83 FR 37867 - Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Codify the Protocol Definitions That Members Use To Enter Quotes and Orders
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 149 (August 2, 2018)
Federal Register Volume 83, Issue 149 (August 2, 2018)
| Page Range | 37867-37870 | |
| FR Document | 2018-16530 |
[Federal Register Volume 83, Number 149 (Thursday, August 2, 2018)] [Notices] [Pages 37867-37870] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-16530] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83731; File No. SR-GEMX-2018-26] Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Codify the Protocol Definitions That Members Use To Enter Quotes and Orders July 27, 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 July 16, 2018, Nasdaq GEMX, LLC (``GEMX'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to codify the definitions of the protocols that Members can use to enter quotes and orders on the Exchange. The text of the proposed rule change is available on the Exchange's website at http://nasdaqgemx.cchwallstreet.com/, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The 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 the proposed rule change is to codify the definitions of the protocols that Members use to enter quotes and orders on the Exchange, specifically, the Specialized Quote Feed (``SQF''), Ouch to Trade Options (``OTTO''), Financial Information eXchange (``FIX''), and Nasdaq Precise (``Precise''). On April 27, 2017, the Exchange filed a proposed rule change that established the ports that Members use to connect to the Exchange, including ports used for quote and order entry--i.e., SQF, OTTO and FIX.\3\ The Exchange has also filed proposed rule changes that briefly describe the availability of Precise, which is the Exchange's proprietary front-end interface used by Electronic Access Members (``EAMs'') and their Sponsored Customers \4\ to send orders to the [[Page 37868]] Exchange and perform other related functions.\5\ The protocols used by Members to submit quotes and orders play an important role in the operation of the trading system as critical Exchange functionality used by Members to transact in options is offered through these protocols. The Exchange therefore believes that codifying definitions of these protocols in its rules will increase transparency around its operations. --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 80649 (May 10, 2017), 82 FR 22595 (May 16, 2017) (SR-GEMX-2017-07). \4\ A ``Sponsored Customer'' is a non-member of the Exchange that trades under a sponsoring member's execution and clearing identity pursuant to a sponsorship arrangement between such non- member and sponsoring member, as set forth in Supplementary Material to Rule 706. Market makers must connect to the Exchange via SQF, which is the Exchange's quoting protocol, and are therefore not eligible to use Precise. \5\ See Securities Exchange Act Release No. 81109 (July 10, 2017), 82 FR 32594 (July 14, 2017) (SR-GEMX-2017-28) (proposed rule change regarding how Immediate-or-Cancel Orders will be handled); and Securities Exchange Act Release No. 81970 (October 27, 2017), 82 FR 50910 (November 2, 2017) (SR-GEMX-2017-50) (proposed rule change related to the Kill Switch risk protection). --------------------------------------------------------------------------- As it relates to FIX, OTTO, and SQF, the proposed language is substantially similar to the language included in SR-GEMX-2017-07 with changes to more clearly and accurately reflect the certain information included on each protocol, such as by separating out different categories of messages (e.g., auction orders, auction notifications, and auction responses). Furthermore, the proposed definitions will be harmonized where appropriate with definitions to be included in the rules of the Exchange's affiliated options markets, including by using consistent terms to define the buckets of information transmitted, or the features available, on each protocol.\6\ Although the Exchange is changing how it categorizes various features included on FIX, OTTO, and SQF as part of its harmonization effort, the list of features included in the proposed definitions are intended to be exhaustive with respect to the buckets of information provided on each protocol. The Exchange also seeks to memorialize Precise to reflect the specific categories of features that are available on the Precise front-end today (e.g., order and execution management, market data, and risk management). Overall, the Exchange believes that the proposed changes will allow Members to more easily understand what information is available on which protocol. --------------------------------------------------------------------------- \6\ The Exchange's affiliates--i.e., Nasdaq ISE, LLC (``ISE''), Nasdaq MRX, LLC (``MRX''), Nasdaq PHLX LLC (``Phlx''), Nasdaq Options Market (``NOM''), and Nasdaq BX, LLC (``BX'')--intend to file similar rule changes as part of this exercise. --------------------------------------------------------------------------- As proposed, Supplementary Material .03 to Rule 715 (i.e., Types of Orders) will provide that the Exchange offers Members the following protocols for entering orders and quotes respectively: A. Financial Information eXchange Ports When the Exchange initially filed to adopt order and quote entry protocols, it described the FIX protocol as follows: ``FIX is an interface that allows market participants to connect and send orders and auction orders into the Exchange. Data includes the following: (1) Options Symbol Directory Messages; (2) System Event Messages (e.g., start of messages, start of system hours, start of quoting, start of opening); (3) Option Trading Action Messages (e.g., halts, resumes); (4) Execution Messages; (5) Order Messages (order messages, risk protection triggers or purge notifications).'' The Exchange now proposes to codify the following definition of FIX in its rulebook: ``Financial Information eXchange'' or ``FIX'' is an interface that allows Members and their Sponsored Customers to connect, send, and receive messages related to orders and auction orders to the Exchange. Features include the following: (1) Execution messages; (2) order messages; (3) risk protection triggers and cancel notifications; and (4) post trade allocation messages. B. Ouch To Trade Options Ports When the Exchange initially filed to adopt order and quote entry protocols, it described the OTTO protocol as follows: ``OTTO is an interface that allows market participants to connect and send orders, auction orders and auction responses into the Exchange. Data includes the following: (1) Options Auction Notifications (e.g., Flash, PIM, Solicitation and Facilitation or other information); (2) Options Symbol Directory Messages; (3) System Event Messages (e.g., start of messages, start of system hours, start of quoting, start of opening); (5) Option Trading Action Messages (e.g., halts, resumes); (6) Execution Messages; (7) Order Messages (order messages, risk protection triggers or purge notifications).'' The Exchange now proposes to codify the following definition of OTTO in its rulebook: ``Ouch to Trade Options'' or ``OTTO'' is an interface that allows Members and their Sponsored Customers to connect, send, and receive messages related to orders, auction orders, and auction responses to the Exchange. Features include the following: (1) Options symbol directory messages (e.g., underlying instruments); (2) system event messages (e.g., start of trading hours messages and start of opening); (3) trading action messages (e.g., halts and resumes); (4) execution messages; (5) order messages; (6) risk protection triggers and cancel notifications; (7) auction notifications; (8) auction responses; and (9) post trade allocation messages. C. Specialized Quote Feed Ports When the Exchange initially filed to adopt order and quote entry protocols, it described the SQF protocol as follows: ``SQF is an interface that allows market makers to connect and send quotes, sweeps and auction responses into the Exchange. Data includes the following: (1) Options Auction Notifications (e.g., opening imbalance, Flash, PIM, Solicitation and Facilitation or other information); (2) Options Symbol Directory Messages; (3) System Event Messages (e.g., start of messages, start of system hours, start of quoting, start of opening); (4) Option Trading Action Messages (e.g., halts, resumes); (5) Execution Messages; (6) Quote Messages (quote/sweep messages, risk protection triggers or purge notifications).'' The Exchange now proposes to codify the following definition of SQF in its rulebook: ``Specialized Quote Feed'' or ``SQF'' is an interface that allows market makers to connect, send, and receive messages related to quotes, Immediate-or-Cancel Orders, and auction responses to the Exchange. Features include the following: (1) Options symbol directory messages (e.g., underlying instruments); (2) system event messages (e.g., start of trading hours messages and start of opening); (3) trading action messages (e.g., halts and resumes); (4) execution messages; (5) quote messages; (6) Immediate-or-Cancel Order messages; (7) risk protection triggers and purge notifications; (8) opening imbalance messages; (9) auction notifications; and (10) auction responses. The SQF Purge Interface only receives and notifies of purge requests from the market maker.\7\ --------------------------------------------------------------------------- \7\ All of the notification messages available on SQF ports as described above (i.e., options symbol directory messages, system event messages, trading action messages, etc.) are configurable in that market makers can select the specific types of notifications they wish to receive on their SQF ports. As such, SQF Purge Interface ports are a subpart of SQF ports that have been configured to only receive and notify of purge requests. --------------------------------------------------------------------------- D. Nasdaq Precise ``Nasdaq Precise'' or ``Precise'' is a front-end interface that allows Electronic Access Members and their Sponsored Customers to send orders to the Exchange and perform other related functions. Features include the following: (1) Order and execution management: Enter, modify, and cancel orders on the Exchange, and manage executions (e.g., parent/child orders, inactive orders, and post-trade allocations); (2) market data: Access to real-time market data (e.g., NBBO and [[Page 37869]] Exchange BBO); (3) risk management: set customizable risk parameters (e.g., kill switch); and (4) book keeping and reporting: comprehensive audit trail of orders and trades (e.g., order history and done away trade reports). Precise is a software application that is offered by the Exchange to EAMs and their Sponsored Customers. Use of Precise is completely voluntary. The Exchange makes Precise available to EAMs and their Sponsored Customers as a convenience for entering and managing orders, but the protocol is not an exclusive means for any user to send orders to GEMX. Precise is merely a front-end interface to the Exchange's existing trading system, and is designed as an alternative to the Exchange's other protocols (i.e., FIX, OTTO, and SQF) for the sending of orders to GEMX. Precise is also an alternative to similar front-end order and execution management systems currently offered by other technology providers as well as other exchanges.\8\ --------------------------------------------------------------------------- \8\ For example, Cboe Exchange, Inc. currently offers a similar front-end order and execution management system called PULSe\SM\ that allows users to send orders to Cboe Options Exchange, C2 Options, Cboe Futures Exchange, and other U.S. options and stock exchanges. See https://www.cboe.org/hybrid/pulsesalessheet.pdf. --------------------------------------------------------------------------- Precise provides users with access to GEMX's regular order book. The protocol offers order and execution features that allow users to send, modify, and cancel their orders, and manage executions. For example, the protocol offers users the capability to stage larger orders and divide them into smaller orders for execution (i.e., parent/ child orders), or stage multiple orders to send for execution at a later time (i.e., inactive orders). Precise also offers post trade allocation, including the capability for users to directly adjust clearing information on the front-end protocol. Precise users can also access and display real-time market data such as the National Best Bid and Offer (``NBBO'') and the Exchange Best Bid and Offer (``Exchange BBO''). Precise also provides risk management capabilities that allow users to set customizable risk parameters.\9\ For example, Precise supports the kill switch risk protection feature, which is an optional tool that enables members to initiate a message(s) to the Exchange's trading system to promptly cancel orders and restrict entry of new orders until re-entry has been enabled.\10\ Lastly, Precise provides a comprehensive audit trail of orders and trades through its book keeping and reporting features, including order history reports and done away trade reports.\11\ --------------------------------------------------------------------------- \9\ The Exchange is characterizing the risk protections on Precise under a broader category of risk management compared to the risk protection categories on the other protocols because Precise also supports administrator capability for accessing and setting risk parameters for multiple users within a member firm. \10\ See Rule 711(d). Precise is able to send a message to the Exchange to initiate the kill switch through Precise. \11\ Done away trade reports allow Precise users to record orders and executions, including executions on a different venue than the Exchange. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (the ``Act''),\12\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\13\ in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism for a free and open market and a national market system, and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f(b). \13\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed rule change is consistent with the protection of investors and the public interest as it codifies the protocols used to connect to the Exchange's trading system. As discussed above, the Exchange previously filed to establish FIX, OTTO, and SQF in SR-GEMX-2017-07. These protocols will now be codified in the Exchange's rulebook. In addition, the Exchange has briefly described Precise in various proposed rule changes filed with the Commission. In the interest of transparency, the Exchange has included a more fulsome description of the functionalities offered via Precise in this proposed rule change, and is codifying language in its rules that would describe this protocol. While no functional changes to the protocols are proposed in this filing, the Exchange believes that including a description of the protocols in its rulebook will benefit Members by increasing transparency around the operation of the Exchange. Furthermore, the proposed definitions being included in the rulebook will more clearly and accurately reflect the information included on the protocols, and will be harmonized with language to be included in the rules of its affiliated exchanges to the extent that the protocols operate in the same manner. The protocols described in this filing provide a range of important features to Members, including the ability to submit quotes and orders, and perform other functions necessary to manage trading on the Exchange. The Exchange believes codifying the quote and order entry protocols will increase transparency to the Members that use these protocols to connect to the Exchange. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\14\ the Exchange does not believe that the proposed rule change will impose any burden on intermarket or intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act. As explained above, the Exchange is codifying the quote and order entry protocols that Members use to connect to the Exchange's trading system. The Exchange does not believe that codifying these protocols in the rulebook will have any competitive impact. FIX, OTTO, and SQF were established in SR-GEMX-2017-07, and are already available to Members, who use these protocols to connect and manage their trading activity on the Exchange. Adding rule language that describes these Exchange offerings will increase transparency around the operation of the Exchange without having any impact on intermarket or intramarket competition. Furthermore, Precise is a voluntary piece of functionality that EAMs and their Sponsored Customers may use as a convenience for entering and managing orders and executions, as an alternative to the Exchange's other protocols (i.e., FIX, OTTO, and SQF). Precise is also an alternative to similar front-end order and execution management systems currently offered by other technology providers as well as other exchanges (e.g., PULSe). If market participants believe that other products available in the marketplace are more beneficial than Precise, they will simply use those products instead. For the foregoing reasons, the Exchange does not believe that its proposal to codify Precise will impose any burden on intermarket or intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- 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. [[Page 37870]] III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \15\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\16\ --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A)(iii). \16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. In this case, the Commission waives the five-day pre-filing requirement. --------------------------------------------------------------------------- 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-GEMX-2018-26 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-GEMX-2018-26. 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 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-GEMX-2018-26 and should be submitted on or before August 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). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2018-16530 Filed 8-1-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices 37867
OCC would use its partial tear-up with respect to the proposed rule publishing this notice to solicit
process as a means of loss allocation. change that are filed with the comments on the proposed rule change
OCC has included an updated Exhibit Commission, and all written from interested persons.
5 containing its RWD Plan as well as an communications relating to the
I. Self-Regulatory Organization’s
Exhibit 4 showing the changes proposed proposed rule change between the
Statement of the Terms of Substance of
in this Partial Amendment No. 2 to the Commission and any person, other than
the Proposed Rule Change
proposed rule text in the Initial Filing, those that may be withheld from the
with the proposed changes in the Initial public in accordance with the The Exchange proposes to codify the
Filing marked in underlined and provisions of 5 U.S.C. 552, will be definitions of the protocols that
strikethrough text. Exhibits 4 and 5 have available for website viewing and Members can use to enter quotes and
been redacted and filed separately with printing in the Commission’s Public orders on the Exchange.
the Commission and confidential Reference Room, 100 F Street NE, The text of the proposed rule change
treatment for Exhibits 4 and 5 is Washington, DC 20549, on official is available on the Exchange’s website at
requested pursuant to 17 CFR 240.24b– business days between the hours of http://nasdaqgemx.cchwallstreet.com/,
2. 10:00 a.m. and 3:00 p.m. Copies of such at the principal office of the Exchange,
The partial amendment would not filing also will be available for and at the Commission’s Public
change the purpose of or basis for the inspection and copying at the principal Reference Room.
proposed rule change. All other office of OCC and on OCC’s website at II. Self-Regulatory Organization’s
representations in the Initial Filing http://www.theocc.com/about/ Statement of the Purpose of, and
remain as stated therein and no other publications/bylaws.jsp. Statutory Basis for, the Proposed Rule
changes are being made. All comments received will be posted Change
without change. Persons submitting
II. Date of Effectiveness of Proposed comments are cautioned that we do not In its filing with the Commission, the
Rule Change and Timing for redact or edit personal or identifying Exchange included statements
Commission Action information from comment submissions. concerning the purpose of and basis for
You should submit only information the proposed rule change and discussed
As the Commission stated in
that you wish to make available any comments it received on the
Securities Exchange Act Release No.
publicly. proposed rule change. The text of these
83485, the Commission shall by order
All submissions should refer to File statements may be examined at the
approve or disapprove the proposed
Number SR–OCC–2017–021 and should places specified in Item IV below. The
rule change by August 23, 2018.13
be submitted on or before August 17, Exchange has prepared summaries, set
III. Solicitation of Comments 2018. forth in sections A, B, and C below, of
Interested persons are invited to the most significant aspects of such
For the Commission by the Division of
submit written data, views, and Trading and Markets, pursuant to delegated
statements.
arguments concerning the foregoing, authority.14 A. Self-Regulatory Organization’s
including whether the proposed rule Robert W. Errett, Statement of the Purpose of, and
change is consistent with the Act. Deputy Secretary. Statutory Basis for, the Proposed Rule
Comments may be submitted by any of [FR Doc. 2018–16533 Filed 8–1–18; 8:45 am] Change
the following methods: BILLING CODE 8011–01–P
1. Purpose
Electronic Comments The purpose of the proposed rule
• Use the Commissions internet SECURITIES AND EXCHANGE change is to codify the definitions of the
comment form (http://www.sec.gov/ COMMISSION protocols that Members use to enter
rules/sro.shtml); or quotes and orders on the Exchange,
• Send an email to rule-comments@ [Release No. 34–83731; File No. SR–GEMX–
specifically, the Specialized Quote Feed
2018–26]
sec.gov. Please include File Number SR– (‘‘SQF’’), Ouch to Trade Options
OCC–2017–021 on the subject line. Self-Regulatory Organizations; Nasdaq (‘‘OTTO’’), Financial Information
GEMX, LLC; Notice of Filing and eXchange (‘‘FIX’’), and Nasdaq Precise
Paper Comments
Immediate Effectiveness of Proposed (‘‘Precise’’). On April 27, 2017, the
• Send paper comments in triplicate Rule Change To Codify the Protocol Exchange filed a proposed rule change
to Brent Fields, Secretary, Securities Definitions That Members Use To Enter that established the ports that Members
and Exchange Commission, 100 F Street Quotes and Orders use to connect to the Exchange,
NE, Washington, DC 20549–1090. including ports used for quote and order
All submissions should refer to File July 27, 2018. entry—i.e., SQF, OTTO and FIX.3 The
Number SR–OCC–2017–021. This file Pursuant to Section 19(b)(1) of the Exchange has also filed proposed rule
number should be included on the Securities Exchange Act of 1934 changes that briefly describe the
subject line if email is used. To help the (‘‘Act’’),1 and Rule 19b–4 thereunder,2 availability of Precise, which is the
Commission process and review your notice is hereby given that on July 16, Exchange’s proprietary front-end
comments more efficiently, please use 2018, Nasdaq GEMX, LLC (‘‘GEMX’’ or interface used by Electronic Access
only one method. The Commission will ‘‘Exchange’’) filed with the Securities Members (‘‘EAMs’’) and their Sponsored
post all comments on the Commission’s and Exchange Commission Customers 4 to send orders to the
internet website (http://www.sec.gov/ (‘‘Commission’’) the proposed rule
daltland on DSKBBV9HB2PROD with NOTICES
rules/sro.shtml). Copies of the change as described in Items I and II 3 See Securities Exchange Act Release No. 80649
below, which Items have been prepared (May 10, 2017), 82 FR 22595 (May 16, 2017) (SR–
submission, all subsequent GEMX–2017–07).
amendments, all written statements by the Exchange. The Commission is 4 A ‘‘Sponsored Customer’’ is a non-member of
the Exchange that trades under a sponsoring
13 See Securities Exchange Act Release No. 83485 14 17 CFR 200.30–3(a)(12). member’s execution and clearing identity pursuant
1 15 U.S.C. 78s(b)(1).
(June 20, 2018), 83 FR 29843 (June 26, 2018) (SR– to a sponsorship arrangement between such non-
OCC–2017–021). 2 17 CFR 240.19b–4. Continued
VerDate Sep<11>2014 17:06 Aug 01, 2018 Jkt 244001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 E:\FR\FM\02AUN1.SGM 02AUN1](https://thefederalregister.org/doc/83_FR_38016/page/1.svg)
![37870 Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices
III. Date of Effectiveness of the rules/sro.shtml). Copies of the Commission is publishing this notice to
Proposed Rule Change and Timing for submission, all subsequent solicit comments on the proposed rule
Commission Action amendments, all written statements change from interested persons.
Because the foregoing proposed rule with respect to the proposed rule
I. Self-Regulatory Organization’s
change does not: (i) Significantly affect change that are filed with the
Statement of the Terms of Substance of
the protection of investors or the public Commission, and all written
the Proposed Rule Change
interest; (ii) impose any significant communications relating to the
proposed rule change between the The Exchange proposes to codify the
burden on competition; and (iii) become definitions of the protocols that
operative for 30 days from the date on Commission and any person, other than
those that may be withheld from the Members can use to enter quotes and
which it was filed, or such shorter time orders on the Exchange.
as the Commission may designate, it has public in accordance with the
provisions of 5 U.S.C. 552, will be The text of the proposed rule change
become effective pursuant to Section is available on the Exchange’s website at
19(b)(3)(A)(iii) of the Act 15 and available for website viewing and
printing in the Commission’s Public http://ise.cchwallstreet.com/, at the
subparagraph (f)(6) of Rule 19b–4 principal office of the Exchange, and at
Reference Room, 100 F Street NE,
thereunder.16 the Commission’s Public Reference
At any time within 60 days of the Washington, DC 20549, on official
business days between the hours of Room.
filing of the proposed rule change, the
Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the II. Self-Regulatory Organization’s
temporarily suspend such rule change if filing also will be available for Statement of the Purpose of, and
it appears to the Commission that such inspection and copying at the principal Statutory Basis for, the Proposed Rule
action is: (i) Necessary or appropriate in office of the Exchange. All comments Change
received will be posted without change.
the public interest; (ii) for the protection In its filing with the Commission, the
Persons submitting comments are
of investors; or (iii) otherwise in Exchange included statements
cautioned that we do not redact or edit
furtherance of the purposes of the Act. concerning the purpose of and basis for
personal identifying information from
If the Commission takes such action, the the proposed rule change and discussed
comment submissions. You should
Commission shall institute proceedings any comments it received on the
submit only information that you wish
to determine whether the proposed rule proposed rule change. The text of these
to make available publicly. All
should be approved or disapproved. statements may be examined at the
submissions should refer to File
IV. Solicitation of Comments Number SR–GEMX–2018–26 and places specified in Item IV below. The
should be submitted on or before Exchange has prepared summaries, set
Interested persons are invited to forth in sections A, B, and C below, of
submit written data, views, and August 23, 2018.
the most significant aspects of such
arguments concerning the foregoing, For the Commission, by the Division of statements.
including whether the proposed rule Trading and Markets, pursuant to delegated
change is consistent with the Act. authority.17 A. Self-Regulatory Organization’s
Comments may be submitted by any of Robert W. Errett, Statement of the Purpose of, and
the following methods: Deputy Secretary. Statutory Basis for, the Proposed Rule
[FR Doc. 2018–16530 Filed 8–1–18; 8:45 am] Change
Electronic Comments
BILLING CODE 8011–01–P 1. Purpose
• Use the Commission’s internet
comment form (http://www.sec.gov/ The purpose of the proposed rule
rules/sro.shtml); or SECURITIES AND EXCHANGE change is to codify the definitions of the
• Send an email to rule-comments@ COMMISSION protocols that Members use to enter
sec.gov. Please include File Number SR– quotes and orders on the Exchange,
[Release No. 34–83729; File No. SR–ISE– specifically, the Specialized Quote Feed
GEMX–2018–26 on the subject line. 2018–65]
(‘‘SQF’’), Ouch to Trade Options
Paper Comments (‘‘OTTO’’), Financial Information
Self-Regulatory Organizations; Nasdaq
• Send paper comments in triplicate ISE, LLC; Notice of Filing and eXchange (‘‘FIX’’), and Nasdaq Precise
to Secretary, Securities and Exchange Immediate Effectiveness of Proposed (‘‘Precise’’). On June 23, 2017, the
Commission, 100 F Street NE, Rule Change To Codify the Definitions Exchange filed a proposed rule change
Washington, DC 20549–1090. of the Protocols That Members Can that established the ports that Members
All submissions should refer to File Use To Enter Quotes and Orders use to connect to the Exchange,
Number SR–GEMX–2018–26. This file including ports used for quote and order
number should be included on the July 27, 2018. entry—i.e., SQF, OTTO and FIX.3 The
subject line if email is used. To help the Pursuant to Section 19(b)(1) of the Exchange has also filed several
Commission process and review your Securities Exchange Act of 1934 proposed fee and other rule changes that
comments more efficiently, please use (‘‘Act’’),1 and Rule 19b–4 thereunder,2 briefly describe the availability of
only one method. The Commission will notice is hereby given that on July 16, Precise, which is the Exchange’s
post all comments on the Commission’s 2018, Nasdaq ISE, LLC (‘‘ISE’’ or proprietary front-end interface used by
internet website (http://www.sec.gov/ ‘‘Exchange’’) filed with the Securities Electronic Access Members (‘‘EAMs’’)
and Exchange Commission and their Sponsored Customers 4 to send
(‘‘Commission’’) the proposed rule
daltland on DSKBBV9HB2PROD with NOTICES
15 15 U.S.C. 78s(b)(3)(A)(iii).
16 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– change as described in Items I, II, and 3 See Securities Exchange Act Release No. 81095
4(f)(6) requires a self-regulatory organization to give III, below, which Items have been (July 7, 2017), 82 FR 32409 (July 13, 2017) (SR–ISE–
the Commission written notice of its intent to file 2017–62).
prepared by the Exchange. The
the proposed rule change at least five business days 4 A ‘‘Sponsored Customer’’ is a non-member of
prior to the date of filing of the proposed rule the Exchange that trades under a sponsoring
17 17 CFR 200.30–3(a)(12).
change, or such shorter time as designated by the member’s execution and clearing identity pursuant
1 15 U.S.C. 78s(b)(1).
Commission. In this case, the Commission waives to a sponsorship arrangement between such non-
the five-day pre-filing requirement. 2 17 CFR 240.19b–4. member and sponsoring member, as set forth in
VerDate Sep<11>2014 17:06 Aug 01, 2018 Jkt 244001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 E:\FR\FM\02AUN1.SGM 02AUN1](https://thefederalregister.org/doc/83_FR_38016/page/4.svg)
Document Created: 2018-08-02 01:29:01
Document Modified: 2018-08-02 01:29:01
| 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 37867 |
2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR