Joint Industry Plan; Notice of Filing and Immediate Effectiveness of the Thirty-Ninth Amendment to the Joint Self-Regulatory Organization Plan Governing the Collection, Consolidation and Dissemination of Quotation and Transaction Information for Nasdaq-Listed Securities Traded on Exchanges on an Unlisted Trading Privileges Basis, 35571-35572 [2017-15999]
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Federal Register / Vol. 82, No. 145 / Monday, July 31, 2017 / Notices
35571
new opening rotation will operate. To
that extent, the new opening process
may promote transparency, reduce the
potential for investor confusion, and
assist market participants in deciding
whether to participate in MRX’s
opening rotation. Further, if they do
participate in the new opening process,
the proposed rule may help provide
market participants with the confidence
and certainty as to how their orders or
quotes will be processed.
Further, the Commission believes that
the proposed rule change is designed to
promote just and equitable principles of
trade by seeking to ensure that option
series open in a fair and orderly manner.
For example, the Commission notes that
the proposed rule change is designed to
mitigate the effects of the underlying
security’s volatility as the overlying
option series undergoes the opening
rotation. Specifically, the proposed rule
provides for a range of no less than 100
milliseconds and no more than 5
seconds in order to ensure that the
Exchange has the ability to adjust the
period for which the underlying must be
open on the primary market before the
opening process commences. Moreover,
the Commission notes that the proposed
rule provides an orderly process for
handling eligible interests during the
opening rotation, while seeking to avoid
opening executions at suboptimal
prices. For instance, the new process
ensures that the Exchange will not open
with the Exchange’s BBO if there is a
Zero Bid Market, no ABBO, and no
Quality Opening Market. Likewise, the
Exchange will not open an option series
with a trade unless one following
conditions is met: (1) The Potential
Opening Price is at or within the PreMarket BBO and the ABBO; (2) the
Potential Opening Price is at or within
the non-zero bid ABBO if the PreMarket BBO is crossed; or (3) where
there is no ABBO, the Potential Opening
Price is at or within the Pre-Market BBO
which is also a Quality Opening Market.
Finally, while the new opening process
attempts to maximize the number of
contracts executed on the Exchange
during such rotation, including by
seeking additional liquidity, if
necessary, the Commission notes that
the new opening process, unlike the
current process, takes into consideration
away market interests and ensures that
better away prices are not traded
through. For these reasons, the
Commission believes that the proposed
rule change, as modified by Amendment
No. 2, is consistent with the Act.
Continued
provisions of MRX Rule 713 and the
Supplementary Material to that rule
apply with respect to other orders and
quotes with the same price. Finally,
proposed Rule 701(l) provides that upon
the opening of the option series,
regardless of an execution, the system
will disseminate the price and size of
the Exchange’s best bid and offer.
sradovich on DSKBCFCHB2PROD with NOTICES
9. Implementation
The Exchange states that it intends to
begin implementation of the proposed
rule change in the third quarter of
2017.88 The Exchange represents that
migration of the Exchange system to
Nasdaq INET technology will be on a
symbol by symbol basis and that the
Exchange will issue an alert to Members
to provide notification of the symbols
that will migrate and the relevant
dates.89
III. Discussion and Commission
Findings
After careful review, the Commission
finds that the proposed rule change, as
modified by Amendment No. 2, is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.90 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,91 which requires,
among other things, that the rules of a
national securities exchange be
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
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.
The Exchange proposes to delete in its
entirety the current opening process and
replace it with an opening rotation
similar to the process in place on its
affiliated exchanges, Phlx, ISE Gemini,
and ISE. In making this change, the
Exchange delineates, unlike in the
current, more opaque rule, detailed
steps of the opening process. By
providing more clearly each sequence of
the opening process, the Commission
notes that the proposed rule helps
market participants understand how the
88 See
Notice, supra note 3, at 28113.
id. For a more detailed description of the
proposed rule change, see Notice, supra note 3.
90 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
91 15 U.S.C. 78f(b)(5).
89 See
VerDate Sep<11>2014
17:38 Jul 28, 2017
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PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,92 that the
proposed rule change (SR–MRX–2017–
01), as modified by Amendment No. 2,
be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.93
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–15995 Filed 7–28–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81198; File No. S7–24–89]
Joint Industry Plan; Notice of Filing
and Immediate Effectiveness of the
Thirty-Ninth Amendment to the Joint
Self-Regulatory Organization Plan
Governing the Collection,
Consolidation and Dissemination of
Quotation and Transaction Information
for Nasdaq-Listed Securities Traded on
Exchanges on an Unlisted Trading
Privileges Basis
July 25, 2017.
Pursuant to Section 11A of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 608 thereunder,2
notice is hereby given that on June 30,
2017, the Participants 3 in the Joint SelfRegulatory Organization Plan Governing
the Collection, Consolidation and
Dissemination of Quotation and
Transaction Information for NasdaqListed Securities Traded on Exchanges
on an Unlisted Trading Privileges Basis
(‘‘NASDAQ/UTP Plan’’ or ‘‘Plan’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) a proposal
to amend the NASDAQ/UTP Plan.4
92 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78k–1.
2 17 CFR 242.608.
3 The Participants are: Bats BYX Exchange, Inc.,
Bats BZX Exchange, Inc., Bats EDGA Exchange,
Inc., Bats EDGX Exchange, Inc., Chicago Board
Options Exchange, Inc., Chicago Stock Exchange,
Inc., Financial Industry Regulatory Authority, Inc.,
International Securities Exchange LLC, Investors’
Exchange LLC, NASDAQ BX, Inc., NASDAQ PHLX,
Inc., NASDAQ Stock Market LLC, New York Stock
Exchange LLC, NYSE Arca, Inc., NYSE MKT LLC,
and NYSE National, Inc. (collectively, the
‘‘Participants’’).
4 The Plan governs the collection, processing, and
dissemination on a consolidated basis of quotation
information and transaction reports in Eligible
Securities for each of its Participants. This
consolidated information informs investors of the
current quotation and recent trade prices of Nasdaq
securities. It enables investors to ascertain from one
data source the current prices in all the markets
trading Nasdaq securities. The Plan serves as the
93 17
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35572
Federal Register / Vol. 82, No. 145 / Monday, July 31, 2017 / Notices
These amendments represent
Amendment 39 to the NASDAQ/UTP
Plan (‘‘Amendments’’). The
Amendments propose to effectuate
changes that certain Participants have
made to their names and addresses, as
set forth in Section I(A) of the
NASDAQ/UTP Plan and to update the
listing of Participant identifying codes
set forth in Section VIII(C) of the Plan.
Pursuant to Rule 608(b)(3)(ii) under
Regulation NMS,5 the Participants
designate the Amendments as
concerned solely with the
administration of the Plans and as
‘‘Ministerial Amendments’’ under
Section XVI of the Nasdaq/UTP Plan. As
a result, the Amendments were effective
upon filing and were submitted by the
Chairman of the Plan’s Operating
Committee. The Commission is
publishing this notice to solicit
comments from interested persons on
the proposed Amendments.
I. Rule 608(a)
A. Purpose of the Amendments
The Amendments effectuate changes
that certain Participants have made to
their names and addresses, as set forth
in Section I(A) of the NASDAQ/UTP
Plan and to update the listing of
Participant identifying codes set forth in
Section VIII(C) of the Plan.
B. Governing or Constituent Documents
Not applicable.
C. Implementation of the Amendments
Because the Amendments constitute
‘‘Ministerial Amendments’’ under
Section XVI of the Nasdaq/UTP Plan,
the Chairman of the Plan’s Operating
Committee may submit the
Amendments to the Commission on
behalf of the Participants in the Plan.
Because the Participants have
designated the Amendments as
concerned solely with the
administration of the NASDAQ/UTP
Plan, the Amendments become effective
upon filing with the Commission.
sradovich on DSKBCFCHB2PROD with NOTICES
D. Development and Implementation
Phases
Not applicable.
required transaction reporting plan for its
Participants, which is a prerequisite for their
trading Eligible Securities. See Securities Exchange
Act Release No. 55647 (April 19, 2007), 72 FR
20891 (April 26, 2007).
5 17 CFR 242.608(b)(3)(ii).
17:38 Jul 28, 2017
Jkt 241001
F. Written Understanding or Agreements
Relating to Interpretation of, or
Participation in, Plan
Not applicable.
G. Approval by Sponsors in Accordance
With Plan
See Item I.C. above.
H. Description of Operation of Facility
Contemplated by the Proposed
Amendments
Not applicable.
I. Terms and Conditions of Access
Not applicable.
J. Method of Determination and
Imposition, and Amount of, Fees and
Charges
Not applicable.
K. Method and Frequency of Processor
Evaluation
Not applicable.
L. Dispute Resolution
Not applicable.
II. Rule 601(a)
A. Equity Securities for Which
Transaction Reports Shall Be Required
by the Plan
Not applicable.
B. Reporting Requirements
Not applicable.
C. Manner of Collecting, Processing,
Sequencing, Making Available and
Disseminating Last Sale Information
Not applicable.
D. Manner of Consolidation
Not applicable.
E. Standards and Methods Ensuring
Promptness, Accuracy and
Completeness of Transaction Reports
Not applicable
E. Analysis of Impact on Competition
The Participants assert that the
Amendments do not impose any burden
on competition because they merely
effectuate a change in the names and
addresses of certain Participants. For the
VerDate Sep<11>2014
same reasons, the Participants do not
believe that the Amendments introduce
terms that are unreasonably
discriminatory for purposes of Section
11A(c)(1)(D) of the Exchange Act.
F. Rules and Procedures Addressed to
Fraudulent or Manipulative
Dissemination
Not applicable.
G. Terms of Access to Transaction
Reports
Not applicable.
H. Identification of Marketplace of
Execution
PO 00000
Not applicable.
Frm 00066
Fmt 4703
III. Solicitation of Comments
The Commission seeks general
comments on the Amendments.
Interested persons are invited to submit
written data, views, and arguments
concerning the foregoing, including
whether the proposed Amendments are
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 S7–
24–89 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 S7–24–89. 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
Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all
written statements with respect to the
proposed Amendments that are filed
with the Commission, and all written
communications relating to the
proposed Amendments 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 Web site
viewing and printing at the principal
office of the Plans. 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 S7–24–89
and should be submitted on or before
August 21, 2017.
By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2017–15999 Filed 7–28–17; 8:45 am]
BILLING CODE 8011–01–P
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]]>Agencies
[Federal Register Volume 82, Number 145 (Monday, July 31, 2017)]
[Notices]
[Pages 35571-35572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-15999]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81198; File No. S7-24-89]
Joint Industry Plan; Notice of Filing and Immediate Effectiveness
of the Thirty-Ninth Amendment to the Joint Self-Regulatory Organization
Plan Governing the Collection, Consolidation and Dissemination of
Quotation and Transaction Information for Nasdaq-Listed Securities
Traded on Exchanges on an Unlisted Trading Privileges Basis
July 25, 2017.
Pursuant to Section 11A of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 608 thereunder,\2\ notice is hereby given that
on June 30, 2017, the Participants \3\ in the Joint Self-Regulatory
Organization Plan Governing the Collection, Consolidation and
Dissemination of Quotation and Transaction Information for Nasdaq-
Listed Securities Traded on Exchanges on an Unlisted Trading Privileges
Basis (``NASDAQ/UTP Plan'' or ``Plan'') filed with the Securities and
Exchange Commission (``Commission'') a proposal to amend the NASDAQ/UTP
Plan.\4\
[[Page 35572]]
These amendments represent Amendment 39 to the NASDAQ/UTP Plan
(``Amendments''). The Amendments propose to effectuate changes that
certain Participants have made to their names and addresses, as set
forth in Section I(A) of the NASDAQ/UTP Plan and to update the listing
of Participant identifying codes set forth in Section VIII(C) of the
Plan. Pursuant to Rule 608(b)(3)(ii) under Regulation NMS,\5\ the
Participants designate the Amendments as concerned solely with the
administration of the Plans and as ``Ministerial Amendments'' under
Section XVI of the Nasdaq/UTP Plan. As a result, the Amendments were
effective upon filing and were submitted by the Chairman of the Plan's
Operating Committee. The Commission is publishing this notice to
solicit comments from interested persons on the proposed Amendments.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78k-1.
\2\ 17 CFR 242.608.
\3\ The Participants are: Bats BYX Exchange, Inc., Bats BZX
Exchange, Inc., Bats EDGA Exchange, Inc., Bats EDGX Exchange, Inc.,
Chicago Board Options Exchange, Inc., Chicago Stock Exchange, Inc.,
Financial Industry Regulatory Authority, Inc., International
Securities Exchange LLC, Investors' Exchange LLC, NASDAQ BX, Inc.,
NASDAQ PHLX, Inc., NASDAQ Stock Market LLC, New York Stock Exchange
LLC, NYSE Arca, Inc., NYSE MKT LLC, and NYSE National, Inc.
(collectively, the ``Participants'').
\4\ The Plan governs the collection, processing, and
dissemination on a consolidated basis of quotation information and
transaction reports in Eligible Securities for each of its
Participants. This consolidated information informs investors of the
current quotation and recent trade prices of Nasdaq securities. It
enables investors to ascertain from one data source the current
prices in all the markets trading Nasdaq securities. The Plan serves
as the required transaction reporting plan for its Participants,
which is a prerequisite for their trading Eligible Securities. See
Securities Exchange Act Release No. 55647 (April 19, 2007), 72 FR
20891 (April 26, 2007).
\5\ 17 CFR 242.608(b)(3)(ii).
---------------------------------------------------------------------------
I. Rule 608(a)
A. Purpose of the Amendments
The Amendments effectuate changes that certain Participants have
made to their names and addresses, as set forth in Section I(A) of the
NASDAQ/UTP Plan and to update the listing of Participant identifying
codes set forth in Section VIII(C) of the Plan.
B. Governing or Constituent Documents
Not applicable.
C. Implementation of the Amendments
Because the Amendments constitute ``Ministerial Amendments'' under
Section XVI of the Nasdaq/UTP Plan, the Chairman of the Plan's
Operating Committee may submit the Amendments to the Commission on
behalf of the Participants in the Plan. Because the Participants have
designated the Amendments as concerned solely with the administration
of the NASDAQ/UTP Plan, the Amendments become effective upon filing
with the Commission.
D. Development and Implementation Phases
Not applicable.
E. Analysis of Impact on Competition
The Participants assert that the Amendments do not impose any
burden on competition because they merely effectuate a change in the
names and addresses of certain Participants. For the same reasons, the
Participants do not believe that the Amendments introduce terms that
are unreasonably discriminatory for purposes of Section 11A(c)(1)(D) of
the Exchange Act.
F. Written Understanding or Agreements Relating to Interpretation of,
or Participation in, Plan
Not applicable.
G. Approval by Sponsors in Accordance With Plan
See Item I.C. above.
H. Description of Operation of Facility Contemplated by the Proposed
Amendments
Not applicable.
I. Terms and Conditions of Access
Not applicable.
J. Method of Determination and Imposition, and Amount of, Fees and
Charges
Not applicable.
K. Method and Frequency of Processor Evaluation
Not applicable.
L. Dispute Resolution
Not applicable.
II. Rule 601(a)
A. Equity Securities for Which Transaction Reports Shall Be Required by
the Plan
Not applicable.
B. Reporting Requirements
Not applicable.
C. Manner of Collecting, Processing, Sequencing, Making Available and
Disseminating Last Sale Information
Not applicable.
D. Manner of Consolidation
Not applicable.
E. Standards and Methods Ensuring Promptness, Accuracy and Completeness
of Transaction Reports
Not applicable
F. Rules and Procedures Addressed to Fraudulent or Manipulative
Dissemination
Not applicable.
G. Terms of Access to Transaction Reports
Not applicable.
H. Identification of Marketplace of Execution
Not applicable.
III. Solicitation of Comments
The Commission seeks general comments on the Amendments. Interested
persons are invited to submit written data, views, and arguments
concerning the foregoing, including whether the proposed Amendments are
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 S7-24-89 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 S7-24-89. 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 Web site (https://www.sec.gov/rules/sro.shtml). Copies of
the submission, all written statements with respect to the proposed
Amendments that are filed with the Commission, and all written
communications relating to the proposed Amendments 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 Web site viewing and printing at
the principal office of the Plans. 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 S7-24-89 and should be submitted on or before August 21,
2017.
By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2017-15999 Filed 7-28-17; 8:45 am]
BILLING CODE 8011-01-P
