83 FR 7517 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Temporarily Amend Rule 7.35-E(a)(8) Relating to the Auction Reference Price for the Trading Halt Auction for ProShares Short VIX Short-Term Futures ETF
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 35 (February 21, 2018)
Federal Register Volume 83, Issue 35 (February 21, 2018)
| Page Range | 7517-7519 | |
| FR Document | 2018-03454 |
[Federal Register Volume 83, Number 35 (Wednesday, February 21, 2018)] [Notices] [Pages 7517-7519] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-03454] [[Page 7517]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82716; File No. SR-NYSEARCA-2018-12] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Temporarily Amend Rule 7.35-E(a)(8) Relating to the Auction Reference Price for the Trading Halt Auction for ProShares Short VIX Short-Term Futures ETF February 14, 2018. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on February 6, 2018, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. 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\ 15 U.S.C. 78a. \3\ 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 temporarily amend Rule 7.35-E(a)(8) relating to the Auction Reference Price for the Trading Halt Auction for ProShares Short VIX Short-Term Futures ETF (SVXY), which would be operative for February 6, 2018 only. The proposed rule change is available on the Exchange's website at www.nyse.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 self-regulatory organization 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 those 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 parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to temporarily amend Rule 7.35-E(a)(8) relating to the Auction Reference Price for the Trading Halt Auction for ProShares Short VIX Short-Term Futures ETF (SVXY), which would be operative for February 6, 2018 only. On February 5, 2018, both the U.S. and global markets experienced increased selling pressure and the Dow Jones Industrial Average (``DJIA'') closed 4.6% down over the prior closing day. In addition, on February 5, 2018, the Cboe Volatility Index (``VIX''), which is a common measure of volatility, more than doubled from its prior close of 17.16 to 37.32. On the morning of February 6, 2018, the level of VIX continued to fluctuate significantly, reaching both a high of 50.30 and a low of 22.42 before noon. SVXY, which is listed on the Exchange, seeks daily investment results that correspond to the inverse (-1X) of the daily performance of the S&P 500 VIX Short-term Futures Index. On February, 5, 2018, the Official Closing Price for SVXY was $71.82. The price of SVXY declined in after-market trading on February 5, 2018, and the last reported extended-hours trade price on that day was $14.90. Because of the volatility in pricing for SVXY and because the NAV for February 5, 2018 was not yet publicly available, on February 6, 2018, NYSE Arca halted trading in SVXY before the Early Trading Session began at 4:00 a.m. Eastern Time.\4\ Thereafter, the NAV was published at $3.96. While the security was halted, an Intraday Indicative Value (``IIV'') was published under the ticker SVXY.IV, and as of 11:00 a.m. Eastern Time on February 6, 2018, the IIV was $11.4111. --------------------------------------------------------------------------- \4\ See Rule 8.200-E(d)(2)(F) and Securities Exchange Act Release Nos. 65134 (August 15, 2011), 76 FR 52034 (August 19, 2011) (SR-NYSEArca-2011-23) (Approval Order) and 64460 (May 11, 2011), 76 FR 28493, 28496 (May 17, 2011) (SR-NYSEArca-2011-23) (Notice) (``With respect to trading halts, the Exchange may consider all relevant factors in exercising its discretion to halt or suspend trading in the Shares. Trading may be halted because of market conditions or for reasons that, in the view of the Exchange, make trading in the Shares inadvisable'', including if the NAV with respect to SVXY is not disseminated to all market participants at the same time). --------------------------------------------------------------------------- As set forth in Rule 7.35-E(a)(8)(A), the Auction Reference Price for a Trading Halt Auction is either the last consolidated round-lot price of that trading day and, if none, the prior day's Official Closing Price. Pursuant to Rule 7.35-E(e)(7), for a Trading Halt Auction, the Price Collar Threshold for Auction Collars is the Auction Reference Price multiplied by 5 percent. Accordingly, consistent with these rules, for the Trading Halt Auction for SVXY, which would also be the first trade on February 6, 2018, the Auction Reference Price would be $71.82 and the Price Collar Thresholds would be $68.23 and $75.41. However, because of market events unique to the circumstances of February 5, 2018 and February 6, 2018, and the impact on pricing of SVXY, the Exchange does not believe that SVXY's Official Closing Price would be an appropriate Auction Reference Price for the Trading Halt Auction for that security. The Exchange believes that the significant difference between the Official Closing Price on the one hand, and the last reported extended-hours sale price, NAV, and IIV for that security on the other hand indicates that the Official Closing Price does not reflect the value of the security and would not be an appropriate Auction Reference Price. The Exchange believes that it would be consistent with fair and orderly markets and the protection of investors and the public to temporarily amend Rule 7.35-E(a)(8) and set a different Auction Reference Price for SVXY. The Exchange believes that given the unique circumstances for SVXY, including the selling pressure on February 5, 2018 and the fluctuating prices relating to SVXY overnight, an IIV identified shortly before the Trading Halt Auction would more closely correlate to the value of SVXY as of the time of the Trading Halt Auction. More specifically, the Exchange believes that using an Auction Reference Price based on an IIV for SVXY that is identified prior to the Trading Halt Auction would reduce the potential for volatility in trading after the security resumes trading. Accordingly, the Exchange proposes to temporarily amend Rule 7.35- E(a)(8) so that the Auction Reference Price for SVXY would be $11.4111. Because this proposed amendment would be operative for only one trading day and for only one symbol, the Exchange does not believe it is necessary to amend the rule text to effect this change. The Exchange proposes to provide notice of the amended Auction Reference Price and related Auction Collars via a Trader Update, to be published before the Trading Halt Auction in SVXY. [[Page 7518]] 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act,\5\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\6\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system, and in general, to protect investors and the public interest. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that it would promote the protection of investors and the public interest to temporarily amend Rule 7.35- E(a)(8) to set a different Auction Reference Price for SVXY for the Trading Halt Auction that would resume trading in that security on February 6, 2018. In particular, the Exchange believes that the unique circumstances of the market-wide trading volatility on February 5 and 6, 2018, and related impact on the various prices relating to SVXY, using the Official Closing Price as the Auction Reference Price could result in extreme market volatility for that security after the security resumes trading on February 6, 2018. Specifically, the difference between the Official Closing Price on the one hand, and the NAV, last reported extended-hours sale price, and IIV on the morning of February 6, 2018 on the other hand, indicate that the Official Closing Price no longer reflects the value of SVXY. By contrast, the Exchange believes that for this unique circumstance, using an IIV identified shortly before the Trading Halt Auction would more closely reflect the value of SVXY and would reduce the potential for volatile trading after the security resumes trading. Accordingly, the Exchange believes that it would remove impediments 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, to temporarily amend Rule 7.35-E(a)(8) to provide that the Auction Reference Price for SVXY on February 6, 2018 only would be based on an IIV as of 11:00 a.m. Eastern Time. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change would impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is not designed to address any competitive issues but rather is designed to ensure a fair and orderly market by temporarily amending the Auction Reference Price that would be used for the Trading Halt Auction to resume trading in SVXY on February 6, 2018 only. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. 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 \7\ and Rule 19b-4(f)(6) thereunder.\8\ --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A). \8\ 17 CFR 240.19b-4(f)(6). Rule 19b-4(f)(6)(iii) requires the Exchange to provide 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. The Exchange has requested that the Commission waive this requirement. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \9\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \10\ 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 five-day prefiling requirement, as well the 30-day operative delay, so that the proposal may become operative on February 6, 2018. According to the Exchange, waiver of the operative delay would allow it to use an Auction Reference Price for the Trading Halt Auction to resume trading on SVXY on February 6, 2018, that more closely correlates to the value of that security, thereby reducing the potential of volatility after the security resumes trading. The Commission waives the prefiling requirement and finds that the 30-day operative delay is consistent with the protection of investors and the public interest because the proposed rule change is designed to facilitate the orderly reopening of trading in SVXY. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.\11\ --------------------------------------------------------------------------- \9\ 17 CFR 240.19b-4(f)(6). \10\ 17 CFR 240.19b-4(f)(6)(iii). \11\ 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 such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) \12\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-NYSEARCA-2018-12 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-NYSEARCA-2018-12. 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 [[Page 7519]] 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-NYSEARCA-2018-12 and should be submitted on or before March 14, 2018. --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-03454 Filed 2-20-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Notices 7517
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s Official Closing Price. Pursuant to Rule
COMMISSION Statement of the Purpose of, and the 7.35–E(e)(7), for a Trading Halt Auction,
Statutory Basis for, the Proposed Rule the Price Collar Threshold for Auction
[Release No. 34–82716; File No. SR– Change Collars is the Auction Reference Price
NYSEARCA–2018–12] 1. Purpose multiplied by 5 percent. Accordingly,
consistent with these rules, for the
Self-Regulatory Organizations; NYSE The Exchange proposes to temporarily Trading Halt Auction for SVXY, which
Arca, Inc.; Notice of Filing and amend Rule 7.35–E(a)(8) relating to the would also be the first trade on February
Immediate Effectiveness of Proposed Auction Reference Price for the Trading 6, 2018, the Auction Reference Price
Rule Change to Temporarily Amend Halt Auction for ProShares Short VIX
would be $71.82 and the Price Collar
Rule 7.35–E(a)(8) Relating to the Short-Term Futures ETF (SVXY), which
Thresholds would be $68.23 and $75.41.
Auction Reference Price for the would be operative for February 6, 2018
only. However, because of market events
Trading Halt Auction for ProShares
On February 5, 2018, both the U.S. unique to the circumstances of February
Short VIX Short-Term Futures ETF
and global markets experienced 5, 2018 and February 6, 2018, and the
February 14, 2018. increased selling pressure and the Dow impact on pricing of SVXY, the
Jones Industrial Average (‘‘DJIA’’) closed Exchange does not believe that SVXY’s
Pursuant to Section 19(b)(1) 1 of the
4.6% down over the prior closing day. Official Closing Price would be an
Securities Exchange Act of 1934 (the
In addition, on February 5, 2018, the appropriate Auction Reference Price for
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Cboe Volatility Index (‘‘VIX’’), which is the Trading Halt Auction for that
notice is hereby given that, on February
a common measure of volatility, more security. The Exchange believes that the
6, 2018, NYSE Arca, Inc. (the
than doubled from its prior close of significant difference between the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
17.16 to 37.32. On the morning of Official Closing Price on the one hand,
the Securities and Exchange
February 6, 2018, the level of VIX and the last reported extended-hours
Commission (the ‘‘Commission’’) the continued to fluctuate significantly,
proposed rule change as described in sale price, NAV, and IIV for that
reaching both a high of 50.30 and a low security on the other hand indicates that
Items I and II below, which Items have of 22.42 before noon.
been prepared by the self-regulatory the Official Closing Price does not
SVXY, which is listed on the reflect the value of the security and
organization. The Commission is Exchange, seeks daily investment
publishing this notice to solicit would not be an appropriate Auction
results that correspond to the inverse
comments on the proposed rule change Reference Price.
(¥1X) of the daily performance of the
from interested persons. S&P 500 VIX Short-term Futures Index. The Exchange believes that it would
I. Self-Regulatory Organization’s On February, 5, 2018, the Official be consistent with fair and orderly
Statement of the Terms of Substance of Closing Price for SVXY was $71.82. The markets and the protection of investors
the Proposed Rule Change price of SVXY declined in after-market and the public to temporarily amend
trading on February 5, 2018, and the last Rule 7.35–E(a)(8) and set a different
The Exchange proposes to temporarily reported extended-hours trade price on Auction Reference Price for SVXY. The
amend Rule 7.35–E(a)(8) relating to the that day was $14.90. Because of the Exchange believes that given the unique
Auction Reference Price for the Trading volatility in pricing for SVXY and circumstances for SVXY, including the
Halt Auction for ProShares Short VIX because the NAV for February 5, 2018 selling pressure on February 5, 2018 and
Short-Term Futures ETF (SVXY), which was not yet publicly available, on the fluctuating prices relating to SVXY
would be operative for February 6, 2018 February 6, 2018, NYSE Arca halted overnight, an IIV identified shortly
only. The proposed rule change is trading in SVXY before the Early before the Trading Halt Auction would
available on the Exchange’s website at Trading Session began at 4:00 a.m. more closely correlate to the value of
www.nyse.com, at the principal office of Eastern Time.4 Thereafter, the NAV was SVXY as of the time of the Trading Halt
the Exchange, and at the Commission’s published at $3.96. While the security Auction. More specifically, the
Public Reference Room. was halted, an Intraday Indicative Value Exchange believes that using an Auction
(‘‘IIV’’) was published under the ticker
II. Self-Regulatory Organization’s Reference Price based on an IIV for
SVXY.IV, and as of 11:00 a.m. Eastern
Statement of the Purpose of, and SVXY that is identified prior to the
Time on February 6, 2018, the IIV was
Statutory Basis for, the Proposed Rule Trading Halt Auction would reduce the
$11.4111.
Change As set forth in Rule 7.35–E(a)(8)(A), potential for volatility in trading after
the Auction Reference Price for a the security resumes trading.
In its filing with the Commission, the
self-regulatory organization included Trading Halt Auction is either the last Accordingly, the Exchange proposes
statements concerning the purpose of, consolidated round-lot price of that to temporarily amend Rule 7.35–E(a)(8)
and basis for, the proposed rule change trading day and, if none, the prior day’s so that the Auction Reference Price for
and discussed any comments it received SVXY would be $11.4111. Because this
4 See Rule 8.200–E(d)(2)(F) and Securities
on the proposed rule change. The text proposed amendment would be
Exchange Act Release Nos. 65134 (August 15,
of those statements may be examined at 2011), 76 FR 52034 (August 19, 2011) (SR– operative for only one trading day and
the places specified in Item IV below. NYSEArca–2011–23) (Approval Order) and 64460 for only one symbol, the Exchange does
The Exchange has prepared summaries, (May 11, 2011), 76 FR 28493, 28496 (May 17, 2011) not believe it is necessary to amend the
daltland on DSKBBV9HB2PROD with NOTICES
(SR–NYSEArca–2011–23) (Notice) (‘‘With respect to
set forth in sections A, B, and C below, trading halts, the Exchange may consider all
rule text to effect this change. The
of the most significant parts of such relevant factors in exercising its discretion to halt Exchange proposes to provide notice of
statements. or suspend trading in the Shares. Trading may be the amended Auction Reference Price
halted because of market conditions or for reasons and related Auction Collars via a Trader
that, in the view of the Exchange, make trading in
1 15 U.S.C. 78s(b)(1). the Shares inadvisable’’, including if the NAV with Update, to be published before the
2 15 U.S.C. 78a. respect to SVXY is not disseminated to all market Trading Halt Auction in SVXY.
3 17 CFR 240.19b–4. participants at the same time).
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![Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Notices 7519
proposed rule change between the I. Self-Regulatory Organization’s (‘‘SQF’’),4 SQF Purge,5 Ouch to Trade
Commission and any person, other than Statement of the Terms of Substance of Options (‘‘OTTO’’),6 Clearing Trade
those that may be withheld from the the Proposed Rule Change Interface (‘‘CTI’’),7 Financial
public in accordance with the Information eXchange (‘‘FIX’’),8 FIX
provisions of 5 U.S.C. 552, will be The Exchange proposes to amend Port Drop,9 Disaster Recovery,10 and Market
available for website viewing and Fees at Section IV, E to indicate those Data Port.11 The Exchange proposes to
printing in the Commission’s Public fees are not prorated.
4 SQF is an interface that allows market makers
Reference Room, 100 F Street NE, The text of the proposed rule change
to connect and send quotes, sweeps and auction
Washington, DC 20549, on official is available on the Exchange’s website at responses into the Exchange. Data includes the
business days between the hours of http://nasdaqgemx.cchwallstreet.com/, following: (1) Options Auction Notifications (e.g.,
at the principal office of the Exchange, opening imbalance, Flash, PIM, Solicitation and
10:00 a.m. and 3:00 p.m. Copies of the Facilitation or other information); (2) Options
filing also will be available for and at the Commission’s Public Symbol Directory Messages; (3) System Event
inspection and copying at the principal Reference Room. Messages (e.g., start of messages, start of system
office of the Exchange. All comments hours, start of quoting, start of opening); (4) Option
II. Self-Regulatory Organization’s Trading Action Messages (e.g., halts, resumes); (5)
received will be posted without change. Execution Messages (6) Quote Messages (quote/
Statement of the Purpose of, and
Persons submitting comments are sweep messages, risk protection triggers or purge
Statutory Basis for, the Proposed Rule notifications).
cautioned that we do not redact or edit
Change 5 SQF Purge is a specific port for the SQF
personal identifying information from interface that only receives and notifies of purge
comment submissions. You should In its filing with the Commission, the requests from the market maker. Dedicated SQF
submit only information that you wish Exchange included statements Purge Ports enable market makers to seamlessly
manage their ability to remove their quotes in a
to make available publicly. All concerning the purpose of and basis for swift manner.
submissions should refer to File the proposed rule change and discussed 6 OTTO is an interface that allows market
Number SR–NYSEARCA–2018–12 and any comments it received on the participants to connect and send orders, auction
should be submitted on or before March proposed rule change. The text of these orders and auction responses into the Exchange.
Data includes the following: (1) Options Auction
14, 2018. statements may be examined at the Notifications (e.g., Flash, PIM, Solicitation and
For the Commission, by the Division of places specified in Item IV below. The Facilitation or other information); (2) Options
Exchange has prepared summaries, set Symbol Directory Messages; (3) System Event
Trading and Markets, pursuant to delegated Messages (e.g., start of messages, start of system
authority.13 forth in sections A, B, and C below, of hours, start of quoting, start of opening); (5) Option
Eduardo A. Aleman, the most significant aspects of such Trading Action Messages (e.g., halts, resumes); (6)
statements. Execution Messages; (7) Order Messages (order
Assistant Secretary. messages, risk protection triggers or purge
[FR Doc. 2018–03454 Filed 2–20–18; 8:45 am] A. Self-Regulatory Organization’s notifications).
7 CTI is a real-time clearing trade update message
BILLING CODE 8011–01–P Statement of the Purpose of, and that is sent to a member after an execution has
Statutory Basis for, the Proposed Rule occurred and contains trade details. The message
Change containing the trade details is also simultaneously
SECURITIES AND EXCHANGE sent to The Options Clearing Corporation (‘‘OCC’’).
COMMISSION 1. Purpose The information includes, among other things, the
following: (i) The Clearing Member Trade
The purpose of the proposed rule Agreement or ‘‘CMTA’’ or ‘‘OCC’’ number; (ii)
[Release No. 34–82713; File No. SR–GEMX– Exchange badge or house number; (iii) the Exchange
change is to include language within the internal firm identifier; and (iv) an indicator which
2018–06] Schedule of Fees at Section IV, E, will distinguish electronic and non-electronically
entitled ‘‘Port Fees’’ to clarify that the delivered orders; (v) liquidity indicators and
Self-Regulatory Organizations; Nasdaq port fees in this section are not subject transaction type for billing purposes; (vi) capacity.
8 FIX is an interface that allows market
GEMX, LLC; Notice of Filing and to proration. Today, the Exchange does participants to connect and send orders and auction
Immediate Effectiveness of Proposed not prorate the pricing for these ports. orders into the Exchange. Data includes the
Rule Change To Amend Port Fees following: (1) Options Symbol Directory Messages;
Background (2) System Event Messages (e.g., start of messages,
February 14, 2018. start of system hours, start of quoting, start of
Pursuant to Section 19(b)(1) of the The Exchange previously filed 3 to: (1) opening); (3) Option Trading Action Messages (e.g.,
Establish ports and gateways that halts, resumes); (4) Execution Messages; (5) Order
Securities Exchange Act of 1934 Messages (order messages, risk protection triggers or
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 members use to connect to the Exchange purge notifications).
notice is hereby given that on February with the migration of the Exchange’s 9 FIX Drop is a real-time order and execution
trading system to the Nasdaq INET update message that is sent to a member after an
9, 2018, Nasdaq GEMX, LLC (‘‘GEMX’’ order been received/modified or an execution has
or ‘‘Exchange’’) filed with the Securities architecture, and (2) amend the occurred and contains trade details. The
and Exchange Commission Schedule of Fees to adopt fees for those information includes, among other things, the
(‘‘Commission’’) the proposed rule ports and gateways. The Exchange following: (1) Executions; (2) cancellations; (3)
established fees for the following modifications to an existing order (4) busts or post-
change as described in Items I and II trade corrections.
below, which Items have been prepared connectivity options that are available 10 Disaster Recovery ports provide connectivity to
by the Exchange. The Commission is in connection with the Exchange’s the exchange’s disaster recovery data center in
trading system: Specialized Quote Feed Chicago to be utilized in the event the exchange has
publishing this notice to solicit to fail over during the trading day. DR Ports are
daltland on DSKBBV9HB2PROD with NOTICES
comments on the proposed rule change available for SQF, SQF Purge, Dedicated SQF, CTI,
from interested persons. OTTO, FIX and FIX Drop.
11 Market Data ports provide connectivity to the
Exchange’s proprietary market data feeds, including
the Nasdaq GEMX Real-time Depth of Market Raw
13 17
Data Feed (‘‘Depth of Market Feed’’), the Nasdaq
CFR 200.30–3(a)(12). 3 See Securities and Exchange Act Release No.
GEMX Order Feed (‘‘Order Feed’’), the Nasdaq
1 15 U.S.C. 78s(b)(1). 80649 (May 10, 2017), 82 FR 22595 (May 16, 2017) GEMX Top Quote Feed (‘‘Top Quote Feed’’), the
2 17 CFR 240.19b–4. (SR–GEMX–2017–07). Continued
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Document Created: 2018-02-21 01:48:48
Document Modified: 2018-02-21 01:48:48
| 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 7517 |
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