Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Relocate the Options Rules Under Chapter IV, Securities Traded on NOM, 26912-26916 [2019-12093]

Download as PDF 26912 Federal Register / Vol. 84, No. 111 / Monday, June 10, 2019 / Notices competition, including price competition, from other exchanges and broker-dealers that offer routing services, as well as the ability of members to use their own routing capabilities, it is likely that the Exchange will lose market share as a result of the changes if they are unattractive to market participants. Accordingly, the Exchange does not believe that the proposed changes will impair the ability of members or competing order execution venues to maintain their competitive standing in the financial markets. 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 The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.18 At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: khammond on DSKBBV9HB2PROD with NOTICES 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– BX–2019–016 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–BX–2019–016. 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 a.m. and 3 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–BX– 2019–016 and should be submitted on or before July 1, 2019. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.19 Eduardo A. Aleman, Deputy Secretary. [FR Doc. 2019–12086 Filed 6–7–19; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–86022; File No. SR– NASDAQ–2019–047] Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Relocate the Options Rules Under Chapter IV, Securities Traded on NOM June 4, 2019. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on May 28, 2019, The Nasdaq Stock Market LLC 19 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 18 15 U.S.C. 78s(b)(3)(A)(ii). VerDate Sep<11>2014 16:45 Jun 07, 2019 Jkt 247001 PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the 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 proposes to relocate The Nasdaq Options Market LLC (‘‘NOM’’) Rules at Chapter IV (Securities Traded on NOM) under the Options 4 title in the Exchange’s rulebook’s (‘‘Rulebook’’) shell structure.3 The proposal also amends the rules as relocated to conform primarily to the equivalent options rules in the Nasdaq ISE, LLC (‘‘ISE’’) rulebook, as well as in one instance to the equivalent options rule in the Nasdaq PHLX LLC (‘‘Phlx’’) rulebook. The proposal also amends Section1 of Chapter I of the NOM Rules to add several definitions. Finally, as a cleanup item, the proposal deletes Nasdaq Rule 5712 Alpha Index-Linked Securities because it is obsolete and the Exchange has never listed a product under this rule. 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. 3 In 2017, the Exchange added a shell structure to its Rulebook with the purpose of improving efficiency and readability and to align its rules closer to those of its five sister exchanges, Nasdaq BX, Inc.; Nasdaq PHLX LLC; Nasdaq ISE, LLC; Nasdaq GEMX, LLC; and Nasdaq MRX, LLC (‘‘Affiliated Exchanges’’). See Securities Exchange Act Release No. 82175 (November 29, 2017), 82 FR 57494 (December 5, 2017) (SR–NASDAQ–2017– 125). E:\FR\FM\10JNN1.SGM 10JNN1 Federal Register / Vol. 84, No. 111 / Monday, June 10, 2019 / Notices A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change khammond on DSKBBV9HB2PROD with NOTICES 1. Purpose The Exchange proposes to relocate the rule text in Chapter IV (Securities Traded on NOM) to the Options 4 title in the Rulebook’s shell structure. For ease of reference and the purposes of this filing, the relocated rules are herein described as the ‘‘Options Listing Rules.’’ The relocation of the Options Listing Rules is part of the Exchange’s continued effort to promote efficiency and the conformity of its processes with those of the Affiliated Exchanges,4 and its goal of harmonizing and uniformizing its rules. This proposed change is of a nonsubstantive nature. Moreover, the relocation of the Options Listing Rules will facilitate the use of the Rulebook by Members 5 of the Exchange, who are members of other Affiliated Exchanges; other market participants; and the public in general. The relocated rules will be amended to reflect the equivalent options rules in the ISE rulebook, but the changes are of a nonsubstantive nature. The overarching goal is to align the NOM rules with those of the ISE. The Exchange is proposing to amend the rules for NOM, most notably the rule text in the Options Listing Rules concerning securities traded on NOM, but also adding several definitions to Section 1 of Chapter I. The vast majority of the changes are technical changes and made throughout the Options Listing Rules. These minor changes are designed to conform the NOM rules to the equivalent ISE rules, as well as to increase the clarity of the rules. This includes some reorganization and renumbering within the Options Listing Rules’ subsections to ensure they remain consistent. The proposed changes that do not fit within the description above are listed below, beginning with changes to Chapter I General Provisions and followed by global changes to the Options Listing Rules. The changes are then broken down by section within the Options Listing Rules. Proposed Changes to Chapter I The Exchange is proposing to add definitions to ‘‘Section 1 Definitions’’. Specifically, the terms ‘‘class’’ ‘‘series’’ and ‘‘underlying security’’ will be added to Section 1(a) as (72), (73), and (74), 4 Id. 5 As defined by Exchange Rule 0120(i). VerDate Sep<11>2014 16:45 Jun 07, 2019 Jkt 247001 respectively.6 The Exchange believes that using the definitions for these terms as defined in the By-Laws of The Options Clearing Corporation (‘‘OCC’’) uniformly across Nasdaq, Inc.’s exchanges will help to align them. Providing uniform, clear and precise definitions for these terms will provide consistency, lessen potential confusion and add clarity for market participants. Section 1 of Chapter I also will be amended to change ‘‘NOM’’ to ‘‘the Exchange’’. Proposed Changes to the Options Listing Rules Global Changes As described above, the current Options Listing Rules will be amended throughout to change ‘‘NOM’’ to ‘‘the Exchange’’. This proposed change will add consistency throughout the chapter. ‘‘Nasdaq Regulation’’ also will be changed to ‘‘the Exchange’’ throughout the Options Listing Rules to update the appropriate references. Additionally, there are a number of minor changes made throughout the chapter to increase the clarity of the language, as well as renumbering within the section to ensure it remains consistent. Proposed Changes to Section 1 Designation of Securities This section will be amended to clarify that the options contracts that are designated by reference to the issuer of the underlying security can also be designated by reference to the name of the underlying foreign currency. Additionally, it can be referenced by not only the expiration month, but also by the expiration date. Proposed Changes to Section 2 Rights and Obligations of Holders and Writers This section will be amended to clarify that option contracts of any class of options dealt in on the Exchange are subject to the provisions of Options 4 and as set forth in the rules of the Clearing Corporation. This change clarifies the rights and obligations of holders and writers of option contracts. Proposed Changes to Section 3 Criteria for Underlying Securities Section 3(i) of the Options Listing Rules is being replaced and updated by incorporating the ISE version of the Exchange-Traded Fund (‘‘ETF’’) option listing rule.7 Most of the changes in Section 3 of the Options Listing Rules simply result from reorganization 6 See OCC By-Laws Article I—Definitions C.(11); S.(12); and U.(3), respectively. 7 See ISE Rule 502(h). PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 26913 within the section done to mirror the ISE rule and for greater clarity. Section 3(k)(ii) of the Options Listing Rules will be amended to delete the language stating that Nasdaq will ‘‘employ the same procedures to qualify underlying securities pursuant to this subsection (k) as it employs in qualifying underlying securities pursuant to other subsections of this Section 3.’’ This deleted language is unnecessary since it is redundant given that each of the other subsections in Section 3 have procedures to qualify underlying securities plus it is also not reflected in the ISE rule version being adopted for this section. Section 3(m) will be deleted since the definition of ‘‘Partnership Unit’’ is a remnant from the legacy Nasdaq ETF listing rule and is unnecessary since it has never been used. It also is not reflected in the ISE rule version being adopted for this section. Proposed Changes to Section 4 Withdrawal of Approval of Underlying Securities Section 4(a) of the Options Listing Rules will be amended to add flexibility for the Exchange to choose whether to decline new additional series of options on the underlying security previously approved.8 Currently, this section restricts this, but flexibility is being added to give greater discretion about adding series and an exception also will be added that opening transactions by market makers executed to accommodate closing transactions of other market participants may be permitted. This will provide the public with greater protection since it will allow the Exchange to now decline new additional series of options on the underlying security previously approved that may not be in the best interests of the public. Section 4(h)(ii) of the Options Listing Rules will be amended to change for options covering Exchange-Traded Fund Shares approved pursuant to Section 3(i)(iv)(2) of Options 4, following the initial twelve-month period beginning upon the commencement of trading in the Exchange-Traded Fund Shares on a national securities exchange and are defined as NMS stock under Rule 600 of Regulation NMS, that there were fewer than 50 record and/or beneficial holders of such Exchange-Traded Fund Shares for 30 or more consecutive trading days rather than as it is currently stated for 30 consecutive days. It is only on trading days that the information regarding 50 record and/or beneficial 8 See E:\FR\FM\10JNN1.SGM ISE Rule 503(a). 10JNN1 26914 Federal Register / Vol. 84, No. 111 / Monday, June 10, 2019 / Notices holders can be ascertained. Also, the change is consistent with the ISE rule.9 khammond on DSKBBV9HB2PROD with NOTICES Proposed Changes to Section 6 Series of Options Contracts Open for Trading Section 6(a) of the Options Listing Rules will be amended to add to note that exercise-price setting parameters adopted as part of the Options Listing Procedures Plan will be included in Supplementary Material .02 Select Provisions of Options Listing Procedures Plan. In order to mirror the equivalent ISE rules,10 Section 6(d)iv of the Options Listing Rules will be amended to incorporate, in large part, former Supplementary Material .03 within Section 6 itself. Also, Section 6(d)v of the Options Listing Rules will be relocated to .10 of the Supplementary Material to Section 6 of the Options Listing Rules.11 Supplementary Material .01(a) and (b) to Section 6 will detail the $1 Strike Price Interval Program and will replace .01 and .02 of the Supplementary Material to Section 6. Select Provisions of Options Listing Procedures Plan (‘‘OLPP’’) will be added as Supplementary Material .02 to Section 6. Supplementary Material. 03 and .04 will detail the Short Term Option Series Program 12 and the Quarterly Options Series Program,13 respectively, and each will be consistent with the equivalent ISE rule. .05 of the Supplementary Material to Section 6 will be amended to cover the intervals between strike prices for MiniNasdaq 100 Index options series and will be consistent with the equivalent ISE rule.14 The first sentence of .06 Range Limitations for New Option Series of the Options Listing Rules has been deleted since it is covered in .02 of the Supplementary Material to Section 6, but the definition of OLPP has been moved to Section 6(a). The introductory paragraph to .02 of the Supplementary Material to Section 6 of the Options Listing Rules details that the quote mitigation strategy and is codified in the OLPP. Subsection (a) states that the exercise price of each options series listed by the Exchange is fixed at a price per share that is 9 See ISE Rule 503(h)(2). ISE Rule 504(g). 11 See ISE Supplementary Material .09 to Rule 504. 12 See ISE Supplementary Material .02 to Rule 504. 13 See ISE Supplementary Material .03 to Rule 504. 14 See ISE Supplementary Material .04 to Rule 504. 10 See VerDate Sep<11>2014 16:45 Jun 07, 2019 Jkt 247001 reasonably close to the price of the underlying equity security, ETF or Trust Issued Receipt at or about the time the Exchange determines to list such series. Subsection (a)(ii) says that for new expiration months, the daily high and low of all prices reported by all national securities exchanges on the day the Exchange determines its preliminary notification of a new series. The amended language will say that the price of the underlying security is measured by, for new expiration months, the daily high and low of all prices reported by all national securities exchanges on the day the Exchange determines its preliminary notification of a new series rather than on the day the Exchange determines to list a new series. This change also mirrors the language in the ISE rules.15 Subsection (c) will be added to the Supplementary Material to Section 6 of the Options Listing Rules to make clear that subsection (a) of the Supplementary Material to Section 6 of the Options Listing Rules will not permit the listing of series that are otherwise prohibited by the rules of the Exchange or the OLPP. Additionally, to the extent the rules of the Exchange permit the listing of new series that are otherwise prohibited by the provisions of the OLPP, the provisions of the OLPP will govern. These changes are consistent with the ISE rules.16 Supplementary Material .16 U.S. Dollar-Settled Foreign Currency Options (formerly Supplementary Material .09) will be amended to reflect the language of the equivalent Phlx Rule since ISE does not have U.S. Dollar-Settled Foreign Currency Options.17 Also, the references to the continuity rules here (formerly Supplementary Material .09(C)) and in Section 8. Long-Term Options Contracts have been deleted since quoting obligations for long term options has recently been updated and addressed in Phlx Rule 1081 and in NOM Chapter VII Section 6. The Exchange is also proposing to delete Nasdaq Rule 5712. Alpha IndexLinked Securities.18 This rule was adopted in 2012, but no product has ever been listed under it and the Exchange now considers it obsolete. The Exchange proposes to remove Nasdaq Rule 5712 from its rulebook and lessen any potential confusion for market participants. ISE Rule 504A(b)(i)(2). ISE Rule 504A(b)(v) and (vi). 17 See Phlx Rule 1012(a)(iii). 18 See Securities Exchange Act Release No. 67617 (August 8, 2012), 82 FR 57494 (August 14, 2012) (SR–NASDAQ–2012–068). 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,19 in general, and furthers the objectives of Section 6(b)(5) of the Act,20 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 relocation of its Options Listing Rules is a non-substantive change and is consistent with similar filings by the Exchange for the relocation of its rules.21 As noted above, the relocation of the Options Listing Rules is part of the Exchange’s continued effort to promote efficiency and the structural conformity of its processes with those of the Affiliated Exchanges,22 and its goal of harmonizing and uniformizing its rules. Additionally, the relocation of the Options Listing Rules will facilitate the use of the Rulebook by Members 23 of the Exchange, who are members of other Affiliated Exchanges; other market participants; and the public in general. The majority of the changes are also consistent with the ISE rulebook and the overarching goal is to align the NOM rules with those of the ISE. These changes include the change to subsection (a)(ii) of the Supplementary Material to Section 6 to say that the price of the underlying security is measured by, for new expiration months, the daily high and low of all prices reported by all national securities exchanges on the day the Exchange determines its preliminary notification of a new series rather than on the day the Exchange determines to list a new series. Another such change is amending the Options Listing Rules to change for options covering Exchange-Traded Fund Shares approved pursuant to Section 3(i)(iv)(2) of Options 4, following the initial twelve-month period beginning upon the commencement of trading in the Exchange-Traded Fund Shares on a national securities exchange and are defined as NMS stock under Rule 600 of Regulation NMS, that there were fewer than 50 record and/or beneficial holders of such Exchange-Traded Fund Shares for 30 or more consecutive trading days rather than as it is currently stated for 30 consecutive days. It is only on trading days that the information 15 See 16 See PO 00000 Frm 00106 Fmt 4703 Sfmt 4703 19 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 21 See footnote 3. 22 Id. 23 As defined by Exchange Rule 0120(i). 20 15 E:\FR\FM\10JNN1.SGM 10JNN1 khammond on DSKBBV9HB2PROD with NOTICES Federal Register / Vol. 84, No. 111 / Monday, June 10, 2019 / Notices regarding 50 record and/or beneficial holders can be ascertained. This change serves 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 amending Section 4(a) of the Options Listing Rules to add flexibility for the Exchange to choose whether to decline new additional series of options on the underlying security previously approved will serve 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 since it will allow the Exchange to now decline new additional series of options on the underlying security previously approved that may not be in the best interests of the public. The Exchange believe that adding definitions for the terms ‘‘class’’, ‘‘series’’, and ‘‘underlying security’’ to the NOM rulebook from the OCC ByLaws will help 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 through providing uniform, clear and precise definitions for these terms and increase consistency, lessen potential confusion and add clarity for market participants.24 The Exchange also believes that the elimination of Nasdaq Rule 5712 Alpha Index-Linked Securities is not a material change because it is obsolete and the Exchange has never listed a product under this rule. As a result, the Exchange believes that the changes included in this filing serve 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 since the changes are intended to organize the Rulebook in a way that it will ease the Members’, market participants’, and the general public’s navigation and reading of the rules. With respect to the proposed technical corrections to the rules, the Exchange believes that these changes are consistent with the Act because they will prevent investor confusion that may be caused by including in the Rules incorrect rule citations and defunct rule text. 24 See footnote 6. VerDate Sep<11>2014 17:56 Jun 07, 2019 Jkt 247001 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 change does not impose a burden on competition because, as previously stated, it (i) is of a nonsubstantive nature, (ii) is intended to harmonize the structure of the Exchange’s rules with those of its Affiliated Exchanges, and (iii) is intended to organize the Rulebook in a way that it will ease the Members’, market participants’, and the general public’s navigation and reading of the rules. Consequently, the Exchange does not believe that the proposed changes implicate competition at all. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act 25 and subparagraph (f)(6) of Rule 19b–4 thereunder.26 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. 25 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 26 17 PO 00000 Frm 00107 Fmt 4703 Sfmt 4703 26915 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–2019–047 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–2019–047. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet website (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–NASDAQ–2019–047, and should be submitted on or before July 1, 2019. E:\FR\FM\10JNN1.SGM 10JNN1 26916 Federal Register / Vol. 84, No. 111 / Monday, June 10, 2019 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.27 Eduardo A. Aleman, Deputy Secretary. [FR Doc. 2019–12093 Filed 6–7–19; 8:45 am] Dated: June 6, 2019. Vanessa A. Countryman, Acting Secretary. [FR Doc. 2019–12328 Filed 6–6–19; 4:15 pm] BILLING CODE 8011–01–P BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION SECURITIES AND EXCHANGE COMMISSION [Release No. 34–86026; File No. SR– NASDAQ–2019–045] Sunshine Act Meetings 11:00 a.m. on Thursday, June 13, 2019. PLACE: The meeting will be held at the Commission’s headquarters, 100 F Street NE, Washington, DC 20549. STATUS: This meeting will be closed to the public. MATTERS TO BE CONSIDERED: Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the closed meeting. Certain staff members who have an interest in the matters also may be present. In the event that the time, date, or location of this meeting changes, an announcement of the change, along with the new time, date, and/or place of the meeting will be posted on the Commission’s website at https:// www.sec.gov. The General Counsel of the Commission, or his designee, has certified that, in his opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) and (10) and 17 CFR 200.402(a)(3), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and (a)(10), permit consideration of the scheduled matters at the closed meeting. The subject matters of the closed meeting will consist of the following topics: Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings; Resolution of litigation claims; and Other matters relating to enforcement proceedings. At times, changes in Commission priorities require alterations in the scheduling of meeting agenda items that may consist of adjudicatory, examination, litigation, or regulatory matters. CONTACT PERSON FOR MORE INFORMATION: For further information; please contact Vanessa A. Countryman from the Office of the Secretary at (202) 551–5400. khammond on DSKBBV9HB2PROD with NOTICES TIME AND DATE: Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Equity 7, Section 118(a) June 4, 2019. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on May 22, 2019, 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, 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 proposes to amend Equity 7, Section 118(a), as described further below. 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. 1 15 27 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 21:01 Jun 07, 2019 2 17 Jkt 247001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00108 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to adopt pricing for the recently adopted SCAR routing strategy,3 which will be implemented on May 13, 2019.4 In sum, SCAR is a routing option under which orders check the System 5 for available shares and simultaneously route to the other equity markets operated by Nasdaq, Inc., the Nasdaq BX Equities Market (‘‘BX’’) and Nasdaq PSX (‘‘PSX’’ and together with BX and the Exchange, the ‘‘Nasdaq Affiliated Exchanges’’).6 The Exchange initially filed the proposed pricing changes on May 13, 2019 (SR–NASDAQ–2019–038). On May 22, 2019, the Exchange withdrew that filing and submitted this filing. The Exchange now proposes to adopt the following pricing for SCAR orders in securities listed on Nasdaq (‘‘Tape C’’), NYSE (‘‘Tape A’’), and on exchanges other than Nasdaq and NYSE (‘‘Tape B’’) (collectively, ‘‘Tapes’’), which execute on BX and PSX: 7 • SCAR orders executed on BX will be provided a credit of $0.0015 per share in Tape A and Tape C securities priced at $1 or more per share. • SCAR orders executed on BX will be provided a credit of $0.0026 per share in Tape B securities priced at $1 or more per share.8 • SCAR orders executed on PSX will be assessed a charge of $0.0029 per 3 See Nasdaq Rule 4758(a)(1)(A)(xv). See also Securities Exchange Act Release No. 85372 (March 20, 2019), 84 FR 11357 (March 26, 2019) (SR– NASDAQ–2019–013). 4 See Equity Trader Alert #2019–29. 5 The term ‘‘System’’ shall mean the automated system for order execution and trade reporting owned and operated by the Exchange. See Rule 4701(a). 6 If shares remain unexecuted after routing, they are posted on the Exchange’s book or cancelled. 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. See Rule 4758(a)(1)(A)(xv). 7 Orders using the SCAR routing option that execute on the Exchange would be subject to the Exchange’s standard fees and rebates. Currently, members that do not meet certain volume thresholds that would qualify them for a discounted charge or credit are assessed a standard transaction fee of $0.0030 per share for orders in any Tape securities priced at $1 or more per share that execute on the Exchange. See Equity 7, Section 118(a). 8 The Exchange is proposing to provide a higher credit for SCAR orders executed on BX in Tape B securities priced at $1 or more than such orders in securities in Tape A and Tape C to coordinate with BX pricing. BX similarly gives higher credits for orders that access liquidity on BX in Tape B securities priced at $1 or more per share than such orders in securities in Tape A and Tape C. See BX Equity 7, Section 118(a). E:\FR\FM\10JNN1.SGM 10JNN1

Agencies

[Federal Register Volume 84, Number 111 (Monday, June 10, 2019)]
[Notices]
[Pages 26912-26916]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-12093]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86022; File No. SR-NASDAQ-2019-047]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Relocate the Options Rules Under Chapter IV, Securities Traded on NOM

June 4, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on May 28, 2019, 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, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to relocate The Nasdaq Options Market LLC 
(``NOM'') Rules at Chapter IV (Securities Traded on NOM) under the 
Options 4 title in the Exchange's rulebook's (``Rulebook'') shell 
structure.\3\
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    \3\ In 2017, the Exchange added a shell structure to its 
Rulebook with the purpose of improving efficiency and readability 
and to align its rules closer to those of its five sister exchanges, 
Nasdaq BX, Inc.; Nasdaq PHLX LLC; Nasdaq ISE, LLC; Nasdaq GEMX, LLC; 
and Nasdaq MRX, LLC (``Affiliated Exchanges''). See Securities 
Exchange Act Release No. 82175 (November 29, 2017), 82 FR 57494 
(December 5, 2017) (SR-NASDAQ-2017-125).
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    The proposal also amends the rules as relocated to conform 
primarily to the equivalent options rules in the Nasdaq ISE, LLC 
(``ISE'') rulebook, as well as in one instance to the equivalent 
options rule in the Nasdaq PHLX LLC (``Phlx'') rulebook.
    The proposal also amends Section1 of Chapter I of the NOM Rules to 
add several definitions. Finally, as a clean-up item, the proposal 
deletes Nasdaq Rule 5712 Alpha Index-Linked Securities because it is 
obsolete and the Exchange has never listed a product under this rule.
    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.

[[Page 26913]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to relocate the rule text in Chapter IV 
(Securities Traded on NOM) to the Options 4 title in the Rulebook's 
shell structure. For ease of reference and the purposes of this filing, 
the relocated rules are herein described as the ``Options Listing 
Rules.''
    The relocation of the Options Listing Rules is part of the 
Exchange's continued effort to promote efficiency and the conformity of 
its processes with those of the Affiliated Exchanges,\4\ and its goal 
of harmonizing and uniformizing its rules.
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    \4\ Id.
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    This proposed change is of a non-substantive nature. Moreover, the 
relocation of the Options Listing Rules will facilitate the use of the 
Rulebook by Members \5\ of the Exchange, who are members of other 
Affiliated Exchanges; other market participants; and the public in 
general. The relocated rules will be amended to reflect the equivalent 
options rules in the ISE rulebook, but the changes are of a non-
substantive nature.
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    \5\ As defined by Exchange Rule 0120(i).
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    The overarching goal is to align the NOM rules with those of the 
ISE. The Exchange is proposing to amend the rules for NOM, most notably 
the rule text in the Options Listing Rules concerning securities traded 
on NOM, but also adding several definitions to Section 1 of Chapter I.
    The vast majority of the changes are technical changes and made 
throughout the Options Listing Rules. These minor changes are designed 
to conform the NOM rules to the equivalent ISE rules, as well as to 
increase the clarity of the rules. This includes some reorganization 
and renumbering within the Options Listing Rules' subsections to ensure 
they remain consistent.
    The proposed changes that do not fit within the description above 
are listed below, beginning with changes to Chapter I General 
Provisions and followed by global changes to the Options Listing Rules. 
The changes are then broken down by section within the Options Listing 
Rules.
Proposed Changes to Chapter I
    The Exchange is proposing to add definitions to ``Section 1 
Definitions''. Specifically, the terms ``class'' ``series'' and 
``underlying security'' will be added to Section 1(a) as (72), (73), 
and (74), respectively.\6\ The Exchange believes that using the 
definitions for these terms as defined in the By-Laws of The Options 
Clearing Corporation (``OCC'') uniformly across Nasdaq, Inc.'s 
exchanges will help to align them. Providing uniform, clear and precise 
definitions for these terms will provide consistency, lessen potential 
confusion and add clarity for market participants.
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    \6\ See OCC By-Laws Article I--Definitions C.(11); S.(12); and 
U.(3), respectively.
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    Section 1 of Chapter I also will be amended to change ``NOM'' to 
``the Exchange''.
Proposed Changes to the Options Listing Rules
Global Changes
    As described above, the current Options Listing Rules will be 
amended throughout to change ``NOM'' to ``the Exchange''. This proposed 
change will add consistency throughout the chapter. ``Nasdaq 
Regulation'' also will be changed to ``the Exchange'' throughout the 
Options Listing Rules to update the appropriate references. 
Additionally, there are a number of minor changes made throughout the 
chapter to increase the clarity of the language, as well as renumbering 
within the section to ensure it remains consistent.
Proposed Changes to Section 1 Designation of Securities
    This section will be amended to clarify that the options contracts 
that are designated by reference to the issuer of the underlying 
security can also be designated by reference to the name of the 
underlying foreign currency. Additionally, it can be referenced by not 
only the expiration month, but also by the expiration date.
Proposed Changes to Section 2 Rights and Obligations of Holders and 
Writers
    This section will be amended to clarify that option contracts of 
any class of options dealt in on the Exchange are subject to the 
provisions of Options 4 and as set forth in the rules of the Clearing 
Corporation. This change clarifies the rights and obligations of 
holders and writers of option contracts.
Proposed Changes to Section 3 Criteria for Underlying Securities
    Section 3(i) of the Options Listing Rules is being replaced and 
updated by incorporating the ISE version of the Exchange-Traded Fund 
(``ETF'') option listing rule.\7\ Most of the changes in Section 3 of 
the Options Listing Rules simply result from reorganization within the 
section done to mirror the ISE rule and for greater clarity.
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    \7\ See ISE Rule 502(h).
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    Section 3(k)(ii) of the Options Listing Rules will be amended to 
delete the language stating that Nasdaq will ``employ the same 
procedures to qualify underlying securities pursuant to this subsection 
(k) as it employs in qualifying underlying securities pursuant to other 
subsections of this Section 3.'' This deleted language is unnecessary 
since it is redundant given that each of the other subsections in 
Section 3 have procedures to qualify underlying securities plus it is 
also not reflected in the ISE rule version being adopted for this 
section.
    Section 3(m) will be deleted since the definition of ``Partnership 
Unit'' is a remnant from the legacy Nasdaq ETF listing rule and is 
unnecessary since it has never been used. It also is not reflected in 
the ISE rule version being adopted for this section.
Proposed Changes to Section 4 Withdrawal of Approval of Underlying 
Securities
    Section 4(a) of the Options Listing Rules will be amended to add 
flexibility for the Exchange to choose whether to decline new 
additional series of options on the underlying security previously 
approved.\8\ Currently, this section restricts this, but flexibility is 
being added to give greater discretion about adding series and an 
exception also will be added that opening transactions by market makers 
executed to accommodate closing transactions of other market 
participants may be permitted. This will provide the public with 
greater protection since it will allow the Exchange to now decline new 
additional series of options on the underlying security previously 
approved that may not be in the best interests of the public.
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    \8\ See ISE Rule 503(a).
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    Section 4(h)(ii) of the Options Listing Rules will be amended to 
change for options covering Exchange-Traded Fund Shares approved 
pursuant to Section 3(i)(iv)(2) of Options 4, following the initial 
twelve-month period beginning upon the commencement of trading in the 
Exchange-Traded Fund Shares on a national securities exchange and are 
defined as NMS stock under Rule 600 of Regulation NMS, that there were 
fewer than 50 record and/or beneficial holders of such Exchange-Traded 
Fund Shares for 30 or more consecutive trading days rather than as it 
is currently stated for 30 consecutive days. It is only on trading days 
that the information regarding 50 record and/or beneficial

[[Page 26914]]

holders can be ascertained. Also, the change is consistent with the ISE 
rule.\9\
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    \9\ See ISE Rule 503(h)(2).
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Proposed Changes to Section 6 Series of Options Contracts Open for 
Trading
    Section 6(a) of the Options Listing Rules will be amended to add to 
note that exercise-price setting parameters adopted as part of the 
Options Listing Procedures Plan will be included in Supplementary 
Material .02 Select Provisions of Options Listing Procedures Plan.
    In order to mirror the equivalent ISE rules,\10\ Section 6(d)iv of 
the Options Listing Rules will be amended to incorporate, in large 
part, former Supplementary Material .03 within Section 6 itself. Also, 
Section 6(d)v of the Options Listing Rules will be relocated to .10 of 
the Supplementary Material to Section 6 of the Options Listing 
Rules.\11\
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    \10\ See ISE Rule 504(g).
    \11\ See ISE Supplementary Material .09 to Rule 504.
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    Supplementary Material .01(a) and (b) to Section 6 will detail the 
$1 Strike Price Interval Program and will replace .01 and .02 of the 
Supplementary Material to Section 6. Select Provisions of Options 
Listing Procedures Plan (``OLPP'') will be added as Supplementary 
Material .02 to Section 6.
    Supplementary Material. 03 and .04 will detail the Short Term 
Option Series Program \12\ and the Quarterly Options Series 
Program,\13\ respectively, and each will be consistent with the 
equivalent ISE rule.
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    \12\ See ISE Supplementary Material .02 to Rule 504.
    \13\ See ISE Supplementary Material .03 to Rule 504.
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    .05 of the Supplementary Material to Section 6 will be amended to 
cover the intervals between strike prices for Mini-Nasdaq 100 Index 
options series and will be consistent with the equivalent ISE rule.\14\
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    \14\ See ISE Supplementary Material .04 to Rule 504.
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    The first sentence of .06 Range Limitations for New Option Series 
of the Options Listing Rules has been deleted since it is covered in 
.02 of the Supplementary Material to Section 6, but the definition of 
OLPP has been moved to Section 6(a).
    The introductory paragraph to .02 of the Supplementary Material to 
Section 6 of the Options Listing Rules details that the quote 
mitigation strategy and is codified in the OLPP. Subsection (a) states 
that the exercise price of each options series listed by the Exchange 
is fixed at a price per share that is reasonably close to the price of 
the underlying equity security, ETF or Trust Issued Receipt at or about 
the time the Exchange determines to list such series. Subsection 
(a)(ii) says that for new expiration months, the daily high and low of 
all prices reported by all national securities exchanges on the day the 
Exchange determines its preliminary notification of a new series. The 
amended language will say that the price of the underlying security is 
measured by, for new expiration months, the daily high and low of all 
prices reported by all national securities exchanges on the day the 
Exchange determines its preliminary notification of a new series rather 
than on the day the Exchange determines to list a new series. This 
change also mirrors the language in the ISE rules.\15\
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    \15\ See ISE Rule 504A(b)(i)(2).
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    Subsection (c) will be added to the Supplementary Material to 
Section 6 of the Options Listing Rules to make clear that subsection 
(a) of the Supplementary Material to Section 6 of the Options Listing 
Rules will not permit the listing of series that are otherwise 
prohibited by the rules of the Exchange or the OLPP. Additionally, to 
the extent the rules of the Exchange permit the listing of new series 
that are otherwise prohibited by the provisions of the OLPP, the 
provisions of the OLPP will govern. These changes are consistent with 
the ISE rules.\16\
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    \16\ See ISE Rule 504A(b)(v) and (vi).
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    Supplementary Material .16 U.S. Dollar-Settled Foreign Currency 
Options (formerly Supplementary Material .09) will be amended to 
reflect the language of the equivalent Phlx Rule since ISE does not 
have U.S. Dollar-Settled Foreign Currency Options.\17\ Also, the 
references to the continuity rules here (formerly Supplementary 
Material .09(C)) and in Section 8. Long-Term Options Contracts have 
been deleted since quoting obligations for long term options has 
recently been updated and addressed in Phlx Rule 1081 and in NOM 
Chapter VII Section 6.
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    \17\ See Phlx Rule 1012(a)(iii).
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    The Exchange is also proposing to delete Nasdaq Rule 5712. Alpha 
Index-Linked Securities.\18\ This rule was adopted in 2012, but no 
product has ever been listed under it and the Exchange now considers it 
obsolete. The Exchange proposes to remove Nasdaq Rule 5712 from its 
rulebook and lessen any potential confusion for market participants.
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    \18\ See Securities Exchange Act Release No. 67617 (August 8, 
2012), 82 FR 57494 (August 14, 2012) (SR-NASDAQ-2012-068).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\19\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\20\ 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.
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    \19\ 15 U.S.C. 78f(b).
    \20\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the relocation of its Options Listing 
Rules is a non-substantive change and is consistent with similar 
filings by the Exchange for the relocation of its rules.\21\ As noted 
above, the relocation of the Options Listing Rules is part of the 
Exchange's continued effort to promote efficiency and the structural 
conformity of its processes with those of the Affiliated Exchanges,\22\ 
and its goal of harmonizing and uniformizing its rules. Additionally, 
the relocation of the Options Listing Rules will facilitate the use of 
the Rulebook by Members \23\ of the Exchange, who are members of other 
Affiliated Exchanges; other market participants; and the public in 
general.
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    \21\ See footnote 3.
    \22\ Id.
    \23\ As defined by Exchange Rule 0120(i).
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    The majority of the changes are also consistent with the ISE 
rulebook and the overarching goal is to align the NOM rules with those 
of the ISE. These changes include the change to subsection (a)(ii) of 
the Supplementary Material to Section 6 to say that the price of the 
underlying security is measured by, for new expiration months, the 
daily high and low of all prices reported by all national securities 
exchanges on the day the Exchange determines its preliminary 
notification of a new series rather than on the day the Exchange 
determines to list a new series.
    Another such change is amending the Options Listing Rules to change 
for options covering Exchange-Traded Fund Shares approved pursuant to 
Section 3(i)(iv)(2) of Options 4, following the initial twelve-month 
period beginning upon the commencement of trading in the Exchange-
Traded Fund Shares on a national securities exchange and are defined as 
NMS stock under Rule 600 of Regulation NMS, that there were fewer than 
50 record and/or beneficial holders of such Exchange-Traded Fund Shares 
for 30 or more consecutive trading days rather than as it is currently 
stated for 30 consecutive days. It is only on trading days that the 
information

[[Page 26915]]

regarding 50 record and/or beneficial holders can be ascertained. This 
change serves 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 amending Section 4(a) of the Options 
Listing Rules to add flexibility for the Exchange to choose whether to 
decline new additional series of options on the underlying security 
previously approved will serve 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 since it will 
allow the Exchange to now decline new additional series of options on 
the underlying security previously approved that may not be in the best 
interests of the public.
    The Exchange believe that adding definitions for the terms 
``class'', ``series'', and ``underlying security'' to the NOM rulebook 
from the OCC By-Laws will help 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 through 
providing uniform, clear and precise definitions for these terms and 
increase consistency, lessen potential confusion and add clarity for 
market participants.\24\
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    \24\ See footnote 6.
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    The Exchange also believes that the elimination of Nasdaq Rule 5712 
Alpha Index-Linked Securities is not a material change because it is 
obsolete and the Exchange has never listed a product under this rule.
    As a result, the Exchange believes that the changes included in 
this filing serve 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 since the changes are 
intended to organize the Rulebook in a way that it will ease the 
Members', market participants', and the general public's navigation and 
reading of the rules.
    With respect to the proposed technical corrections to the rules, 
the Exchange believes that these changes are consistent with the Act 
because they will prevent investor confusion that may be caused by 
including in the Rules incorrect rule citations and defunct rule text.

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 change does not 
impose a burden on competition because, as previously stated, it (i) is 
of a non-substantive nature, (ii) is intended to harmonize the 
structure of the Exchange's rules with those of its Affiliated 
Exchanges, and (iii) is intended to organize the Rulebook in a way that 
it will ease the Members', market participants', and the general 
public's navigation and reading of the rules.
    Consequently, the Exchange does not believe that the proposed 
changes implicate competition at all.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \25\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\26\
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    \25\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \26\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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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 [email protected]. Please include 
File Number SR-NASDAQ-2019-047 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-2019-047. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549 on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NASDAQ-2019-047, and should be submitted 
on or before July 1, 2019.


[[Page 26916]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\27\
Eduardo A. Aleman,
Deputy Secretary.
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    \27\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2019-12093 Filed 6-7-19; 8:45 am]
 BILLING CODE 8011-01-P
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