Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Options 2 (Options Market Participants) and Options 3 (Options Trading Rules) Relating to Certain Order Types, 38319-38321 [2019-16720]
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Federal Register / Vol. 84, No. 151 / Tuesday, August 6, 2019 / Notices
Commission, 100 F Street NE,
Washington, DC 20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
All submissions should refer to File
Number SR–MIAX–2019–33. 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–MIAX–2019–33, and
should be submitted on or before
August 27, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–16719 Filed 8–5–19; 8:45 am]
jbell on DSK3GLQ082PROD with NOTICES
BILLING CODE 8011–01–P
[Release No. 34–86535; File No. SR–MRX–
2019–16]
CFR 200.30–3(a)(12).
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1. Purpose
The purpose of the proposed rule
change is amend Options 2 (Options
Market Participants) and Options 3
(Options Trading Rules) relating to
certain order types. Each change is
described in more detail below.
July 31, 2019.
The Exchange proposes to amend its
rules to remove Stopped Orders as an
order type. A Stopped Order is a limit
order that meets the requirements of
Options 5, Section 2(b)(8).3 As provided
in Options 5, Section 2(b)(8), a ‘‘stopped
order’’ is defined as an order for which,
at the time of receipt for the order, a
Member had guaranteed an execution at
no worse than a specified price, where:
(i) The stopped order was for the
account of a Customer; (ii) the Customer
agreed to the specified price on an
order-by-order basis; and (iii) the price
of the Trade-Through was, for a stopped
buy order, lower than the national Best
Bid in the options series at the time of
execution, or, for a stopped sell order,
higher than the national Best Offer in
the options series at the time of
execution. To execute Stopped Orders,
Members must enter them into the
Facilitation Mechanism or Solicited
Order Mechanism pursuant to Options
3, Section 11.4
Due to a lack of demand for Stopped
Orders, the Exchange plans to
decommission the functionality
supporting this order type.5 To reflect
this elimination, the Exchange proposes
to delete all references to Stopped
Orders as follows:
• Options 2, Section 6(a), which
currently allows Market Makers to enter
all order types in the options classes to
which they are appointed, except for
Stopped Orders, Reserve Orders, and
Customer Cross Orders.
• Options 3, Section 7(b)(5), which
defines a Stopped Order.
The Exchange proposes to implement
the amendments relating to Stopped
Orders by November 1, 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 July 24,
2019, Nasdaq MRX, LLC (‘‘MRX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘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
Options 2 (Options Market Participants)
and Options 3 (Options Trading Rules)
relating to certain order types.
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaqmrx.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.
2 17
Jkt 247001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Self-Regulatory Organizations; Nasdaq
MRX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Options 2
(Options Market Participants) and
Options 3 (Options Trading Rules)
Relating to Certain Order Types
1 15
19 17
38319
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00118
Fmt 4703
Sfmt 4703
Stopped Orders
3 See
Options 3, Section 7(b)(5).
orders were originally introduced on
the Exchange as a Trade-Through exception under
the Options Order Protection and Locked/Crossed
Market Plan (the ‘‘Plan’’). MRX adopted rules to
implement the Trade-Through exception for
stopped orders as an order type. See Securities
Exchange Act Release No. 76998 (January 29, 2016),
81 FR 6066 (February 4, 2016) (File No. 10–221).
5 No member has used this order type since the
Exchange’s previous trading system migrated over
to Nasdaq INET technology in 2017.
4 Stopped
E:\FR\FM\06AUN1.SGM
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Federal Register / Vol. 84, No. 151 / Tuesday, August 6, 2019 / Notices
All-or-None Orders
The Exchange also proposes to amend
Options 3, Section 8 (Opening) to
remove specific references to the
manner in which All-Or-None Orders 6
(‘‘AONs’’) will be treated in the
Exchange’s opening process. The
Exchange previously amended its rules
to provide that an AON may only be
entered into the System with a time-inforce designation of Immediate-OrCancel,7 and deleted related rule text
that described an AON as persisting in
the Exchange’s order book.8 The
Exchange, however, inadvertently did
not remove such AON references from
the opening process rule in Options 3,
Section 8. At the time the Exchange’s
opening process was adopted, AONs
were not restricted and could trade as a
limit or market order to be executed in
its entirety or not at all.9 With the
amendments in SR–MRX–2017–02, an
AON does not persist in the order book
and is therefore treated the same as any
other Immediate-or-Cancel Order. As
such, the carve-outs specified in Section
8(b), (g) and (j)(6) are unnecessary since
an All-or-None Order would execute
immediately or cancel similar to other
orders which trade in the same manner.
The Exchange believes removing these
references will eliminate confusion.
jbell on DSK3GLQ082PROD with NOTICES
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,10 in general, and furthers the
objectives of Section 6(b)(5) of the Act,11
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 removing
Stopped Orders as an order type is
consistent with the Act because it
would simplify the functionality
available on the Exchange and reduce
6 An All-Or-None Order is a limit or market order
that is to be executed in its entirety or not at all.
An All-Or-None Order may only be entered as an
Immediate-or-Cancel Order. See Options 3, Section
7(c).
7 An Immediate-Or-Cancel Order is a limit order
that is to be executed in whole or in part upon
receipt. Any portion not so executed is to be treated
as cancelled. See Options 3, Section 7(b)(3). See
Securities Exchange Act Release No. 81204 (July 25,
2017), 82 FR 35557 (July 31, 2017) (SR–MRX–2017–
02).
8 See Securities Exchange Act Release No. 82129
(November 20, 2017), 82 FR 56084 (November 27,
2017) (SR–MRX–2017–24).
9 See Securities Exchange Act Release No. 80937
(June 15, 2017), 82 FR 28113 (June 20, 2017) (SR–
MRX–2017–01).
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
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19:21 Aug 05, 2019
Jkt 247001
the complexity of its order types. The
Exchange’s affiliated options markets,
Nasdaq BX (‘‘BX’’), The Nasdaq Options
Market (‘‘NOM’’), Nasdaq PHLX
(‘‘Phlx’’) and Nasdaq ISE, LLC do not
offer stopped orders as an order type.
The Exchange also believes that it is
consistent with the Act to remove
unnecessary and confusing references to
AONs in the opening rule set forth in
Options 3, Section 8 as AONs will now
immediately trade or cancel. The
Exchange originally specified the
manner in which AONs would trade in
the opening because at the time the
opening process was adopted, this order
type traded differently as compared to
other order types. That distinction has
become unnecessary because AONs
trade the same as other Immediate-orCancel Orders. Updating Options 3,
Section 8 to remove an unnecessary and
inaccurate distinction will protect
investors and the public interest by
clarifying the rule.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change would allow the
Exchange to remove an order type that
no Member uses today, and eliminate
unnecessary and inaccurate references
to AONs within its opening rule,
thereby making clear the order types
available for trading on the Exchange
and reducing potential confusion.
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 12 and
subparagraph (f)(6) of Rule 19b–4
thereunder.13
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
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–
MRX–2019–16 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–MRX–2019–16. 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
12 15
13 17
PO 00000
Frm 00119
Fmt 4703
Sfmt 4703
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.
E:\FR\FM\06AUN1.SGM
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Federal Register / Vol. 84, No. 151 / Tuesday, August 6, 2019 / Notices
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–MRX–2019–16 and should
be submitted on or before August 27,
2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–16720 Filed 8–5–19; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meetings
jbell on DSK3GLQ082PROD with NOTICES
Dated: August 1, 2019.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2019–16850 Filed 8–2–19; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86537; File No. SR–
NASDAQ–2019–060]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing of Proposed Rule Change To
Amend Rules 4120 and 4753
July 31, 2019.
BILLING CODE 8011–01–P
Notice is hereby given,
pursuant to the provisions of the
Government in the Sunshine Act, Public
Law 94–409, the Securities and
Exchange Commission will hold an
Open Meeting on Thursday, August 8,
2019 at 10:00 a.m.
PLACE: The meeting will be held in
Auditorium LL–002 at the
Commission’s headquarters, 100 F
Street NE, Washington, DC 20549.
STATUS: This meeting will begin at 10:00
a.m. (ET) and will be open to the public.
Seating will be on a first-come, firstserved basis. Visitors will be subject to
security checks. The meeting will be
webcast on the Commission’s website at
www.sec.gov.
MATTERS TO BE CONSIDERED:
1. The Commission will consider
whether to propose rule amendments to
modernize the description of business,
legal proceedings, and risk factor
disclosures that registrants are required
to make pursuant to Regulation S–K.
The proposed amendments are intended
to update these rules to account for
developments since their adoption or
last amendment, to improve these
disclosures for investors, and to
simplify compliance efforts for
registrants.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
CONTACT PERSON FOR MORE INFORMATION:
For further information and to ascertain
what, if any, matters have been added,
deleted or postponed, please contact
TIME AND DATE:
Vanessa A. Countryman, Office of the
Secretary, at (202) 551–5400.
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 July 18,
2019, The Nasdaq Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
II below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rules 4120 and 4753 to permit the
Exchange to declare a regulatory halt in
a security that traded in the over-thecounter market prior to the initial
pricing on the Exchange and to allow for
the initial pricing of such securities
through the IPO Cross.
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
1 15
14 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
19:21 Aug 05, 2019
2 17
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PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00120
Fmt 4703
Sfmt 4703
38321
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
Nasdaq proposes to amend Rule 4120
to permit the Exchange to declare a
regulatory halt in a security that traded
in the over-the-counter market (the
‘‘OTC market’’) prior to the initial
pricing on the Exchange. Nasdaq also
proposes to amend Rule 4753 to allow
for the initial pricing on the Exchange
of such securities through the IPO Cross
where a broker-dealer is willing to serve
in the role of financial advisor to the
issuer and perform the functions under
Rule 4120(c)(8) that are ordinarily
performed by an underwriter with
respect to an initial public offering.
Finally, the proposed change would
state that where a security previously
traded in the OTC market pursuant to
FINRA Form 211 is initially priced
using the IPO Cross, the fourth tiebreaker for each of the Current
Reference Price disseminated in the
Nasdaq Order Imbalance Indicator and
the price at which the Nasdaq Halt
Cross will occur shall be the most recent
transaction price in the over-the-counter
market.
Background
In 2014, Nasdaq first adopted rules to
allow the use of the Nasdaq IPO Cross
to initiate trading in securities that have
not been listed on a national securities
exchange or traded in the over-thecounter market pursuant to FINRA Form
211 (the ‘‘OTC market’’) immediately
prior to the initial pricing and described
the role of financial advisors in that
process.3 At that time, the Exchange
added new Rule 4120(c)(9) 4 to set forth
the process by which trading
commences in such securities. Under
that rule, securities of companies that
have not previously been listed on a
national securities exchange or traded in
the OTC market pursuant to FINRA
Form 211 immediately prior to listing
on Nasdaq can be launched for trading
using the same crossing mechanism
3 Securities Exchange Act Release No. 71931
(April 11, 2014), 79 FR 21829 (April 17, 2014) (SR–
NASDAQ–2014–032) (the ‘‘2014 Rule Change’’).
4 In 2014, Nasdaq filed SR–NASDAQ–2014–081
modifying the functions that are performed by an
underwriter with respect to an initial public
offering and renumbered certain paragraphs of Rule
4120. Securities Exchange Act Release No. 73399
(October 21, 2014), 79 FR 63981 (October 27, 2014)
(approving SR–NASDAQ–2014–81). All references
in this filing are to the renumbered rules, as
currently in effect.
E:\FR\FM\06AUN1.SGM
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]]>Agencies
[Federal Register Volume 84, Number 151 (Tuesday, August 6, 2019)]
[Notices]
[Pages 38319-38321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16720]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86535; File No. SR-MRX-2019-16]
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Options 2
(Options Market Participants) and Options 3 (Options Trading Rules)
Relating to Certain Order Types
July 31, 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 July 24, 2019, Nasdaq MRX, LLC (``MRX'' or ``Exchange'') filed with
the Securities and Exchange Commission (``SEC'' or ``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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Options 2 (Options Market
Participants) and Options 3 (Options Trading Rules) relating to certain
order types.
The text of the proposed rule change is available on the Exchange's
website at https://nasdaqmrx.cchwallstreet.com/, at the principal office
of the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is amend Options 2 (Options
Market Participants) and Options 3 (Options Trading Rules) relating to
certain order types. Each change is described in more detail below.
Stopped Orders
The Exchange proposes to amend its rules to remove Stopped Orders
as an order type. A Stopped Order is a limit order that meets the
requirements of Options 5, Section 2(b)(8).\3\ As provided in Options
5, Section 2(b)(8), a ``stopped order'' is defined as an order for
which, at the time of receipt for the order, a Member had guaranteed an
execution at no worse than a specified price, where: (i) The stopped
order was for the account of a Customer; (ii) the Customer agreed to
the specified price on an order-by-order basis; and (iii) the price of
the Trade-Through was, for a stopped buy order, lower than the national
Best Bid in the options series at the time of execution, or, for a
stopped sell order, higher than the national Best Offer in the options
series at the time of execution. To execute Stopped Orders, Members
must enter them into the Facilitation Mechanism or Solicited Order
Mechanism pursuant to Options 3, Section 11.\4\
---------------------------------------------------------------------------
\3\ See Options 3, Section 7(b)(5).
\4\ Stopped orders were originally introduced on the Exchange as
a Trade-Through exception under the Options Order Protection and
Locked/Crossed Market Plan (the ``Plan''). MRX adopted rules to
implement the Trade-Through exception for stopped orders as an order
type. See Securities Exchange Act Release No. 76998 (January 29,
2016), 81 FR 6066 (February 4, 2016) (File No. 10-221).
---------------------------------------------------------------------------
Due to a lack of demand for Stopped Orders, the Exchange plans to
decommission the functionality supporting this order type.\5\ To
reflect this elimination, the Exchange proposes to delete all
references to Stopped Orders as follows:
---------------------------------------------------------------------------
\5\ No member has used this order type since the Exchange's
previous trading system migrated over to Nasdaq INET technology in
2017.
---------------------------------------------------------------------------
Options 2, Section 6(a), which currently allows Market
Makers to enter all order types in the options classes to which they
are appointed, except for Stopped Orders, Reserve Orders, and Customer
Cross Orders.
Options 3, Section 7(b)(5), which defines a Stopped Order.
The Exchange proposes to implement the amendments relating to
Stopped Orders by November 1, 2019.
[[Page 38320]]
All-or-None Orders
The Exchange also proposes to amend Options 3, Section 8 (Opening)
to remove specific references to the manner in which All-Or-None Orders
\6\ (``AONs'') will be treated in the Exchange's opening process. The
Exchange previously amended its rules to provide that an AON may only
be entered into the System with a time-in-force designation of
Immediate-Or-Cancel,\7\ and deleted related rule text that described an
AON as persisting in the Exchange's order book.\8\ The Exchange,
however, inadvertently did not remove such AON references from the
opening process rule in Options 3, Section 8. At the time the
Exchange's opening process was adopted, AONs were not restricted and
could trade as a limit or market order to be executed in its entirety
or not at all.\9\ With the amendments in SR-MRX-2017-02, an AON does
not persist in the order book and is therefore treated the same as any
other Immediate-or-Cancel Order. As such, the carve-outs specified in
Section 8(b), (g) and (j)(6) are unnecessary since an All-or-None Order
would execute immediately or cancel similar to other orders which trade
in the same manner. The Exchange believes removing these references
will eliminate confusion.
---------------------------------------------------------------------------
\6\ An All-Or-None Order is a limit or market order that is to
be executed in its entirety or not at all. An All-Or-None Order may
only be entered as an Immediate-or-Cancel Order. See Options 3,
Section 7(c).
\7\ An Immediate-Or-Cancel Order is a limit order that is to be
executed in whole or in part upon receipt. Any portion not so
executed is to be treated as cancelled. See Options 3, Section
7(b)(3). See Securities Exchange Act Release No. 81204 (July 25,
2017), 82 FR 35557 (July 31, 2017) (SR-MRX-2017-02).
\8\ See Securities Exchange Act Release No. 82129 (November 20,
2017), 82 FR 56084 (November 27, 2017) (SR-MRX-2017-24).
\9\ See Securities Exchange Act Release No. 80937 (June 15,
2017), 82 FR 28113 (June 20, 2017) (SR-MRX-2017-01).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\10\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\11\ 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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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that removing Stopped Orders as an order type
is consistent with the Act because it would simplify the functionality
available on the Exchange and reduce the complexity of its order types.
The Exchange's affiliated options markets, Nasdaq BX (``BX''), The
Nasdaq Options Market (``NOM''), Nasdaq PHLX (``Phlx'') and Nasdaq ISE,
LLC do not offer stopped orders as an order type.
The Exchange also believes that it is consistent with the Act to
remove unnecessary and confusing references to AONs in the opening rule
set forth in Options 3, Section 8 as AONs will now immediately trade or
cancel. The Exchange originally specified the manner in which AONs
would trade in the opening because at the time the opening process was
adopted, this order type traded differently as compared to other order
types. That distinction has become unnecessary because AONs trade the
same as other Immediate-or-Cancel Orders. Updating Options 3, Section 8
to remove an unnecessary and inaccurate distinction will protect
investors and the public interest by clarifying the rule.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule change would
allow the Exchange to remove an order type that no Member uses today,
and eliminate unnecessary and inaccurate references to AONs within its
opening rule, thereby making clear the order types available for
trading on the Exchange and reducing potential confusion.
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 \12\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 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-MRX-2019-16 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-MRX-2019-16. 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
[[Page 38321]]
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-MRX-2019-16 and should be
submitted on or before August 27, 2019.
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\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-16720 Filed 8-5-19; 8:45 am]
BILLING CODE 8011-01-P
