Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delay the Implementation of the Limit Order Protection, 95241-95243 [2016-31101]
Download as PDF
<![CDATA[
Federal Register / Vol. 81, No. 248 / Tuesday, December 27, 2016 / Notices
market makers that meet heightened
quoting obligations.59
Finally, a commenter asserts that due
to the implementation of the LTAD
through software, rather than hardware,
the indeterminacy of the delay may
result in the LTAD producing delays
inconsistent with the Commission’s
‘‘speed bump guidelines.’’ 60 In
response, the Exchange states that
system messaging delays and variable
message queuing are irrelevant, stating
that they exist today in every market
that utilizes a continuous limit order
book to rank and match orders and are
a function of finite network and
processing resources.61 The commenter
responds in turn that implementing the
LTAD through software could create
opportunities for delays and queuing,
and that the Exchange should outline
how it plans to surveil for and
remediate any implementation issues.62
asabaliauskas on DSK3SPTVN1PROD with NOTICES
IV. Proceedings To Determine Whether
To Approve or Disapprove SR–CHX–
2016–16 and Grounds for Disapproval
Under Consideration
The Commission is instituting
proceedings pursuant to Section
19(b)(2)(B) of the Exchange Act 63 to
determine whether the proposed rule
change should be approved or
disapproved. Institution of such
proceedings is appropriate at this time
in view of the legal and policy issues
raised by the proposed rule change.
Institution of proceedings does not
indicate that the Commission has
reached any conclusions with respect to
any of the issues involved. Rather, as
stated below, the Commission seeks and
encourages interested persons to
provide comments on the proposed rule
change.
Pursuant to Section 19(b)(2)(B) of the
Exchange Act,64 the Commission is
providing notice of the grounds for
disapproval under consideration. The
Commission is instituting proceedings
to allow for additional analysis of the
proposed rule change’s consistency with
Section 6(b)(5) of the Exchange Act,
which requires, among other things, that
the rules of a national securities
exchange not be designed to permit
unfair discrimination between
customers, issuers, brokers, or dealers 65
and Section 6(b)(8) of the Exchange Act,
which requires that the rules of a
national securities exchange not impose
59 See
CTC Letter, supra note 6, at 6.
Leuchtkafer Letter 1, supra note 6, at 1.
61 See CHX Response, supra note 6, at 15.
62 See Leuchtkafer Letter 2, supra note 6, at 2.
63 15 U.S.C. 78s(b)(2)(B).
64 Id.
65 15 U.S.C. 78f(b)(5).
60 See
VerDate Sep<11>2014
20:45 Dec 23, 2016
Jkt 241001
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Exchange Act.
IV. Procedure: Request for Written
Comments
The Commission requests that
interested persons provide written
submissions of their views, data, and
arguments with respect to the issues
identified above, as well as any other
concerns they may have with the
proposal. In particular, the Commission
invites the written views of interested
persons concerning whether the
proposal is consistent with Sections
6(b)(5), 6(b)(8), or any other provision of
the Exchange Act, or the rules and
regulations thereunder. Although there
do not appear to be any issues relevant
to approval or disapproval that would
be facilitated by an oral presentation of
views, data, and arguments, the
Commission will consider, pursuant to
Rule 19b-4, any request for an
opportunity to make an oral
presentation.66
Interested persons are invited to
submit written data, views, and
arguments regarding whether the
proposal should be approved or
disapproved by January 17, 2017. Any
person who wishes to file a rebuttal to
any other person’s submission must file
that rebuttal by January 31, 2017. The
Commission asks that commenters
address the sufficiency of the
Exchange’s statements in support of the
proposal, in addition to any other
comments they may wish to submit
about the proposed rule change.
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–
CHX–2016–16 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
Numbers SR–CHX–2016–16. This file
66 Section 19(b)(2) of the Exchange Act, as
amended by the Securities Act Amendments of
1975, Public Law 94–29 (June 4, 1975), grants the
Commission flexibility to determine what type of
proceeding—either oral or notice and opportunity
for written comments—is appropriate for
consideration of a particular proposal by a selfregulatory organization. See Securities Act
Amendments of 1975, Senate Comm. on Banking,
Housing & Urban Affairs, S. Rep. No. 75, 94th
Cong., 1st Sess. 30 (1975).
PO 00000
Frm 00144
Fmt 4703
Sfmt 4703
95241
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 these
filings 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–CHX–
2016–16 and should be submitted on or
before January 17, 2017]. Rebuttal
comments should be submitted by
January 31, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.67
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016–31100 Filed 12–23–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79609; File No. SR–BX–
2016–072]
Self-Regulatory Organizations;
NASDAQ BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Delay the
Implementation of the Limit Order
Protection
December 20, 2016.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
67 17
CFR 200.30–3(a)(57).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\27DEN1.SGM
27DEN1
95242
Federal Register / Vol. 81, No. 248 / Tuesday, December 27, 2016 / Notices
notice is hereby given that on December
16, 2016, NASDAQ BX, Inc. (‘‘BX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III, below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to delay the
implementation of the Limit Order
Protection or ‘‘LOP’’ for members
accessing the BX Market Center.
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
asabaliauskas on DSK3SPTVN1PROD with NOTICES
1. Purpose
The purpose of the proposal is to
delay the implementation of the
Exchange’s mechanism to protect
against erroneous Limit Orders, which
are entered into BX Market Center, at
Rule 4757(d).3 The Exchange received
approval to implement this mechanism
on August 24, 2016.4 Within that rule
change, the Exchanges proposed to
implement LOP within ninety days of
the approval of the proposal, which was
November 22, 2016.5 The Exchange
subsequently filed a modification to the
original proposal and delayed the
implementation an additional sixty (60)
3 See Securities Exchange Act Release No. 78246
(August 24, 2016), 81 FR 59672 (August 30, 2016)
(SR–BX–2016–037). See also Securities Exchange
Act Release No. 79329 (November 16, 2016), 81 FR
83902 (November 22, 2016) (SR–BX–2016–058).
4 See Securities Exchange Act Release No. 78246
(August 24, 2016), 81 FR 59672 (August 30, 2016)
(SR–BX–2016–037) (Notice of Filing of
Amendments No. 1 and Order Granting Accelerated
Approval of Proposed Rule Changes, as Modified by
Amendments No. 1, To Adopt Limit Order
Protections).
5 Id at 45321.
VerDate Sep<11>2014
20:45 Dec 23, 2016
Jkt 241001
days from the original timeframe in
order to implement the LOP, which was
January 21, 2017.6
At this time the Exchange proposes to
delay the implementation from January
21, 2017 until a date no later than
March 31, 2017 in order to allow
additional time to complete testing. The
Exchange will announce the specific
date in advance through an Equities
Trader Alert. For more information
regarding LOP see the previous LOP
rule changes.7
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 8 in general, and furthers the
objectives of Section 6(b)(5) of the Act 9
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
permitting the Exchange additional time
to implement the LOP in accordance
with the Exchange’s processes. The
Exchange’s proposal does not
significantly affect the protection of
investors or the public interest because
this proposal does not modify the
manner in which LOP operates, only the
implementation date is impacted. The
Exchange will provide advance notice to
members with respect to the new date.
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
Exchange’s proposal does not impose
any significant burden on competition
because LOP will apply to all BX market
participants in a uniform manner once
implemented.
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.
6 See Securities Exchange Act Release No. 79329
(November 16, 2016), 81 FR 83902 (November 22,
2016) (SR–BX–2016–058) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
To Amend the Limit Order Protection).
7 See note 3 above.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00145
Fmt 4703
Sfmt 4703
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)(iii) of the Act 10 and
subparagraph (f)(6) of Rule 19b–4
thereunder.11
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–2016–072 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BX–2016–072. 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/
10 15
U.S.C. 78s(b)(3)(A)(iii).
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.
11 17
E:\FR\FM\27DEN1.SGM
27DEN1
Federal Register / Vol. 81, No. 248 / Tuesday, December 27, 2016 / 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–
2016–072 and should be submitted on
or before January 17, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016–31101 Filed 12–23–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79616; File No. SR–
NASDAQ–2016–171]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
4770 (Compliance With Regulation
NMS Plan To Implement a Tick Size
Pilot)
asabaliauskas on DSK3SPTVN1PROD with NOTICES
December 20, 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
13, 2016, 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
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
20:45 Dec 23, 2016
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 4770 (Compliance with Regulation
NMS Plan to Implement a Tick Size
Pilot) relating to the handling to certain
Order Types in Test Group Three Pilot
Securities in connection with the
Regulation NMS Plan to Implement a
Tick Size Pilot Program (‘‘Plan’’ or
‘‘Pilot’’).3 Relatedly, Nasdaq also
proposes to delete Commentary .14,
which addresses the current handling of
those Order Types. Finally, Nasdaq
proposes to add language to Rule
4770(d)(1) to clarify the treatment of
orders in a Test Group Three Security
entered through the RASH, QIX or FIX
protocols.
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
On September 7, 2016, The Nasdaq
Stock Market LLC (‘‘Nasdaq’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) a proposed rule change
(‘‘Proposal’’) to adopt paragraph (d) and
Commentary .12 to Exchange Rule 4770
to describe changes to system
functionality necessary to implement
the Plan. The Exchange also proposed
amendments to Rule 4770(a) and (c) to
clarify how the Trade-at exception may
3 See Securities Exchange Act Release No. 74892
(May 6, 2015), 80 FR 27513 (May 13, 2015)
(‘‘Approval Order’’).
1 15
VerDate Sep<11>2014
notice to solicit comments on the
proposed rule change from interested
persons.
Jkt 241001
PO 00000
Frm 00146
Fmt 4703
Sfmt 4703
95243
be satisfied. The SEC published the
Proposal in the Federal Register for
notice and comment on September 20,
2016.4 Nasdaq subsequently filed three
Partial Amendments to clarify aspects of
the Proposal. The Commission approved
the Proposal, as amended, on October 7,
2016.5
In SR–NASDAQ–2016–126, Nasdaq
had initially proposed a re-pricing
functionality for Price to Comply
Orders, Non-Displayed Orders, and
Post-Only Orders entered through the
OUCH and FLITE protocols in Test
Group Three Pilot securities.6 Nasdaq
subsequently determined that it would
not offer this re-pricing functionality for
Price to Comply Orders, Non-Displayed
Orders, and Post-Only Orders entered
through the OUCH and FLITE protocols
in Test Group Three Pilot securities. As
part of Partial Amendment No. 2 to SR–
NASDAQ–2016–126, Nasdaq proposed
to delete the relevant language from
Rule 4770 related to this re-pricing
functionality.
In that amendment, Nasdaq noted that
this change would only impact the
treatment of Price to Comply Orders,
Non-Displayed Orders, and Post-Only
orders that are submitted through the
OUCH and FLITE protocols in Test
Group Three Pilot Securities, as these
types of Orders that are currently
submitted to Nasdaq through the RASH,
QIX or FIX protocols are already subject
to this re-pricing functionality and will
remain subject to this functionality
under the Pilot.
In the Amendment, Nasdaq further
noted that its systems are currently
programmed so that Price to Comply
Orders, Non-Displayed Orders and PostOnly Orders entered through the OUCH
and FLITE protocols in Test Group
Three Pilot Securities may be adjusted
repeatedly to reflect changes to the
NBBO and/or the best price on the
4 See Securities Exchange Act Release No. 78837
(September 14, 2016), 81 FR 64544 (September 20,
2016) (Notice of filing of SR–NASDAQ–2016–126).
5 See Securities Exchange Act Release No. 79075
(October 7, 2016) (Order approving SR–NASDAQ–
2016–126).
6 As originally proposed, Rule 4770(d)(2) stated
that Price to Comply Orders in a Test Group Three
Pilot Security will be adjusted repeatedly in
accordance with changes to the NBBO until such
time as the Price to Comply Order is able to be
ranked and displayed at its original entered limit
price. Rule 4770(d)(3) stated that, if market
conditions allow, a Non-Displayed Order in a Test
Group Three Pilot Security will be adjusted
repeatedly in accordance with changes to the NBBO
up (down) to the Order’s limit price. Rule
4770(d)(4) stated that, if market conditions allow,
the Post-Only Order in a Test Group Three Pilot
Security will be adjusted repeatedly in accordance
with changes to the NBBO or the best price on the
Nasdaq Book, as applicable until such time as the
Post-Only Order is able to be ranked and displayed
at its original entered limit price.
E:\FR\FM\27DEN1.SGM
27DEN1
]]>Agencies
[Federal Register Volume 81, Number 248 (Tuesday, December 27, 2016)]
[Notices]
[Pages 95241-95243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31101]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79609; File No. SR-BX-2016-072]
Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Delay the
Implementation of the Limit Order Protection
December 20, 2016.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\
[[Page 95242]]
notice is hereby given that on December 16, 2016, NASDAQ 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 delay the implementation of the Limit
Order Protection or ``LOP'' for members accessing the BX Market Center.
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 delay the implementation of the
Exchange's mechanism to protect against erroneous Limit Orders, which
are entered into BX Market Center, at Rule 4757(d).\3\ The Exchange
received approval to implement this mechanism on August 24, 2016.\4\
Within that rule change, the Exchanges proposed to implement LOP within
ninety days of the approval of the proposal, which was November 22,
2016.\5\ The Exchange subsequently filed a modification to the original
proposal and delayed the implementation an additional sixty (60) days
from the original timeframe in order to implement the LOP, which was
January 21, 2017.\6\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 78246 (August 24,
2016), 81 FR 59672 (August 30, 2016) (SR-BX-2016-037). See also
Securities Exchange Act Release No. 79329 (November 16, 2016), 81 FR
83902 (November 22, 2016) (SR-BX-2016-058).
\4\ See Securities Exchange Act Release No. 78246 (August 24,
2016), 81 FR 59672 (August 30, 2016) (SR-BX-2016-037) (Notice of
Filing of Amendments No. 1 and Order Granting Accelerated Approval
of Proposed Rule Changes, as Modified by Amendments No. 1, To Adopt
Limit Order Protections).
\5\ Id at 45321.
\6\ See Securities Exchange Act Release No. 79329 (November 16,
2016), 81 FR 83902 (November 22, 2016) (SR-BX-2016-058) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
the Limit Order Protection).
---------------------------------------------------------------------------
At this time the Exchange proposes to delay the implementation from
January 21, 2017 until a date no later than March 31, 2017 in order to
allow additional time to complete testing. The Exchange will announce
the specific date in advance through an Equities Trader Alert. For more
information regarding LOP see the previous LOP rule changes.\7\
---------------------------------------------------------------------------
\7\ See note 3 above.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \8\ in general, and furthers the objectives of Section
6(b)(5) of the Act \9\ 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 permitting the Exchange additional time to implement the LOP in
accordance with the Exchange's processes. The Exchange's proposal does
not significantly affect the protection of investors or the public
interest because this proposal does not modify the manner in which LOP
operates, only the implementation date is impacted. The Exchange will
provide advance notice to members with respect to the new date.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 Exchange's proposal does
not impose any significant burden on competition because LOP will apply
to all BX market participants in a uniform manner once implemented.
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)(iii) of the Act \10\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\11\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 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.
---------------------------------------------------------------------------
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-2016-072 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BX-2016-072. 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 95243]]
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-
2016-072 and should be submitted on or before January 17, 2017.
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016-31101 Filed 12-23-16; 8:45 am]
BILLING CODE 8011-01-P
