Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt a New SCAR Routing Option Under Rule 3315, 11345-11347 [2019-05697]
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Federal Register / Vol. 84, No. 58 / Tuesday, March 26, 2019 / Notices
Amendment No.: 213. A publiclyavailable version is in ADAMS under
Accession No. ML19023A420,
documents related to this amendment
are listed in the Safety Evaluation
enclosed with the amendment.
Renewed Facility Operating License
No. NPF–12: The amendment revised
the Renewed Facility Operating License
and the Technical Specification.
Date of initial notice in Federal
Register: November 20, 2018 (83 FR
58615). The supplemental letter dated
February 22, 2019, provided additional
information that clarified the
application, did not expand the scope of
the application as originally noticed,
and did not change the staff’s original
proposed no significant hazards
consideration determination as
published in the Federal Register.
The Commission’s related evaluation
of the amendment is contained in a
Safety Evaluation dated March 7, 2019.
No significant hazards consideration
comments received: No.
original proposed no significant hazards
consideration determination as
published in the Federal Register.
The Commission’s related evaluation
of these amendments is contained in a
Safety Evaluation dated February 27,
2019.
No significant hazards consideration
comments received: No.
Virginia Electric and Power Company,
Docket Nos. 50–338 and 50–339, North
Anna Power Station (North Anna), Unit
Nos. 1 and 2, Louisa County, Virginia,
and Docket Nos. 50–280 and 50–281,
Surry Power Station (Surry), Unit Nos. 1
and 2, Surry County, Virginia
Date of amendment request: January
16, 2018, as supplemented by letters
dated June 13, and September 18, 2018.
Brief description of amendments: The
amendments authorized changes to the
North Anna and Surry emergency plans
and allowed the consolidation of both
sites’ previous emergency operations
facilities into a central emergency
operations facility.
Date of issuance: February 27, 2019.
Effective date: As of the date of
issuance and shall be implemented
within 180 days of issuance.
Amendment Nos.: 281 (Unit No. 1)
and 264 (Unit No. 2) for North Anna,
and 294 (Unit No. 1) and 294 (Unit No.
2) for Surry. A publicly-available
version is in ADAMS under Accession
No. ML19031B227; documents related
to these amendments are listed in the
Safety Evaluation enclosed with the
amendments.
Renewed Facility Operating License
Nos. NPF–4, NPF–7, DPR–32, and DPR–
37: The amendments revised the North
Anna and Surry emergency plans.
Date of initial notice in Federal
Register: September 11, 2018 (83 FR
45981). The supplemental letters dated
June 13, and September 18, 2018,
provided additional information that
clarified the application, did not expand
the scope of the application as originally
noticed, and did not change the staff’s
TIME AND DATE:
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Dated at Rockville, Maryland, this 15th day
of March 2019.
For the Nuclear Regulatory Commission.
Craig G. Erlanger,
Director, Division of Operating Reactor
Licensing, Office of Nuclear Reactor
Regulation.
[FR Doc. 2019–05266 Filed 3–25–19; 8:45 am]
BILLING CODE 7590–01–P
NUCLEAR REGULATORY
COMMISSION
[NRC–2019–0001]
Sunshine Act Meetings
Weeks of March 25,
April 1, 8, 15, 22, 29, 2019.
PLACE: Commissioners’ Conference
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STATUS: Public and Closed.
MATTERS TO BE CONSIDERED:
Week of March 25, 2019
Thursday, March 28, 2019
9:00 a.m. Transformation at the NRC:
Innovation (Public Meeting)
(Contact: June Cai: 301–415–1771)
This meeting will be webcast live at
the Web address—https://www.nrc.gov/.
Week of April 1, 2019—Tentative
Thursday, April 4, 2019
10:00 a.m. Meeting with the Advisory
Committee on the Medical Uses of
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This meeting will be webcast live at
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Week of April 8, 2019—Tentative
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This meeting will be webcast live at
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CONTACT PERSON FOR MORE INFORMATION:
For more information or to verify the
status of meetings, contact Denise
McGovern at 301–415–0681 or via email
at Denise.McGovern@nrc.gov. The
schedule for Commission meetings is
subject to change on short notice.
The NRC Commission Meeting
Schedule can be found on the internet
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The NRC provides reasonable
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Dated at Rockville, Maryland, this 22nd
day of March 2019.
For the Nuclear Regulatory Commission.
Denise L. McGovern,
Policy Coordinator, Office of the Secretary.
[FR Doc. 2019–05850 Filed 3–22–19; 4:15 pm]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85366; File No. SR–Phlx–
2019–04]
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Adopt a New SCAR
Routing Option Under Rule 3315
March 20, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 84, No. 58 / Tuesday, March 26, 2019 / Notices
notice is hereby given that on March 6,
2019, Nasdaq PHLX LLC (‘‘Phlx’’ 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 a proposal
to [sic] adopt a new SCAR routing
option under Rule 3315.
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,
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
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1. Purpose
The Exchange is proposing to adopt
SCAR, a new order routing 3 option
under Rule 3315(a)(1)(A). The Exchange
currently provides a variety of routing
3 Routing is an Order Attribute that allows a
Participant to designate an Order to employ one of
several Routing Strategies offered by the Exchange,
as described in Rule 3315; such an Order may be
referred to as a ‘‘Routable Order.’’ Upon receipt of
an Order with the Routing Order Attribute, the
System will process the Order in accordance with
the applicable Routing Strategy. In the case of a
limited number of Routing Strategies, the Order will
be sent directly to other market centers for potential
execution. For most other Routing Strategies, the
Order will attempt to access liquidity available on
the Exchange in the manner specified for the
underlying Order Type and will then be routed in
accordance with the applicable Routing Strategy.
Shares of the Order that cannot be executed are
then returned to the Exchange, where they will (i)
again attempt to access liquidity available on the
Exchange and (ii) post to the Exchange Book or be
cancelled, depending on the Time-in-Force of the
Order. See Rule 3301B(f).
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options under Rule 3315(a)(1)(A).
Routing options may be combined with
all available Order Types and Times-inForce, with the exception of Order
Types and Times-in-Force whose terms
are inconsistent with the terms of a
particular routing option. The SCAR
routing option would allow members to
seek liquidity on the Exchange and the
other equity markets operated by
Nasdaq, Inc., the Nasdaq BX Equities
Market (‘‘BX’’) and The Nasdaq Stock
Market (‘‘Nasdaq’’ and together with BX
and the Exchange, the ‘‘Nasdaq
Affiliated Exchanges’’). SCAR will
operate in the same manner as the
current PCRT strategy, but will differ in
the initial order routing to the Nasdaq
Affiliated Exchanges. Whereas PCRT
orders route sequentially to BX, the
Exchange, and then to Nasdaq,4 SCAR
orders will route simultaneously to all
three Nasdaq Affiliated Exchanges in
accordance with the System routing
table.5
Specifically as proposed, SCAR
would be a routing option under which
orders check the System 6 for available
shares and simultaneously route 7 to BX
and Nasdaq in accordance with the
System routing table.8 Similar to PCRT,
if shares remain unexecuted after
routing, they are posted on the
Exchange’s book or cancelled,
depending on the Time-in-Force of the
order.9 Once on the book, should the
order subsequently be locked or crossed
4 See
Rule 3315(a)(1)(A)(vii).
term ‘‘System routing table’’ refers to the
proprietary process for determining the specific
trading venues to which the System routes orders
and the order in which it routes them. The
Exchange reserves the right to maintain a different
System routing table for different routing options
and to modify the System routing table at any time
without notice. See Rule 3315(a)(1)(A).
6 The term ‘‘System’’ shall mean the automated
system for order execution and trade reporting
owned and operated by the Exchange. See Rule
3301(a).
7 As with all routing strategies that provide for
simultaneous routing, the incoming SCAR order
would be broken up into child orders. For SCAR
routing, the orders would be sent to the Exchange,
Nasdaq, and BX at the same time based on the
available displayed interest on these exchanges. In
particular, the Exchange would allocate the number
of shares from the parent order based on the System
routing table for SCAR, and route the allocated
shares (i.e., the child orders) to the executing
venues simultaneously.
8 As is the case today for all market destinations
on the System routing table, the placement of the
Exchange, BX and Nasdaq on the applicable System
routing table for SCAR will depend on the
Exchange’s ongoing assessments of factors such as
latency, fill rates, reliability, and cost.
9 Unexecuted shares of a SCAR order will return
to the Exchange after routing and check the System
for available shares before cancelling if the order
has a Time-in-Force of IOC. Otherwise, shares that
remain unexecuted after routing will return to the
Exchange and check the System for available shares
before posting on the Exchange’s book (e.g., the
SCAR order has a Time-in-Force of DAY).
5 The
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by another market center, the System
will not route the order to the locking
or crossing market center. This is also
similar to how PCRT treats shares that
remain unexecuted after completing the
initial order route and posting to the
Exchange book. Like all of the
Exchange’s routing strategies, SCAR is
designed to comply with Rule 611 and
the other provisions of Regulation
NMS.10
The Exchange will implement the
proposal in the second quarter of 2019,
subject to approval by the Commission.
The Exchange will provide prior notice
of the implementation date in an Equity
Trader Alert.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,11 in general, and furthers the
objectives of Section 6(b)(5) of the Act,12
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
Exchange believes that the proposed
rule change will accomplish those ends
by providing market participants with
an additional voluntary routing option
that will allow them to easily access
liquidity available on all Nasdaq
Affiliated Exchanges. The Exchange
expects the proposed routing strategy
will benefit firms that do not employ
routing or trading strategies under
which the firm itself would rapidly
access liquidity provided on the
multiple venues. SCAR would not
provide any advantage, including
latency and priority, to members when
routing to the Nasdaq Affiliated
Exchanges as compared to other
methods of routing or connectivity
available to members by the Exchange.
Lastly, the Exchange notes that
routing options enabling the routing of
orders between affiliated exchanges is
not unique, and that the proposed SCAR
routing option is similar to those
already offered by the Exchange (i.e.,
PCRT) and by other exchange groups.
Specifically, Cboe BZX Exchange
(‘‘BZX’’), Cboe BYX Exchange (‘‘BYX’’),
Cboe EDGA Exchange (‘‘EDGA’’), and
Cboe EDGX Exchange (‘‘EDGX’’) offer a
routing option called ALLB that enables
an order, whether sent to BZX, BYX,
EDGA, or EDGX, to check the BZX,
BYX, EDGA, and EDGX books for
liquidity before optionally posting on
10 17
CFR 242.611.
U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(5).
11 15
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Federal Register / Vol. 84, No. 58 / Tuesday, March 26, 2019 / Notices
the BZX, BYX, EDGA, or EDGX book.13
For the foregoing reasons, the Exchange
believes that the proposed rule change
is consistent with the Act.
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. As discussed
above, the proposed functionality is
partly based on existing functionality
available on competitor exchanges.14
Furthermore, the Exchange provides
routing services in a highly competitive
market in which participants may avail
themselves of a wide variety of routing
options offered by other exchanges,
alternative trading systems, other
broker-dealers, market participants’ own
proprietary routing systems, and service
bureaus. In such an environment,
system enhancements such as the
changes proposed in this rule filing do
not burden competition, because they
can succeed in attracting order flow to
the Exchange only if they offer investors
higher quality and better value than
services offered by others. Encouraging
competitors to provide higher quality
and better value is the essence of a wellfunctioning competitive marketplace.
Lastly, SCAR would not provide any
advantage to members when routing to
the Nasdaq Affiliated Exchanges as
compared to other methods of routing or
connectivity available to members by
the Exchange. For the foregoing reasons,
the Exchange does not believe 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.
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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
13 See
BZX Rule 11.13(b)(3)(O), BYX Rule
11.13(b)(3)(M), EDGA Rule 11.11(g)(7), and EDGX
Rule 11.11(g)(7). ALLB is also substantially similar
to the Exchange’s PCRT strategy, as described
above.
14 Id.
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17:54 Mar 25, 2019
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as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 15 and Rule 19b–
4(f)(6) thereunder.16
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
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–
Phlx–2019–04 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–Phlx–2019–04. 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
15 15
U.S.C. 78s(b)(3)(A).
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.
PO 00000
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11347
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-Phlx-2019–04 and should
be submitted on or before April 16,
2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–05697 Filed 3–25–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85365; File No. SR–MIAX–
2019–12]
Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Exchange Rule 503
March 20, 2019.
Pursuant to the provisions of 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 March 7, 2019, Miami International
Securities Exchange, LLC (‘‘MIAX
Options’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change as described in
Items I, II, and III 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 is filing a proposal to
amend Exchange Rule 503, Openings on
17 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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]]>Agencies
[Federal Register Volume 84, Number 58 (Tuesday, March 26, 2019)]
[Notices]
[Pages 11345-11347]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05697]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85366; File No. SR-Phlx-2019-04]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Adopt a New SCAR
Routing Option Under Rule 3315
March 20, 2019.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\
[[Page 11346]]
notice is hereby given that on March 6, 2019, Nasdaq PHLX LLC (``Phlx''
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 a proposal to [sic] adopt a new SCAR
routing option under Rule 3315.
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, 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 is proposing to adopt SCAR, a new order routing \3\
option under Rule 3315(a)(1)(A). The Exchange currently provides a
variety of routing options under Rule 3315(a)(1)(A). Routing options
may be combined with all available Order Types and Times-in-Force, with
the exception of Order Types and Times-in-Force whose terms are
inconsistent with the terms of a particular routing option. The SCAR
routing option would allow members to seek liquidity on the Exchange
and the other equity markets operated by Nasdaq, Inc., the Nasdaq BX
Equities Market (``BX'') and The Nasdaq Stock Market (``Nasdaq'' and
together with BX and the Exchange, the ``Nasdaq Affiliated
Exchanges''). SCAR will operate in the same manner as the current PCRT
strategy, but will differ in the initial order routing to the Nasdaq
Affiliated Exchanges. Whereas PCRT orders route sequentially to BX, the
Exchange, and then to Nasdaq,\4\ SCAR orders will route simultaneously
to all three Nasdaq Affiliated Exchanges in accordance with the System
routing table.\5\
---------------------------------------------------------------------------
\3\ Routing is an Order Attribute that allows a Participant to
designate an Order to employ one of several Routing Strategies
offered by the Exchange, as described in Rule 3315; such an Order
may be referred to as a ``Routable Order.'' Upon receipt of an Order
with the Routing Order Attribute, the System will process the Order
in accordance with the applicable Routing Strategy. In the case of a
limited number of Routing Strategies, the Order will be sent
directly to other market centers for potential execution. For most
other Routing Strategies, the Order will attempt to access liquidity
available on the Exchange in the manner specified for the underlying
Order Type and will then be routed in accordance with the applicable
Routing Strategy. Shares of the Order that cannot be executed are
then returned to the Exchange, where they will (i) again attempt to
access liquidity available on the Exchange and (ii) post to the
Exchange Book or be cancelled, depending on the Time-in-Force of the
Order. See Rule 3301B(f).
\4\ See Rule 3315(a)(1)(A)(vii).
\5\ The term ``System routing table'' refers to the proprietary
process for determining the specific trading venues to which the
System routes orders and the order in which it routes them. The
Exchange reserves the right to maintain a different System routing
table for different routing options and to modify the System routing
table at any time without notice. See Rule 3315(a)(1)(A).
---------------------------------------------------------------------------
Specifically as proposed, SCAR would be a routing option under
which orders check the System \6\ for available shares and
simultaneously route \7\ to BX and Nasdaq in accordance with the System
routing table.\8\ Similar to PCRT, if shares remain unexecuted after
routing, they are posted on the Exchange's book or cancelled, depending
on the Time-in-Force of the order.\9\ Once on the book, should the
order subsequently be locked or crossed by another market center, the
System will not route the order to the locking or crossing market
center. This is also similar to how PCRT treats shares that remain
unexecuted after completing the initial order route and posting to the
Exchange book. Like all of the Exchange's routing strategies, SCAR is
designed to comply with Rule 611 and the other provisions of Regulation
NMS.\10\
---------------------------------------------------------------------------
\6\ The term ``System'' shall mean the automated system for
order execution and trade reporting owned and operated by the
Exchange. See Rule 3301(a).
\7\ As with all routing strategies that provide for simultaneous
routing, the incoming SCAR order would be broken up into child
orders. For SCAR routing, the orders would be sent to the Exchange,
Nasdaq, and BX at the same time based on the available displayed
interest on these exchanges. In particular, the Exchange would
allocate the number of shares from the parent order based on the
System routing table for SCAR, and route the allocated shares (i.e.,
the child orders) to the executing venues simultaneously.
\8\ As is the case today for all market destinations on the
System routing table, the placement of the Exchange, BX and Nasdaq
on the applicable System routing table for SCAR will depend on the
Exchange's ongoing assessments of factors such as latency, fill
rates, reliability, and cost.
\9\ Unexecuted shares of a SCAR order will return to the
Exchange after routing and check the System for available shares
before cancelling if the order has a Time-in-Force of IOC.
Otherwise, shares that remain unexecuted after routing will return
to the Exchange and check the System for available shares before
posting on the Exchange's book (e.g., the SCAR order has a Time-in-
Force of DAY).
\10\ 17 CFR 242.611.
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The Exchange will implement the proposal in the second quarter of
2019, subject to approval by the Commission. The Exchange will provide
prior notice of the implementation date in an Equity Trader Alert.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\11\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\12\ 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 Exchange believes that the proposed rule change will
accomplish those ends by providing market participants with an
additional voluntary routing option that will allow them to easily
access liquidity available on all Nasdaq Affiliated Exchanges. The
Exchange expects the proposed routing strategy will benefit firms that
do not employ routing or trading strategies under which the firm itself
would rapidly access liquidity provided on the multiple venues. SCAR
would not provide any advantage, including latency and priority, to
members when routing to the Nasdaq Affiliated Exchanges as compared to
other methods of routing or connectivity available to members by the
Exchange.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
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Lastly, the Exchange notes that routing options enabling the
routing of orders between affiliated exchanges is not unique, and that
the proposed SCAR routing option is similar to those already offered by
the Exchange (i.e., PCRT) and by other exchange groups. Specifically,
Cboe BZX Exchange (``BZX''), Cboe BYX Exchange (``BYX''), Cboe EDGA
Exchange (``EDGA''), and Cboe EDGX Exchange (``EDGX'') offer a routing
option called ALLB that enables an order, whether sent to BZX, BYX,
EDGA, or EDGX, to check the BZX, BYX, EDGA, and EDGX books for
liquidity before optionally posting on
[[Page 11347]]
the BZX, BYX, EDGA, or EDGX book.\13\ For the foregoing reasons, the
Exchange believes that the proposed rule change is consistent with the
Act.
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\13\ See BZX Rule 11.13(b)(3)(O), BYX Rule 11.13(b)(3)(M), EDGA
Rule 11.11(g)(7), and EDGX Rule 11.11(g)(7). ALLB is also
substantially similar to the Exchange's PCRT strategy, as described
above.
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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. As discussed above, the
proposed functionality is partly based on existing functionality
available on competitor exchanges.\14\ Furthermore, the Exchange
provides routing services in a highly competitive market in which
participants may avail themselves of a wide variety of routing options
offered by other exchanges, alternative trading systems, other broker-
dealers, market participants' own proprietary routing systems, and
service bureaus. In such an environment, system enhancements such as
the changes proposed in this rule filing do not burden competition,
because they can succeed in attracting order flow to the Exchange only
if they offer investors higher quality and better value than services
offered by others. Encouraging competitors to provide higher quality
and better value is the essence of a well-functioning competitive
marketplace. Lastly, SCAR would not provide any advantage to members
when routing to the Nasdaq Affiliated Exchanges as compared to other
methods of routing or connectivity available to members by the
Exchange. For the foregoing reasons, the Exchange does not believe 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.
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\14\ Id.
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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) of the Act \15\ and Rule 19b-
4(f)(6) thereunder.\16\
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\15\ 15 U.S.C. 78s(b)(3)(A).
\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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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 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-Phlx-2019-04 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-Phlx-2019-04. 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 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-Phlx-2019-04 and should be submitted on
or before April 16, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-05697 Filed 3-25-19; 8:45 am]
BILLING CODE 8011-01-P
