Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Further Delay Implementation of the Early Order Imbalance Indicator Functionality, 53787-53788 [2019-21950]
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Federal Register / Vol. 84, No. 195 / Tuesday, October 8, 2019 / Notices
6(b)(5) of the Act,20 which requires,
among other things, that the rules of a
national securities exchange be
designed to prevent fraudulent and
manipulative acts and practices, 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, and
that the rules are not designed to permit
unfair discrimination between
customers, issuers, brokers, or dealers.
The Commission believes that the
proposal will protect investors and the
public interest by helping market
participants to hedge positions in
SPIKES options and execute delta
neutral trading strategies involving
SPIKES options. All of the provisions in
MIAX Rule 518 that are applicable to
complex orders will apply to SPIKES
Combo Orders, other than the
requirement that the component legs of
a complex order have a ratio that is
equal to or greater than one-to-three and
less than or equal to three-to-one.21 The
Commission notes that permitting
SPIKES Combo Orders to have a ratio of
no more than eight options to one
SPIKES Combination is consistent with
the 8:1 ratio permitted for stock-option
orders.22 As noted above, a SPIKES
Combination Order creates a synthetic
underlying position that is the
functional equivalent of the stock leg in
stock-option orders,23 and the SPIKES
Combination hedges one or more
SPIKES option series.24 Finally, as
discussed above, MIAX has represented
that it has the system capacity to
accommodate the trading of SPIKES
Combo Orders as well as surveillance
procedures to monitor compliance with
its rules relating to delta neutral
transactions.25
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,26 that the
proposed rule change (SR–MIAX–2019–
37) is approved.
jbell on DSK3GLQ082PROD with NOTICES
20 15
U.S.C. 78f(b)(5).
21 See proposed MIAX Rule 518(a)(4)(i).
22 See note 8, supra.
23 See Notice, 84 FR at 43214.
24 See proposed MIAX Rule 518, Interpretation
and Policy .07(a)(3).
25 See id. at 43215.
26 15 U.S.C. 78s(b)(2).
27 17 CFR 200.30–3(a)(12).
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–21879 Filed 10–7–19; 8:45 am]
BILLING CODE 8011–01–P
53787
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
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87179; File No. SR–
NASDAQ–2019–075]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Further
Delay Implementation of the Early
Order Imbalance Indicator
Functionality
October 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
September 17, 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 delay
implementation of the Early Order
Imbalance Indicator functionality until
Q4 2019.
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
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00116
Fmt 4703
Sfmt 4703
On February 27, 2019, the Exchange
filed a proposed rule change to establish
the Early Order Imbalance Indicator
(‘‘EOII’’), which contains a subset of the
information comprising the Net Order
Imbalance Indicator (‘‘NOII’’) that the
Exchange will disseminate ten minutes
prior to the market close and five
minutes prior to the cutoff time for
entering Market on Close and certain
Limit on Close Orders into the Nasdaq
Closing Cross.3 The proposed rule
change indicated that the Exchange
would implement EOII in Q2 2019.4 The
Exchange subsequently delayed the
implementation of EOII functionality
until Q3 2019.5 The Exchange now
proposes to further delay the
implementation of EOII functionality
until Q4 2019. The Exchange will issue
an Equity Trader Alert notifying
participants prior to implementing the
functionality. The Exchange proposes
this delay to allow the EOII to become
effective at the same time as a pending
change to enhance the closing process
for the Exchange.6 The delay will also
afford additional time that Exchange
participants have requested to prepare
for the onset of EOII.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,7 in general, and furthers the
objectives of Section 6(b)(5) of the Act,8
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest by
allowing the Exchange additional time
to implement the EOII in conjunction
with a related enhancement to the
Closing Cross process. The delay would
also afford participants the additional
3 See Securities Exchange Act Release No. 34–
85292 (Mar. 12, 2019), 84 FR 9848 (Mar. 18, 2019)
(SR–NASDAQ–2019–010).
4 See id. at 9850.
5 See Securities Exchange Act Release No. 34–
85745 (Apr. 29, 2019), 84 FR 19135 (May 3, 2019)
(SR–NASDAQ–2019–032).
6 See Securities Exchange Act Release No. 34–
86642 (Aug. 13, 2019) (SR–NASDAQ–2019–064).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
E:\FR\FM\08OCN1.SGM
08OCN1
53788
Federal Register / Vol. 84, No. 195 / Tuesday, October 8, 2019 / Notices
time they have requested to prepare for
the onset of EOII.
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
Exchange’s proposal to delay the
implementation of the EOII
functionality does not impose an undue
burden on competition. Delaying EOII
will simply allow the Exchange
additional time to implement the EOII
in conjunction with a related
enhancement to the Closing Cross
process. The delay will also afford
participants the additional time they
have requested to prepare for the onset
of EOII.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 9 and Rule 19b–
4(f)(6) thereunder.10
A proposed rule change filed under
Rule 19b–4(f)(6) 11 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),12 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has requested
that the Commission waive the 30-day
operative delay so that the Exchange can
provide notice of the implementation
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has requested that the Commission waive the prefiling requirement. The Commission hereby waives
that requirement.
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
jbell on DSK3GLQ082PROD with NOTICES
10 17
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21:50 Oct 07, 2019
Jkt 250001
delay as soon as possible. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. Accordingly, the
Commission waives the 30-day
operative delay and designates the
proposed rule change operative upon
filing.13
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
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–2019–075 and
should be submitted on or before
October 29, 2019.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Jill M. Peterson,
Assistant Secretary.
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–2019–075 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–2019–075. 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
[FR Doc. 2019–21950 Filed 10–7–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87200; File No. SR–
CboeEDGX–2019–012]
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Order Granting
Approval of a Proposed Rule Change,
as Modified by Amendment No. 1, To
Introduce Retail Priority
October 2, 2019
I. Introduction
On March 18, 2019, Cboe EDGX
Exchange, Inc. (‘‘Exchange’’ or ‘‘EDGX’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to introduce order book priority
for equity orders submitted on behalf of
retail investors. The proposed rule
change was published for comment in
the Federal Register on April 5, 2019.3
The Commission received five comment
letters from four commenters on the
proposed rule change.4 On May 16,
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 85482
(April 2, 2019), 84 FR 13729 (‘‘Notice’’).
4 See letters to Vanessa Countryman, Acting
Secretary, Commission, from Sean Paylor, Trader,
1 15
13 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
PO 00000
Frm 00117
Fmt 4703
Sfmt 4703
E:\FR\FM\08OCN1.SGM
08OCN1
]]>Agencies
[Federal Register Volume 84, Number 195 (Tuesday, October 8, 2019)]
[Notices]
[Pages 53787-53788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21950]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87179; File No. SR-NASDAQ-2019-075]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Further Delay Implementation of the Early Order Imbalance Indicator
Functionality
October 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 September 17, 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.
---------------------------------------------------------------------------
\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 delay implementation of the Early Order
Imbalance Indicator functionality until Q4 2019.
The text of the proposed rule change is available on the Exchange's
website at https://nasdaq.cchwallstreet.com, at the principal office of
the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On February 27, 2019, the Exchange filed a proposed rule change to
establish the Early Order Imbalance Indicator (``EOII''), which
contains a subset of the information comprising the Net Order Imbalance
Indicator (``NOII'') that the Exchange will disseminate ten minutes
prior to the market close and five minutes prior to the cutoff time for
entering Market on Close and certain Limit on Close Orders into the
Nasdaq Closing Cross.\3\ The proposed rule change indicated that the
Exchange would implement EOII in Q2 2019.\4\ The Exchange subsequently
delayed the implementation of EOII functionality until Q3 2019.\5\ The
Exchange now proposes to further delay the implementation of EOII
functionality until Q4 2019. The Exchange will issue an Equity Trader
Alert notifying participants prior to implementing the functionality.
The Exchange proposes this delay to allow the EOII to become effective
at the same time as a pending change to enhance the closing process for
the Exchange.\6\ The delay will also afford additional time that
Exchange participants have requested to prepare for the onset of EOII.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 34-85292 (Mar. 12,
2019), 84 FR 9848 (Mar. 18, 2019) (SR-NASDAQ-2019-010).
\4\ See id. at 9850.
\5\ See Securities Exchange Act Release No. 34-85745 (Apr. 29,
2019), 84 FR 19135 (May 3, 2019) (SR-NASDAQ-2019-032).
\6\ See Securities Exchange Act Release No. 34-86642 (Aug. 13,
2019) (SR-NASDAQ-2019-064).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\7\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\8\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest by
allowing the Exchange additional time to implement the EOII in
conjunction with a related enhancement to the Closing Cross process.
The delay would also afford participants the additional
[[Page 53788]]
time they have requested to prepare for the onset of EOII.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 Exchange's proposal to
delay the implementation of the EOII functionality does not impose an
undue burden on competition. Delaying EOII will simply allow the
Exchange additional time to implement the EOII in conjunction with a
related enhancement to the Closing Cross process. The delay will also
afford participants the additional time they have requested to prepare
for the onset of EOII.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has requested that the Commission waive the pre-filing
requirement. The Commission hereby waives that requirement.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\12\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay so that
the Exchange can provide notice of the implementation delay as soon as
possible. The Commission believes that waiving the 30-day operative
delay is consistent with the protection of investors and the public
interest. Accordingly, the Commission waives the 30-day operative delay
and designates the proposed rule change operative upon filing.\13\
---------------------------------------------------------------------------
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NASDAQ-2019-075 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-2019-075. 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-2019-075 and should be submitted
on or before October 29, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-21950 Filed 10-7-19; 8:45 am]
BILLING CODE 8011-01-P
