Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to a Proposal to Update the Public Disclosure of Sources of Data BX Utilizes, 48611-48612 [2015-19879]

Download as PDF 48611 Federal Register / Vol. 80, No. 156 / Thursday, August 13, 2015 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–75638; File No. SR–BX– 2015–048] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to a Proposal to Update the Public Disclosure of Sources of Data BX Utilizes 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 5, 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, 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 Exchange Rule 4759 and to amend the public disclosure of the sources of data that the Exchange utilizes when performing (1) order handling and execution; (2) order routing; and (3) related compliance processes. The text of the proposed rule change is below. Proposed new language is in italics; proposed deletions are bracketed. * * * * * 4759. Data Feeds Utilized The BX 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. 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 ........................................................ Y—BATS Y-Exchange ........................................................... Z—BATS Exchange ............................................................... [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 ........................................................................ BATS PITCH ......................................................................... BATS PITCH ......................................................................... * * * * * (b) Not applicable. (c) Not applicable. 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. tkelley on DSK3SPTVN1PROD with NOTICES A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to update and amend the table in Exchange Rule 4759 that sets forth on a market-by-market basis the specific network processor and 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Sep<11>2014 16:56 Aug 12, 2015 proprietary data feeds that the Exchange utilizes for the handling, routing, and execution of orders, and for performing the regulatory compliance checks related to each of those functions. Specifically, the table will be amended to include National Stock Exchange (‘‘NSX’’), which has informed the UTP Securities Information Processor (‘‘UTP SIP’’) that, subject to regulatory approval, it is projecting to reactivate its status as an operating participant for quotation and trading of NASDAQ-listed securities under the Unlisted Trading Privileges (‘‘UTP’’) Plan on or about August 31, 2015. The other changes to the table merely reflect updates to mirror the current network processor and proprietary data feeds utilized by the Exchange for the handling, routing, and execution of orders, and for performing the regulatory compliance checks related to each of those functions. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,3 in general and with Sections 6(b)(5) of 3 15 4 15 Jkt 235001 PO 00000 Secondary source the Act,4 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 regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, 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. The Exchange believes that its proposal to update the table in Exchange Rule 4759 to make certain it is current, as well as to amend the table to include NSX, would ensure that Exchange Rule 4759 correctly identifies and publicly states on a market-bymarket basis all of the specific network processor and proprietary data feeds that the Exchange utilizes for the handling, routing, and execution of orders, and for performing the regulatory compliance checks related to each of those functions, and that the proposed rule change removes impediments to and perfects the U.S.C. 78f. U.S.C. 78f(b)(5). Frm 00136 Fmt 4703 Sfmt 4703 [n/a] CQS/UQDF CQS/UQDF n/a n/a CQS/UQDF CQS/UQDF n/a CQS/UQDF CQS/UQDF CQS/UQDF CQS/UQDF CQS/UQDF CQS/UQDF E:\FR\FM\13AUN1.SGM 13AUN1 48612 Federal Register / Vol. 80, No. 156 / Thursday, August 13, 2015 / Notices mechanism of a free and open market and protects investors and the public interest because it provides additional specificity, clarity and transparency. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. To the contrary, the Exchange believes the proposal would enhance competition because including all of the exchanges enhances transparency and enables investors to better assess the quality of the Exchange’s execution and routing services. tkelley on DSK3SPTVN1PROD with NOTICES 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) 5 of the Act and Rule 19b4(f)(6) thereunder.6 The Exchange believes that this proposed rule change is properly designated as noncontroversial because it enhances clarity and operational transparency without modifying members’ rights or obligations. The Exchange provided notice of the proposed rule change on July 27, 2015. 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: SECURITIES AND EXCHANGE COMMISSION Electronic Comments • Use 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– BX–2015–048 on the subject line. Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Chapter XV, Section 2 Entitled ‘‘NASDAQ Options Market—Fees and Rebates’’ 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–2015–048. 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 (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 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 10:00 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; 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–2015–048 and should be submitted on or before September 3, 2015. August 7, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Jill M. Peterson, Assistant Secretary. [FR Doc. 2015–19879 Filed 8–12–15; 8:45 am] [Release No. 34–75647; File No. SR– NASDAQ–2015–090] Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on July 31, 2015, The NASDAQ Stock Market LLC (‘‘Nasdaq’’ 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 amend the Exchange’s transaction fees at Chapter XV, Section 2 entitled ‘‘NASDAQ Options Market—Fees and Rebates,’’ which governs pricing for NASDAQ members using the NASDAQ Options Market (‘‘NOM’’), NASDAQ’s facility for executing and routing standardized equity and index options. While the changes proposed herein are effective upon filing, the Exchange has designated such changes to become operative on August 3, 3015. The text of the proposed rule change is available on the Exchange’s Web site at http://nasdaq.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 BILLING CODE 8011–01–P 5 15 U.S.C. 78s(b)(3)(A). 6 17 CFR 240.19b–4(f)(6). VerDate Sep<11>2014 16:56 Aug 12, 2015 1 15 7 17 Jkt 235001 PO 00000 CFR 200.30–3(a)(12). Frm 00137 Fmt 4703 2 17 Sfmt 4703 E:\FR\FM\13AUN1.SGM U.S.C. 78s(b)(1). CFR 240.19b-4. 13AUN1

Agencies

[Federal Register Volume 80, Number 156 (Thursday, August 13, 2015)]
[Notices]
[Pages 48611-48612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19879]



[[Page 48611]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75638; File No. SR-BX-2015-048]


Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change to a 
Proposal to Update the Public Disclosure of Sources of Data BX Utilizes

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 5, 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, 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.
---------------------------------------------------------------------------

    \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 update Exchange Rule 4759 and to amend the 
public disclosure of the sources of data that the Exchange utilizes 
when performing (1) order handling and execution; (2) order routing; 
and (3) related compliance processes.
    The text of the proposed rule change is below. Proposed new 
language is in italics; proposed deletions are bracketed.
* * * * *
4759. Data Feeds Utilized
    The BX 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.

------------------------------------------------------------------------
        Market center          Primary source       Secondary source
------------------------------------------------------------------------
A--NYSE MKT (AMEX)..........  [CQS/UQDF] NYSE  [n/a] CQS/UQDF
                               MKT OpenBook
                               Ultra.
B--NASDAQ OMX BX............  BX ITCH 5.0....  CQS/UQDF
C--NSX......................  CQS/UQDF.......  n/a
D--FINRA ADF................  CQS/UQDF.......  n/a
J--DirectEdge A.............  [EdgeBook] BATS  CQS/UQDF
                               PITCH.
K--DirectEdge X.............  [EdgeBook] BATS  CQS/UQDF
                               PITCH.
M--CSX......................  CQS/UQDF.......  n/a
N--NYSE.....................  NYSE OpenBook    CQS/UQDF
                               Ultra.
P--NYSE Arca................  [ArcaBook        CQS/UQDF
                               Binary
                               uncompacted]
                               NYSE ARCA XDP.
T/Q--NASDAQ.................  ITCH 5.0.......  CQS/UQDF
X--NASDAQ OMX PSX...........  PSX ITCH 5.0...  CQS/UQDF
Y--BATS Y-Exchange..........  BATS PITCH.....  CQS/UQDF
Z--BATS Exchange............  BATS PITCH.....  CQS/UQDF
------------------------------------------------------------------------

* * * * *
    (b) Not applicable.
    (c) Not applicable.

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 Exchange proposes to update and amend the table in Exchange 
Rule 4759 that sets forth on a market-by-market basis the specific 
network processor and proprietary data feeds that the Exchange utilizes 
for the handling, routing, and execution of orders, and for performing 
the regulatory compliance checks related to each of those functions.
    Specifically, the table will be amended to include National Stock 
Exchange (``NSX''), which has informed the UTP Securities Information 
Processor (``UTP SIP'') that, subject to regulatory approval, it is 
projecting to reactivate its status as an operating participant for 
quotation and trading of NASDAQ-listed securities under the Unlisted 
Trading Privileges (``UTP'') Plan on or about August 31, 2015. The 
other changes to the table merely reflect updates to mirror the current 
network processor and proprietary data feeds utilized by the Exchange 
for the handling, routing, and execution of orders, and for performing 
the regulatory compliance checks related to each of those functions.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\3\ in general and with 
Sections 6(b)(5) of the Act,\4\ 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 regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities, 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.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f.
    \4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that its proposal to update the table in 
Exchange Rule 4759 to make certain it is current, as well as to amend 
the table to include NSX, would ensure that Exchange Rule 4759 
correctly identifies and publicly states on a market-by-market basis 
all of the specific network processor and proprietary data feeds that 
the Exchange utilizes for the handling, routing, and execution of 
orders, and for performing the regulatory compliance checks related to 
each of those functions, and that the proposed rule change removes 
impediments to and perfects the

[[Page 48612]]

mechanism of a free and open market and protects investors and the 
public interest because it provides additional specificity, clarity and 
transparency.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended. To 
the contrary, the Exchange believes the proposal would enhance 
competition because including all of the exchanges enhances 
transparency and enables investors to better assess the quality of the 
Exchange's execution and routing services.

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) \5\ of the Act and Rule 19b-
4(f)(6) thereunder.\6\ The Exchange believes that this proposed rule 
change is properly designated as non-controversial because it enhances 
clarity and operational transparency without modifying members' rights 
or obligations. The Exchange provided notice of the proposed rule 
change on July 27, 2015.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-BX-2015-048 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-2015-048. 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 (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 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 10:00 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; 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-2015-048 and 
should be submitted on or before September 3, 2015.

     
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-19879 Filed 8-12-15; 8:45 am]
BILLING CODE 8011-01-P