Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Order Exposure, 79640-79642 [2015-32044]
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79640
Federal Register / Vol. 80, No. 245 / Tuesday, December 22, 2015 / Notices
Commission Finding
Based on the representations and
conditions in the application, the
Commission permits the temporary
suspension of the right of redemption
for the protection of the Fund’s security
holders. Under the circumstances
described in the application, which
require immediate action to protect the
Fund’s security holders, the
Commission concludes that it is not
practicable to give notice or an
opportunity to request a hearing before
issuing the order.
IT IS ORDERED, pursuant to Section
22(e)(3) of the Act, that the requested
relief from Section 22(e) of the Act is
granted with respect to the Fund until
it has liquidated, or until the
Commission rescinds the order granted
herein. This order shall be in effect as
of December 16, 2015, with suspension
of redemption requests as requested by
the Applicants to be effective as of
December 10, 2015.
By the Commission.
Brent J. Fields,
Secretary.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.5
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–32079 Filed 12–21–15; 8:45 am]
BILLING CODE 8011–01–P
[FR Doc. 2015–32050 Filed 12–21–15; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
BILLING CODE 8011–01–P
[Release No. 34–76669; File No. SR–
NYSEMKT–2015–80]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Designation of a
Longer Period for Commission Action
on Proposed Rule Change Deleting
Rule 410B—Equities Governing
Reporting Requirements for OffExchange Transactions
December 16, 2015.
mstockstill on DSK4VPTVN1PROD with NOTICES
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day for this filing
is December 17, 2015. The Commission
is extending this 45-day time period.
The Commission finds it appropriate
to designate a longer period within
which to take action on the proposed
rule change, so that it has sufficient time
to consider this proposed rule change.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the Act,4
designates January 31, 2016, as the date
by which the Commission should either
approve or disapprove, or institute
proceedings to determine whether to
disapprove, the proposed rule change
(File No. SR–NYSEMKT–2015–80).
On October 16, 2015, NYSE MKT LLC
(the ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to delete Rule 410B—Equities
governing reporting requirements for
off-Exchange transactions. The proposed
rule change was published for comment
in the Federal Register on November 2,
2015.3
Section 19(b)(2) of the Act 3 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 76276
(October 27, 2015), 80 FR 67454.
3 15 U.S.C. 78s(b)(2).
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76663; File No. SR–BX–
2015–078]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to
Order Exposure
December 16, 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 December
2, 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.
VerDate Sep<11>2014
17:21 Dec 21, 2015
Jkt 238001
4 15
U.S.C. 78s(b)(2).
5 17 CFR 200.30–3(a)(31).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
PO 00000
Frm 00086
Fmt 4703
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 BX
Rules at Chapter VII, Section 12,
entitled ‘‘Order Exposure
Requirements’’ to specifically state that
orders entered into BX PRISM are not
subject to the rule at Section 12.
Recently, the Exchange’s BX PRISM rule
was approved by the Commission.3 BX
PRISM is a price-improvement
mechanism on the Exchange’s options
platform, in which a BX Participant (an
‘‘Initiating Participant’’) may
electronically submit for execution a
two-sided paired order, where one side
is an order it represents as agent on
behalf of a Public Customer,
Professional customer, broker-dealer, or
any other entity (‘‘PRISM Order’’) and
the other side is principal interest or
any other order it represents as agent (an
‘‘Initiating Order’’) provided that the
member first exposes the PRISM Order
in the PRISM Auction (‘‘Auction’’)
pursuant to the Rule. This mechanism is
3 See Securities Exchange Act Release No. 76301
(October 29, 2015), 80 FR 68347 (November 4, 2015)
(SR–BX–2015–032) (Order Granting Accelerated
Approval of a Proposed Rule Change, as Modified
by Amendment Nos. 1 and 2, To Adopt a New Price
Improvement Auction, BX PRISM).
1 15
2 17
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend BX
Rules at Chapter VII, Section 12,
entitled ‘‘Order Exposure
Requirements,’’ to make clear that BX
PRISM is an exception to this rule.
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.
Sfmt 4703
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22DEN1
Federal Register / Vol. 80, No. 245 / Tuesday, December 22, 2015 / Notices
an exception to the general rule in
Chapter VII, Section 12, which requires
BX Options Participants to expose
principal orders they represent as agent
for at least one (1) second prior to
receiving an agency order that is
executable against such bid or offer. The
Exchange notes that other options
exchanges have similar order exposure
exceptions.4
The Exchange is also proposing
certain minor technical amendments to
the rule to remove the word
‘‘Commentary’’ and re-letter the
remainder of the rule. The Exchange is
also deleting a reserved section. The
Exchange believes amending Chapter
VII, Section 12 will highlight this
exception concerning BX PRISM and
also conform BX Rules for internal
consistency.
mstockstill on DSK4VPTVN1PROD with NOTICES
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 5 in general, and furthers the
objectives of Section 6(b)(5) of the Act 6
in particular, in that it is designed to
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
explicitly stating an exception to the
general rule regarding the requirements
to expose certain principal orders which
are represented as agent.
The Exchange’s proposal will make
clear that BX PRISM is an exception to
the general rule, which requires BX
Participants to expose principal orders
they represent as agent for at least one
(1) second prior to receiving an agency
order that is executable against such bid
or offer. BX PRISM permits Participants
to enter paired orders without first
exposing those orders for one second.
The Exchange believes that providing an
exception to the order exposure rule for
orders entered into BX PRISM is
consistent with the Act, because BX
PRISM’s auction has an auction period
which is no less than one hundred
milliseconds and no more than one
second. Only one Auction may be
conducted at a time in any given series.
Once commenced, an Auction may not
be cancelled. To initiate the Auction,
the Initiating Participant entering the
order into BX PRISM must mark the
PRISM Order for Auction processing,
and specify either: (a) A single price at
4 See International Securities Exchange LLC
(‘‘ISE’’) Rule 717(d) and BOX Options Exchange
LLC (‘‘BOX’’) Rule 7140.
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
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Jkt 238001
which it seeks to execute the PRISM
Order (a ‘‘stop price’’); (b) that it is
willing to automatically match as
principal or as agent on behalf of an
Initiating Order the price and size of all
PRISM Auction Notifications (‘‘PAN’’)
responses, and trading interest (‘‘automatch’’) in which case the PRISM Order
will be stopped at the NBBO on the
Initiating Order side; or (c) that it is
willing to either: (i) Stop the entire
order at a single stop price and automatch PAN responses and trading
interest at a price or prices that improve
the stop price to a specified price (a ‘‘No
Worse Than’’ or ‘‘NWT’’ price); (ii) stop
the entire order at a single stop price
and auto-match all PAN responses and
trading interest at or better than the stop
price; or (iii) stop the entire order at the
NBBO on the Initiating Order side, and
auto-match PAN responses and trading
interest at a price or prices that improve
the stop price up to the NWT price.7
Initiating Participants entering orders
into BX PRISM are required to guarantee
an execution at the NBBO or at a better
price, and are subject to market risk
while their BX PRISM Order is exposed
to other BX Participants in this
competitive auction.
The proposed amendment will amend
the current order exposure rule to
except orders entered into BX PRISM
from the rule. The Exchange believes
that this amendment will protect
investors and the public interest by
providing additional information in the
Rules concerning exceptions.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
BX does not believe that the proposed
rule change will impose any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act. The proposed
changes do not impose any burden on
competition, rather, the amendment
provides an exception to the order
exposure rule for orders entered into BX
PRISM for all Participants. The
Exchange believes that this exception
will further inform BX Participants of
their obligations with respect to order
exposure. Initiating Participants
entering orders into BX PRISM are
subject to market risk while their PRISM
Order is exposed to other BX
Participants in this competitive auction.
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.
7 See
PO 00000
BX Rules at Chapter VI, Section 9(ii)(A)(1).
Frm 00087
Fmt 4703
Sfmt 4703
79641
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not significantly affect the
protection of investors or the public
interest; does not impose any significant
burden on competition; and by its terms
does not 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) 8 of the
Act and Rule 19b–4(f)(6) thereunder.9
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. 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–2015–078 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.
All submissions should refer to File
Number SR–BX–2015–078. 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/
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). 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.
9 17
E:\FR\FM\22DEN1.SGM
22DEN1
79642
Federal Register / Vol. 80, No. 245 / Tuesday, December 22, 2015 / Notices
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–
2015–078 and should be submitted on
or before January 12, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–32044 Filed 12–21–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76671; File No. SR–Phlx–
2015–103]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to Extend the
Cabinet Trading Pilot Program
mstockstill on DSK4VPTVN1PROD with NOTICES
December 16, 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 December
9, 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 and
II, below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
17:21 Dec 21, 2015
Jkt 238001
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to extend the
pilot program in Rule 1059,
Accommodation Transactions, to allow
cabinet trading to take place below $1
per option contract under specified
circumstances (the ‘‘pilot program’’).
The text of the proposed rule change
is below; proposed new language is
italicized; proposed deletions are in
brackets.
*
*
*
*
*
NASDAQ OMX PHLX Rules
*
*
*
*
*
*
*
Options Rules
*
*
*
Rule 1059. Accommodation
Transactions
(a)–(b) No change.
• • • Commentary:
.01 No change.
.02 Limit Orders Priced Below $1:
Limit orders with a price of at least $0
but less than $1 per option contract may
trade under the terms and conditions in
Rule 1059 above in each series of option
contracts open for trading on the
Exchange, except that:
(a)–(c) No change.
(d) Unless otherwise extended, the
effectiveness of the Commentary .02
terminates January 5, [2016]2017 or,
upon permanent approval of these
procedures by the Securities and
Exchange Commission, whichever
occurs first.
*
*
*
*
*
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.
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to extend the
pilot program in Commentary .02 of
Exchange Rule 1059, Accommodation
Transactions, which sets forth specific
procedures for engaging in cabinet
trades, to allow the Commission
adequate time to consider permanently
allowing transactions to take place on
the Exchange in open outcry at a price
of at least $0 but less than $1 per option
contract.3 Prior to the pilot program,
Rule 1059 required that all orders
placed in the cabinet were assigned
priority based upon the sequence in
which such orders were received by the
specialist. All closing bids and offers
would be submitted to the specialist in
writing, and the specialist effected all
closing cabinet transactions by matching
such orders placed with him. Bids or
offers on orders to open for the accounts
of customer, firm, specialists and
Registered Options Traders (‘‘ROTs’’)
could be made at $1 per option contract,
but such orders could not be placed in
and must yield to all orders in the
cabinet. Specialists effected all cabinet
transactions by matching closing
purchase or sale orders which were
placed in the cabinet or, provided there
was no matching closing purchase or
sale order in the cabinet, by matching a
closing purchase or sale order in the
cabinet with an opening purchase or
sale order.4 All cabinet transactions
were reported to the Exchange following
the close of each business day.5 Any (i)
member, (ii) member organization, or
(iii) other person who was a nonmember broker or dealer and who
directly or indirectly controlled, was
controlled by, or was under common
control with, a member or member
organization (any such other person
being referred to as an affiliated person)
could effect any transaction as principal
in the over-the-counter market in any
class of option contracts listed on the
Exchange for a premium not in excess
of $1.00 per contract.
On December 30, 2010, the Exchange
filed an immediately effective proposal
3 Cabinet or accommodation trading of option
contracts is intended to accommodate persons
wishing to effect closing transactions in those series
of options dealt in on the Exchange for which there
is no auction market.
4 Specialists and ROTs are not subject to the
requirements of Rule 1014 in respect of orders
placed pursuant to this Rule. Also, the provisions
of Rule 1033(b) and (c), Rule 1034 and Rule 1038
do not apply to orders placed in the cabinet.
Cabinet transactions are not reported on the ticker.
5 See Exchange Rule 1059.
E:\FR\FM\22DEN1.SGM
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]]>Agencies
[Federal Register Volume 80, Number 245 (Tuesday, December 22, 2015)]
[Notices]
[Pages 79640-79642]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32044]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76663; File No. SR-BX-2015-078]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Order Exposure
December 16, 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 December 2, 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 amend BX Rules at Chapter VII, Section 12,
entitled ``Order Exposure Requirements,'' to make clear that BX PRISM
is an exception to this rule.
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 Exchange proposes to amend BX Rules at Chapter VII, Section 12,
entitled ``Order Exposure Requirements'' to specifically state that
orders entered into BX PRISM are not subject to the rule at Section 12.
Recently, the Exchange's BX PRISM rule was approved by the
Commission.\3\ BX PRISM is a price-improvement mechanism on the
Exchange's options platform, in which a BX Participant (an ``Initiating
Participant'') may electronically submit for execution a two-sided
paired order, where one side is an order it represents as agent on
behalf of a Public Customer, Professional customer, broker-dealer, or
any other entity (``PRISM Order'') and the other side is principal
interest or any other order it represents as agent (an ``Initiating
Order'') provided that the member first exposes the PRISM Order in the
PRISM Auction (``Auction'') pursuant to the Rule. This mechanism is
[[Page 79641]]
an exception to the general rule in Chapter VII, Section 12, which
requires BX Options Participants to expose principal orders they
represent as agent for at least one (1) second prior to receiving an
agency order that is executable against such bid or offer. The Exchange
notes that other options exchanges have similar order exposure
exceptions.\4\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 76301 (October 29,
2015), 80 FR 68347 (November 4, 2015) (SR-BX-2015-032) (Order
Granting Accelerated Approval of a Proposed Rule Change, as Modified
by Amendment Nos. 1 and 2, To Adopt a New Price Improvement Auction,
BX PRISM).
\4\ See International Securities Exchange LLC (``ISE'') Rule
717(d) and BOX Options Exchange LLC (``BOX'') Rule 7140.
---------------------------------------------------------------------------
The Exchange is also proposing certain minor technical amendments
to the rule to remove the word ``Commentary'' and re-letter the
remainder of the rule. The Exchange is also deleting a reserved
section. The Exchange believes amending Chapter VII, Section 12 will
highlight this exception concerning BX PRISM and also conform BX Rules
for internal consistency.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \5\ in general, and furthers the objectives of Section
6(b)(5) of the Act \6\ in particular, in that it is designed to 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 explicitly stating an exception to the general rule regarding the
requirements to expose certain principal orders which are represented
as agent.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange's proposal will make clear that BX PRISM is an
exception to the general rule, which requires BX Participants to expose
principal orders they represent as agent for at least one (1) second
prior to receiving an agency order that is executable against such bid
or offer. BX PRISM permits Participants to enter paired orders without
first exposing those orders for one second. The Exchange believes that
providing an exception to the order exposure rule for orders entered
into BX PRISM is consistent with the Act, because BX PRISM's auction
has an auction period which is no less than one hundred milliseconds
and no more than one second. Only one Auction may be conducted at a
time in any given series. Once commenced, an Auction may not be
cancelled. To initiate the Auction, the Initiating Participant entering
the order into BX PRISM must mark the PRISM Order for Auction
processing, and specify either: (a) A single price at which it seeks to
execute the PRISM Order (a ``stop price''); (b) that it is willing to
automatically match as principal or as agent on behalf of an Initiating
Order the price and size of all PRISM Auction Notifications (``PAN'')
responses, and trading interest (``auto-match'') in which case the
PRISM Order will be stopped at the NBBO on the Initiating Order side;
or (c) that it is willing to either: (i) Stop the entire order at a
single stop price and auto-match PAN responses and trading interest at
a price or prices that improve the stop price to a specified price (a
``No Worse Than'' or ``NWT'' price); (ii) stop the entire order at a
single stop price and auto-match all PAN responses and trading interest
at or better than the stop price; or (iii) stop the entire order at the
NBBO on the Initiating Order side, and auto-match PAN responses and
trading interest at a price or prices that improve the stop price up to
the NWT price.\7\ Initiating Participants entering orders into BX PRISM
are required to guarantee an execution at the NBBO or at a better
price, and are subject to market risk while their BX PRISM Order is
exposed to other BX Participants in this competitive auction.
---------------------------------------------------------------------------
\7\ See BX Rules at Chapter VI, Section 9(ii)(A)(1).
---------------------------------------------------------------------------
The proposed amendment will amend the current order exposure rule
to except orders entered into BX PRISM from the rule. The Exchange
believes that this amendment will protect investors and the public
interest by providing additional information in the Rules concerning
exceptions.
B. Self-Regulatory Organization's Statement on Burden on Competition
BX does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed changes do not
impose any burden on competition, rather, the amendment provides an
exception to the order exposure rule for orders entered into BX PRISM
for all Participants. The Exchange believes that this exception will
further inform BX Participants of their obligations with respect to
order exposure. Initiating Participants entering orders into BX PRISM
are subject to market risk while their PRISM Order is exposed to other
BX Participants in this competitive auction.
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 significantly
affect the protection of investors or the public interest; does not
impose any significant burden on competition; and by its terms does not
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) \8\ of the Act and Rule 19b-
4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6). 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.
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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. 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-2015-078 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.
All submissions should refer to File Number SR-BX-2015-078. 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/
[[Page 79642]]
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-
2015-078 and should be submitted on or before January 12, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-32044 Filed 12-21-15; 8:45 am]
BILLING CODE 8011-01-P
