Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to a Delay of Implementation Relate to the Volume-Based and Multi-Trigger Threshold, 48590-48592 [2015-19873]
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48590
Federal Register / Vol. 80, No. 156 / Thursday, August 13, 2015 / Notices
quoting level and ADV calculations
described in the Price List. Moreover,
the Exchange believes that the proposed
change would enhance competition
between competing marketplaces by
enabling the Exchange to exclude July 8,
2015 for the purposes of determining
transaction fees and credits based on
volume and quoting levels as set forth
in the Price List.
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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 13 and Rule 19b–4(f)(6) 14
thereunder because the proposal does
not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) by its
terms, become operative for 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate if consistent with the
protection of investors and the public
interest.15
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing. However, Rule 19b–
4(f)(6)(iii) 16 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 period. The Commission believes
that waiver of the 30-day operative
delay period is consistent with the
protection of investors and the public
interest. Specifically, the Commission
believes that the proposal would allow
the Exchange to immediately implement
the calculation related to the trading
suspension, thereby reducing the
potential for confusion among member
organizations regarding the volume,
liquidity, and quoting thresholds
13 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
15 In addition, Rule 19b–4(f)(6)(iii) requires the
Exchange to give the Commission written notice of
the Exchange’s 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.
16 17 CFR 240.19b–4(f)(6)(iii).
tkelley on DSK3SPTVN1PROD with NOTICES
14 17
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16:56 Aug 12, 2015
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applicable to billing in July 2015. The
Commission believes that the waiver
would also assist the Exchange in
determining transaction fees and credits
for member organizations in a timely
manner after the end of the billing
month of July 2015. For these reasons,
the Commission believes that waiving
the 30-day operative delay is consistent
with the protection of investors and the
public interest, and designates the
proposed rule change to be operative
upon filing with the Commission.17
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.18
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site 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
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEMKT–2015–60 and should be
submitted on or before September 3,
2015.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Jill M. Peterson,
Assistant Secretary.
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEMKT–2015–60 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
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–NYSEMKT–2015–60. 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 Web site (https://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
17 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
18 15 U.S.C. 78s(b)(3)(C).
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[FR Doc. 2015–19877 Filed 8–12–15; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–75643; File No. SR–BX–
2015–049]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to a
Delay of Implementation Relate to the
Volume-Based and Multi-Trigger
Threshold
August 7, 2015.
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 August 6,
2015, NASDAQ OMX BX, Inc. (‘‘BX’’ 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend the
implementation timeframe for adopting
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\13AUN1.SGM
13AUN1
Federal Register / Vol. 80, No. 156 / Thursday, August 13, 2015 / Notices
two new BX Market Maker 3 risk
protections, a volume-based threshold
and a multi-trigger threshold.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxbx.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
tkelley on DSK3SPTVN1PROD with NOTICES
1. Purpose
The purpose of the proposal is to
extend the implementation of the
timeframe for the Exchange’s
amendments to BX’s Rules at Chapter
VII, Section 6(f) entitled ‘‘Market Maker
Quotations.’’ 4 In its rule change
adopting the two new risk protections in
Chapter VII, Section 6(f), the Exchange
stated that it proposed to ‘‘. . .
implement this rule within thirty (30)
days of the operative date.’’ The
Exchange stated that it would issue an
Options Trader Alert in advance to
inform market participants of such
date.5 At this time, the Exchange desires
to extend the implementation of this
rule change to within (60) days of the
operative date. The Exchange will
announce the date of implementation by
issuing an Options Trader Alert.
By way of background, the risk
protections provided for in Chapter VII,
Section 6(f) are intended to assist BX
Market Makers in controlling their
trading risks.6 Specifically, the risk
3 The term ‘‘BX Market Maker’’ means a
Participant that has registered as a Market Maker on
BX pursuant to Chapter VII, Section 2, and which
remains in good standing pursuant to Chapter VII,
Section 4.
4 This rule became immediately effective on June
23, 2015. Securities Exchange Release No. 75392
(July 8, 2015), 80 FR 41114 (July 14, 2015) (SR–BX–
2015–036).
5 See note 4.
6 Pursuant to BX Rules at Chapter VII, Section 5,
entitled ‘‘Obligations of Market Makers’’, in
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16:56 Aug 12, 2015
Jkt 235001
protections establish: (1) A threshold
used to calculate each BX Market
Maker’s total volume executed in all
series of an underlying security within
a specified time period and to compare
that to a pre-determined threshold
(‘‘Volume-Based Threshold’’), and (2) a
threshold used to measure the number
of times the System has triggered 7 based
on the Risk Monitor Mechanism
(‘‘Percentage-Based Threshold’’)
pursuant to Chapter VI, Section 19 and
Volume-Based Thresholds within a
specified time period and to compare
that total to a pre-determined threshold
(‘‘Multi-Trigger Threshold’’).8
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 9 in general, and furthers the
objectives of Section 6(b)(5) of the Act 10
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest, by
enhancing the risk protections available
to Exchange members. The proposal
promotes policy goals of the
Commission, which has encouraged
execution venues, exchange and nonexchange alike, to enhance risk
protection tools and other mechanisms
to decrease risk and increase stability.
The delay of the implementation of
BX Rules at Chapter VII, Section 6(f)
will permit the Exchange an additional
thirty days within which to implement
these risk protections that will be
utilized by BX Market Makers.
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. With respect
registering as a market maker, an Options
Participant commits himself to various obligations.
Transactions of a BX Market Maker must constitute
a course of dealings reasonably calculated to
contribute to the maintenance of a fair and orderly
market, and Market Makers should not make bids
or offers or enter into transactions that are
inconsistent with such course of dealings. Further,
all Market Makers are designated as specialists on
BX for all purposes under the Act or rules
thereunder. See Chapter VII, Section 2.
7 A trigger is defined as the event which causes
the System to automatically remove all quotes in all
options series in an underlying issue.
8 The details of the two risk protections are
described in the initial filing. See Securities
Exchange Release No. 75392 (July 8, 2015), 80 FR
41114 (July 14, 2015) (SR–BX–2015–036).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
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Sfmt 4703
48591
to the risk protections, the proposal will
not impose a burden on intra-market or
inter-market competition; rather it
provides BX Market Makers with the
opportunity to avail themselves of
similar risk tools that are currently
available on other exchanges.11 The
proposal does not impose a burden on
inter-market competition, because
members may choose to become market
makers on a number of other options
exchanges, which may have similar but
not identical features.12 The proposed
rule change is meant to protect BX
Market Makers from inadvertent
exposure to excessive risk. Accordingly,
the proposed rule change will have no
impact on competition.
The delay of the implementation of
BX Rules at Chapter VII, Section 6(f)
will permit the Exchange additional
time to implement these risk protections
that will be utilized by BX Market
Makers.
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) by its
terms, 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)(ii) of the
Act 13 and subparagraph (f)(6) of Rule
19b–4 thereunder.14 The Exchange has
requested that the Commission waive
the thirty-day operative delay so that the
proposal may become operative
immediately. The Exchange states that
waiving the thirty-day operative delay
will enable it to implement these risk
protections within the new timeframe.
The Commission believes that waiving
the thirty-day operative delay is
11 See
Section 8 of Form 19b–4, infra.
BATS Rule 21.16, BOX Rules 8100 and
8110, C2 Rule 8.12, CBOE Rule 8.18, ISE Rule
804(g), MIAX Rule 612, NYSE MKT Rule 928NY
and NYSE Arca Rule 6.40.
13 15 U.S.C. 78s(b)(3)(a)(ii).
14 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. The Exchange has satisfied this
requirement.
12 See
E:\FR\FM\13AUN1.SGM
13AUN1
48592
Federal Register / Vol. 80, No. 156 / Thursday, August 13, 2015 / Notices
consistent with the protection of
investors and the public interest.
Therefore, the Commission hereby
waives the thirty-day operative delay
and designates the proposal effective
upon filing.15
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 Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BX–2015–049 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–BX–2015–049. 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 Web site (https://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 Web site 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
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; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–BX–
2015–049 and should be submitted on
or before September 3, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015–19873 Filed 8–12–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75640; File No. SR–Phlx–
2015–70]
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on August 6,
2015, NASDAQ OMX PHLX LLC
(‘‘PHLX’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to update the
public disclosure of the sources of data
that PHLX utilizes when performing (1)
order handling and execution; (2) order
routing; and (3) related compliance
processes through the inclusion of the
National Stock Exchange (‘‘NSX’’).
The text of the proposed rule change
is below. Proposed new language is
italicized.
*
*
*
*
*
3304. Data Feeds Utilized
The PSX System utilizes the below
proprietary and network processor feeds
[utilized by the System] for the
handling, routing, and execution of
orders, as well as for the regulatory
compliance processes related to those
functions. The Secondary Source of data
is, where applicable, utilized only in
emergency market conditions and only
until those emergency conditions are
resolved.
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Update the
Public Disclosure of Sources of Data
Utilized by PSX
August 7, 2015.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
tkelley on DSK3SPTVN1PROD with NOTICES
Market center
Primary source
A—NYSE MKT (AMEX) ..........................
B—NASDAQ OMX BX ...........................
C—NSX ..................................................
D—FINRA ADF .......................................
J—DirectEdge A .....................................
K—DirectEdge X .....................................
M—CSX ..................................................
N—NYSE ................................................
P—NYSE Arca ........................................
T/Q—NASDAQ .......................................
X—NASDAQ OMX PSX .........................
[CQS/UQDF] NYSE MKT OpenBook Ultra ............................................................
BX ITCH 5.0 ...........................................................................................................
CQS/UQDF .............................................................................................................
CQS/UQDF .............................................................................................................
[EdgeBook] BATS PITCH .......................................................................................
[EdgeBook] BATS PITCH .......................................................................................
CQS/UQDF .............................................................................................................
NYSE OpenBook Ultra ...........................................................................................
[ArcaBook Binary uncompacted] NYSE ARCA XDP .............................................
ITCH 5.0 .................................................................................................................
PSX ITCH 5.0 .........................................................................................................
15 For purposes of waiving the 30-day operative
delay, the Commission has considered the proposed
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16:56 Aug 12, 2015
Jkt 235001
rule’s impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
16 17 CFR 200.30–3(a)(12).
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1 15
2 17
E:\FR\FM\13AUN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
13AUN1
[n/a] CQS/UQDF
CQS/UQDF
n/a
n/a
CQS/UQDF
CQS/UQDF
n/a
CQS/UQDF
CQS/UQDF
CQS/UQDF
CQS/UQDF
]]>Agencies
[Federal Register Volume 80, Number 156 (Thursday, August 13, 2015)]
[Notices]
[Pages 48590-48592]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19873]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75643; File No. SR-BX-2015-049]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
a Delay of Implementation Relate to the Volume-Based and Multi-Trigger
Threshold
August 7, 2015.
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 August 6, 2015, NASDAQ OMX BX, Inc. (``BX'' 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 extend the implementation timeframe for
adopting
[[Page 48591]]
two new BX Market Maker \3\ risk protections, a volume-based threshold
and a multi-trigger threshold.
---------------------------------------------------------------------------
\3\ The term ``BX Market Maker'' means a Participant that has
registered as a Market Maker on BX pursuant to Chapter VII, Section
2, and which remains in good standing pursuant to Chapter VII,
Section 4.
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaqomxbx.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 proposal is to extend the implementation of the
timeframe for the Exchange's amendments to BX's Rules at Chapter VII,
Section 6(f) entitled ``Market Maker Quotations.'' \4\ In its rule
change adopting the two new risk protections in Chapter VII, Section
6(f), the Exchange stated that it proposed to ``. . . implement this
rule within thirty (30) days of the operative date.'' The Exchange
stated that it would issue an Options Trader Alert in advance to inform
market participants of such date.\5\ At this time, the Exchange desires
to extend the implementation of this rule change to within (60) days of
the operative date. The Exchange will announce the date of
implementation by issuing an Options Trader Alert.
---------------------------------------------------------------------------
\4\ This rule became immediately effective on June 23, 2015.
Securities Exchange Release No. 75392 (July 8, 2015), 80 FR 41114
(July 14, 2015) (SR-BX-2015-036).
\5\ See note 4.
---------------------------------------------------------------------------
By way of background, the risk protections provided for in Chapter
VII, Section 6(f) are intended to assist BX Market Makers in
controlling their trading risks.\6\ Specifically, the risk protections
establish: (1) A threshold used to calculate each BX Market Maker's
total volume executed in all series of an underlying security within a
specified time period and to compare that to a pre-determined threshold
(``Volume-Based Threshold''), and (2) a threshold used to measure the
number of times the System has triggered \7\ based on the Risk Monitor
Mechanism (``Percentage-Based Threshold'') pursuant to Chapter VI,
Section 19 and Volume-Based Thresholds within a specified time period
and to compare that total to a pre-determined threshold (``Multi-
Trigger Threshold'').\8\
---------------------------------------------------------------------------
\6\ Pursuant to BX Rules at Chapter VII, Section 5, entitled
``Obligations of Market Makers'', in registering as a market maker,
an Options Participant commits himself to various obligations.
Transactions of a BX Market Maker must constitute a course of
dealings reasonably calculated to contribute to the maintenance of a
fair and orderly market, and Market Makers should not make bids or
offers or enter into transactions that are inconsistent with such
course of dealings. Further, all Market Makers are designated as
specialists on BX for all purposes under the Act or rules
thereunder. See Chapter VII, Section 2.
\7\ A trigger is defined as the event which causes the System to
automatically remove all quotes in all options series in an
underlying issue.
\8\ The details of the two risk protections are described in the
initial filing. See Securities Exchange Release No. 75392 (July 8,
2015), 80 FR 41114 (July 14, 2015) (SR-BX-2015-036).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \9\ in general, and furthers the objectives of Section
6(b)(5) of the Act \10\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest, by enhancing the risk protections available to Exchange
members. The proposal promotes policy goals of the Commission, which
has encouraged execution venues, exchange and non-exchange alike, to
enhance risk protection tools and other mechanisms to decrease risk and
increase stability.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The delay of the implementation of BX Rules at Chapter VII, Section
6(f) will permit the Exchange an additional thirty days within which to
implement these risk protections that will be utilized by BX Market
Makers.
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. With respect to the risk
protections, the proposal will not impose a burden on intra-market or
inter-market competition; rather it provides BX Market Makers with the
opportunity to avail themselves of similar risk tools that are
currently available on other exchanges.\11\ The proposal does not
impose a burden on inter-market competition, because members may choose
to become market makers on a number of other options exchanges, which
may have similar but not identical features.\12\ The proposed rule
change is meant to protect BX Market Makers from inadvertent exposure
to excessive risk. Accordingly, the proposed rule change will have no
impact on competition.
---------------------------------------------------------------------------
\11\ See Section 8 of Form 19b-4, infra.
\12\ See BATS Rule 21.16, BOX Rules 8100 and 8110, C2 Rule 8.12,
CBOE Rule 8.18, ISE Rule 804(g), MIAX Rule 612, NYSE MKT Rule 928NY
and NYSE Arca Rule 6.40.
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The delay of the implementation of BX Rules at Chapter VII, Section
6(f) will permit the Exchange additional time to implement these risk
protections that will be utilized by BX Market Makers.
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)
by its terms, 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)(ii) of the Act \13\
and subparagraph (f)(6) of Rule 19b-4 thereunder.\14\ The Exchange has
requested that the Commission waive the thirty-day operative delay so
that the proposal may become operative immediately. The Exchange states
that waiving the thirty-day operative delay will enable it to implement
these risk protections within the new timeframe. The Commission
believes that waiving the thirty-day operative delay is
[[Page 48592]]
consistent with the protection of investors and the public interest.
Therefore, the Commission hereby waives the thirty-day operative delay
and designates the proposal effective upon filing.\15\
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\13\ 15 U.S.C. 78s(b)(3)(a)(ii).
\14\ 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.
The Exchange has satisfied this requirement.
\15\ For purposes of waiving the 30-day operative delay, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
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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 Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BX-2015-049 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-BX-2015-049. 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 Web site (https://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 Web site 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
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; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BX-2015-049 and should be
submitted on or before September 3, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-19873 Filed 8-12-15; 8:45 am]
BILLING CODE 8011-01-P
