Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 4702, 29861-29863 [2018-13618]
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Federal Register / Vol. 83, No. 123 / Tuesday, June 26, 2018 / Notices
minimize operational disruptions to a
dealer.
Lastly, under the proposed rule
change, allowing associated persons that
volunteer for or are called into active
U.S. military service to be placed in an
inactive status allows for regulatory
consistency and promotes the public
interest.
IV. Solicitation of Comments
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The MSRB does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change reflects the
MSRB’s belief that its registration
requirements should be generally
harmonized with FINRA’s consolidated
rule change for purposes of regulatory
efficiency and that such changes do not
attach additional burdens on dealers,
and as applicable, municipal advisors.
In addition, the MSRB’s restructuring of
its qualification examination program to
better align with the functions and
associated tasks currently performed by
a municipal securities representative
makes for a more effective qualification
examination.
Electronic Comments
sradovich on DSK3GMQ082PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Board did not solicit comment on
the proposed change. Therefore, there
are no comments on the proposed rule
change received from members,
participants or others.
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) of the Act 32 and Rule 19b–
4(f)(6) thereunder.33
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
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:
• 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–
MSRB–2018–04 on the subject line.
Paper Comments
All submissions should refer to File
Number SR–MSRB–2018–04. 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 MSRB. 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–MSRB–2018–04 and should
be submitted on or before July 17, 2018.
U.S.C. 78s(b)(3)(A).
33 17 CFR 240.19b–4(f)(6).
17:24 Jun 25, 2018
For the Commission, pursuant to delegated
authority.34
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–13619 Filed 6–25–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
(Release No. 34–83482; File No. SR–
NASDAQ–2018–046)
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
4702
June 20, 2018.
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
32 15
VerDate Sep<11>2014
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 June 8,
2018, The Nasdaq Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
II below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 4702(b)(12)(A) so that Participants
can choose to have their Limit On Close
Orders rejected if subject to being repriced when entered between 3:50 p.m.
ET and immediately prior to 3:55 p.m.
ET.
The text of the proposed rule change
is available on the Exchange’s website 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
34 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 83, No. 123 / Tuesday, June 26, 2018 / Notices
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
sradovich on DSK3GMQ082PROD with NOTICES
1. Purpose
On July 13, 2017, the Exchange filed
a proposed rule change to enhance the
Nasdaq Closing Cross by permitting
Participants to submit Limit On Close
(‘‘LOC’’) Orders until immediately prior
to 3:55 p.m. ET subject to certain
conditions, including that such LOC
Orders would be re-priced in certain
situations.3 This rule change was
approved by the Commission on
September 8, 2017.4 The Exchange now
proposes to amend Rule 4702(b)(12)(A)
so that Participants can choose to have
their Limit On Close Orders rejected if
subject to being re-priced when entered
between 3:50 p.m. ET and immediately
prior to 3:55 p.m. ET.
A LOC Order is an Order Type
entered with a price that may be
executed only in the Nasdaq Closing
Cross, and only if the price determined
by the Nasdaq Closing Cross is equal to
or better than the price at which the
LOC Order was entered.5 Subject to the
qualifications provided below, LOC
Orders may be entered, cancelled, and/
or modified between 4 a.m. ET and
immediately prior to 3:50 p.m. ET.
Between 3:50 p.m. ET and immediately
prior to 3:55 p.m. ET, an LOC Order
may be entered provided that there is a
First Reference Price.6 Currently, an
LOC Order entered between 3:50 p.m.
ET and immediately prior to 3:55 p.m.
ET will be accepted at its limit price,
unless its limit price is higher (lower)
than the First Reference Price for an
LOC Order to buy (sell), in which case
the LOC Order will be re-priced to the
First Reference Price.7
3 See Securities Exchange Act Release No. 81188
(July 21, 2017), 82 FR 35014 (July 27, 2017) (SR–
NASDAQ–2017–061).
4 See Securities Exchange Act Release No. 81556
(September 8, 2017), 82 FR 43264 (September 14,
2017) (SR–NASDAQ–2017–061) (Approval Order).
5 See Rule 4702(b)(12).
6 ‘‘First Reference Price’’ is the Current Reference
Price in the first Order Imbalance Indicator
disseminated at or after 3:50 p.m. ET. See Rule
4754(a)(9). During this time period an LOC Order
can also be cancelled but not modified, and only
if the Participant requests that Nasdaq correct a
legitimate error in the Order (e.g., Side, Size,
Symbol, or Price, or duplication of an Order).
7 If the First Reference Price is not at a
permissible minimum increment, the First
Reference Price will be rounded (i) to the nearest
permitted minimum increment (with midpoint
prices being rounded up) if there is no imbalance,
(ii) up if there is a buy imbalance, or (iii) down if
there is a sell imbalance.
VerDate Sep<11>2014
17:24 Jun 25, 2018
Jkt 244001
The Exchange now proposes to permit
Participants to choose to have LOC
Orders rejected if subject to being repriced when entered between 3:50 p.m.
ET and immediately prior to 3:55 p.m.
ET. While the Exchange believes that
accepting LOC Orders after the regular
3:50 p.m. ET cutoff enhances price
discovery, in order to promote price
stability during the Nasdaq Closing
Cross, the Exchange re-prices these LOC
Orders if the First Reference price is less
aggressive than the Order’s limit price.
Nevertheless, certain Participants may
prefer not to have LOC Orders re-priced.
A re-priced LOC Order would only have
priority at the less aggressive First
Reference Price, and as a result would
be less likely to receive an execution in
the Nasdaq Closing Cross than if it had
been accepted at its stated limit price.
For example, if the First Reference Price
in ABC is $10, an LOC Order to buy
entered at 3:52 with a stated limit price
of $12 would be accepted at $10 today.
If the Nasdaq Closing Cross is
subsequently executed at a price of $11,
the LOC Order would not participate
even though its stated limit price
indicates a willingness to pay up to $12.
Some Participants would therefore
prefer to have this LOC Order rejected
at the outset to avoid this possibility
when the Nasdaq Closing Cross is
ultimately executed. Giving the option
to have those LOC Orders rejected on
entry rather than re-priced will give
Participants more flexibility with
respect to how such LOC Orders are
handled. Participants that would prefer
that LOC Orders be accepted to
participate in the Nasdaq Closing Cross
can continue to enter these LOC Orders
subject to the current re-pricing logic,
which will be the default configuration
for Participants that have not chosen to
have these LOC Orders rejected instead.
Implementation
The Exchange proposes to introduce
the change described in this proposed
rule change in Q3 or Q4 2018. The
Exchange will announce the
implementation date of this change in
an Equity Trader Alert issued to
Participants prior to implementing the
change.
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
8 15
9 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00122
Fmt 4703
Sfmt 4703
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest.
Specifically, the Exchange believes that
the proposed changes will give
Participants more flexibility with
respect to how their LOC Orders are
handled, to the benefit of Participants
and investors.
While the Exchange permits
Participants to submit LOC Orders
between 3:50 p.m. ET and immediately
prior to 3:55 p.m. ET, the Exchange reprices these LOC Orders to the First
Reference Price if the First Reference
price is less aggressive than the Order’s
limit price. As mentioned in the
purpose section of this proposed rule
change, this re-pricing is done to
promote stability in the Nasdaq Closing
Cross price. However, certain
Participants may prefer not to have LOC
Orders re-priced, and instead would like
to have these LOC Orders rejected on
entry instead. The Exchange therefore
proposes to facilitate this by giving
Participants the choice to have LOC
Orders handled in this manner. The
Exchange believes that this is consistent
with the protection of investors and the
public interest as it allows Participants
to have more flexibility in how they
may achieve their trading goals.
Specifically, Participants that choose to
have an LOC Order rejected instead of
re-priced could thereafter execute their
trading interest in a different manner,
such as by entering it onto the
continuous book, rather than waiting for
an uncertain execution in the Nasdaq
Closing Cross where the LOC Order may
have a lower priority at the re-priced
price. Participants that consume and
house the First Reference Price in their
systems can already do this themselves
today by checking if an LOC Order
would be subject to re-pricing (i.e.,
because the limit price is more
aggressive than the First Reference Price
disseminated by the Exchange) prior to
entering this interest on the Exchange.
The Exchange believes, however, that
many Participants would benefit from
the Exchange performing this
determination for them, and is therefore
proposing to do so.
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
proposed functionality would be
available to all Participants of the
Exchange, who will now have the
flexibility to choose to have LOC Orders
E:\FR\FM\26JNN1.SGM
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Federal Register / Vol. 83, No. 123 / Tuesday, June 26, 2018 / Notices
rejected on entry in situations where
those LOC Orders would otherwise be
re-priced to the First Reference Price.
Although Participants could implement
this logic themselves, implementing it
on the Exchange will ensure that it is
readily available to all Participants.
Furthermore, other exchanges are free to
offer similar functionality if they so
desire.
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) of the Act 10 and Rule 19b–
4(f)(6) 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
sradovich on DSK3GMQ082PROD with NOTICES
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
10 15
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NASDAQ–2018–046 on the subject line.
DEPARTMENT OF STATE
Paper Comments
60-Day Notice of Proposed Information
Collection: Petition To Classify Special
Immigrant Under INA 203(b)(4) as
Employee or Former Employee of the
U.S. Government Abroad
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2018–046. 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–NASDAQ–2018–046 and
should be submitted on or before July
17, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–13618 Filed 6–25–18; 8:45 am]
U.S.C. 78s(b)(3)(A).
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.
BILLING CODE 8011–01–P
11 17
VerDate Sep<11>2014
17:24 Jun 25, 2018
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29863
12 17
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CFR 200.30–3(a)(12).
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[Public Notice 10451]
Notice of request for public
comment.
ACTION:
The Department of State is
seeking Office of Management and
Budget (OMB) approval for the
information collection described below.
In accordance with the Paperwork
Reduction Act of 1995, we are
requesting comments on this collection
from all interested individuals and
organizations. The purpose of this
notice is to allow 60 days for public
comment preceding submission of the
collection to OMB.
DATES: The Department will accept
comments from the public up to August
27, 2018.
ADDRESSES: You may submit comments
by any of the following methods:
• Web: Persons with access to the
internet may comment on this notice by
going to www.Regulations.gov. You can
search for the document by entering
‘‘Docket Number: DOS–2018–0026’’ in
the Search field. Then click the
‘‘Comment Now’’ button and complete
the comment form.
• Email: PRA_BurdenComments@
state.gov.
You must include the DS form
number (if applicable), information
collection title, and the OMB control
number in any correspondence.
SUPPLEMENTARY INFORMATION:
• Title of Information Collection:
Petition to Classify Special Immigrant
Under INA 203(b)(4) as Employee or
Former Employee of the U.S.
Government Abroad.
• OMB Control Number: 1405–0082.
• Type of Request: Extension of a
Currently Approved Collection.
• Originating Office: CA/VO/L/R.
• Form Number: DS–1884.
• Respondents: Aliens petitioning for
immigrant visas under INA 203(b)(4) as
a special immigrant described in INA
section 101(a)(27)(D).
• Estimated Number of Respondents:
75.
• Estimated Number of Responses:
75.
• Average Time per Response: 10
minutes.
• Total Estimated Burden Time: 12.5
hours.
• Frequency: Once per petition.
• Obligation to Respond: Required to
Obtain or Retain a Benefit.
SUMMARY:
E:\FR\FM\26JNN1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 123 (Tuesday, June 26, 2018)]
[Notices]
[Pages 29861-29863]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-13618]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
(Release No. 34-83482; File No. SR-NASDAQ-2018-046)
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rule 4702
June 20, 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 June 8, 2018, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the Exchange.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 4702(b)(12)(A) so that
Participants can choose to have their Limit On Close Orders rejected if
subject to being re-priced when entered between 3:50 p.m. ET and
immediately prior to 3:55 p.m. ET.
The text of the proposed rule change is available on the Exchange's
website 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
[[Page 29862]]
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 July 13, 2017, the Exchange filed a proposed rule change to
enhance the Nasdaq Closing Cross by permitting Participants to submit
Limit On Close (``LOC'') Orders until immediately prior to 3:55 p.m. ET
subject to certain conditions, including that such LOC Orders would be
re-priced in certain situations.\3\ This rule change was approved by
the Commission on September 8, 2017.\4\ The Exchange now proposes to
amend Rule 4702(b)(12)(A) so that Participants can choose to have their
Limit On Close Orders rejected if subject to being re-priced when
entered between 3:50 p.m. ET and immediately prior to 3:55 p.m. ET.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 81188 (July 21,
2017), 82 FR 35014 (July 27, 2017) (SR-NASDAQ-2017-061).
\4\ See Securities Exchange Act Release No. 81556 (September 8,
2017), 82 FR 43264 (September 14, 2017) (SR-NASDAQ-2017-061)
(Approval Order).
---------------------------------------------------------------------------
A LOC Order is an Order Type entered with a price that may be
executed only in the Nasdaq Closing Cross, and only if the price
determined by the Nasdaq Closing Cross is equal to or better than the
price at which the LOC Order was entered.\5\ Subject to the
qualifications provided below, LOC Orders may be entered, cancelled,
and/or modified between 4 a.m. ET and immediately prior to 3:50 p.m.
ET. Between 3:50 p.m. ET and immediately prior to 3:55 p.m. ET, an LOC
Order may be entered provided that there is a First Reference Price.\6\
Currently, an LOC Order entered between 3:50 p.m. ET and immediately
prior to 3:55 p.m. ET will be accepted at its limit price, unless its
limit price is higher (lower) than the First Reference Price for an LOC
Order to buy (sell), in which case the LOC Order will be re-priced to
the First Reference Price.\7\
---------------------------------------------------------------------------
\5\ See Rule 4702(b)(12).
\6\ ``First Reference Price'' is the Current Reference Price in
the first Order Imbalance Indicator disseminated at or after 3:50
p.m. ET. See Rule 4754(a)(9). During this time period an LOC Order
can also be cancelled but not modified, and only if the Participant
requests that Nasdaq correct a legitimate error in the Order (e.g.,
Side, Size, Symbol, or Price, or duplication of an Order).
\7\ If the First Reference Price is not at a permissible minimum
increment, the First Reference Price will be rounded (i) to the
nearest permitted minimum increment (with midpoint prices being
rounded up) if there is no imbalance, (ii) up if there is a buy
imbalance, or (iii) down if there is a sell imbalance.
---------------------------------------------------------------------------
The Exchange now proposes to permit Participants to choose to have
LOC Orders rejected if subject to being re-priced when entered between
3:50 p.m. ET and immediately prior to 3:55 p.m. ET. While the Exchange
believes that accepting LOC Orders after the regular 3:50 p.m. ET
cutoff enhances price discovery, in order to promote price stability
during the Nasdaq Closing Cross, the Exchange re-prices these LOC
Orders if the First Reference price is less aggressive than the Order's
limit price. Nevertheless, certain Participants may prefer not to have
LOC Orders re-priced. A re-priced LOC Order would only have priority at
the less aggressive First Reference Price, and as a result would be
less likely to receive an execution in the Nasdaq Closing Cross than if
it had been accepted at its stated limit price. For example, if the
First Reference Price in ABC is $10, an LOC Order to buy entered at
3:52 with a stated limit price of $12 would be accepted at $10 today.
If the Nasdaq Closing Cross is subsequently executed at a price of $11,
the LOC Order would not participate even though its stated limit price
indicates a willingness to pay up to $12. Some Participants would
therefore prefer to have this LOC Order rejected at the outset to avoid
this possibility when the Nasdaq Closing Cross is ultimately executed.
Giving the option to have those LOC Orders rejected on entry rather
than re-priced will give Participants more flexibility with respect to
how such LOC Orders are handled. Participants that would prefer that
LOC Orders be accepted to participate in the Nasdaq Closing Cross can
continue to enter these LOC Orders subject to the current re-pricing
logic, which will be the default configuration for Participants that
have not chosen to have these LOC Orders rejected instead.
Implementation
The Exchange proposes to introduce the change described in this
proposed rule change in Q3 or Q4 2018. The Exchange will announce the
implementation date of this change in an Equity Trader Alert issued to
Participants prior to implementing the change.
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.
Specifically, the Exchange believes that the proposed changes will give
Participants more flexibility with respect to how their LOC Orders are
handled, to the benefit of Participants and investors.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
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While the Exchange permits Participants to submit LOC Orders
between 3:50 p.m. ET and immediately prior to 3:55 p.m. ET, the
Exchange re-prices these LOC Orders to the First Reference Price if the
First Reference price is less aggressive than the Order's limit price.
As mentioned in the purpose section of this proposed rule change, this
re-pricing is done to promote stability in the Nasdaq Closing Cross
price. However, certain Participants may prefer not to have LOC Orders
re-priced, and instead would like to have these LOC Orders rejected on
entry instead. The Exchange therefore proposes to facilitate this by
giving Participants the choice to have LOC Orders handled in this
manner. The Exchange believes that this is consistent with the
protection of investors and the public interest as it allows
Participants to have more flexibility in how they may achieve their
trading goals. Specifically, Participants that choose to have an LOC
Order rejected instead of re-priced could thereafter execute their
trading interest in a different manner, such as by entering it onto the
continuous book, rather than waiting for an uncertain execution in the
Nasdaq Closing Cross where the LOC Order may have a lower priority at
the re-priced price. Participants that consume and house the First
Reference Price in their systems can already do this themselves today
by checking if an LOC Order would be subject to re-pricing (i.e.,
because the limit price is more aggressive than the First Reference
Price disseminated by the Exchange) prior to entering this interest on
the Exchange. The Exchange believes, however, that many Participants
would benefit from the Exchange performing this determination for them,
and is therefore proposing to do so.
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 proposed functionality
would be available to all Participants of the Exchange, who will now
have the flexibility to choose to have LOC Orders
[[Page 29863]]
rejected on entry in situations where those LOC Orders would otherwise
be re-priced to the First Reference Price. Although Participants could
implement this logic themselves, implementing it on the Exchange will
ensure that it is readily available to all Participants. Furthermore,
other exchanges are free to offer similar functionality if they so
desire.
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) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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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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 [email protected]. Please include
File Number SR-NASDAQ-2018-046 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2018-046. 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-NASDAQ-2018-046 and should be submitted
on or before July 17, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-13618 Filed 6-25-18; 8:45 am]
BILLING CODE 8011-01-P
