83 FR 60512 - Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Add Definitions to Rule 1000 and Amend Risk Protections
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 227 (November 26, 2018)
Federal Register Volume 83, Issue 227 (November 26, 2018)
| Page Range | 60512-60514 | |
| FR Document | 2018-25597 |
[Federal Register Volume 83, Number 227 (Monday, November 26, 2018)] [Notices] [Pages 60512-60514] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-25597] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84620; File No. SR-Phlx-2018-71] Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Add Definitions to Rule 1000 and Amend Risk Protections November 19, 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 November 6, 2018, Nasdaq PHLX LLC (``Phlx'' 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 add definitions to Rule 1000, titled ``Applicability, Definitions and References,'' amend Rule 1090, titled ``Clerks'' and amend Rule 1099, titled, ``Risk Protections.'' The text of the proposed rule change is available on the Exchange's website at http://nasdaqphlx.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 rule change is to adopt certain definitions within Rule 1000(b), amend Rule 1090, titled ``Clerks'' and amend Rule 1099, titled, ``Risk Protections.'' Each change is described in more detail below. Definitions The Exchange proposes to amend Rule 1000(b) to add three new definitions into its Rulebook. These definitions are utilized in technical documents issued by the Exchange and will provide an ease of reference for understanding these terms. Specifically, Rule 1000(b)(51) would define an account number as a number assigned to a member organization. Member organizations may have more than one account number. Rule 1000(b)(52) would define a badge as an account number, which may contain letters and/or numbers, assigned to Specialists and Registered Options Traders. A Specialist or Registered Options Trader account may be associated with multiple badges. Finally, Rule 1000(b)(53) would define a mnemonic as an acronym comprised of letters and/or numbers assigned to member organizations. A member organization account may be associated with multiple mnemonics. Risk Protections Order Price Protection The Exchange proposes to amend Rule 1099(a)(1) relating to the Order Price Protection or ``OPP.'' The Exchange proposes to remove the example within Rule 1099(a)(1)(B)(i) which states, '' For example, if the Reference BBO on the offer side is $1.10, an order to buy options for more than $1.65 would be rejected. Similarly, if the Reference BBO on the bid side is $1.10, an order to sell options for less than $0.55 will be rejected.'' The Exchange also proposes to remove the example within Rule 1099(a)(1)(B)(ii) which states, ``For example, if the Reference BBO on the offer side is $1.00, an order to buy options for more than $2.00 would be rejected. However, if the Reference BBO of the bid side of an incoming order to sell is less than or equal to $1.00, the OPP limits set forth above will result in all incoming sell orders being accepted regardless of their limit. To illustrate, if the Reference BBO on the bid side is equal to $1.00, the OPP limits provide protection such that all orders to sell with a limit less than $0.00 would be rejected.'' The Exchange notes that while the examples remain accurate, the Exchange proposes to remove the text to conform the rule text to other risk protections. The Exchange does not believe it is necessary to have these examples within the rule text. Market Order Spread Protection The Exchange proposes to add language to the Market Order Spread Protection Rule in 1099(a)(2). First, Phlx proposes to add the word ``trading'' before the word ``halt'' within Rule in 1099(a)(2) for consistency. In the OPP rule, text halts are referred to as ``trading halts.'' This will avoid confusion as to the use of this term. Second, at the time Phlx filed to amend Market Order Spread Protection on Phlx, it noted in that rule change that this mandatory risk protection protects Market Orders \3\ from being executed in very wide markets.\4\ Specifically, it noted within footnote 11 that the Exchange may establish differences other than the referenced threshold for one or more series or classes of options.\5\ At this time, the Exchange proposes to memorialize this capability within Rule 1099(a)(2) by stating, ``The Exchange may establish different thresholds for one or more series or classes of options.'' The Exchange believes that adding this provision to the rule will provide an easy reference as to the Exchange's capability to establish different thresholds per options series or class. --------------------------------------------------------------------------- \3\ Market Orders are orders to buy or sell at the best price available at the time of execution. \4\ Securities Exchange Act Release No. 83141 (May 1, 2018), 83 FR 20123 (May 7, 2018) (SR-Phlx-2018-32). \5\ Id. --------------------------------------------------------------------------- Anti-Internalization The Exchange proposes to replace the word ``Exchange badge'' with ``market participant identifier'' to more specifically describe this functionality. [[Page 60513]] Also the Exchange is adding ``. . . quotes and orders entered on the opposite side of the market by the same Specialist or Registered Options Trader using the same identifier'' and is again replacing ``badge'' with ``identifier.'' The Exchange is identifying Specialists and Registered Options Traders in the System and preventing quotes and orders from the same Specialists or Registered Options Traders from executing. Finally the Exchange proposes to add the word ``order'' after complex in the last sentence of the Anti-Internalization paragraph for clarity. Clerks In order to avoid any confusion because the Exchange defined the term ``badge,'' the Exchange proposes to amend Rule 1090, which applies to Clerks on the Exchange's trading floor. This use of the word badge was meant to indicate a physical identifier that is worn on the trading floor to identify members. Therefore, the Exchange is replacing the term ``badge'' with ``identification'' in Rule 1090. Automated Removal of Quotes Finally, the Exchange proposes to amend the title of Rule 1099(c)(2) from ``Automated Removal of Quotes'' to ``Quotation Adjustments'' to conform the title across Nasdaq markets. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\6\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\7\ in particular, in that it is designed to promote just and equitable principles of trade and to protect investors and the public interest by bringing greater transparency to its rules. Amendments to remove examples from the OPP rule text and add ``trading'' before the word ``halt'' within the Market Order Spread Protection rule text will bring conformity to Rule 1090. The Exchange's proposal to add definitions to Rule 1000(b) will bring greater clarity to the Anti-Internalization functionality and to the Rulebook. The Exchange's proposal to amend Rule 1090 to clarify its identification requirements for Clerks will also provide more clarity to that rule. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange's proposal to memorialize the ability of the Exchange to establish different Market Order Spread Protection thresholds per options series or class will also bring greater clarity to the rule. Today, the Exchange has this ability, it is simply adding that text to the rule. Finally, the Exchange's proposal to amend the title of Rule 1099(c)(2) from ``Automated Removal of Quotes'' to ``Quotation Adjustments'' should better describe the rule and conform the title to other Nasdaq affiliate markets. The proposals noted herein are consistent with the Act because they provide more detail and transparency to the Exchange's rules noted herein to the benefit of market participants. 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 believes that the proposed amendments do not impose an undue burden on competition because the definitions and amendments to conform the rule text will provide greater clarity as to the meaning of those terms. Memorializing the ability of the Exchange to establish different Market Order Spread Protection thresholds per options series or class will also bring greater clarity to the rule. Finally, the Exchange's proposal to amend the title of Rule 1099(c)(2) from ``Automated Removal of Quotes'' to ``Quotation Adjustments'' is non-substantive. 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 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) of the Act \8\ and Rule 19b- 4(f)(6) thereunder.\9\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change, along with a brief description and 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 requirement. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \10\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \11\ 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 requested that the Commission waive the 30-day operative delay so that the proposed rule change may become operative upon filing. The Exchange believes that waiver of the operative delay would allow the Exchange to immediately update its rules to bring greater clarity and transparency to the Anti-Internalization functionality, identification requirements for Clerks, and the Exchange's risk protections. Therefore, the Commission believes that waiver of the 30-day 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.\12\ --------------------------------------------------------------------------- \10\ 17 CFR 240.19b-4(f)(6). \11\ 17 CFR 240.19b-4(f)(6)(iii). \12\ For purposes only of waiving the 30-day operative delay, the Commission also 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 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 change 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-Phlx-2018-71 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange [[Page 60514]] Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-Phlx-2018-71. 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-Phlx-2018-71, and should be submitted on or before December 17, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-25597 Filed 11-23-18; 8:45 am] BILLING CODE 8011-01-P
![60512 Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Notices
business days between the hours of and at the Commission’s Public than $1.65 would be rejected. Similarly,
10:00 a.m. and 3:00 p.m. Copies of the Reference Room. if the Reference BBO on the bid side is
filing also will be available for $1.10, an order to sell options for less
II. Self-Regulatory Organization’s
inspection and copying at the principal than $0.55 will be rejected.’’ The
Statement of the Purpose of, and
office of the Exchange. All comments Exchange also proposes to remove the
Statutory Basis for, the Proposed Rule example within Rule 1099(a)(1)(B)(ii)
received will be posted without change.
Persons submitting comments are Change which states, ‘‘For example, if the
cautioned that we do not redact or edit In its filing with the Commission, the Reference BBO on the offer side is
personal identifying information from Exchange included statements $1.00, an order to buy options for more
comment submissions. You should concerning the purpose of and basis for than $2.00 would be rejected. However,
submit only information that you wish the proposed rule change and discussed if the Reference BBO of the bid side of
to make available publicly. All any comments it received on the an incoming order to sell is less than or
submissions should refer to File proposed rule change. The text of these equal to $1.00, the OPP limits set forth
Number SR–NASDAQ–2018–089 and statements may be examined at the above will result in all incoming sell
should be submitted on or before places specified in Item IV below. The orders being accepted regardless of their
December 17, 2018. Exchange has prepared summaries, set limit. To illustrate, if the Reference BBO
For the Commission, by the Division of forth in sections A, B, and C below, of on the bid side is equal to $1.00, the
Trading and Markets, pursuant to delegated the most significant aspects of such OPP limits provide protection such that
authority.14 statements. all orders to sell with a limit less than
Eduardo A. Aleman, $0.00 would be rejected.’’ The Exchange
A. Self-Regulatory Organization’s
Assistant Secretary. notes that while the examples remain
Statement of the Purpose of, and
[FR Doc. 2018–25599 Filed 11–23–18; 8:45 am]
accurate, the Exchange proposes to
Statutory Basis for, the Proposed Rule
remove the text to conform the rule text
BILLING CODE 8011–01–P Change to other risk protections. The Exchange
1. Purpose does not believe it is necessary to have
SECURITIES AND EXCHANGE The purpose of this rule change is to these examples within the rule text.
COMMISSION adopt certain definitions within Rule Market Order Spread Protection
[Release No. 34–84620; File No. SR–Phlx– 1000(b), amend Rule 1090, titled The Exchange proposes to add
2018–71] ‘‘Clerks’’ and amend Rule 1099, titled, language to the Market Order Spread
‘‘Risk Protections.’’ Each change is Protection Rule in 1099(a)(2). First, Phlx
Self-Regulatory Organizations; Nasdaq described in more detail below. proposes to add the word ‘‘trading’’
PHLX LLC; Notice of Filing and before the word ‘‘halt’’ within Rule in
Definitions
Immediate Effectiveness of Proposed 1099(a)(2) for consistency. In the OPP
Rule Change To Add Definitions to The Exchange proposes to amend
rule, text halts are referred to as ‘‘trading
Rule 1000 and Amend Risk Protections Rule 1000(b) to add three new
halts.’’ This will avoid confusion as to
definitions into its Rulebook. These
November 19, 2018. the use of this term. Second, at the time
definitions are utilized in technical
Pursuant to Section 19(b)(1) of the Phlx filed to amend Market Order
documents issued by the Exchange and
Securities Exchange Act of 1934 Spread Protection on Phlx, it noted in
will provide an ease of reference for
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 that rule change that this mandatory risk
understanding these terms. Specifically,
notice is hereby given that on November protection protects Market Orders 3 from
Rule 1000(b)(51) would define an
6, 2018, Nasdaq PHLX LLC (‘‘Phlx’’ or being executed in very wide markets.4
account number as a number assigned to Specifically, it noted within footnote 11
‘‘Exchange’’) filed with the Securities a member organization. Member
and Exchange Commission (‘‘SEC’’ or that the Exchange may establish
organizations may have more than one differences other than the referenced
‘‘Commission’’) the proposed rule account number. Rule 1000(b)(52)
change as described in Items I and II threshold for one or more series or
would define a badge as an account classes of options.5 At this time, the
below, which Items have been prepared number, which may contain letters and/
by the Exchange. The Commission is Exchange proposes to memorialize this
or numbers, assigned to Specialists and capability within Rule 1099(a)(2) by
publishing this notice to solicit Registered Options Traders. A Specialist
comments on the proposed rule change stating, ‘‘The Exchange may establish
or Registered Options Trader account different thresholds for one or more
from interested persons. may be associated with multiple badges. series or classes of options.’’ The
I. Self-Regulatory Organization’s Finally, Rule 1000(b)(53) would define Exchange believes that adding this
Statement of the Terms of Substance of a mnemonic as an acronym comprised provision to the rule will provide an
the Proposed Rule Change of letters and/or numbers assigned to easy reference as to the Exchange’s
member organizations. A member capability to establish different
The Exchange proposes to add organization account may be associated
definitions to Rule 1000, titled thresholds per options series or class.
with multiple mnemonics.
‘‘Applicability, Definitions and Anti-Internalization
References,’’ amend Rule 1090, titled Risk Protections
The Exchange proposes to replace the
‘‘Clerks’’ and amend Rule 1099, titled, Order Price Protection word ‘‘Exchange badge’’ with ‘‘market
‘‘Risk Protections.’’
The text of the proposed rule change The Exchange proposes to amend participant identifier’’ to more
is available on the Exchange’s website at Rule 1099(a)(1) relating to the Order specifically describe this functionality.
http://nasdaqphlx.cchwallstreet.com/, Price Protection or ‘‘OPP.’’ The
3 Market Orders are orders to buy or sell at the
at the principal office of the Exchange, Exchange proposes to remove the
best price available at the time of execution.
example within Rule 1099(a)(1)(B)(i) 4 Securities Exchange Act Release No. 83141 (May
14 17 CFR 200.30–3(a)(12). which states, ’’ For example, if the 1, 2018), 83 FR 20123 (May 7, 2018) (SR–Phlx–
1 15 U.S.C. 78s(b)(1). Reference BBO on the offer side is 2018–32).
2 17 CFR 240.19b–4. $1.10, an order to buy options for more 5 Id.
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![60514 Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Notices
Commission, 100 F Street NE, (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Midpoint Trade Now will be an Order
Washington, DC 20549–1090. notice is hereby given that on November Attribute 4 that allows a resting Order
All submissions should refer to File 9, 2018, The Nasdaq Stock Market LLC that becomes locked at its non-
Number SR–Phlx–2018–71. This file (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the displayed price by an incoming
number should be included on the Securities and Exchange Commission Midpoint Peg Post-Only Order 5 to
subject line if email is used. To help the (‘‘Commission’’) the proposed rule automatically execute against that
Commission process and review your change as described in Items I and II Midpoint Peg Post-Only Order as a
comments more efficiently, please use below, which Items have been prepared liquidity taker. Any remaining shares of
only one method. The Commission will by the Exchange. The Commission is the resting Order will remain posted on
post all comments on the Commission’s publishing this notice to solicit the Nasdaq Book with the same priority.
internet website (http://www.sec.gov/ comments on the proposed rule change The Midpoint Trade Now Order
rules/sro.shtml). Copies of the from interested persons. Attribute may be enabled on a port level
submission, all subsequent basis for all Order Types that support it
I. Self-Regulatory Organization’s
amendments, all written statements and, for the Non-Displayed Order Type,
Statement of the Terms of Substance of
with respect to the proposed rule also on an order-by-order basis.
the Proposed Rule Change
change that are filed with the Midpoint Trade Now will be available
The Exchange proposes to amend for all Order entry protocols except for
Commission, and all written
Rule 4702 (Order Types) and Rule 4703 QIX.6
communications relating to the
(Order Attributes) to introduce a new The Exchange is proposing to offer the
proposed rule change between the
Midpoint Trade Now functionality. Midpoint Trade Now instruction for all
Commission and any person, other than The text of the proposed rule change
those that may be withheld from the Orders that have the Non-Displayed
is available on the Exchange’s website at Order Attribute 7 and are not otherwise
public in accordance with the http://nasdaq.cchwallstreet.com, at the
provisions of 5 U.S.C. 552, will be subject to restrictions on execution.
principal office of the Exchange, and at Accordingly, the Midpoint Trade Now
available for website viewing and the Commission’s Public Reference
printing in the Commission’s Public instruction shall not be available for
Room. Price to Display Orders (Rule
Reference Room, 100 F Street NE,
II. Self-Regulatory Organization’s 4702(b)(2)), Market Maker Peg Orders
Washington, DC 20549 on official
Statement of the Purpose of, and (Rule 4702(b)(7)), Supplemental Orders
business days between the hours of
Statutory Basis for, the Proposed Rule (Rule 4702(b)(6)), Market On Open
10:00 a.m. and 3:00 p.m. Copies of the
Change Orders (Rule 4702(b)(8)), Limit On Open
filing also will be available for
Orders (Rule 4702(b)(9)), Opening
inspection and copying at the principal In its filing with the Commission, the Imbalance Only Orders (Rule
office of the Exchange. All comments Exchange included statements 4702(b)(10)), Market On Close Orders
received will be posted without change. concerning the purpose of and basis for (Rule 4702(b)(11)), Limit on Close
Persons submitting comments are the proposed rule change and discussed Orders (Rule 4702(b)(12)), Imbalance
cautioned that we do not redact or edit any comments it received on the Only Orders (Rule 4702(b)(13)), and
personal identifying information from proposed rule change. The text of these Midpoint Extended Life Orders (Rule
comment submissions. You should statements may be examined at the 4702(b)(14)). These order types are
submit only information that you wish places specified in Item IV below. The either: (a) Ancapable of having a non-
to make available publicly. All Exchange has prepared summaries, set displayed price, hence the use of the
submissions should refer to File forth in sections A, B, and C below, of Midpoint Trade Now instruction is not
Number SR–Phlx–2018–71, and should the most significant aspects of such applicable, or b) subject to other Nasdaq
be submitted on or before December 17, statements. rules regarding the display and
2018.
A. Self-Regulatory Organization’s execution of those orders, thus the use
For the Commission, by the Division of Statement of the Purpose of, and of the Midpoint Trade Now instruction
Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule would be inconsistent with those other
authority.13 Nasdaq rules.8 The Midpoint Trade-
Change
Eduardo A. Aleman,
Assistant Secretary. 1. Purpose Order Attributes may be assigned to a single Order;
[FR Doc. 2018–25597 Filed 11–23–18; 8:45 am] The Exchange proposes to amend provided, however, that if the use of multiple Order
Attributes would provide contradictory instructions
BILLING CODE 8011–01–P Rule 4702 (Order Types) and Rule 4703 to an Order, the System will reject the Order or
(Order Attributes) to introduce a new remove non-conforming Order Attributes. See Rule
Midpoint Trade Now functionality.3 4701(e).
SECURITIES AND EXCHANGE 4 Id.
5 A Midpoint Peg Post-Only Order is an Order
COMMISSION 1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4. Type with a Non-Display Order Attribute that is
[Release No. 34–84621; File No. SR– 3 The term ‘‘Order’’ means an instruction to trade priced at the midpoint between the NBBO and that
NASDAQ–2018–090] a specified number of shares in a specified System will execute upon entry only in circumstances
Security submitted to the Nasdaq Market Center by where economically beneficial to the party entering
Self-Regulatory Organizations; The a Participant. An ‘‘Order Type’’ is a standardized the Order. See Rule 4702(b)(5).
6 Nasdaq notes that, although the QIX protocol
Nasdaq Stock Market LLC; Notice of set of instructions associated with an Order that
define how it will behave with respect to pricing, can support the removing of liquidity, QIX is
Filing and Immediate Effectiveness of execution, and/or posting to the Nasdaq Book when designed to provide two-sided quote messages to
Proposed Rule Change To Introduce a submitted to Nasdaq. An ‘‘Order Attribute’’ is a the trading system, unlike the OUCH, RASH, FLITE
New Midpoint Trade Now Functionality further set of variable instructions that may be and FIX protocols, which are designed to facilitate
associated with an Order to further define how it Order submission. See Item II.B. discussion, infra.
7 There is both a Non-Display Order Attribute
November 19, 2018. will behave with respect to pricing, execution, and/
or posting to the Nasdaq Book when submitted to (Rule 4703(k)) and a Non-Display Order (Rule
Pursuant to Section 19(b)(1) of the 4702(b)(3)).
Nasdaq. The available Order Types and Order
Securities Exchange Act of 1934 Attributes, and the Order Attributes that may be 8 For example, a Supplemental Order is an order
associated with particular Order Types, are type with a Non-Display Order attribute that is held
13 17 CFR 200.30–3(a)(12). described in Rules 4702 and 4703. One or more on the Nasdaq Book in order to provide liquidity
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Document Created: 2018-11-24 00:52:04
Document Modified: 2018-11-24 00:52:04
| 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 60512 |
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