Exchange. All comments proposed rule change, or institute The Exchange proposes to amend ISE
received will be posted without change. proceedings to determine whether the Rule 723, entitled ‘‘Price Improvement
Persons submitting comments are proposed rule change should be Mechanism for Crossing Transactions.’’
cautioned that we do not redact or edit disapproved. The 45th day for this filing The text of the proposed rule change
personal identifying information from is July 23, 2018. is available on the Exchange’s website at
comment submissions. You should
The Commission is extending the 45- http://ise.cchwallstreet.com/, at the
submit only information that you wish
day time period for Commission action principal office of the Exchange, and at
to make available publicly. All
on the proposed rule change. The the Commission’s Public Reference
submissions should refer to File
Commission finds that it is appropriate Room.
Number SR–MRX–2018–24, and should
be submitted on or before August 10, to designate a longer period within II. Self-Regulatory Organization’s
2018. which to take action on the proposed Statement of the Purpose of, and
For the Commission, by the Division of
rule change so that it has sufficient time Statutory Basis for, the Proposed Rule
Trading and Markets, pursuant to delegated to consider the proposed rule change. Change
authority.23 Accordingly, pursuant to Section In its filing with the Commission, the
Eduardo A. Aleman, 19(b)(2) of the Act,5 the Commission Exchange included statements
Assistant Secretary. designates September 6, 2018, as the concerning the purpose of and basis for
[FR Doc. 2018–15504 Filed 7–19–18; 8:45 am] date by which the Commission should the proposed rule change and discussed
BILLING CODE 8011–01–P either approve or disapprove, or any comments it received on the
institute proceedings to determine proposed rule change. The text of these
whether to disapprove, the proposed statements may be examined at the
SECURITIES AND EXCHANGE rule change (File No. SR–BOX–2018– places specified in Item IV below. The
COMMISSION 14). Exchange has prepared summaries, set
[Release No. 34–83647; File No. SR–BOX– forth in sections A, B, and C below, of
For the Commission, by the Division of
2018–14] the most significant aspects of such
Trading and Markets, pursuant to delegated
authority.6
statements.
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of Eduardo A. Aleman, A. Self-Regulatory Organization’s
Designation of Longer Period for Assistant Secretary. Statement of the Purpose of, and
Commission Action on Proposed Rule [FR Doc. 2018–15507 Filed 7–19–18; 8:45 am]
Statutory Basis for, the Proposed Rule
Change To Adopt Rules Governing the Change
BILLING CODE 8011–01–P
Trading of Complex Qualified 1. Purpose
Contingent Cross and Complex
ISE proposes to amend ISE Rule 723,
Customer Cross Orders SECURITIES AND EXCHANGE
entitled ‘‘Price Improvement
COMMISSION Mechanism for Crossing Transactions.’’
July 16, 2018.
On May 22, 2018, BOX Options Specifically, the Exchange proposes to
Exchange LLC (the ‘‘Exchange’’) filed [Release No. 34–83644; File No. SR–ISE– amend Rule 723(c)(2) to expand the
with the Securities and Exchange 2018–62] types of Improvement Orders 3 that may
Commission (‘‘Commission’’), pursuant be entered into the Price Improvement
to Section 19(b)(1) of the Securities Self-Regulatory Organizations; Nasdaq Mechanism or ‘‘PIM.’’ The Exchange
Exchange Act of 1934 (‘‘Act’’) 1 and Rule ISE, LLC; Notice of Filing and also proposes to amend Rule 723(d)(1)–
19b–4 thereunder,2 a proposed rule Immediate Effectiveness of Proposed (3) to more specifically clarify terms
change to adopt rules governing the Rule Change To Amend ISE Rule 723 such as ‘‘orders’’ and ‘‘responses’’ in
trading of Complex Qualified that section.
July 16, 2018.
Contingent Cross and Complex Background
Customer Cross Orders. The proposed Pursuant to Section 19(b)(1) of the
rule change was published for comment Securities Exchange Act of 1934 (the ISE received approval to establish its
in the Federal Register on June 8, 2018.3 ‘‘Act’’),1 and Rule 19b–4 thereunder,2 PIM in 2004 that would allow an ISE
The Commission has received no notice is hereby given that on July 5, Electronic Access Member (‘‘EAM’’) to
comments regarding the proposal. 2018, Nasdaq ISE, LLC (‘‘ISE’’ or enter matched trades (‘‘Crossing
Section 19(b)(2) of the Act 4 provides ‘‘Exchange’’) filed with the Securities Transactions’’).4 A Crossing Transaction
that within 45 days of the publication of and Exchange Commission (‘‘SEC’’ or
notice of the filing of a proposed rule ‘‘Commission’’) the proposed rule 3 Rule 723(c)(1) defines an Improvement Order.
change, or within such longer period up The Exchange will designate via circular a time of
change as described in Items I and II no less than 100 milliseconds and no more than 1
to 90 days as the Commission may below, which Items have been prepared second for Members to indicate the size and price
designate if it finds such longer period by the Exchange. The Commission is at which they want to participate in the execution
to be appropriate and publishes its publishing this notice to solicit of the Agency Order (‘‘Improvement Orders’’).
daltland on DSKBBV9HB2PROD with NOTICES
reasons for so finding or as to which the comments on the proposed rule change
4 See Securities Exchange Act Release No. 50819
(December 8, 2004), 69 FR 75093 (December 15,
23 17
from interested persons. 2004) (SR–ISE–2003–06) (Order Granting Approval
CFR 200.30–3(a)(12).
1 15
of Proposed Rule Change and Amendment No. 1
U.S.C. 78s(b)(1). Thereto and Notice of Filing and Order Granting
2 17 CFR 240.19b–4. 5 15 U.S.C. 78s(b)(2).
6 17
Accelerated Approval to Amendments No. 2 and 3
3 See Securities Exchange Act Release No. 83367 CFR 200.30–3(a)(31). Thereto by the International Securities Exchange,
(June 4, 2018), 83 FR 26719. 1 15 U.S.C. 78s(b)(1).
Inc. To Establish Rules Implementing a Price
4 15 U.S.C. 78s(b)(2). 2 17 CFR 240.19b–4. Improvement Mechanism) (‘‘Adopting Filing’’).
VerDate Sep<11>2014 18:06 Jul 19, 2018 Jkt 244001 PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 E:\FR\FM\20JYN1.SGM 20JYN1](https://thefederalregister.org/doc/83_FR_34772/page/4.svg)
Document Created: 2018-07-20 01:19:10
Document Modified: 2018-07-20 01:19:10
| 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 34632 |
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