Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delay of Implementation of Kill Switch, 1266-1268 [2016-252]

Download as PDF 1266 Federal Register / Vol. 81, No. 6 / Monday, January 11, 2016 / Notices 4(f)(6) thereunder.16 The Exchange provided the Commission with written notice of its 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 the proposed rule change, or such shorter time as designated by the Commission, as required by Rule 19b–4(f)(6). The Exchange has requested that the Commission waive the thirty-day operative delay so that the proposal may become operative as of January 4, 2016. The Commission believes that waiving the thirty day delay is consistent with the protection of investors and the public interest, as it will enable the Exchange to have the new requirements in effect at the same time as the other SROs. Therefore, the Commission hereby waives the thirty-day operative delay and designates the proposal operative as of January 4, 2016.17 At any time within 60 days of the filing of such 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. Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commissions 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. Copies of such filing also will be available for inspection and copying at the principal office of the ISE. 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–ISE Gemini-2015–28 and should be submitted by February 1, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Robert W. Errett, Deputy Secretary. [FR Doc. 2016–247 Filed 1–8–16; 8:45 am] 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 No. SR–ISE Gemini–2015–28 on the subject line. mstockstill on DSK4VPTVN1PROD with NOTICES 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: Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delay of Implementation of Kill Switch 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–ISE Gemini–2015–28. This file number should be included on the subject line if email is used. To help the 16 17 CFR 240.19b–4(f)(6). purposes of waiving the 30-day operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 17 For VerDate Sep<11>2014 18:17 Jan 08, 2016 Jkt 238001 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–76830; File No. SR– NASDAQ–2015–163] January 5, 2016. 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 23, 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 and II below, which Items have been prepared by the Exchange. The Commission is publishing this 18 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 Frm 00104 Fmt 4703 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to extend the implementation timeframe for adopting an optional Kill Switch protection. The text of the proposed rule change is available on the Exchange’s Web site at https://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 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 BILLING CODE 8011–01–P PO 00000 notice to solicit comments on the proposed rule change from interested persons. Sfmt 4703 The purpose of the proposal is to extend the implementation of the timeframe to adopt a new risk protection, a Kill Switch, applicable to all NOM Participants. In its rule change adopting this new risk protection in Chapter VI, Section 6, the Exchange stated, ‘‘The Exchange proposes to implement this rule within ninety (90) days of the implementation date.’’ 3 The Exchange stated that it will issue an Options Trader Alert in advance to inform market participants of such date. At this time, the Exchange desires to extend the implementation of this rule change to 120 days from the operative date. The Exchange will announce the date of implementation by issuing an Options Trader Alert. By way of background, the Kill Switch will allow NOM Participants to remove quotes and cancel open orders and prevent new order submission. The NASDAQ Options Kill Switch will be an optional tool that enables 3 See Securities Exchange Act Release No. 75743 (August 20, 2015), 80 FR 51850 (August 26, 2015) (SR–NASDAQ–2015–096). E:\FR\FM\11JAN1.SGM 11JAN1 Federal Register / Vol. 81, No. 6 / Monday, January 11, 2016 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES Participants to initiate a message(s) 4 to the System to: (i) Promptly remove quotes; and/or (ii) promptly cancel orders. Participants may submit a request to the System to remove/cancel quotes and/or orders based on certain identifiers on either a user or group level. Participants may elect to remove quotes and cancel orders by Exchange account, port, and/or badge or mnemonic (‘‘Identifier’’) or by a group (one or more Identifier combinations),5 which are provided by such Participant to the Exchange.6 Participants may not remove quotes/orders by symbol. The System will send an automated message to the Participant when a Kill Switch request has been processed by the Exchange’s System. If the Participant selects quotes to be cancelled utilizing the Kill Switch, the NOM Participant must send a message to the Exchange to request the removal of all quotes requested for the certain specified Identifier(s). The NOM Participant will be unable to enter any additional quotes for the affected Identifier(s) until re-entry has been enabled pursuant to proposed section (d)(iii).7 If the Participant selects orders to be cancelled utilizing the Kill Switch, the NOM Participant must send a message to the Exchange to request the cancellation of all orders requested for the certain specified Identifier(s). The NOM Participant will be unable to enter additional orders for the affected Identifier(s) until re-entry has been enabled pursuant to section (d)(iii). The NOM Participant will be unable to enter additional quotes and/or orders for the affected Identifier(s) until the NOM Participant has made a request to the Exchange and Exchange staff has set a re-entry indicator to enable re-entry.8 Once enabled for re-entry, the System will send a Re-entry Notification Message to the NOM Participant. The applicable Clearing Participant for that NOM Participant also will be notified of the re-entry into the System after quotes and/or orders are removed/cancelled as a result of the Kill Switch, provided the 4 NOM Participants will be able to utilize an interface to send a message to the Exchange to initiate the Kill Switch or they may contact the Exchange directly. 5 The type of group permissible would be within a broker-dealer. For example, this could be including but not limited to all market maker accounts or all order entry ports. 6 Orders submitted by NOM Market Makers over Ouch to Trade Options (OTTO) interface will be treated as quotes for purposes of this rule. 7 Sweeps will also be cancelled. A sweep is a onesided electronic quote submitted over the Specialized Quote Feed, which is the market making quoting interface. 8 The NOM Participant must directly and verbally contact the Exchange to request the re-set. VerDate Sep<11>2014 18:17 Jan 08, 2016 Jkt 238001 Clearing Participant has requested to receive such notification. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act 9 in general, and furthers the objectives of Section 6(b)(5) of the Act 10 in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest, by enhancing the risk protections available to Exchange members. The proposal promotes policy goals of the Commission which has encouraged execution venues, exchange and nonexchange alike, to enhance risk protection tools and other mechanisms to decrease risk and increase stability. The delay of the implementation of NOM Rules at Chapter VI, Section 6 will permit the Exchange an additional thirty days within which to implement this risk protection that will be utilized by NOM Participants. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The proposal does not impose an undue burden on inter-market competition because all NOM Participants may avail themselves of the Kill Switch, which functionality will be optional. The proposed rule change is meant to protect NOM Participants in the event the NOM Participant is suffering from a systems issue or from the occurrence of unusual or unexpected market activity that would require them to withdraw from the market in order to protect investors. The ability to control risk at either the user or group level will permit the NOM Participant to protect itself from inadvertent exposure to excessive risk at the each level. Reducing such risk will enable NOM Participants to enter quotes and orders without any fear of inadvertent exposure to excessive risk, which in turn will benefit investors through increased liquidity for the execution of their orders. Such increased liquidity benefits investors because they receive better prices and because it lowers volatility in the options market. For these reasons, the Exchange does not believe this proposal imposes an undue burden on inter9 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). market competition, rather, the proposed rule change will have no impact on competition. The delay of the implementation of NOM Rules at Chapter VII, Section 6(f) will permit the Exchange additional time to implement this risk protection that will be utilized by NOM Participants. 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 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 if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 11 and Rule 19b–4(f)(6) thereunder.12 Nasdaq requested that the Commission waive the 30-day operative delay. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest, because the extension will provide the Exchange with the additional time it requires to implement the Kill Switch program. The Commission further notes that Nasdaq’s proposal to adopt the Kill Switch 13 was approved by the Commission 14 and that the extension of the implementation period does not affect the parameters of the Kill Switch program. For these reasons, the Commission designates the proposed rule change to be operative upon filing.15 11 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 13 See note 3. 14 See Securities Exchange Act Release No. 76123 (Oct. 9, 2015), 80 FR 62591 (Oct. 16, 2015) (SR– NASDAQ–2015–096). 15 For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule’s impact on 12 17 10 15 PO 00000 Frm 00105 Fmt 4703 1267 Continued Sfmt 4703 E:\FR\FM\11JAN1.SGM 11JAN1 1268 Federal Register / Vol. 81, No. 6 / Monday, January 11, 2016 / Notices 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: mstockstill on DSK4VPTVN1PROD with NOTICES Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2015–163 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–NASDAQ–2015–163. 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– NASDAQ–2015–163 and should be submitted on or before February 1, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Robert W. Errett, Deputy Secretary. [FR Doc. 2016–252 Filed 1–8–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–76828; File No. SR–CBOE– 2015–115] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Fees for Certain CBOE Real-Time Data Feeds January 5, 2016. 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 22, 2015, Chicago Board Options Exchange, Incorporated (the ‘‘Exchange’’ or ‘‘CBOE’’) filed with the Securities and Exchange Commission (‘‘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 Chicago Board Options Exchange, Incorporated (the ‘‘Exchange’’ or ‘‘CBOE’’) proposes to amend fees for certain CBOE real-time data feeds. The text of the proposed rule change is available on the Exchange’s Web site (https://www.cboe.com/AboutCBOE/ CBOELegalRegulatoryHome.aspx), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. 16 17 efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). VerDate Sep<11>2014 18:17 Jan 08, 2016 Jkt 238001 CFR 200.30–3(a)(12) and (59). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00106 Fmt 4703 Sfmt 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 purpose of the proposed rule change is to amend fees for the BBO Data Feed and Book Depth Data Feed. These data feeds are made available by CBOE’s affiliate Market Data Express, LLC (‘‘MDX’’).3 BBO and Book Depth Data Feeds BBO Data Feed: The BBO Data Feed is a real-time, low latency data feed that includes the following content: (i) Outstanding quotes and standing orders at the best available price level on each side of the market, with aggregate size (‘‘BBO data’’), and last sale data; 4 (ii) totals of customer versus non-customer contracts at the BBO, (iii) All-or-None contingency orders priced better than or equal to the BBO, (iv) BBO and last sale data for complex strategies (e.g., spreads, straddles, buy-writes, etc.); (v) expected opening price (‘‘EOP’’) and expected opening size (‘‘EOS’’) information that is disseminated prior to the opening of the market and during trading rotations, (vi) end-of-day (‘‘EOD’’) summary messages that are disseminated after the close of a trading session that include summary 3 MDX also offers real-time Complex Order Book (‘‘COB’’) and Flexible Exchange (‘‘FLEX’’) Options Data Feeds. The COB Data Feed includes data regarding the Exchange’s Complex Order Book and related complex order information. The COB Data Feed includes BBO, Book Depth and last sale data for all CBOE-traded complex order strategies and identifies customer orders and trades. The Exchange is not proposing to amend fees for the COB Data Feed at this time. The FLEX Options Data Feed includes BBO and last sale data for FLEX options traded on the CBOE FLEX Hybrid Trading System, including BBO and last sale data for FLEX complex strategies. The FLEX Options Data Feed is currently made available at no charge. The Exchange is not proposing to establish fees for the FLEX Options Data Feed at this time. 4 ‘‘Best bid and offer’’ or ‘‘BBO’’ data is sometimes referred to as ‘‘top-of-book’’ data. Data with respect to executed trades is referred to as ‘‘last sale’’ data. E:\FR\FM\11JAN1.SGM 11JAN1

Agencies

[Federal Register Volume 81, Number 6 (Monday, January 11, 2016)]
[Notices]
[Pages 1266-1268]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-252]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76830; File No. SR-NASDAQ-2015-163]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Delay of Implementation of Kill Switch

January 5, 2016.
    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 23, 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 and II below, which Items have been prepared by the Exchange. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to extend the implementation timeframe for 
adopting an optional Kill Switch protection.
    The text of the proposed rule change is available on the Exchange's 
Web site at https://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 the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposal is to extend the implementation of the 
timeframe to adopt a new risk protection, a Kill Switch, applicable to 
all NOM Participants. In its rule change adopting this new risk 
protection in Chapter VI, Section 6, the Exchange stated, ``The 
Exchange proposes to implement this rule within ninety (90) days of the 
implementation date.'' \3\ The Exchange stated that it will issue an 
Options Trader Alert in advance to inform market participants of such 
date. At this time, the Exchange desires to extend the implementation 
of this rule change to 120 days from the operative date. The Exchange 
will announce the date of implementation by issuing an Options Trader 
Alert.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 75743 (August 20, 
2015), 80 FR 51850 (August 26, 2015) (SR-NASDAQ-2015-096).
---------------------------------------------------------------------------

    By way of background, the Kill Switch will allow NOM Participants 
to remove quotes and cancel open orders and prevent new order 
submission. The NASDAQ Options Kill Switch will be an optional tool 
that enables

[[Page 1267]]

Participants to initiate a message(s) \4\ to the System to: (i) 
Promptly remove quotes; and/or (ii) promptly cancel orders. 
Participants may submit a request to the System to remove/cancel quotes 
and/or orders based on certain identifiers on either a user or group 
level. Participants may elect to remove quotes and cancel orders by 
Exchange account, port, and/or badge or mnemonic (``Identifier'') or by 
a group (one or more Identifier combinations),\5\ which are provided by 
such Participant to the Exchange.\6\ Participants may not remove 
quotes/orders by symbol. The System will send an automated message to 
the Participant when a Kill Switch request has been processed by the 
Exchange's System.
---------------------------------------------------------------------------

    \4\ NOM Participants will be able to utilize an interface to 
send a message to the Exchange to initiate the Kill Switch or they 
may contact the Exchange directly.
    \5\ The type of group permissible would be within a broker-
dealer. For example, this could be including but not limited to all 
market maker accounts or all order entry ports.
    \6\ Orders submitted by NOM Market Makers over Ouch to Trade 
Options (OTTO) interface will be treated as quotes for purposes of 
this rule.
---------------------------------------------------------------------------

    If the Participant selects quotes to be cancelled utilizing the 
Kill Switch, the NOM Participant must send a message to the Exchange to 
request the removal of all quotes requested for the certain specified 
Identifier(s). The NOM Participant will be unable to enter any 
additional quotes for the affected Identifier(s) until re-entry has 
been enabled pursuant to proposed section (d)(iii).\7\ If the 
Participant selects orders to be cancelled utilizing the Kill Switch, 
the NOM Participant must send a message to the Exchange to request the 
cancellation of all orders requested for the certain specified 
Identifier(s). The NOM Participant will be unable to enter additional 
orders for the affected Identifier(s) until re-entry has been enabled 
pursuant to section (d)(iii). The NOM Participant will be unable to 
enter additional quotes and/or orders for the affected Identifier(s) 
until the NOM Participant has made a request to the Exchange and 
Exchange staff has set a re-entry indicator to enable re-entry.\8\ Once 
enabled for re-entry, the System will send a Re-entry Notification 
Message to the NOM Participant. The applicable Clearing Participant for 
that NOM Participant also will be notified of the re-entry into the 
System after quotes and/or orders are removed/cancelled as a result of 
the Kill Switch, provided the Clearing Participant has requested to 
receive such notification.
---------------------------------------------------------------------------

    \7\ Sweeps will also be cancelled. A sweep is a one-sided 
electronic quote submitted over the Specialized Quote Feed, which is 
the market making quoting interface.
    \8\ The NOM Participant must directly and verbally contact the 
Exchange to request the re-set.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \9\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \10\ in particular, in that it is designed to 
promote just and equitable principles of trade, to remove impediments 
to and perfect the mechanism of a free and open market and a national 
market system, and, in general to protect investors and the public 
interest, by enhancing the risk protections available to Exchange 
members. The proposal promotes policy goals of the Commission which has 
encouraged execution venues, exchange and non-exchange alike, to 
enhance risk protection tools and other mechanisms to decrease risk and 
increase stability.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The delay of the implementation of NOM Rules at Chapter VI, Section 
6 will permit the Exchange an additional thirty days within which to 
implement this risk protection that will be utilized by NOM 
Participants.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The proposal does not impose an 
undue burden on inter-market competition because all NOM Participants 
may avail themselves of the Kill Switch, which functionality will be 
optional. The proposed rule change is meant to protect NOM Participants 
in the event the NOM Participant is suffering from a systems issue or 
from the occurrence of unusual or unexpected market activity that would 
require them to withdraw from the market in order to protect investors. 
The ability to control risk at either the user or group level will 
permit the NOM Participant to protect itself from inadvertent exposure 
to excessive risk at the each level. Reducing such risk will enable NOM 
Participants to enter quotes and orders without any fear of inadvertent 
exposure to excessive risk, which in turn will benefit investors 
through increased liquidity for the execution of their orders. Such 
increased liquidity benefits investors because they receive better 
prices and because it lowers volatility in the options market. For 
these reasons, the Exchange does not believe this proposal imposes an 
undue burden on inter-market competition, rather, the proposed rule 
change will have no impact on competition.
    The delay of the implementation of NOM Rules at Chapter VII, 
Section 6(f) will permit the Exchange additional time to implement this 
risk protection that will be utilized by NOM Participants.

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 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 if consistent with the protection of investors 
and the public interest, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6) 
thereunder.\12\
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    Nasdaq requested that the Commission waive the 30-day operative 
delay. The Commission believes that waiving the 30-day operative delay 
is consistent with the protection of investors and the public interest, 
because the extension will provide the Exchange with the additional 
time it requires to implement the Kill Switch program. The Commission 
further notes that Nasdaq's proposal to adopt the Kill Switch \13\ was 
approved by the Commission \14\ and that the extension of the 
implementation period does not affect the parameters of the Kill Switch 
program. For these reasons, the Commission designates the proposed rule 
change to be operative upon filing.\15\
---------------------------------------------------------------------------

    \13\ See note 3.
    \14\ See Securities Exchange Act Release No. 76123 (Oct. 9, 
2015), 80 FR 62591 (Oct. 16, 2015) (SR-NASDAQ-2015-096).
    \15\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).

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[[Page 1268]]

    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-NASDAQ-2015-163 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-NASDAQ-2015-163. 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-NASDAQ-2015-163 and should 
be submitted on or before February 1, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12) and (59).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-252 Filed 1-8-16; 8:45 am]
BILLING CODE 8011-01-P
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