Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Correct a Typographical Error in Rule 4702(b)(7)(A), 60510-60512 [2018-25599]
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Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Notices
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.
Extension:
Schedule 14D–1F, SEC File No. 270–338,
OMB Control No. 3235–0376.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Schedule 14D–1F (17 CFR 240.14d–
102) is a form that may be used by any
person (the ‘‘bidder’’) making a cash
tender or exchange offer for securities of
any issuer (the ‘‘target’’) incorporated or
organized under the laws of Canada or
any Canadian province or territory that
is a foreign private issuer, where less
than 40% of the outstanding class of the
target’s securities that is the subject of
the offer is held by U.S. holders.
Schedule 14D–1F is designed to
facilitate cross-border transactions in
the securities of Canadian issuers. The
information required to be filed with the
Commission provides security holders
with material information regarding the
bidder as well as the transaction so that
they may make informed investment
decisions. Schedule 14D–1F takes
approximately 2 hours per response to
prepare and is filed by approximately 2
respondents annually for a total
reporting burden of 4 hours (2 hours per
response × 2 responses).
Written comments are invited on: (a)
Whether this proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden imposed by the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
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An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
Please direct your written comments
to Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Candace
Kenner, 100 F Street NE, Washington,
DC 20549; or send an email to: PRA_
Mailbox@sec.gov.
Dated: November 20, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–25684 Filed 11–23–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84622; File No. SR–
NASDAQ–2018–089]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Correct a
Typographical Error in Rule
4702(b)(7)(A)
November 19, 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 November
8, 2018, The Nasdaq Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to correct a
typographical error in Rule
4702(b)(7)(A). 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
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00120
Fmt 4703
Sfmt 4703
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to correct
a typographical error in Rule
4702(b)(7)(A). That provision describes
the ‘‘Market Maker Peg Order’’ order
type,3 including by providing examples
of how the order type operates in
practice. One of these examples, which
contains the typographical error in
question, illustrates the principle that
once a Market Maker Peg Order has
posted to the Nasdaq Book, it will be
repriced if needed as the Reference
Price 4 changes. In particular, the
principle states that when, as a result of
a change to the Reference Price, the
difference between the displayed price
of a Market Maker Peg Order and the
Reference Price reaches the Defined
Limit,5 then a Market Maker Peg Order
3 Rule 4702(b)(7) defines a Market Maker Peg
Order as follows:
A ‘‘Market Maker Peg Order’’ is an Order Type
designed to allow a Market Maker to maintain a
continuous two-sided quotation at a displayed price
that is compliant with the quotation requirements
for Market Makers set forth in Rule 4613(a)(2). The
displayed price of the Market Maker Peg Order is
set with reference to a ‘‘Reference Price’’ in order
to keep the displayed price of the Market Maker Peg
Order within a bounded price range. A Market
Maker Peg Order may be entered through RASH,
FIX or QIX only. A Market Maker Peg Order must
be entered with a limit price beyond which the
Order may not be priced. The Reference Price for
a Market Maker Peg Order to buy (sell) is the thencurrent National Best Bid (National Best Offer)
(including Nasdaq), or if no such National Best Bid
or National Best Offer, the most recent reported lastsale eligible trade from the responsible single plan
processor for that day, or if none, the previous
closing price of the security as adjusted to reflect
any corporate actions (e.g., dividends or stock
splits) in the security.
4 See id. Rule 4613 states that the ‘‘Designated
Percentage’’ shall be as follows: ‘‘8% for securities
subject to Rule 4120(a)(11)(A), 28% for securities
subject to Rule 4120(a)(11)(B), and 30% for
securities subject to Rule 4120(a)(11)(C), except that
between 9:30 a.m. and 9:45 a.m. and between 3:35
p.m. and the close of trading, when Rule
4120(a)(11) is not in effect, the Designated
Percentage shall be 20% for securities subject to
Rule 4120(a)(11)(A), 28% for securities subject to
Rule 4120(a)(11)(B), and 30% for securities subject
to Rule 4120(a)(11)(C). The Designated Percentage
for rights and warrants shall be 30%.’’
5 The ‘‘Defined Limit’’ is defined in Rule 4613 as
‘‘9.5% for securities subject to Rule 4120(a)(11)(A),
29.5% for securities subject to Rule 4120(a)(11)(B),
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Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Notices
to buy (sell) will be repriced to the
Designated Percentage 6 away from the
Reference Price. The stated example of
this principle in Rule 4702(b)(7)(A)
presently states as follows:
In the foregoing example, if the Defined
Limit is 9.5% and the National Best Bid
increased to $10.17, such that the displayed
price of the Market Maker Peg Order would
be more than 9.5% away, the Order will be
repriced to $9.35, or 8% away from the
National Best Bid. Note that prices will be
rounded in a manner to ensure that they are
calculated and displayed at a level that is
consistent with the Designated Percentage
and the permissible minimum increment of
$0.01 or $0.0001, as applicable. If the limit
price of the Order is outside the Defined
Limit, the Order will be sent back to the
Participant.
The error in this example is that
‘‘$9.35’’ should be ‘‘$9.36.’’ The
Exchange proposes to correct that
inadvertent error in this proposal. The
correction is necessary to ensure that
the price in the example ($9.3564) is
rounded up to the applicable minimum
increment of $0.01 and remains
consistent with the Designated
Percentage.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,7 in general, and furthers the
objectives of Section 6(b)(5) of the Act,8
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. The
proposal would correct a typographical
error that otherwise renders inaccurate
an example of the application of Rule
4702(b)(7)(A). The Exchange believes
that it is consistent with the interest of
the public, investors, and the market for
the Exchange to take steps to ensure that
its Rulebook is accurate.
and 31.5% for securities subject to Rule
4120(a)(11)(C), except that between 9:30 a.m. and
9:45 a.m. and between 3:35 p.m. and the close of
trading, when Rule 4120(a)(11) is not in effect, the
Defined Limit shall be 21.5% for securities subject
to Rule 4120(a)(11)(A), 29.5% for securities subject
to Rule 4120(a)(11)(B), and 31.5% for securities
subject to Rule 4120(a)(11)(C).’’
6 Rule 4702(b)(7) states that ‘‘[u]pon entry, the
displayed price of a Market Maker Peg Order to buy
(sell) is automatically set by the System at the
Designated Percentage (as defined in Rule 4613)
away from the Reference Price in order to comply
with the quotation requirements for Market Makers
set forth in Rule 4613(a)(2).’’
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
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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 rule change is non-substantive
and it will have no impact on
competition because it simply corrects a
typographical error in the Rule text to
render the text more accurate.
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 9 and Rule 19b–
4(f)(6) thereunder.10
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 11 normally does not become
operative for 30 days after the date of its
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 Exchange can
immediately correct the typographical
error in Rule 4702(b)(7)(A) and avoid
any potential confusion as to the
operation of the Market Maker Peg
Order. For this reason, 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 operative delay and
9 15
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.
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
10 17
PO 00000
Frm 00121
Fmt 4703
Sfmt 4703
60511
designates the proposal 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 necessary or appropriate in the
public interest, for the protection of
investors, or 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
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NASDAQ–2018–089 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–2018–089. 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
13 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Notices
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–2018–089 and
should be submitted on or before
December 17, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–25599 Filed 11–23–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84620; File No. SR–Phlx–
2018–71]
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Add Definitions to
Rule 1000 and Amend Risk Protections
November 19, 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 November
6, 2018, Nasdaq PHLX LLC (‘‘Phlx’’ 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 add
definitions to Rule 1000, titled
‘‘Applicability, Definitions and
References,’’ amend Rule 1090, titled
‘‘Clerks’’ and amend Rule 1099, titled,
‘‘Risk Protections.’’
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaqphlx.cchwallstreet.com/,
at the principal office of the Exchange,
14 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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Jkt 247001
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 purpose of this rule change is to
adopt certain definitions within Rule
1000(b), amend Rule 1090, titled
‘‘Clerks’’ and amend Rule 1099, titled,
‘‘Risk Protections.’’ Each change is
described in more detail below.
Definitions
The Exchange proposes to amend
Rule 1000(b) to add three new
definitions into its Rulebook. These
definitions are utilized in technical
documents issued by the Exchange and
will provide an ease of reference for
understanding these terms. Specifically,
Rule 1000(b)(51) would define an
account number as a number assigned to
a member organization. Member
organizations may have more than one
account number. Rule 1000(b)(52)
would define a badge as an account
number, which may contain letters and/
or numbers, assigned to Specialists and
Registered Options Traders. A Specialist
or Registered Options Trader account
may be associated with multiple badges.
Finally, Rule 1000(b)(53) would define
a mnemonic as an acronym comprised
of letters and/or numbers assigned to
member organizations. A member
organization account may be associated
with multiple mnemonics.
Risk Protections
Order Price Protection
The Exchange proposes to amend
Rule 1099(a)(1) relating to the Order
Price Protection or ‘‘OPP.’’ The
Exchange proposes to remove the
example within Rule 1099(a)(1)(B)(i)
which states, ’’ For example, if the
Reference BBO on the offer side is
$1.10, an order to buy options for more
PO 00000
Frm 00122
Fmt 4703
Sfmt 4703
than $1.65 would be rejected. Similarly,
if the Reference BBO on the bid side is
$1.10, an order to sell options for less
than $0.55 will be rejected.’’ The
Exchange also proposes to remove the
example within Rule 1099(a)(1)(B)(ii)
which states, ‘‘For example, if the
Reference BBO on the offer side is
$1.00, an order to buy options for more
than $2.00 would be rejected. However,
if the Reference BBO of the bid side of
an incoming order to sell is less than or
equal to $1.00, the OPP limits set forth
above will result in all incoming sell
orders being accepted regardless of their
limit. To illustrate, if the Reference BBO
on the bid side is equal to $1.00, the
OPP limits provide protection such that
all orders to sell with a limit less than
$0.00 would be rejected.’’ The Exchange
notes that while the examples remain
accurate, the Exchange proposes to
remove the text to conform the rule text
to other risk protections. The Exchange
does not believe it is necessary to have
these examples within the rule text.
Market Order Spread Protection
The Exchange proposes to add
language to the Market Order Spread
Protection Rule in 1099(a)(2). First, Phlx
proposes to add the word ‘‘trading’’
before the word ‘‘halt’’ within Rule in
1099(a)(2) for consistency. In the OPP
rule, text halts are referred to as ‘‘trading
halts.’’ This will avoid confusion as to
the use of this term. Second, at the time
Phlx filed to amend Market Order
Spread Protection on Phlx, it noted in
that rule change that this mandatory risk
protection protects Market Orders 3 from
being executed in very wide markets.4
Specifically, it noted within footnote 11
that the Exchange may establish
differences other than the referenced
threshold for one or more series or
classes of options.5 At this time, the
Exchange proposes to memorialize this
capability within Rule 1099(a)(2) by
stating, ‘‘The Exchange may establish
different thresholds for one or more
series or classes of options.’’ The
Exchange believes that adding this
provision to the rule will provide an
easy reference as to the Exchange’s
capability to establish different
thresholds per options series or class.
Anti-Internalization
The Exchange proposes to replace the
word ‘‘Exchange badge’’ with ‘‘market
participant identifier’’ to more
specifically describe this functionality.
3 Market Orders are orders to buy or sell at the
best price available at the time of execution.
4 Securities Exchange Act Release No. 83141 (May
1, 2018), 83 FR 20123 (May 7, 2018) (SR–Phlx–
2018–32).
5 Id.
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]]>Agencies
[Federal Register Volume 83, Number 227 (Monday, November 26, 2018)]
[Notices]
[Pages 60510-60512]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-25599]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84622; File No. SR-NASDAQ-2018-089]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Correct a Typographical Error in Rule 4702(b)(7)(A)
November 19, 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 November 8, 2018, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to correct a typographical error in Rule
4702(b)(7)(A). 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 forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to correct a typographical error in
Rule 4702(b)(7)(A). That provision describes the ``Market Maker Peg
Order'' order type,\3\ including by providing examples of how the order
type operates in practice. One of these examples, which contains the
typographical error in question, illustrates the principle that once a
Market Maker Peg Order has posted to the Nasdaq Book, it will be
repriced if needed as the Reference Price \4\ changes. In particular,
the principle states that when, as a result of a change to the
Reference Price, the difference between the displayed price of a Market
Maker Peg Order and the Reference Price reaches the Defined Limit,\5\
then a Market Maker Peg Order
[[Page 60511]]
to buy (sell) will be repriced to the Designated Percentage \6\ away
from the Reference Price. The stated example of this principle in Rule
4702(b)(7)(A) presently states as follows:
---------------------------------------------------------------------------
\3\ Rule 4702(b)(7) defines a Market Maker Peg Order as follows:
A ``Market Maker Peg Order'' is an Order Type designed to allow
a Market Maker to maintain a continuous two-sided quotation at a
displayed price that is compliant with the quotation requirements
for Market Makers set forth in Rule 4613(a)(2). The displayed price
of the Market Maker Peg Order is set with reference to a ``Reference
Price'' in order to keep the displayed price of the Market Maker Peg
Order within a bounded price range. A Market Maker Peg Order may be
entered through RASH, FIX or QIX only. A Market Maker Peg Order must
be entered with a limit price beyond which the Order may not be
priced. The Reference Price for a Market Maker Peg Order to buy
(sell) is the then-current National Best Bid (National Best Offer)
(including Nasdaq), or if no such National Best Bid or National Best
Offer, the most recent reported last-sale eligible trade from the
responsible single plan processor for that day, or if none, the
previous closing price of the security as adjusted to reflect any
corporate actions (e.g., dividends or stock splits) in the security.
\4\ See id. Rule 4613 states that the ``Designated Percentage''
shall be as follows: ``8% for securities subject to Rule
4120(a)(11)(A), 28% for securities subject to Rule 4120(a)(11)(B),
and 30% for securities subject to Rule 4120(a)(11)(C), except that
between 9:30 a.m. and 9:45 a.m. and between 3:35 p.m. and the close
of trading, when Rule 4120(a)(11) is not in effect, the Designated
Percentage shall be 20% for securities subject to Rule
4120(a)(11)(A), 28% for securities subject to Rule 4120(a)(11)(B),
and 30% for securities subject to Rule 4120(a)(11)(C). The
Designated Percentage for rights and warrants shall be 30%.''
\5\ The ``Defined Limit'' is defined in Rule 4613 as ``9.5% for
securities subject to Rule 4120(a)(11)(A), 29.5% for securities
subject to Rule 4120(a)(11)(B), and 31.5% for securities subject to
Rule 4120(a)(11)(C), except that between 9:30 a.m. and 9:45 a.m. and
between 3:35 p.m. and the close of trading, when Rule 4120(a)(11) is
not in effect, the Defined Limit shall be 21.5% for securities
subject to Rule 4120(a)(11)(A), 29.5% for securities subject to Rule
4120(a)(11)(B), and 31.5% for securities subject to Rule
4120(a)(11)(C).''
\6\ Rule 4702(b)(7) states that ``[u]pon entry, the displayed
price of a Market Maker Peg Order to buy (sell) is automatically set
by the System at the Designated Percentage (as defined in Rule 4613)
away from the Reference Price in order to comply with the quotation
requirements for Market Makers set forth in Rule 4613(a)(2).''
In the foregoing example, if the Defined Limit is 9.5% and the
National Best Bid increased to $10.17, such that the displayed price
of the Market Maker Peg Order would be more than 9.5% away, the
Order will be repriced to $9.35, or 8% away from the National Best
Bid. Note that prices will be rounded in a manner to ensure that
they are calculated and displayed at a level that is consistent with
the Designated Percentage and the permissible minimum increment of
$0.01 or $0.0001, as applicable. If the limit price of the Order is
outside the Defined Limit, the Order will be sent back to the
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Participant.
The error in this example is that ``$9.35'' should be ``$9.36.''
The Exchange proposes to correct that inadvertent error in this
proposal. The correction is necessary to ensure that the price in the
example ($9.3564) is rounded up to the applicable minimum increment of
$0.01 and remains consistent with the Designated Percentage.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\7\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\8\ 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.
The proposal would correct a typographical error that otherwise renders
inaccurate an example of the application of Rule 4702(b)(7)(A). The
Exchange believes that it is consistent with the interest of the
public, investors, and the market for the Exchange to take steps to
ensure that its Rulebook is accurate.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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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 rule change is
non-substantive and it will have no impact on competition because it
simply corrects a typographical error in the Rule text to render the
text more accurate.
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 \9\ and Rule 19b-
4(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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 pursuant to Rule 19b-4(f)(6) under the
Act \11\ normally does not become operative for 30 days after the date
of its 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 Exchange can immediately correct the typographical error in Rule
4702(b)(7)(A) and avoid any potential confusion as to the operation of
the Market Maker Peg Order. For this reason, 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 operative delay and designates the
proposal as operative upon filing.\13\
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\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 also has 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 action is necessary or
appropriate in the public interest, for the protection of investors, or
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 change 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-2018-089 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-2018-089. 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
[[Page 60512]]
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-2018-089 and should be submitted on or before December 17, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-25599 Filed 11-23-18; 8:45 am]
BILLING CODE 8011-01-P
