Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Update Public Disclosure of Exchange Usage of Market Data, 50041-50042 [2016-17908]
Download as PDF
<![CDATA[
50041
Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.35
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–17910 Filed 7–28–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78405; File No. SR–BX–
2016–04]
Self-Regulatory Organizations;
NASDAQ BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Update Public
Disclosure of Exchange Usage of
Market Data
July 25, 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 July 12,
2016, NASDAQ BX, Inc. (‘‘BX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to update
Exchange Rule 4759 and to amend the
public disclosure of the sources of data
that the Exchange utilizes when
performing (1) order handling and
execution; (2) order routing; and (3)
related compliance processes.
The text of the proposed rule change
is below. Proposed new language is
italicized.
*
*
*
*
*
4759. Data Feeds Utilized
The BX System utilizes the below
proprietary and network processor feeds
for the handling, routing, and execution
of orders, as well as for the regulatory
compliance processes related to those
functions. The Secondary Source of data
is, where applicable, utilized only in
emergency market conditions and only
until those emergency conditions are
resolved.
Market center
Primary source
A—NYSE MKT (AMEX) ....................................................
B—NASDAQ OMX BX .....................................................
C—NSX ............................................................................
D—FINRA ADF .................................................................
J—DirectEdge A ...............................................................
K—DirectEdge X ...............................................................
M—CHX ............................................................................
N—NYSE ..........................................................................
P—NYSE Arca ..................................................................
T/Q—NASDAQ .................................................................
V—IEX ..............................................................................
X—NASDAQ OMX PSX ...................................................
Y—BATS Y-Exchange ......................................................
Z—BATS Exchange ..........................................................
NYSE MKT OpenBook Ultra ...........................................
BX ITCH 5.0 ....................................................................
CQS/UQDF .....................................................................
CQS/UQDF .....................................................................
BATS PITCH ...................................................................
BATS PITCH ...................................................................
CHX Book Feed ..............................................................
NYSE OpenBook Ultra ....................................................
NYSE ARCA XDP ...........................................................
ITCH 5.0 ..........................................................................
CQS/UQDF .....................................................................
PSX ITCH 5.0 .................................................................
BATS PITCH ...................................................................
BATS PITCH ...................................................................
*
*
*
*
*
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaqbx.cchwallstreet.com/,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
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.
1 15
2 17
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to update and
amend the table in Exchange Rule 4759
that sets forth on a market-by-market
basis the specific network processor and
proprietary data feeds that the Exchange
utilizes for the handling, routing, and
execution of orders, and for performing
the regulatory compliance checks
related to each of those functions.
Specifically, the table will be
amended to include Investors’ Exchange
LLC (‘‘IEX’’), which has informed the
UTP Securities Information Processor
(‘‘UTP SIP’’) that it is projecting to
activate its status as an operating
participant for quotation and trading of
Nasdaq-listed securities under the
Unlisted Trading Privileges (‘‘UTP’’)
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Sep<11>2014
18:42 Jul 28, 2016
3 15
4 15
Jkt 238001
PO 00000
Secondary source
Plan on or about August 1, 2016. The
primary source will be CQS/UQDF and
there is no secondary source provided.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,3
in general and with Sections [sic] 6(b)(5)
of the Act,4 in particular in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
U.S.C. 78f.
U.S.C. 78f(b)(5).
Frm 00120
Fmt 4703
Sfmt 4703
CQS/UQDF.
CQS/UQDF.
n/a.
n/a.
CQS/UQDF.
CQS/UQDF.
CQS/UQDF.
CQS/UQDF.
CQS/UQDF.
CQS/UQDF.
n/a.
CQS/UQDF.
CQS/UQDF.
CQS/UQDF.
E:\FR\FM\29JYN1.SGM
29JYN1
50042
Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Notices
The Exchange believes that its
proposal to update the table in
Exchange Rule 4759 to include IEX will
ensure that Exchange Rule 4759
correctly identifies and publicly states
on a market-by-market basis all of the
specific network processor and
proprietary data feeds that the Exchange
utilizes for the handling, routing, and
execution of orders, and for performing
the regulatory compliance checks
related to each of those functions. Also,
the proposed rule change removes
impediments to and perfects the
mechanism of a free and open market
and protects investors and the public
interest because it provides additional
specificity, clarity and transparency.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
To the contrary, the Exchange believes
the proposal would enhance
competition because including all of the
exchanges and the correct information
for the exchanges enhances
transparency and enables investors to
better assess the quality of the
Exchange’s execution and routing
services.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) 5 of the Act and Rule 19b–
4(f)(6) thereunder.6
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
15 U.S.C. 78s(b)(3)(A).
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, along with a brief
description and the 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.
5
6
VerDate Sep<11>2014
18:42 Jul 28, 2016
Jkt 238001
Act 7 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 8
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 asked
the Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange states that waiver
of the 30-day operative delay would
permit the Exchange to immediately
enhance transparency and to
accommodate the projected date that
IEX will activate its status as an
operating participant for quotation and
trading of Nasdaq-listed securities under
the UTP Plan. Based on the foregoing,
the Commission believes the waiver of
the operative delay is consistent with
the protection of investors and the
public interest. Therefore, the
Commission hereby waives the
operative delay and designates the
proposal operative upon filing.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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
All submissions should refer to File
Number SR–BX–2016–044. 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–
2016–044, and should be submitted on
or before August 19, 2016.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Robert W. Errett,
Deputy Secretary.
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BX–2016–044 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 CFR 240.19b–4(f)(6).
17 CFR 240.19b–4(f)(6)(iii).
9 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).
PO 00000
7
8
Frm 00121
Fmt 4703
Sfmt 4703
[FR Doc. 2016–17908 Filed 7–28–16; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #14779 and #14780]
Virginia Disaster #VA–00064
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a notice of an
Administrative declaration of a disaster
for the State of Virginia dated 07/22/
2016.
Incident: Severe storms and flooding.
Incident Period: 06/23/2016.
Effective Date: 07/22/2016.
Physical Loan Application Deadline
Date: 09/20/2016.
SUMMARY:
10
17 CFR 200.30–3(a)(12).
E:\FR\FM\29JYN1.SGM
29JYN1
]]>Agencies
[Federal Register Volume 81, Number 146 (Friday, July 29, 2016)]
[Notices]
[Pages 50041-50042]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17908]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-78405; File No. SR-BX-2016-04]
Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Update Public
Disclosure of Exchange Usage of Market Data
July 25, 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 July 12, 2016, NASDAQ BX, Inc. (``BX'' or ``Exchange'') filed with
the Securities and Exchange Commission (``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 update Exchange Rule 4759 and to amend the
public disclosure of the sources of data that the Exchange utilizes
when performing (1) order handling and execution; (2) order routing;
and (3) related compliance processes.
The text of the proposed rule change is below. Proposed new
language is italicized.
* * * * *
4759. Data Feeds Utilized
The BX System utilizes the below proprietary and network processor
feeds for the handling, routing, and execution of orders, as well as
for the regulatory compliance processes related to those functions. The
Secondary Source of data is, where applicable, utilized only in
emergency market conditions and only until those emergency conditions
are resolved.
------------------------------------------------------------------------
Market center Primary source Secondary source
------------------------------------------------------------------------
A--NYSE MKT (AMEX)............ NYSE MKT OpenBook CQS/UQDF.
Ultra.
B--NASDAQ OMX BX.............. BX ITCH 5.0........... CQS/UQDF.
C--NSX........................ CQS/UQDF.............. n/a.
D--FINRA ADF.................. CQS/UQDF.............. n/a.
J--DirectEdge A............... BATS PITCH............ CQS/UQDF.
K--DirectEdge X............... BATS PITCH............ CQS/UQDF.
M--CHX........................ CHX Book Feed......... CQS/UQDF.
N--NYSE....................... NYSE OpenBook Ultra... CQS/UQDF.
P--NYSE Arca.................. NYSE ARCA XDP......... CQS/UQDF.
T/Q--NASDAQ................... ITCH 5.0.............. CQS/UQDF.
V--IEX........................ CQS/UQDF.............. n/a.
X--NASDAQ OMX PSX............. PSX ITCH 5.0.......... CQS/UQDF.
Y--BATS Y-Exchange............ BATS PITCH............ CQS/UQDF.
Z--BATS Exchange.............. BATS PITCH............ CQS/UQDF.
------------------------------------------------------------------------
* * * * *
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaqbx.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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to update and amend the table in Exchange
Rule 4759 that sets forth on a market-by-market basis the specific
network processor and proprietary data feeds that the Exchange utilizes
for the handling, routing, and execution of orders, and for performing
the regulatory compliance checks related to each of those functions.
Specifically, the table will be amended to include Investors'
Exchange LLC (``IEX''), which has informed the UTP Securities
Information Processor (``UTP SIP'') that it is projecting to activate
its status as an operating participant for quotation and trading of
Nasdaq-listed securities under the Unlisted Trading Privileges
(``UTP'') Plan on or about August 1, 2016. The primary source will be
CQS/UQDF and there is no secondary source provided.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\3\ in general and with
Sections [sic] 6(b)(5) of the Act,\4\ in particular in that it is
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f.
\4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
[[Page 50042]]
The Exchange believes that its proposal to update the table in
Exchange Rule 4759 to include IEX will ensure that Exchange Rule 4759
correctly identifies and publicly states on a market-by-market basis
all of the specific network processor and proprietary data feeds that
the Exchange utilizes for the handling, routing, and execution of
orders, and for performing the regulatory compliance checks related to
each of those functions. Also, the proposed rule change removes
impediments to and perfects the mechanism of a free and open market and
protects investors and the public interest because it provides
additional specificity, clarity and transparency.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended. To
the contrary, the Exchange believes the proposal would enhance
competition because including all of the exchanges and the correct
information for the exchanges enhances transparency and enables
investors to better assess the quality of the Exchange's execution and
routing services.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) \5\ of the Act and Rule 19b-
4(f)(6) thereunder.\6\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 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, along
with a brief description and the 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.
---------------------------------------------------------------------------
A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \7\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \8\ 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 asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The Exchange
states that waiver of the 30-day operative delay would permit the
Exchange to immediately enhance transparency and to accommodate the
projected date that IEX will activate its status as an operating
participant for quotation and trading of Nasdaq-listed securities under
the UTP Plan. Based on the foregoing, the Commission believes the
waiver of the operative delay is consistent with the protection of
investors and the public interest. Therefore, the Commission hereby
waives the operative delay and designates the proposal operative upon
filing.\9\
---------------------------------------------------------------------------
\7\ 17 CFR 240.19b-4(f)(6).
\8\ 17 CFR 240.19b-4(f)(6)(iii).
\9\ 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).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BX-2016-044 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-2016-044. 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-2016-044, and should be
submitted on or before August 19, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-17908 Filed 7-28-16; 8:45 am]
BILLING CODE 8011-01-P
