In the Matter of NASDAQ OMX PHLX, LLC; Order Granting Petition for Review and Scheduling Filing of Statements, 268 [2014-30812]
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Federal Register / Vol. 80, No. 2 / Monday, January 5, 2015 / Notices
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SUPPLEMENTARY INFORMATION:
[Release No. 34–73950; File No. SR–
NASDAQ–2014–100]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Order
Approving a Proposed Rule Change To
Amend NASDAQ Rule 7015(d) To
Include the IPO Indicator as a New
Enhancement to the NASDAQ
Workstation
December 29, 2014.
Cristin Dorgelo,
Chief of Staff.
[FR Doc. 2014–30888 Filed 12–31–14; 11:15 am]
BILLING CODE 3710–F5–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 73953 ]
In the Matter of NASDAQ OMX PHLX,
LLC; Order Granting Petition for
Review and Scheduling Filing of
Statements
December 30, 2014.
Pursuant to Rule 431 1 of the Rules of
Practice, the petition of NASDAQ OMX
PHLX LLC for review of the staff’s
action in disapproving by delegated
authority File No. SR–Phlx–2013–113 2
is granted.
It is ordered, pursuant to Rule 431
that any party or other person may file
a statement in support of or in
opposition to the action made by
delegated authority on or before January
20, 2015, and
The order disapproving such
proposed rule change shall remain in
effect.
By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2014–30812 Filed 1–2–15; 8:45 am]
mstockstill on DSK4VPTVN1PROD with NOTICES
SECURITIES AND EXCHANGE
COMMISSION
BILLING CODE 8011–01–P
I. Introduction
On October 29, 2014, The NASDAQ
Stock Market LLC (‘‘NASDAQ’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
include a new feature, the IPO Indicator,
that is designed to assist Exchange
member firms in monitoring their orders
during the NASDAQ Halt Cross process
leading up to the launch of an initial
public offering (‘‘IPO’’). The proposed
rule change was published for comment
in the Federal Register on November 18,
2014.3 The Commission received no
comments on the proposal. This order
approves the proposed rule change.
II. Description of the Proposal
The Exchange proposes to amend
Exchange Rule 7015(d) to include the
IPO Indicator as a new enhancement to
the NASDAQ Workstation. According to
the Exchange, the NASDAQ
Workstation provides order entry and
quote functionality and includes several
features to assist subscribers with
managing and monitoring their trading
activity.4 The Exchange proposes to
include the IPO Indicator as a new
feature that is designed to assist member
firms in monitoring their orders during
the NASDAQ Halt Cross process.5
According to the Exchange, the
NASDAQ Halt Cross (‘‘Cross’’) is
designed to provide for an orderly,
single-priced opening of securities
subject to an intraday halt, including
securities that are the subject of an IPO.6
Prior to the Cross execution, the
Exchange states that market participants
enter quotes and orders eligible for
participation in the Cross, and the
Exchange disseminates certain
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 73574
(November 12, 2014), 79 FR 68745 (‘‘Notice’’).
4 See id. at 68745.
5 See id.
6 See id.
2 17
1 17
CFR 201.431.
Securities Exchange Act Release No. 72633
(July 16, 2014), 79 FR 42578 (July 22, 2014).
2 See
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information regarding buying and
selling interest entered and the
indicative execution price information,
known as the Net Order Imbalance
Indicator (‘‘NOII’’).7 The Exchange
further states that the NOII is
disseminated every five seconds during
a designated period prior to the
completion of the Halt Cross, in order to
provide market participants with
information regarding the possible price
and volume of the Cross. According to
the Exchange, the information provided
in the NOII message includes the
Current Reference Price 8 and the
number of shares of Eligible Interest.9
The Exchange also disseminates
information about the size and buy/sell
direction of an Imbalance,10 which the
Exchange defines as the number of
shares of Eligible Interest with a limit
price equal to the Current Reference
Price that may not be matched with
other order shares at a particular price
at any given time.11 The Exchange states
that the disseminated information
reflects all shares eligible for
participation in the Cross, regardless of
time-in-force (including non-displayed
shares and reserve size) and is meant to
indicate the degree to which available
liquidity on one or the other side of the
market would not be executed if the
Cross were to occur at that time.
In the case of an IPO, the Exchange
states that the Halt Cross operates as
follows: First, the underwriters to the
IPO make a determination to launch the
IPO during the Pre-Launch Period 12
when the underwriters believe the
security is ready to trade.13 Second,
7 See
id.
Exchange Rule 4753(a)(3)(A). The Exchange
describes the Current Reference Price as the price
at which the Cross would occur if it executed at the
time of the NOII’s dissemination. See Notice, supra
note 3, at 68745.
9 See Exchange Rule 4753(a)(5) (defining Eligible
Interest as ‘‘any quotation or any order that has
been entered into the system and designated with
a time-in-force that would allow the order to be in
force at the time of the Halt Cross’’).
10 See Exchange Rule 4753(a)(1).
11 See Notice, supra note 3, at 68745. The
Exchange states that it also disseminates a Market
Order Imbalance, which the Exchange defines as
the number of shares of Eligible Interest entered
through market orders that would not be matched
with other order shares at the time of the
dissemination of a NOII, if in fact there are such
unexecutable market order shares. See Exchange
Rule 4753(a)(2). When there is a Market Order
Imbalance, the Exchange notes that it disseminates
the imbalance and the buy/sell direction of the
imbalance. See Notice, supra note 3, at 68745.
12 The Exchange explains that the Pre-Launch
Period is the second phase of a two-phase process
that NASDAQ uses for launching IPOs. See id. at
68746. According to the Exchange, the Pre-Launch
Period follows a 15-minute Display Only Period
and is of no fixed duration. See id. In addition, the
Exchange states that the NOII is disseminated every
five seconds during both periods. See id.
13 See id. at 68745.
8 See
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Agencies
[Federal Register Volume 80, Number 2 (Monday, January 5, 2015)]
[Notices]
[Page 268]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-30812]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 73953 ]
In the Matter of NASDAQ OMX PHLX, LLC; Order Granting Petition
for Review and Scheduling Filing of Statements
December 30, 2014.
Pursuant to Rule 431 \1\ of the Rules of Practice, the petition of
NASDAQ OMX PHLX LLC for review of the staff's action in disapproving by
delegated authority File No. SR-Phlx-2013-113 \2\ is granted.
---------------------------------------------------------------------------
\1\ 17 CFR 201.431.
\2\ See Securities Exchange Act Release No. 72633 (July 16,
2014), 79 FR 42578 (July 22, 2014).
---------------------------------------------------------------------------
It is ordered, pursuant to Rule 431 that any party or other person
may file a statement in support of or in opposition to the action made
by delegated authority on or before January 20, 2015, and
The order disapproving such proposed rule change shall remain in
effect.
By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2014-30812 Filed 1-2-15; 8:45 am]
BILLING CODE 8011-01-P