Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Period for the Retail Price Improvement Program Until December 1, 2016, 74165-74167 [2015-30076]
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Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices
BlackRock MuniYield Michigan
Quality Fund II, Inc. [File No. 811–
06501]
SECURITIES AND EXCHANGE
COMMISSION
Summary: Applicant, a closed-end
investment company, seeks an order
declaring that it has ceased to be an
investment company. Applicant
transferred its assets to BlackRock
MuniYield Michigan Quality Fund, Inc.,
and effective September 14, 2015, made
distributions to its shareholders based
on net asset value. Expenses of
approximately $331,358 incurred in
connection with the reorganization were
paid by Applicant and Applicant’s
investment adviser.
Filing Dates: The application was
filed on November 16, 2015.
Applicant’s Address: 100 Bellevue
Parkway, Wilmington, Delaware 19809.
Asian Small Companies Portfolio [File
No. 811–07529]
Summary: Applicant seeks an order
declaring that it has ceased to be an
investment company. On January 27,
2015 and January 28, 2015, applicant
made liquidating distributions to its
shareholders, based on net asset value.
Applicant incurred no expenses in
connection with the liquidation.
Filing Dates: The application was
filed on November 6, 2015, and
amended on November 18, 2015.
Applicant’s Address: Two
International Place, Boston, MA 02110.
Parametric Market Neutral Portfolio
[File No. 811–22597]
mstockstill on DSK4VPTVN1PROD with NOTICES
Summary: Applicant seeks an order
declaring that it has ceased to be an
investment company. On September 19,
2014, applicant made a liquidating
distribution to its shareholders, based
on net asset value. Applicant incurred
no expenses in connection with the
liquidation.
Filing Dates: The application was
filed on November 6, 2015, and
amended on November 18, 2015.
Applicant’s Address: Two
International Place, Boston, MA 02110.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–30093 Filed 11–25–15; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–76490; File No. SR–BX–
2015–073]
Jkt 238001
1. Purpose
The purpose of this filing is to extend
the pilot period of the RPI Program,3
currently scheduled to expire on
December 1, 2015, for an additional
year, until December 1, 2016.
November 20, 2015.
In November 2014, the Commission
approved the RPI Program on a pilot
basis.4 The Program is designed to
attract retail order flow to the Exchange,
and allow such order flow to receive
potential price improvement. The
Program is currently limited to trades
occurring at prices equal to or greater
than $1.00 per share. Under the
Program, a new class of market
participant called a Retail Member
Organization (‘‘RMO’’) is eligible to
submit certain retail order flow (‘‘Retail
Orders’’) 5 to the Exchange. BX members
(‘‘Members’’) are permitted to provide
potential price improvement for Retail
Orders in the form of non-displayed
interest that is priced more aggressively
than the Protected National Best Bid or
Offer (‘‘Protected NBBO’’).6
The Program was approved by the
Commission on a pilot basis running
one-year from the date of
implementation.7 The Commission
approved the Program on November 28,
2014.8 The Exchange implemented the
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
12, 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 [sic] to extend the pilot period for
the Exchange’s Retail Price
Improvement (‘‘RPI’’) Program (the
‘‘Program’’), which is set to expire on
December 1, 2015, for a period of one
year, to expire on December 1, 2016.
The Exchange has designated
December 1, 2015 as the date the
proposed rule change becomes effective.
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.
2 17
19:01 Nov 25, 2015
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Extend the
Pilot Period for the Retail Price
Improvement Program Until December
1, 2016
1 15
VerDate Sep<11>2014
74165
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00095
Fmt 4703
Sfmt 4703
Background
3 Securities Exchange Act Release No. 73702
(November 28, 2014), 79 FR 72049 (December 4,
2014) (‘‘RPI Approval Order’’) (SR–BX–2014–048).
4 See id.
5 A ‘‘Retail Order’’ is defined in BX Rule
4780(a)(2) by referencing BX Rule 4702, and BX
Rule 4702(b)(6) says it is an order type with a nondisplay order attribute submitted to the Exchange
by a RMO. A Retail Order must be an agency order,
or riskless principal order that satisfies the criteria
of is an agency or riskless principal order that
originates from a natural person and is submitted
to BX by a RMO, provided that no change is made
to the terms of the order with respect to price
(except in the case that a market order is changed
to a marketable limit order) or side of market and
the order does not originate from a trading
algorithm or any other computerized methodology.
6 The term Protected Quotation is defined in
Chapter XII, Sec. 1(19) and has the same meaning
as is set forth in Regulation NMS Rule 600(b)(58).
The Protected NBBO is the best-priced protected
bid and offer. Generally, the Protected NBBO and
the national best bid and offer (‘‘NBBO’’) will be the
same. However, a market center is not required to
route to the NBBO if that market center is subject
to an exception under Regulation NMS Rule
611(b)(1) or if such NBBO is otherwise not available
for an automatic execution. In such case, the
Protected NBBO would be the best-priced protected
bid or offer to which a market center must route
interest pursuant to Regulation NMS Rule 611.
7 See RPI Approval Order, supra note 3 at 72053.
8 Id. at 72049.
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74166
Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices
Program on December 1, 2014. Thus, the
pilot period for the Program is
scheduled to end on December 1, 2015.
Proposal To Extend the Operation of the
Program
The Exchange established the RPI
Program in an attempt to attract retail
order flow to the Exchange by
potentially providing price
improvement to such order flow. The
Exchange believes that the Program
promotes competition for retail order
flow by allowing Exchange members to
submit Retail Price Improvement Orders
(‘‘RPI Orders’’) 9 to interact with Retail
Orders. Such competition has the ability
to promote efficiency by facilitating the
price discovery process and generating
additional investor interest in trading
securities, thereby promoting capital
formation. The Exchange believes that
extending the pilot is appropriate
because it will allow the Exchange and
the Commission additional time to
analyze data regarding the Program that
the Exchange has committed to
provide.10 As such, the Exchange
believes that it is appropriate to extend
the current operation of the Program.11
Through this filing, the Exchange seeks
to extend the current pilot period of the
Program until December 1, 2016.
mstockstill on DSK4VPTVN1PROD with NOTICES
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,12
in general, and with Section 6(b)(5) of
the Act,13 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.
The Exchange believes that extending
the pilot period for the RPI Program is
consistent with these principles because
the Program is reasonably designed to
9 A Retail Price Improvement Order is defined in
BX Rule 4780(a)(3) by referencing BX Rule 4702
and BX Rule 4702(b)(5) says that it is as an order
type with a non-display order attribute that is held
on the Exchange Book in order to provide liquidity
at a price at least $0.001 better than the NBBO
through a special execution process described in
Rule 4780.
10 See RPI Approval Order, supra note 3 at 72051.
11 Concurrently with this filing, the Exchange has
submitted a request for an extension of the
exemption under Regulation NMS Rule 612
previously granted by the Commission that permits
it to accept and rank the RPI orders in sub-penny
increments. See Letter from Jeffrey S. Davis, Vice
President and Deputy General Counsel and
Secretary, NASDAQ OMX BX, Inc. to Brent J.
Fields, Secretary, Securities and Exchange
Commission dated November 12, 2015.
12 15 U.S.C. 78f.
13 15 U.S.C. 78f(b)(5).
VerDate Sep<11>2014
19:01 Nov 25, 2015
Jkt 238001
attract retail order flow to the exchange
environment, while helping to ensure
that retail investors benefit from the
better price that liquidity providers are
willing to give their orders.
Additionally, as previously stated, the
competition promoted by the Program
may facilitate the price discovery
process and potentially generate
additional investor interest in trading
securities. The extension of the pilot
period will allow the Commission and
the Exchange to continue to monitor the
Program for its potential effects on
public price discovery, and on the
broader market structure.
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.
The proposed rule change extends an
established pilot program for one year,
thus allowing the RPI Program to
enhance competition for retail order
flow and contribute to the public price
discovery process.
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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 14 and Rule 19b–4(f)(6) 15
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.16
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–
14 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
16 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 Commission is waiving this this
requirement.
15 17
PO 00000
Frm 00096
Fmt 4703
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4(f)(6)(iii) 17 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 Exchange states that
waiving the operative delay would
allow the pilot period to continue
uninterrupted, which the Exchange
argues would be beneficial to market
participants and would help to
eliminate the potential for investor
confusion.
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 RPI
Program to continue uninterrupted and
to provide additional time for data about
the program to be generated and
analyzed. 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.18
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.19
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–2015–073 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
17 17
CFR 240.19b–4(f)(6)(iii).
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).
19 15 U.S.C. 78s(b)(3)(C).
18 For
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Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices
All submissions should refer to File
Number SR–BX–2015–073. 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
10:00 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–
2015–073 and should be submitted on
or before December 18, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–30076 Filed 11–25–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76491; File No. SR–MIAX–
2015–64]
mstockstill on DSK4VPTVN1PROD with NOTICES
Self-Regulatory Organizations: Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change by Miami
International Securities Exchange LLC
To Amend Exchange Rule 519
November 20, 2015.
Pursuant to the provisions of Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that
CFR 200.30–3(a)(12), (59).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
19:01 Nov 25, 2015
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to amend
Exchange Rule 519, MIAX Order
Monitor (‘‘MOM’’) to codify the Open
Order and Open Contract Protection
features included in MOM.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.miaxoptions.com/filter/
wotitle/rule_filing, at MIAX’s principal
office, 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 Exchange proposes to amend
Rule 519, MIAX Order Monitor, to
provide details regarding Open Order
and Open Contract protections. The
proposal codifies existing functionality
applicable to orders on the Exchange.
The Exchange is also proposing a
clarifying amendment to current Rule
519(b) to provide consistency in that
Rule with the proposed new rules.
The MOM is a risk management
feature of the Exchange’s System 3 that
prevents certain orders from executing
or being placed on the Book at prices
outside pre-set standard limits 4 and if
3 The term ‘‘System’’ means the automated
trading system used by the Exchange for the trading
of securities. See Exchange Rule 100.
4 See Exchange Rule 519(a).
20 17
VerDate Sep<11>2014
on November 13, 2015, Miami
International Securities Exchange LLC
(‘‘MIAX’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) a 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.
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74167
the size of the order exceeds the order
size protection designated by the
Member submitting the order.5
Additionally, the System currently
rejects any orders that exceed the
maximum number of open orders held
in the System on behalf of a particular
Member (the ‘‘Open Order Protection’’).
The System also currently rejects any
orders that cause the number of open
contracts represented by orders held in
the System on behalf of a particular
Member (the ‘‘Open Contract
Protection’’) to exceed a specified
maximum number of contracts. For each
of these protections, the maximum
number (of open orders and open
contracts) is designated (or may be
disabled) by the Member. The Exchange
is proposing to codify the Open Order
and Open Contract Protections in Rule
519.
Currently, Rule 519 only provides
details regarding the System’s Order
Price Protections and Order Size
Protections. However, in addition to
order protections based on price and
order size, the System also employs
order protections based on the number
of open orders held in the System and
on the number of contracts represented
by open orders held in the System. The
Exchange now proposes to codify these
existing order protections into Rule 519.
Members may designate or disable the
Open Order and/or the Open Contract
Protections on a firm wide basis. If the
maximum number of open orders or
contracts is not designated by the
Member, the Exchange will set a
maximum number of open orders or
contracts on behalf of the Member by
default. The default maximum number
of open orders and open contracts are
determined by the Exchange and
announced to Members through a
Regulatory Circular.6 The Open Order
and Open Contract Protections provide
market participants the flexibility to
designate the level of protection they
need to help prevent the potential
submission of a number of orders and/
or a number of contracts to the
Exchange that would cause them to be
at unintended risk levels.
The Exchange is also proposing a
clarifying amendment to current Rule
519(b), Order Size Protections, to state
that if the maximum size of orders is not
designated by the Member, the
Exchange will set a maximum size of
orders on behalf of the Member by
default. This is consistent with
proposed new Rules 519(c) and (d), and
5 See
Exchange Rule 519(b).
Exchange notes that the current default
maximum number of open orders is 30,000 and the
default number of open contracts is 1,000,000.
6 The
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]]>Agencies
[Federal Register Volume 80, Number 228 (Friday, November 27, 2015)]
[Notices]
[Pages 74165-74167]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30076]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76490; File No. SR-BX-2015-073]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Extend
the Pilot Period for the Retail Price Improvement Program Until
December 1, 2016
November 20, 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 November 12, 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 [sic] to extend the pilot period for the Exchange's Retail
Price Improvement (``RPI'') Program (the ``Program''), which is set to
expire on December 1, 2015, for a period of one year, to expire on
December 1, 2016.
The Exchange has designated December 1, 2015 as the date the
proposed rule change becomes effective.
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 this filing is to extend the pilot period of the RPI
Program,\3\ currently scheduled to expire on December 1, 2015, for an
additional year, until December 1, 2016.
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 73702 (November 28,
2014), 79 FR 72049 (December 4, 2014) (``RPI Approval Order'') (SR-
BX-2014-048).
---------------------------------------------------------------------------
Background
In November 2014, the Commission approved the RPI Program on a
pilot basis.\4\ The Program is designed to attract retail order flow to
the Exchange, and allow such order flow to receive potential price
improvement. The Program is currently limited to trades occurring at
prices equal to or greater than $1.00 per share. Under the Program, a
new class of market participant called a Retail Member Organization
(``RMO'') is eligible to submit certain retail order flow (``Retail
Orders'') \5\ to the Exchange. BX members (``Members'') are permitted
to provide potential price improvement for Retail Orders in the form of
non-displayed interest that is priced more aggressively than the
Protected National Best Bid or Offer (``Protected NBBO'').\6\
---------------------------------------------------------------------------
\4\ See id.
\5\ A ``Retail Order'' is defined in BX Rule 4780(a)(2) by
referencing BX Rule 4702, and BX Rule 4702(b)(6) says it is an order
type with a non-display order attribute submitted to the Exchange by
a RMO. A Retail Order must be an agency order, or riskless principal
order that satisfies the criteria of is an agency or riskless
principal order that originates from a natural person and is
submitted to BX by a RMO, provided that no change is made to the
terms of the order with respect to price (except in the case that a
market order is changed to a marketable limit order) or side of
market and the order does not originate from a trading algorithm or
any other computerized methodology.
\6\ The term Protected Quotation is defined in Chapter XII, Sec.
1(19) and has the same meaning as is set forth in Regulation NMS
Rule 600(b)(58). The Protected NBBO is the best-priced protected bid
and offer. Generally, the Protected NBBO and the national best bid
and offer (``NBBO'') will be the same. However, a market center is
not required to route to the NBBO if that market center is subject
to an exception under Regulation NMS Rule 611(b)(1) or if such NBBO
is otherwise not available for an automatic execution. In such case,
the Protected NBBO would be the best-priced protected bid or offer
to which a market center must route interest pursuant to Regulation
NMS Rule 611.
---------------------------------------------------------------------------
The Program was approved by the Commission on a pilot basis running
one-year from the date of implementation.\7\ The Commission approved
the Program on November 28, 2014.\8\ The Exchange implemented the
[[Page 74166]]
Program on December 1, 2014. Thus, the pilot period for the Program is
scheduled to end on December 1, 2015.
---------------------------------------------------------------------------
\7\ See RPI Approval Order, supra note 3 at 72053.
\8\ Id. at 72049.
---------------------------------------------------------------------------
Proposal To Extend the Operation of the Program
The Exchange established the RPI Program in an attempt to attract
retail order flow to the Exchange by potentially providing price
improvement to such order flow. The Exchange believes that the Program
promotes competition for retail order flow by allowing Exchange members
to submit Retail Price Improvement Orders (``RPI Orders'') \9\ to
interact with Retail Orders. Such competition has the ability to
promote efficiency by facilitating the price discovery process and
generating additional investor interest in trading securities, thereby
promoting capital formation. The Exchange believes that extending the
pilot is appropriate because it will allow the Exchange and the
Commission additional time to analyze data regarding the Program that
the Exchange has committed to provide.\10\ As such, the Exchange
believes that it is appropriate to extend the current operation of the
Program.\11\ Through this filing, the Exchange seeks to extend the
current pilot period of the Program until December 1, 2016.
---------------------------------------------------------------------------
\9\ A Retail Price Improvement Order is defined in BX Rule
4780(a)(3) by referencing BX Rule 4702 and BX Rule 4702(b)(5) says
that it is as an order type with a non-display order attribute that
is held on the Exchange Book in order to provide liquidity at a
price at least $0.001 better than the NBBO through a special
execution process described in Rule 4780.
\10\ See RPI Approval Order, supra note 3 at 72051.
\11\ Concurrently with this filing, the Exchange has submitted a
request for an extension of the exemption under Regulation NMS Rule
612 previously granted by the Commission that permits it to accept
and rank the RPI orders in sub-penny increments. See Letter from
Jeffrey S. Davis, Vice President and Deputy General Counsel and
Secretary, NASDAQ OMX BX, Inc. to Brent J. Fields, Secretary,
Securities and Exchange Commission dated November 12, 2015.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\12\ in general, and with
Section 6(b)(5) of the Act,\13\ 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.
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\12\ 15 U.S.C. 78f.
\13\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that extending the pilot period for the RPI
Program is consistent with these principles because the Program is
reasonably designed to attract retail order flow to the exchange
environment, while helping to ensure that retail investors benefit from
the better price that liquidity providers are willing to give their
orders. Additionally, as previously stated, the competition promoted by
the Program may facilitate the price discovery process and potentially
generate additional investor interest in trading securities. The
extension of the pilot period will allow the Commission and the
Exchange to continue to monitor the Program for its potential effects
on public price discovery, and on the broader market structure.
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. The
proposed rule change extends an established pilot program for one year,
thus allowing the RPI Program to enhance competition for retail order
flow and contribute to the public price discovery process.
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \14\ and Rule 19b-4(f)(6) \15\ 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.\16\
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6).
\16\ 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 Commission is waiving this this
requirement.
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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) \17\ 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 Exchange states
that waiving the operative delay would allow the pilot period to
continue uninterrupted, which the Exchange argues would be beneficial
to market participants and would help to eliminate the potential for
investor confusion.
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\17\ 17 CFR 240.19b-4(f)(6)(iii).
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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 RPI Program to continue uninterrupted and to provide
additional time for data about the program to be generated and
analyzed. 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.\18\
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\18\ 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).
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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 necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.\19\
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\19\ 15 U.S.C. 78s(b)(3)(C).
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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-2015-073 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
[[Page 74167]]
All submissions should refer to File Number SR-BX-2015-073. 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
10:00 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-2015-073 and should be
submitted on or before December 18, 2015.
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\20\ 17 CFR 200.30-3(a)(12), (59).
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-30076 Filed 11-25-15; 8:45 am]
BILLING CODE 8011-01-P
