Self-Regulatory Organizations; Nasdaq BX, Inc.; Order Granting an Extension to Limited Exemptions From Rule 612(c) of Regulation NMS In Connection With the Exchange's Retail Price Improvement Program Until June 30, 2019, 66325-66326 [2018-27821]
Download as PDF
<![CDATA[
66325
Federal Register / Vol. 83, No. 246 / Wednesday, December 26, 2018 / Notices
representative is unable to contact the
applicant in person or by telephone, for
example, the applicant lives in another
country, a manual version of Form AA–
3 is used. One response is requested of
each respondent. Completion of the
form is required to obtain a benefit.
The RRB proposes no changes to the
forms in the information collection.
ESTIMATE OF ANNUAL RESPONDENT BURDEN
Annual
responses
Form No.
Burden
(hours)
Form AA–3cert (Ink Signature) ....................................................................................................
Form AA–3sum (Attestation) .......................................................................................................
6,400
4,600
30
29
3,200
2,223
Total ......................................................................................................................................
11,000
........................
5,423
Additional Information or Comments:
To request more information or to
obtain a copy of the information
collection justification, forms, and/or
supporting material, contact Brian
Foster at (312) 751–4826. Comments
regarding the information collection
should be addressed to Brian Foster,
Railroad Retirement Board, 844 North
Rush Street, Chicago, Illinois 60611–
1275 or emailed to Brian.Foster@rrb.gov.
Written comments should be received
within 60 days of this notice.
Brian D. Foster,
Records Officer.
[FR Doc. 2018–27914 Filed 12–21–18; 8:45 am]
BILLING CODE 7905–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84846; File No. SR–BX–
2014–048]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Order Granting an Extension
to Limited Exemptions From Rule
612(c) of Regulation NMS In
Connection With the Exchange’s Retail
Price Improvement Program Until June
30, 2019
December 18, 2018.
amozie on DSK3GDR082PROD with NOTICES1
Time
(minutes)
On November 28, 2014, the Securities
and Exchange Commission
(‘‘Commission’’) issued an order
pursuant to its authority under Rule
612(c) of Regulation NMS (‘‘Sub-Penny
Rule’’) 1 that granted The NASDAQ
OMX BX, Inc., n/k/a Nasdaq BX, Inc.
(‘‘BX’’ or ‘‘Exchange’’), a limited
exemption from the Sub-Penny Rule in
connection with the operation of the
Exchange’s Retail Price Improvement
Program (the ‘‘RPI Program’’).2 The
limited exemption was granted
concurrently with the Commission’s
approval of the Exchange’s proposal to
1 17
CFR 242.612(c).
Securities Exchange Act Release No. 73702,
79 FR 72049 (December 4, 2014) (SR–BX–2014–048)
(‘‘RPI Approval Order’’).
2 See
VerDate Sep<11>2014
20:07 Dec 21, 2018
Jkt 247001
adopt its RPI Program for a one-year
pilot term.3 On November 20, 2015, the
Commission extended the temporary
exemption until December 2016
concurrently with an immediately
effective filing that extended the
operation of the RPI Program until
December 1, 2016.4 On December 1,
2016, the Commission extended the
temporary exemption until December 1,
2017 concurrently with an immediately
effective filing that extended the
operation of the RPI Program until
December 1, 2017.5 On December 1,
2017, the Commission extended the
temporary exemption until June 30,
2018 concurrently with an immediately
effective filing that extended the
operation of the RPI Program until June
30, 2018.6 On June 28, 2018, the
Commission again extended the
temporary exemption until December
31, 2018 concurrently with an
immediately effective filing that
extended the operation of the RPI
Program until December 31, 2018.7
The Exchange now seeks to extend
the exemption until June 30, 2019.8 The
Exchange’s request was made in
conjunction with an immediately
effective filing that extends the
operation of the RPI Program through
the same date.9 In its request to extend
the exemption, the Exchange notes that
given the gradual implementation of the
RPI Program and the preliminary
3 See
id.
Securities Exchange Act Release No. 76490
(November 20, 2015), 80 FR 74165 (November 27,
2015) (SR–BX–2015–073).
5 See Securities Exchange Act Release No. 79446
(December 1, 2016), 81 FR 88290 (December 7,
2016) (SR–BX–2016–065).
6 See Securities Exchange Act Release No. 82192
(December 1, 2017), 82 FR 57809 (December 7,
2017) (SR–BX–2017–055).
7 See Securities Exchange Act Release No. 83539
(June 28, 2018), 83 FR 31203 (July 3, 2018) (SR–BX–
2018–026).
8 See Letter from Jeffrey S. Davis, Vice President
and Deputy General Counsel and Secretary, Nasdaq
BX, Inc. to Eduardo A. Aleman, Assistant Secretary,
Securities and Exchange Commission, dated
December 11, 2018 (‘‘BX Letter’’).
9 See SR–BX–2018–063.
4 See
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
participation and results, extending the
exemption would provide additional
opportunities for greater participation
and assessment of the results.10
Accordingly, the Exchange has asked
additional time to allow it and the
Commission to analyze data concerning
the RPI Program, which the Exchange
committed to provide to the
Commission.11 For this reason and the
reasons stated in the RPI Approval
Order originally granting the limited
exemption, the Commission, pursuant
to its authority under Rule 612(c) of
Regulation NMS, finds that pursuant to
its authority under Rule 612(c) of
Regulation NMS, extending the
exemption is appropriate in the public
interest and consistent with the
protection of investors.
Therefore, it is hereby ordered that,
pursuant to Rule 612(c) of Regulation
NMS, the Exchange is granted a limited
exemption from Rule 612 of Regulation
NMS that allows the Exchange to accept
and rank orders priced equal to or
greater than $1.00 per share in
increments of $0.001, in connection
with the operation of its RPI Program,
until June 30, 2019.
The limited and temporary exemption
extended by this Order is subject to
modification or revocation if at any time
the Commission determines that such
action is necessary or appropriate in
furtherance of the purposes of the
Securities Exchange Act of 1934.
Responsibility for compliance with any
applicable provisions of the Federal
securities laws must rest with the
persons relying on the exemptions that
are the subject of this Order.
10 See, e.g., BX Letter at 3; RPI Approval Order,
supra note 2.
11 See, id.
E:\FR\FM\26DEN1.SGM
26DEN1
66326
Federal Register / Vol. 83, No. 246 / Wednesday, December 26, 2018 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2018–27821 Filed 12–21–18; 8:45 am]
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84847; File No. SR–BX–
2018–063]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Pilot
Period for the Exchange’s Retail Price
Improvement Program Until June 30,
2019
December 18, 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 December
11, 2018, Nasdaq BX, Inc. (‘‘BX’’ or
‘‘Exchange’’), filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I 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 extend the
pilot period for the Exchange’s Retail
Price Improvement (‘‘RPI’’) Program (the
‘‘Program’’), which is set to expire on
December 31, 2018, for an additional
period to expire on June 30, 2019.
The Exchange has designated
December 11, 2018 as the date the
proposed rule change becomes effective.
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaqbx.cchwallstreet.com/, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
amozie on DSK3GDR082PROD with NOTICES1
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
12 17
CFR 200.30–3(a)(83).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
20:07 Dec 21, 2018
Jkt 247001
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.
1. Purpose
The purpose of this filing is to extend
the pilot period of the RPI Program,3
currently scheduled to expire on
December 31, 2018, for an additional
period to expire on June 30, 2019.
Background
In November 2014, the Commission
approved the RPI Program on a pilot
basis.4 The Program is designed to
attract retail order flow to the Exchange,
and allow such order flow to receive
potential price improvement. The
Program is currently limited to trades
occurring at prices equal to or greater
than $1.00 per share. Under the
Program, a new class of market
participant called a Retail Member
Organization (‘‘RMO’’) is eligible to
submit certain retail order flow (‘‘Retail
Orders’’) 5 to the Exchange. BX members
(‘‘Members’’) are permitted to provide
potential price improvement for Retail
Orders in the form of non-displayed
interest that is priced more aggressively
than the Protected National Best Bid or
Offer (‘‘Protected NBBO’’).6
3 Securities Exchange Act Release No. 73702
(November 28, 2014), 79 FR 72049 (December 4,
2014) (‘‘RPI Approval Order’’) (SR–BX–2014–048).
4 See id.
5 A ‘‘Retail Order’’ is defined in BX Rule
4780(a)(2) by referencing BX Rule 4702, and BX
Rule 4702(b)(6) says it is an order type with a nondisplay order attribute submitted to the Exchange
by a RMO. A Retail Order must be an agency order,
or riskless principal order that satisfies the criteria
of FINRA Rule 5320.03. The Retail Order must
reflect trading interest of a natural person with no
change made to the terms of the underlying order
of the natural person with respect to price (except
in the case of a market order that is changed to a
marketable limit order) or side of market and that
does not originate from a trading algorithm or any
other computerized methodology.
6 The term Protected Quotation is defined in
Chapter XII, Sec. 1(19) and has the same meaning
as is set forth in Regulation NMS Rule 600(b)(58).
The Protected NBBO is the best-priced protected
bid and offer. Generally, the Protected NBBO and
the national best bid and offer (‘‘NBBO’’) will be the
same. However, a market center is not required to
route to the NBBO if that market center is subject
to an exception under Regulation NMS Rule
611(b)(1) or if such NBBO is otherwise not available
for an automatic execution. In such case, the
Protected NBBO would be the best-priced protected
bid or offer to which a market center must route
interest pursuant to Regulation NMS Rule 611.
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
The Program was approved by the
Commission on a pilot basis running
one-year from the date of
implementation.7 The Commission
approved the Program on November 28,
2014.8 The Exchange implemented the
Program on December 1, 2014 and the
pilot has since been extended for a one
year period twice and for an additional
six month period twice, with it now
scheduled to end on December 31,
2018.9
Proposal To Extend the Operation of the
Program
The Exchange established the RPI
Program in an attempt to attract retail
order flow to the Exchange by
potentially providing price
improvement to such order flow. The
Exchange believes that the Program
promotes competition for retail order
flow by allowing Exchange members to
submit Retail Price Improvement Orders
(‘‘RPI Orders’’) 10 to interact with Retail
Orders. Such competition has the ability
to promote efficiency by facilitating the
price discovery process and generating
additional investor interest in trading
securities, thereby promoting capital
formation. The Exchange believes that
extending the pilot is appropriate
because it will allow the Exchange and
the Commission additional time to
analyze data regarding the Program that
the Exchange has committed to
provide.11 As such, the Exchange
believes that it is appropriate to extend
the current operation of the Program.12
Through this filing, the Exchange seeks
to amend BX Rule 4780(h) and extend
the current pilot period of the Program
7 See
RPI Approval Order, supra note 3 at 72053.
at 72049.
9 See Securities Exchange Act Release No. 76490
(November 20, 2015), 80 FR 74165 (November 27,
2015) (SR–BX–2015–073); Securities Exchange Act
Release No. 79446 (December 1, 2016), 81 FR 88279
(December 7, 2016) (SR–BX–2016–065); Securities
Exchange Act Release No. 82192 (December 1,
2017), 82 FR 57809 (December 7, 2017) (SR–BX–
2017–055); and Securities Exchange Act Release
No. 83539 (June 28, 2018), 83 FR 31203 (July 3,
2018) (SR–BX–2018–026).
10 A Retail Price Improvement Order is defined in
BX Rule 4780(a)(3) by referencing BX Rule 4702
and BX Rule 4702(b)(5) says that it is as an order
type with a non-display order attribute that is held
on the Exchange Book in order to provide liquidity
at a price at least $0.001 better than the NBBO
through a special execution process described in
Rule 4780.
11 See RPI Approval Order, supra note 3 at 72051.
12 Concurrently with this filing, the Exchange has
submitted a request for an extension of the
exemption under Regulation NMS Rule 612
previously granted by the Commission that permits
it to accept and rank the RPI orders in sub-penny
increments. See Letter from Jeffrey S. Davis, Vice
President and Deputy General Counsel and
Secretary, Nasdaq BX, Inc. to Eduardo A. Aleman,
Assistant Secretary, Securities and Exchange
Commission dated December 11, 2018.
8 Id.
E:\FR\FM\26DEN1.SGM
26DEN1
]]>Agencies
[Federal Register Volume 83, Number 246 (Wednesday, December 26, 2018)]
[Notices]
[Pages 66325-66326]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27821]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84846; File No. SR-BX-2014-048]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Order Granting an
Extension to Limited Exemptions From Rule 612(c) of Regulation NMS In
Connection With the Exchange's Retail Price Improvement Program Until
June 30, 2019
December 18, 2018.
On November 28, 2014, the Securities and Exchange Commission
(``Commission'') issued an order pursuant to its authority under Rule
612(c) of Regulation NMS (``Sub-Penny Rule'') \1\ that granted The
NASDAQ OMX BX, Inc., n/k/a Nasdaq BX, Inc. (``BX'' or ``Exchange''), a
limited exemption from the Sub-Penny Rule in connection with the
operation of the Exchange's Retail Price Improvement Program (the ``RPI
Program'').\2\ The limited exemption was granted concurrently with the
Commission's approval of the Exchange's proposal to adopt its RPI
Program for a one-year pilot term.\3\ On November 20, 2015, the
Commission extended the temporary exemption until December 2016
concurrently with an immediately effective filing that extended the
operation of the RPI Program until December 1, 2016.\4\ On December 1,
2016, the Commission extended the temporary exemption until December 1,
2017 concurrently with an immediately effective filing that extended
the operation of the RPI Program until December 1, 2017.\5\ On December
1, 2017, the Commission extended the temporary exemption until June 30,
2018 concurrently with an immediately effective filing that extended
the operation of the RPI Program until June 30, 2018.\6\ On June 28,
2018, the Commission again extended the temporary exemption until
December 31, 2018 concurrently with an immediately effective filing
that extended the operation of the RPI Program until December 31,
2018.\7\
---------------------------------------------------------------------------
\1\ 17 CFR 242.612(c).
\2\ See Securities Exchange Act Release No. 73702, 79 FR 72049
(December 4, 2014) (SR-BX-2014-048) (``RPI Approval Order'').
\3\ See id.
\4\ See Securities Exchange Act Release No. 76490 (November 20,
2015), 80 FR 74165 (November 27, 2015) (SR-BX-2015-073).
\5\ See Securities Exchange Act Release No. 79446 (December 1,
2016), 81 FR 88290 (December 7, 2016) (SR-BX-2016-065).
\6\ See Securities Exchange Act Release No. 82192 (December 1,
2017), 82 FR 57809 (December 7, 2017) (SR-BX-2017-055).
\7\ See Securities Exchange Act Release No. 83539 (June 28,
2018), 83 FR 31203 (July 3, 2018) (SR-BX-2018-026).
---------------------------------------------------------------------------
The Exchange now seeks to extend the exemption until June 30,
2019.\8\ The Exchange's request was made in conjunction with an
immediately effective filing that extends the operation of the RPI
Program through the same date.\9\ In its request to extend the
exemption, the Exchange notes that given the gradual implementation of
the RPI Program and the preliminary participation and results,
extending the exemption would provide additional opportunities for
greater participation and assessment of the results.\10\ Accordingly,
the Exchange has asked additional time to allow it and the Commission
to analyze data concerning the RPI Program, which the Exchange
committed to provide to the Commission.\11\ For this reason and the
reasons stated in the RPI Approval Order originally granting the
limited exemption, the Commission, pursuant to its authority under Rule
612(c) of Regulation NMS, finds that pursuant to its authority under
Rule 612(c) of Regulation NMS, extending the exemption is appropriate
in the public interest and consistent with the protection of investors.
---------------------------------------------------------------------------
\8\ See Letter from Jeffrey S. Davis, Vice President and Deputy
General Counsel and Secretary, Nasdaq BX, Inc. to Eduardo A. Aleman,
Assistant Secretary, Securities and Exchange Commission, dated
December 11, 2018 (``BX Letter'').
\9\ See SR-BX-2018-063.
\10\ See, e.g., BX Letter at 3; RPI Approval Order, supra note
2.
\11\ See, id.
---------------------------------------------------------------------------
Therefore, it is hereby ordered that, pursuant to Rule 612(c) of
Regulation NMS, the Exchange is granted a limited exemption from Rule
612 of Regulation NMS that allows the Exchange to accept and rank
orders priced equal to or greater than $1.00 per share in increments of
$0.001, in connection with the operation of its RPI Program, until June
30, 2019.
The limited and temporary exemption extended by this Order is
subject to modification or revocation if at any time the Commission
determines that such action is necessary or appropriate in furtherance
of the purposes of the Securities Exchange Act of 1934. Responsibility
for compliance with any applicable provisions of the Federal securities
laws must rest with the persons relying on the exemptions that are the
subject of this Order.
[[Page 66326]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(83).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2018-27821 Filed 12-21-18; 8:45 am]
BILLING CODE 8011-01-P
