Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Memorialize Order and Execution Information Into GEMX Rule 718, 26728-26731 [2018-12317]
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Federal Register / Vol. 83, No. 111 / Friday, June 8, 2018 / Notices
subparagraph (f)(6) of Rule 19b–4
thereunder.10
A proposed rule change filed under
Rule 19b–4(f)(6) 11 normally does not
become operative prior to 30 days after
the date of the filing. However, Rule
19b–4(f)(6)(iii) 12 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 proposed
rule change may become effective and
operative immediately upon filing. The
Exchange states that it believes the
waiver will further the protection of
investors and the public interest
because it will provide greater
transparency as to various ports
available to market participants. The
Exchange further states that the
proposed rule change will bring greater
clarity to the Schedule of Fees. The
Commission believes that waiver of the
30-day operative delay is consistent
with the protection of investors and the
public interest. Therefore, the
Commission hereby waives the 30-day
operative delay and designates the
proposed rule change as operative upon
filing.13
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
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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:
10 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.
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
13 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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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–
GEMX–2018–18 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–GEMX–2018–18. 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 website (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 website 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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–GEMX–2018–18 and
should be submitted on or before June
29, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–12321 Filed 6–7–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83365; File No. SR–GEMX–
2018–17]
Self-Regulatory Organizations; Nasdaq
GEMX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Memorialize Order and
Execution Information Into GEMX Rule
718
June 4, 2018.
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 May 23,
2018, Nasdaq GEMX, LLC (‘‘GEMX’’ 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. Regulatory Organization’s Statement
of the Terms of Substance of the
Proposed Rule Change
The Exchange proposes to
memorialize its order and execution
information into GEMX Rule 718,
entitled ‘‘Data Feeds.’’
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaqgemx.cchwallstreet.com/,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to add order
and execution information into GEMX
1 15
14 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Rule 718, entitled ‘‘Data Feeds.’’ The
Exchange proposes to rename this rule
‘‘Data Feeds and Trade Information.’’
The Exchange also proposes to amend
Rule 100 to add definitions.
GEMX Rule 718(a)
The Exchange proposes to amend the
Nasdaq GEMX Top Quote Feed. The
Exchange stated in that description that
this feed calculates and disseminates
GEMX’s best bid and offer position,
with aggregated size (including total
size in aggregate, for Public Customer 3
size in the aggregate and Priority
Customer 4 size in the aggregate), based
on displayable order and quote interest
in the System. The Exchange proposes
to amend this rule text to instead
provide, ‘‘this feed calculates and
disseminates GEMX’s best bid and offer
position, with aggregated size (including
total size in aggregate, for Professional
Order 5 size in the aggregate and Priority
Customer Order size in the aggregate),
based on displayable order and quote
interest in the System.’’ The Exchange
intended to specify that Professional
Orders and Priority Customer Orders are
segregated and aggregated. The Public
Customer definition is too broad
because it includes a portion of Priority
Customer, which was already specified
within the description. The Exchange
proposes to remove Public Customer
and replace it with Professional Order to
be more specific and amend Priority
Customer to Priority Customer Order to
reference the types of orders that are
aggregated to conform the rule text.
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GEMX Rule 718(b)
The Exchange proposes to add its
order and execution information into
GEMX Rule 718, entitled ‘‘Data Feeds.’’
The Exchange proposes to rename this
rule ‘‘Data Feeds and Trade
Information.’’ The Exchange also
proposes to amend Rule 100 to add
definitions.
The Exchange proposes to adopt a
new GEMX Rule 718(b) and
memorialize the following order and
execution information which was
discussed in other rule filings by the
Exchange: (i) Clearing Trade
3 The term ‘‘Public Customer’’ means a person or
entity that is not a broker or dealer in securities. See
Rule 100(a)(44).
4 The term ‘‘Priority Customer’’ means a person
or entity that (i) is not a broker or dealer in
securities, and (ii) does not place more than 390
orders in listed options per day on average during
a calendar month for its own beneficial account(s).
See 100(a)(41A). The term ‘‘Priority Customer
Order’’ means an order for the account of a Priority
Customer. See Rule 100(a)(43A).
5 The term ‘‘Professional Order’’ means an order
that is for the account of a person or entity that is
not a Priority Customer. See Rule 100(a)(43C).
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Information or ‘‘CTI’’; and (ii) FIX
DROP.6 The Exchange is also adding a
description for TradeInfo. The TradeInfo
user interface is being offered today on
GEMX at no cost.
The Exchange notes that while CTI
and FIX Drop information are accessible
through a port, TradeInfo is an interface.
The Exchange notes this distinction to
make clear the manner of delivery for
each of these information types.
CTI
The Exchange stated in its Prior Filing
that ‘‘CTI is a real-time clearing trade
message that is sent to a Member after
an execution has occurred and contains
trade details. The message containing
the trade details is also simultaneously
sent to The Options Clearing
Corporation. The information includes,
among other things, the following: (i)
The Clearing Member Trade Agreement
or ‘‘CMTA’’ or The Options Clearing
Corporation or ‘‘OCC’’ number; (ii)
Exchange badge or house number; (iii)
the Exchange internal firm identifier;
and (iv) an indicator which will
distinguish electronic and nonelectronically delivered orders; (v)
liquidity indicators and transaction type
for billing purposes; (vi) capacity.’’ 7
The Exchange is proposing to amend
the CTI description and memorialize it
within GEMX Rule 718(b)(1). The
Exchange proposes to eliminate the
sentence which states, ‘‘The message
containing the trade details is also
simultaneously sent to The Options
Clearing Corporation.’’ The Exchange’s
System sends clearing information to
OCC for each transaction. This sentence
does not add information that is useful
or relevant and therefore the Exchange
proposes to remove it. The Exchange
also proposes to delete the words ‘‘an
indicator which will distinguish
electronic and non-electronically
delivered orders.’’ The only method on
GEMX to deliver an order is
electronically.
The Exchange is also adopting
definitions for ‘‘account number,’’ 8
‘‘badge,’’ 9 and ‘‘mnemonic’’ 10 to be
6 See Securities Exchange Act Release No. 81136
(July 13, 2017), 82 FR 33168 (July 19, 2017) (SR–
GEMX–2017–29) (‘‘Prior Filing’’).
7 Id.
8 An ‘‘account number’’ shall mean a number
assigned to a Member. Members may have more
than one account number. See proposed Rule
100(a)(1).
9 A ‘‘badge’’ shall mean an account number with
a letter suffix assigned to Market Makers. A Market
Maker account may be associated with multiple
badges. See proposed Rule 100(a)(5).
10 A ‘‘mnemonic’’ shall mean an acronym
comprised of letters and/or numbers assigned to
Electronic Access Members. An Electronic Access
Member account may be associated with multiple
mnemonics. See proposed Rule 100(a)(34).
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26729
utilized within the CTI definition and
uniformly throughout the Rulebook. The
Exchange proposes to renumber Rule
100 to accommodate the new
definitions. The Exchange is reserving 2
numbers for future use of other
definitions. The Exchange proposes to
replace the phrase in Rule 718(b)(1)
subsection (ii) from previously filed
Exchange badge or house number to
proposed definitions for badge or
mnemonic. The Exchange proposes to
replace the phrase in Rule 718(b)(1)
subsection (iii) from Exchange internal
firm identifier to proposed definition for
account number. The Exchange
proposes to expand on Rule 718(b)(1)
subsection (iv) by replacing the phrase
‘‘an indicator which will distinguish
electronic and non-electronically
delivered orders’’ with ‘‘information
which identifies the transaction type
(e.g. auction type) for billing purposes.’’
Finally, the Exchange Further, the
Exchange is adding an ‘‘and’’ before ‘‘(v)
capacity’’ and changing the wording to
‘‘market participant capacity.’’ The
Exchange has renumbered the CTI
sections to account for the language that
was removed from the description.
Finally, the Exchange is adding an
‘‘and’’ before Rule 718(b)(1) subsection
(v) ‘‘capacity’’ and changing the
wording to ‘‘market participant
capacity.’’ The Exchange is expressing
more specifically the type of data
contained in CTI.
FIX DROP
The Exchange stated in its Prior Filing
that ‘‘FIX DROP provides real-time
order and execution update is a message
that is sent to a Member after an order
been received/modified or an execution
has occurred and contains trade details.
The information includes, among other
things, the following: (1) Executions; (2)
cancellations; (3) modifications to an
existing order; and (4) busts or posttrade corrections.’’ 11
The Exchange proposes to
memorialize FIX DROP within GEMX
Rule 718(b)(3). The Exchange notes that
at the end of the first sentence of the
description it is adding ‘‘specific to that
Member’’ to make clear that FIX DROP
only provides a Member its specific
trade information. Also, an ‘‘and’’ is
included before new (iv) as the numbers
have been changed to roman numerals.
TradeInfo
The Exchange proposes to establish
its TradeInfo offering at GEMX Rule
718(b)(2). TradeInfo, a user interface,
permits a Member to: (i) Search all
orders submitted in a particular security
11 Id.
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or all orders of a particular type,
regardless of their status (open,
canceled, executed, etc.); (ii) view
orders and executions; and (iii)
download orders and executions for
recordkeeping purposes. TradeInfo
users may also cancel open orders at the
order, port or firm mnemonic level
through TradeInfo. TradeInfo is offered
today to Members on GEMX at no cost.
The Exchange considers it appropriate
to establish and memorialize the order
and execution information available on
GEMX within a rule so that Members
may understand the trade information
which is available on the Exchange as
it pertains to a firm’s trading
information. This data is available to all
Members and is specific to a Member’s
transactions on GEMX.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Securities Exchange
Act of 1934 (the ‘‘Act’’),12 in general,
and furthers the objectives of Section
6(b)(5) of the Act,13 in particular, in that
it is designed to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism for a free and open market
and a national market system, and, in
general, to protect investors and the
public interest, by providing greater
transparency as to the order and
execution information offered on
GEMX. Each proposal is described in
more detail below.
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GEMX Rule 718(a)
The Exchange’s proposal to amend
the Nasdaq GEMX Top Quote Feed to
specify that Professional Orders and
Priority Customer Orders are segregated
and aggregated is consistent with the
protection of investors and the public
interest because the Exchange is
correcting the categories of orders,
which are segregated and aggregated.
The Public Customer definition is too
broad because it includes a portion of
Priority Customer, which was already
specified within the description. The
Exchange proposes to remove Public
Customer and replace it with
Professional Order to be more specific
and amend Priority Customer to Priority
Customer Order to reference the types of
orders that are aggregated to conform
the rule text. The Exchange believes that
this amendment will bring more
transparency to the information within
the feed.
12 15
13 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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GEMX Rule 718(b)
The Exchange believes that
memorializing CTI and FIX DROP
within a rule will provide Members
with transparency as to the order and
information offerings available on
GEMX specific to their trading on
GEMX. The Exchange’s proposal to
establish TradeInfo is consistent with
the Act because the Exchange is
detailing the contents of this offering as
well as providing transparency as to the
availability of TradeInfo. The Exchange
believes that offering Members
TradeInfo, which allows Members to
view executions as well as other
capabilities with respect to order
management, enhances the ability of a
Member to manage its orders. The
Exchange believes that providing
Members with tools to manage orders is
consistent with the Act and serves to
protect investors and the public interest.
Further, the Exchange believes that this
proposal is consistent with the Act
because TradeInfo provides information
regarding information available to
market participants, specifically with
respect to trades they execute on GEMX.
The information is available to all
Members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,14 the Exchange does not believe
that the proposed rule change will
impose any burden on intermarket or
intra-market competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange’s proposal does not impose an
undue burden on competition, rather
the Exchange is seeking to provide
greater transparency within its rules
with respect to the Nasdaq GEMX Top
Quote Feed as well as order and
execution information offered on
GEMX. The information is available to
all Members. Specifically, TradeInfo is
available to any Member that requests
this service. The TradeInfo product will
provide a Member information
regarding that Member’s executions.
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
14 15
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U.S.C. 78f(b)(8).
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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 15 and
subparagraph (f)(6) of Rule 19b–4
thereunder.16
A proposed rule change filed under
Rule 19b–4(f)(6) 17 normally does not
become operative prior to 30 days after
the date of the filing. However, Rule
19b–4(f)(6)(iii) 18 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 proposed
rule change may become effective and
operative immediately upon filing. The
Exchange states that waiver of the
operative delay will allow the Exchange
to correct the Nasdaq GEMX Top Quote
Feed and update its rules immediately
regarding order and execution
information offered on GEMX. The
Exchange further states that it believes
the waiver will further the protection of
investors and the public interest
because it will provide greater
transparency as to the Nasdaq GEMX
Top Quote Feed as well as trade detail
available to market participants.
Further, the Exchange states that
memorializing TradeInfo will provide
Members with greater information
concerning a Member’s executions on
GEMX and make its availability
transparent. The Commission believes
that waiver of the 30-day operative
delay is consistent with the protection
of investors and the public interest.
Therefore, the Commission hereby
waives the 30-day operative delay and
designates the proposed rule change as
operative upon filing.19
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
15 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) 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 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.
17 17 CFR 240.19b–4(f)(6).
18 17 CFR 240.19b–4(f)(6)(iii).
19 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).
16 17
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Federal Register / Vol. 83, No. 111 / Friday, June 8, 2018 / Notices
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.
Number SR–GEMX–2018–17 and
should be submitted on or before June
29, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–12317 Filed 6–7–18; 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 Number SR–
GEMX–2018–17 on the subject line.
amozie on DSK3GDR082PROD with NOTICES1
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; ICE
Clear Europe Limited; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change Relating to
Amendments to the ICE Clear Europe
Delivery Procedures
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–GEMX–2018–17. 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 website (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 website 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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
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 May 29,
2018, ICE Clear Europe Limited (‘‘ICE
Clear Europe’’ or the ‘‘Clearing House’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change described in Items
I, II and III below, which Items have
been prepared by ICE Clear Europe. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
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BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83372; File No. SR–ICEEU–
2018–008]
June 4, 2018.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change, Security-Based Swap
Submission, or Advance Notice
The principal purpose of the
proposed amendments is for ICE Clear
Europe to amend its Delivery
Procedures (the ‘‘Delivery
Procedures’’) 3 with respect to the
delivery terms relating to the ICE
Futures Europe (‘‘IFEU’’) Robusta Coffee
Futures Contract.
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change, Security-Based
Swap Submission or Advance Notice
In its filing with the Commission, ICE
Clear Europe included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
20 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Capitalized terms used but not defined herein
have the meanings specified in the ICE Clear
Europe Delivery Procedures.
1 15
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26731
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. ICE
Clear Europe has prepared summaries,
set forth in sections (A), (B), and (C)
below, of the most significant aspects of
such statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change, Security-Based
Swap Submission or Advance Notice
(a) Purpose
ICE Clear Europe is amending its
Delivery Procedures to make certain
modifications and clarifications to the
delivery terms relating to the IFEU
Robusta Coffee Futures Contract. The
amendments also remove outdated
references, correct typographical errors,
insert references to current ICE systems
and align naming conventions used
throughout the Delivery Procedures.
The changes are intended to be
consistent with changes made to the
IFEU contract specifications for the
Robusta Coffee Futures Contract. In
particular, the amendments to the
Delivery Procedures will shorten the
delivery period from the delivery notice
to the final settlement day from 14
calendar days to 4 calendar days to
reflect suggestions from market
participants that the current period was
unnecessarily long. A shorter period
also more closely aligns with other
similar futures contracts, including the
ICE Futures US Coffee Futures Contract.
As a result of this change, the
amendments also remove the existing
‘‘Early Take Up’’ concept as this is no
longer necessary given the shorter
settlement period.
The changes also remove the Delivery
Documentation Summary section,
because this simply repeats what is set
out in the Delivery Procedures above
and is therefore, unnecessary.
(b) Statutory Basis
Section 17A(b)(3)(F) of the Act 4
requires, among other things, that the
rules of a clearing agency be designed to
promote the prompt and accurate
clearance and settlement of securities
transactions and, to the extent
applicable, derivative agreements,
contracts, and transactions, the
safeguarding of securities and funds in
the custody or control of the clearing
agency or for which it is responsible,
and the protection of investors and the
public interest. The proposed
amendments shorten the delivery period
for the Robusta Coffee Futures
Contracts, and make certain related
4 15
E:\FR\FM\08JNN1.SGM
U.S.C. 78q–1(b)(3)(F).
08JNN1
]]>Agencies
[Federal Register Volume 83, Number 111 (Friday, June 8, 2018)]
[Notices]
[Pages 26728-26731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12317]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83365; File No. SR-GEMX-2018-17]
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Memorialize
Order and Execution Information Into GEMX Rule 718
June 4, 2018.
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 May 23, 2018, Nasdaq GEMX, LLC (``GEMX'' 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Regulatory Organization's Statement of the Terms of Substance of the
Proposed Rule Change
The Exchange proposes to memorialize its order and execution
information into GEMX Rule 718, entitled ``Data Feeds.''
The text of the proposed rule change is available on the Exchange's
website at https://nasdaqgemx.cchwallstreet.com/, at the principal
office of the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to add order and execution information into
GEMX
[[Page 26729]]
Rule 718, entitled ``Data Feeds.'' The Exchange proposes to rename this
rule ``Data Feeds and Trade Information.'' The Exchange also proposes
to amend Rule 100 to add definitions.
GEMX Rule 718(a)
The Exchange proposes to amend the Nasdaq GEMX Top Quote Feed. The
Exchange stated in that description that this feed calculates and
disseminates GEMX's best bid and offer position, with aggregated size
(including total size in aggregate, for Public Customer \3\ size in the
aggregate and Priority Customer \4\ size in the aggregate), based on
displayable order and quote interest in the System. The Exchange
proposes to amend this rule text to instead provide, ``this feed
calculates and disseminates GEMX's best bid and offer position, with
aggregated size (including total size in aggregate, for Professional
Order \5\ size in the aggregate and Priority Customer Order size in the
aggregate), based on displayable order and quote interest in the
System.'' The Exchange intended to specify that Professional Orders and
Priority Customer Orders are segregated and aggregated. The Public
Customer definition is too broad because it includes a portion of
Priority Customer, which was already specified within the description.
The Exchange proposes to remove Public Customer and replace it with
Professional Order to be more specific and amend Priority Customer to
Priority Customer Order to reference the types of orders that are
aggregated to conform the rule text.
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\3\ The term ``Public Customer'' means a person or entity that
is not a broker or dealer in securities. See Rule 100(a)(44).
\4\ The term ``Priority Customer'' means a person or entity that
(i) is not a broker or dealer in securities, and (ii) does not place
more than 390 orders in listed options per day on average during a
calendar month for its own beneficial account(s). See 100(a)(41A).
The term ``Priority Customer Order'' means an order for the account
of a Priority Customer. See Rule 100(a)(43A).
\5\ The term ``Professional Order'' means an order that is for
the account of a person or entity that is not a Priority Customer.
See Rule 100(a)(43C).
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GEMX Rule 718(b)
The Exchange proposes to add its order and execution information
into GEMX Rule 718, entitled ``Data Feeds.'' The Exchange proposes to
rename this rule ``Data Feeds and Trade Information.'' The Exchange
also proposes to amend Rule 100 to add definitions.
The Exchange proposes to adopt a new GEMX Rule 718(b) and
memorialize the following order and execution information which was
discussed in other rule filings by the Exchange: (i) Clearing Trade
Information or ``CTI''; and (ii) FIX DROP.\6\ The Exchange is also
adding a description for TradeInfo. The TradeInfo user interface is
being offered today on GEMX at no cost.
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\6\ See Securities Exchange Act Release No. 81136 (July 13,
2017), 82 FR 33168 (July 19, 2017) (SR-GEMX-2017-29) (``Prior
Filing'').
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The Exchange notes that while CTI and FIX Drop information are
accessible through a port, TradeInfo is an interface. The Exchange
notes this distinction to make clear the manner of delivery for each of
these information types.
CTI
The Exchange stated in its Prior Filing that ``CTI is a real-time
clearing trade message that is sent to a Member after an execution has
occurred and contains trade details. The message containing the trade
details is also simultaneously sent to The Options Clearing
Corporation. The information includes, among other things, the
following: (i) The Clearing Member Trade Agreement or ``CMTA'' or The
Options Clearing Corporation or ``OCC'' number; (ii) Exchange badge or
house number; (iii) the Exchange internal firm identifier; and (iv) an
indicator which will distinguish electronic and non-electronically
delivered orders; (v) liquidity indicators and transaction type for
billing purposes; (vi) capacity.'' \7\
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\7\ Id.
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The Exchange is proposing to amend the CTI description and
memorialize it within GEMX Rule 718(b)(1). The Exchange proposes to
eliminate the sentence which states, ``The message containing the trade
details is also simultaneously sent to The Options Clearing
Corporation.'' The Exchange's System sends clearing information to OCC
for each transaction. This sentence does not add information that is
useful or relevant and therefore the Exchange proposes to remove it.
The Exchange also proposes to delete the words ``an indicator which
will distinguish electronic and non-electronically delivered orders.''
The only method on GEMX to deliver an order is electronically.
The Exchange is also adopting definitions for ``account number,''
\8\ ``badge,'' \9\ and ``mnemonic'' \10\ to be utilized within the CTI
definition and uniformly throughout the Rulebook. The Exchange proposes
to renumber Rule 100 to accommodate the new definitions. The Exchange
is reserving 2 numbers for future use of other definitions. The
Exchange proposes to replace the phrase in Rule 718(b)(1) subsection
(ii) from previously filed Exchange badge or house number to proposed
definitions for badge or mnemonic. The Exchange proposes to replace the
phrase in Rule 718(b)(1) subsection (iii) from Exchange internal firm
identifier to proposed definition for account number. The Exchange
proposes to expand on Rule 718(b)(1) subsection (iv) by replacing the
phrase ``an indicator which will distinguish electronic and non-
electronically delivered orders'' with ``information which identifies
the transaction type (e.g. auction type) for billing purposes.''
Finally, the Exchange Further, the Exchange is adding an ``and'' before
``(v) capacity'' and changing the wording to ``market participant
capacity.'' The Exchange has renumbered the CTI sections to account for
the language that was removed from the description. Finally, the
Exchange is adding an ``and'' before Rule 718(b)(1) subsection (v)
``capacity'' and changing the wording to ``market participant
capacity.'' The Exchange is expressing more specifically the type of
data contained in CTI.
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\8\ An ``account number'' shall mean a number assigned to a
Member. Members may have more than one account number. See proposed
Rule 100(a)(1).
\9\ A ``badge'' shall mean an account number with a letter
suffix assigned to Market Makers. A Market Maker account may be
associated with multiple badges. See proposed Rule 100(a)(5).
\10\ A ``mnemonic'' shall mean an acronym comprised of letters
and/or numbers assigned to Electronic Access Members. An Electronic
Access Member account may be associated with multiple mnemonics. See
proposed Rule 100(a)(34).
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FIX DROP
The Exchange stated in its Prior Filing that ``FIX DROP provides
real-time order and execution update is a message that is sent to a
Member after an order been received/modified or an execution has
occurred and contains trade details. The information includes, among
other things, the following: (1) Executions; (2) cancellations; (3)
modifications to an existing order; and (4) busts or post-trade
corrections.'' \11\
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\11\ Id.
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The Exchange proposes to memorialize FIX DROP within GEMX Rule
718(b)(3). The Exchange notes that at the end of the first sentence of
the description it is adding ``specific to that Member'' to make clear
that FIX DROP only provides a Member its specific trade information.
Also, an ``and'' is included before new (iv) as the numbers have been
changed to roman numerals.
TradeInfo
The Exchange proposes to establish its TradeInfo offering at GEMX
Rule 718(b)(2). TradeInfo, a user interface, permits a Member to: (i)
Search all orders submitted in a particular security
[[Page 26730]]
or all orders of a particular type, regardless of their status (open,
canceled, executed, etc.); (ii) view orders and executions; and (iii)
download orders and executions for recordkeeping purposes. TradeInfo
users may also cancel open orders at the order, port or firm mnemonic
level through TradeInfo. TradeInfo is offered today to Members on GEMX
at no cost.
The Exchange considers it appropriate to establish and memorialize
the order and execution information available on GEMX within a rule so
that Members may understand the trade information which is available on
the Exchange as it pertains to a firm's trading information. This data
is available to all Members and is specific to a Member's transactions
on GEMX.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Securities Exchange Act of 1934 (the
``Act''),\12\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\13\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism for a free and open market and a national
market system, and, in general, to protect investors and the public
interest, by providing greater transparency as to the order and
execution information offered on GEMX. Each proposal is described in
more detail below.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
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GEMX Rule 718(a)
The Exchange's proposal to amend the Nasdaq GEMX Top Quote Feed to
specify that Professional Orders and Priority Customer Orders are
segregated and aggregated is consistent with the protection of
investors and the public interest because the Exchange is correcting
the categories of orders, which are segregated and aggregated. The
Public Customer definition is too broad because it includes a portion
of Priority Customer, which was already specified within the
description. The Exchange proposes to remove Public Customer and
replace it with Professional Order to be more specific and amend
Priority Customer to Priority Customer Order to reference the types of
orders that are aggregated to conform the rule text. The Exchange
believes that this amendment will bring more transparency to the
information within the feed.
GEMX Rule 718(b)
The Exchange believes that memorializing CTI and FIX DROP within a
rule will provide Members with transparency as to the order and
information offerings available on GEMX specific to their trading on
GEMX. The Exchange's proposal to establish TradeInfo is consistent with
the Act because the Exchange is detailing the contents of this offering
as well as providing transparency as to the availability of TradeInfo.
The Exchange believes that offering Members TradeInfo, which allows
Members to view executions as well as other capabilities with respect
to order management, enhances the ability of a Member to manage its
orders. The Exchange believes that providing Members with tools to
manage orders is consistent with the Act and serves to protect
investors and the public interest. Further, the Exchange believes that
this proposal is consistent with the Act because TradeInfo provides
information regarding information available to market participants,
specifically with respect to trades they execute on GEMX. The
information is available to all Members.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\14\ the Exchange
does not believe that the proposed rule change will impose any burden
on intermarket or intra-market competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange's
proposal does not impose an undue burden on competition, rather the
Exchange is seeking to provide greater transparency within its rules
with respect to the Nasdaq GEMX Top Quote Feed as well as order and
execution information offered on GEMX. The information is available to
all Members. Specifically, TradeInfo is available to any Member that
requests this service. The TradeInfo product will provide a Member
information regarding that Member's executions.
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\14\ 15 U.S.C. 78f(b)(8).
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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 \15\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\16\
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\15\ 15 U.S.C. 78s(b)(3)(A)(iii).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
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 text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \18\ 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 proposed
rule change may become effective and operative immediately upon filing.
The Exchange states that waiver of the operative delay will allow the
Exchange to correct the Nasdaq GEMX Top Quote Feed and update its rules
immediately regarding order and execution information offered on GEMX.
The Exchange further states that it believes the waiver will further
the protection of investors and the public interest because it will
provide greater transparency as to the Nasdaq GEMX Top Quote Feed as
well as trade detail available to market participants. Further, the
Exchange states that memorializing TradeInfo will provide Members with
greater information concerning a Member's executions on GEMX and make
its availability transparent. The Commission believes that waiver of
the 30-day operative delay is consistent with the protection of
investors and the public interest. Therefore, the Commission hereby
waives the 30-day operative delay and designates the proposed rule
change as operative upon filing.\19\
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\17\ 17 CFR 240.19b-4(f)(6).
\18\ 17 CFR 240.19b-4(f)(6)(iii).
\19\ 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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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
[[Page 26731]]
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 [email protected]. Please include
File Number SR-GEMX-2018-17 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-GEMX-2018-17. 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 website (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 website 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. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-GEMX-2018-17 and should be submitted on
or before June 29, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-12317 Filed 6-7-18; 8:45 am]
BILLING CODE 8011-01-P
