Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Options 3, Section 7, “Types of Orders” To Permit the Exchange To Determine the Availability of Order Types and Time-In-Force Provisions, 12811-12814 [2020-04392]
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Federal Register / Vol. 85, No. 43 / Wednesday, March 4, 2020 / Notices
opportunities and partnerships for new
and expanded offerings.
This action is to seek approval for the
information collection for the Museum
Capacity-Building Assessment Programs
for the next three years. Agency:
Institute of Museum and Library
Services. Title: Museum CapacityBuilding Programs Assessment Project.
The 30-day notice for the Museum
Capacity-Building Programs Assessment
Project, was published in the Federal
Register on February 1, 2019 (84 FR
1239). No comments were received.
Agency: Institute of Museum and
Library Services.
Title: Museum Capacity-Building
Programs Assessment Project.
OMB Number: 3137–TBD.
Agency Number: 3137.
Affected Public: Federal, State and
local governments, museums.
Number of Respondents: 1,084.
Frequency: Once.
Burden Hours per Respondent: 0.944.
Total Burden Hours: 391.
Total Annual Costs: $10,897.17.
Pursuant
to Executive Order 13891, ‘‘Promoting
the Rule of Law Through Improved
Agency Guidance Documents,’’ and the
implementing guidance from the Office
of Management and Budget in
memorandum M–20–02, the Institute of
Museum and Library Services (IMLS) is
establishing on its website a centralized
guidance portal that contains or links to
all IMLS guidance documents currently
in effect. This guidance portal, located
at www.imls.gov/guidance, does not
replace the information contained in
content-specific areas of the IMLS
website. Individuals who already access
IMLS guidance documents through
these pages (such as our grants
management pages) may continue to do
so.
SUPPLEMENTARY INFORMATION:
Dated: February 28, 2020.
Amanda Bakale,
Assistant General Counsel, Institute of
Museum and Library Services.
[FR Doc. 2020–04454 Filed 3–3–20; 8:45 am]
BILLING CODE 7036–01–P
Dated: February 27, 2020.
Kim Miller,
Senior Grants Management Specialist,
Institute of Museum and Library Services.
NUCLEAR REGULATORY
COMMISSION
[FR Doc. 2020–04382 Filed 3–3–20; 8:45 am]
Advisory Committee on the Medical
Uses of Isotopes Charter Renewal
BILLING CODE 7036–01–P
Nuclear Regulatory
Commission.
ACTION: Notice of renewal of the charter
of the Advisory Committee on the
Medical Uses of Isotopes.
AGENCY:
NATIONAL FOUNDATION ON THE
ARTS AND THE HUMANITIES
Institute of Museum and Library
Services
Implementation of Executive Order
13891: Guidance Documents
Institute of Museum and
Library Services, National Foundation
on the Arts and the Humanities.
ACTION: Notice.
AGENCY:
Through this notice, the
Institute of Museum and Library
Services announces the existence and
location of an online guidance portal.
This portal is designed to enable the
public and our stakeholders to easily
locate the Institute’s guidance
documents.
SUMMARY:
The portal is online as of
February 28, 2020.
ADDRESSES: The portal URL is
www.imls.gov/guidance.
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DATES:
FOR FURTHER INFORMATION CONTACT:
Nancy E. Weiss, General Counsel,
Institute of Museum and Library
Services, 955 L’Enfant Plaza North SW,
4th Floor, Washington, DC 20024.
Email: nweiss@imls.gov. Telephone:
(202) 653–4657.
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The U.S. Nuclear Regulatory
Commission (NRC) has determined that
renewal of the charter for the Advisory
Committee on the Medical Uses of
Isotopes (ACMUI) until February 28,
2022, is in the public interest in
connection with duties imposed on the
Commission by law. This action is being
taken in accordance with the Federal
Advisory Committee Act, after
consultation with the Committee
Management Secretariat, General
Services Administration.
The purpose of the ACMUI is to
provide advice to the NRC on policy
and technical issues that arise in
regulating the medical use of byproduct
material for diagnosis and therapy.
Responsibilities include providing
guidance and comments on current and
proposed NRC regulations and
regulatory guidance concerning medical
use; evaluating certain non-routine uses
of byproduct material for medical use;
and evaluating training and experience
of proposed authorized users. The
members are involved in preliminary
discussions of major issues in
determining the need for changes in
SUMMARY:
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12811
NRC policy and regulation to ensure the
continued safe use of byproduct
material. Each member provides
technical assistance in his/her specific
area(s) of expertise, particularly with
respect to emerging technologies.
Members also provide guidance as to
NRC’s role in relation to the
responsibilities of other Federal
agencies as well as of various
professional organizations and boards.
Members of this Committee have
demonstrated professional
qualifications and expertise in both
scientific and non-scientific disciplines
including nuclear medicine; nuclear
cardiology; radiation therapy; medical
physics; nuclear pharmacy; State
medical regulation; patient’s rights and
care; health care administration; and
Food and Drug Administration
regulation.
CONTACT INFORMATION: Kellee Jamerson,
Office of Nuclear Material Safety and
Safeguards, U.S. Nuclear Regulatory
Commission, Washington, DC 20555;
Telephone: (301) 415–7408 or at
kellee.jamerson@nrc.gov.
Dated: February 28, 2020.
Russell E. Chazell,
Federal Advisory Committee Management
Officer.
[FR Doc. 2020–04408 Filed 3–3–20; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88296; File No. SR–GEMX–
2020–05]
Self-Regulatory Organizations; Nasdaq
GEMX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Options 3,
Section 7, ‘‘Types of Orders’’ To Permit
the Exchange To Determine the
Availability of Order Types and TimeIn-Force Provisions
February 27, 2020.
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 February
14, 2020, Nasdaq GEMX, LLC (‘‘GEMX’’
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
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 85, No. 43 / Wednesday, March 4, 2020 / Notices
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 3, Section 7, ‘‘Types of Orders’’
to permit the Exchange to determine the
availability of order types and time-inforce provisions.
The Exchange requests that the
Commission waive the 30-day operative
delay period contained in Exchange Act
Rule 19b–4(f)(6)(iii).3
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Options 3, Section 7, ‘‘Types of Orders’’
to provide that the Exchange may
determine which order types and timesin-force provisions are available on a
class or system basis. This proposed
change is based on the rules of Cboe
BZX Exchange, Inc. (‘‘BZX Options’’),4
Rule 21.1, Cboe EDGX Exchange, Inc.
3 17
CFR 240.19b–4(f)(6)(iii).
Options Rule 21.1(d), Definitions, provides
‘‘The term ‘‘Order Type’’ shall mean the unique
processing prescribed for designated orders, subject
to the restrictions set forth in paragraph (l) below
with respect to orders and bulk messages submitted
through bulk ports, that are eligible for entry into
the System. Unless otherwise specified in the Rules
or the context indicates otherwise, the Exchange
determines which of the following Order Types are
available on a class or system basis.’’
BZX Options Rule 21.1(f), Definitions, provides
‘‘The term ‘‘Time in Force’’ means the period of
time that the System will hold an order, subject to
the restrictions set forth in paragraph (j) below with
respect to bulk messages submitted through bulk
ports, for potential execution. Unless otherwise
specified in the Rules or the context indicates
otherwise, the Exchange determines which of the
following Times-in-Force are available on a class,
system, or trading session basis. Rule 21.20 sets
forth the Times-in-Force the Exchange may make
available for complex orders.’’
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4 BZX
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(‘‘EDGX Options’’) Rule 21.1,5 Cboe
Exchange, Inc. (‘‘Cboe’’) Rule 5.6 6 and
Cboe C2 Exchange, Inc. (‘‘C2’’) Rule
6.10(a).7 The Exchange proposes to also
amend the title of the rule from ‘‘Types
of Orders’’ to ‘‘Types of Orders and
Order and Quote Protocols’’ to reflect
the information in the rule.
The Exchange proposes to add rule
text at the beginning of Options 3,
Section 7 which states, ‘‘The Exchange
may determine to make certain order
types and time-in-force, respectively,
available on a class or System basis.’’
The purpose of this rule change is to
provide the Exchange with appropriate
flexibility to address different trading
characteristics, market models, and the
investor base of each class, as well as to
handle any System issues that may arise
and require the Exchange to temporarily
not accept certain order types. This rule
is consistent with BZX Options Rule
21.1, EDGX Options Rules 21.1(d) and
21.1(f), Cboe Rule 5.6 and C2 Rule
6.10(a), each of which provides these
exchanges with the same flexibility. The
Exchange intends to file rule changes to
adopt this rule across all Nasdaq
affiliated markets.
This rule change will not permit the
Exchange to discriminate among market
participants when determining which
order types and times-in-force
provisions are available on a class or
system basis. The Exchange’s proposal
allows the Exchange to make certain
order types and time-in-force,
respectively, available on a class or
System basis uniformly for all market
participants. For example, if the
Exchange determined to make a certain
order type unavailable, that order type
would not be available for any market
participant.
5 EDGX Options Rule 21.1, Definitions, provides,
‘‘The term ‘‘Order Type’’ shall mean the unique
processing prescribed for designated orders, subject
to the restrictions set forth in paragraph (j) below
with respect to orders and bulk messages submitted
through bulk ports, that are eligible for entry into
the System. Unless otherwise specified in the Rules
or the context indicates otherwise, the Exchange
determines which of the following Order Types are
available on a class, system, or trading session
basis. Rule 21.20 sets forth the Order Types the
Exchange may make available for complex orders.’’
6 Cboe Rule 5.6, Availability of Orders, provides,
‘‘Unless otherwise specified in the Rules or the
context indicates otherwise, the Exchange
determines which of the following order types are
available on a class-by-class and system-by-system
basis.’’
7 C2 Rule 6.10(a), Availability of Orders, provides,
‘‘Availability. Unless otherwise specified in the
Rules or the context indicates otherwise, the
Exchange determines which of the following order
types, Order Instructions, and Times-in-Force are
available on a class, system, or trading session
basis. Rule 6.13 sets forth the order types, Order
Instructions, and Times-in-Force the Exchange may
make available for complex orders.’’
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The Exchange would issue an Options
Trader Alert to provide notification to
Participants that a change is being made
to the availability or unavailability of a
certain order type or time-in-force. The
Exchange notes that in the event of
System disruption, the Exchange would
notify Participants of the unavailability
of any order type and would also
provide notification when that order
type was available once the disruption
was resolved.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,8 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,9 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 proposed rule
change would provide the Exchange
with the flexibility to determine the
availability of order types and times-inforce on a class and System basis. This
flexibility would remove impediments
to and perfect the mechanism of a free
and open market and a national market
system by allowing the Exchange to
address the specific characteristics of
different classes and different market
conditions. The Exchange believes that
this proposal serves to protect investors
by ensuring that the appropriate order
types and times-in-force are tailored to
the different class characteristics and by
mitigating risks associated with
changing market conditions.10 The
Exchange would issue a notification to
Participants to provide them notice that
a change is being made to the
availability or unavailability of a certain
order type or time-in-force before
implementing the change. In the event
of a System issue, the Exchange believes
that it is consistent with the Act to
temporarily not offer a certain order
type to ensure the proper executions of
transactions within the System thereby
protecting investors and the public
interest. The Exchange anticipates that
exercising its ability to temporarily not
offer order types would be infrequent.
Adding this provision on all Nasdaq
affiliated markets will ensure
consistency between the Exchange rules
and that of its affiliates and would
remove impediments to and perfect the
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 The Exchange may also determine to
temporarily not offer an order type or a time-inforce based on a System issue.
9 15
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Federal Register / Vol. 85, No. 43 / Wednesday, March 4, 2020 / Notices
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mechanism of a free and open market
and promote just and equitable
principles of trade, as well as foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities. The proposed
rule change provides the Exchange with
the same flexibility currently permitted
on BZX Options, EDGX Options, Cboe
and C2. The Exchange believes that this
consistency promotes market
participants’ understanding of the rules
across the multiple affiliated exchanges
and promotes a fair and orderly national
options market system. The Exchange
also notes that the proposed change is
reasonable and does not affect investor
protection because the proposed change
does not present any novel or unique
issues, as it has previously been filed
with the Commission.
The Exchange’s proposal is not
unfairly discriminatory because the
Exchange will not discriminate among
market participants when determining
which order types and times-in-force
provisions are available on a class or
system basis. The Exchange’s proposal
allows the Exchange to make certain
order types and time-in-force,
respectively, available on a class or
System basis uniformly for all market
participants. For example, if the
Exchange determined to make a certain
order type unavailable, that order type
would not be available for any market
participant.
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 that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange does not believe the proposed
rule change will impose any burden on
intra-market competition, as the
proposed rule change will apply in the
same manner to all order types and/or
times-in-force, as the Exchange
determines, for all Participants. The
Exchange does not believe the proposed
rule change will impose any burden on
inter-market competition because the
proposed change provides the Exchange
with substantially the same flexibility as
the rules of other exchanges.11
Therefore, the Exchange believes that
the proposed rule change will allow it
to make determinations regarding the
availability of orders that will enable it
to remain competitive as markets and
market conditions evolve.
The Exchange’s proposal does not
impose an undue burden on
competition because the Exchange’s
11 See
notes 4–6 above.
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proposal will uniformly make certain
order types and time-in-force,
respectively, available on a class or
System basis for market participants.
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 Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 12 and Rule
19b–4(f)(6) thereunder.13 Because the
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, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 14 and Rule 19b-4(f)(6)
thereunder.15
A proposed rule change filed under
Rule 19b–4(f)(6) 16 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),17 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposed
rule change may become operative
immediately. The Exchange notes that
waiver of the operative delay will allow
GEMX to exercise immediately the same
flexibility to make certain order types
available or unavailable as BZX
Options, EDGX Options, Cboe, and C2.
The Exchange states that this flexibility
would serve to protect investors and the
public interest by mitigating risks
associated with changing market
conditions. Based on the foregoing, the
12 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
14 15 U.S.C. 78s(b)(3)(A).
15 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
16 17 CFR 240.19b–4(f)(6).
17 17 CFR 240.19b–4(f)(6)(iii).
13 17
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12813
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest, and the Commission
hereby waives the 30-day operative
delay and designates the proposal
operative upon filing.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 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 rule-comments@
sec.gov. Please include File Number SR–
GEMX–2020–05 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–GEMX–2020–05. 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
18 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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Federal Register / Vol. 85, No. 43 / Wednesday, March 4, 2020 / Notices
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
offices 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–GEMX–2020–05, and
should be submitted on or before March
25, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–04392 Filed 3–3–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88297; File No. SR–LCH
SA–2020–001]
Self-Regulatory Organizations; LCH
SA; Notice of Filing of Proposed Rule
Change Relating to Amendments to
the Wind Down Plan
February 27, 2020.
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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 February
24, 2020, Banque Centrale de
Compensation, which conducts
business under the name LCH SA (‘‘LCH
SA’’), filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change described in
Items I, II, and III below, which Items
have been prepared primarily by LCH
SA. The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
Banque Centrale de Compensation,
which conducts business under the
name LCH SA (‘‘LCH SA’’), is proposing
to adopt an updated wind down plan
(the ‘‘WDP’’). The text of the proposed
rule change has been annexed as Exhibit
5.
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission,
LCH SA 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. LCH SA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of these statements.
A. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
1. Purpose
On September 28, 2016, the Securities
and Exchange Commission (the
‘‘Commission’’) adopted amendments to
Rule 17Ad–22 3 pursuant to Section 17A
of the Securities Exchange Act of 1934
(the ‘‘Act’’) 4 and the Payment, Clearing
and Settlement Supervision Act of 2010
(‘‘Clearing Supervision Act’’) 5 to
establish enhanced standards for the
operation and governance of those
clearing agencies registered with the
Commission that meet the definition of
a ‘‘covered clearing agency,’’ as defined
by Rule 17Ad–22(a)(5) 6 (collectively,
the new and amended rules are herein
referred to as ‘‘CCA rules’’).
LCH SA is a covered clearing agency
under the CCA rules and therefore is
subject to the requirements of the CCA
rules, including Rule 17Ad–22(e)(3).
The CCA rules require that covered
clearing agencies, among other things:
‘‘establish, implement, maintain and
enforce written policies and procedures
reasonably designed to . . . maintain a
sound risk management framework for
comprehensively managing legal, credit,
liquidity, operational, general business,
investment, custody, and other risks
that arise in or are borne by the covered
clearing agency, which . . . includes
plans for the recovery and orderly winddown of the covered clearing agency
necessitated by credit losses, liquidity
shortfalls, losses from general business
risk, or any other losses.’’ 7
As a central counterparty recognized
under the European Market
Infrastructure Regulation (‘‘EMIR’’),
LCH SA is also required to have in place
3 17
CFR 240.17Ad–22.
U.S.C. 78q–1.
5 12 U.S.C. 5461 et. seq.
6 17 CFR 240.17Ad–22(a)(5).
7 17 CFR 240.17Ad–22(e)(3)(ii).
relevant recovery and wind down
mechanisms required under EMIR.8
As a credit institution based in the
European Union, LCH SA is also subject
to Directive 2014/59/EU, as
supplemented, requiring institutions to
draw up and maintain recovery plans
setting forth options for measures to be
taken by the institution to restore its
financial position following a significant
deterioration of its financial position.
The purpose of the WDP is to ensure
an orderly wind down of the CCP under
extreme circumstances and to limit
market impact as much as possible,
should the recovery plan (the ‘‘RP’’) 9 or
the resolutions measures that could
have been taken by the authorities have
failed to allow the CCP to obtain the
resources required to a return to
business as usual conditions.
The WDP sets out the steps that LCH
SA would follow to close its clearing
services and shut down the company.
The plan demonstrates how LCH SA, as
it exists today, can achieve this orderly
wind down within six (6) months.
In addition, in order to ensure the
feasibility of the plan, LCH SA holds
capital, funded by equity, equal to the
operating expenses for a six (6) month
period. LCH SA has estimated the
amount required to wind down and
ensures that it remains inferior to the
level of capital set aside.
Although, it is only required to
update the wind down plan when a
significant change has occurred, LCH
SA has decided to review its wind down
plan on an annual basis or more
frequently if required. The objective of
this annual review is to update the
overall cost to wind down in order to
ensure it remains under the amount of
capital held for that purpose, update the
assessment of key contract termination
provisions, align with the recovery plan
if need be and more generally complete
the plan with any areas for
improvement which could have been
detected during the year. In 2018, LCH
SA conducted a review of the wind
down and identified two areas that
needed to be addressed.
The revised version of the plan
clarifies the fact that, in accordance
with its banking status and with its
rules, LCH SA could not decide to wind
down by itself but that, if the CCP is no
longer deemed viable by its authorities,
the ACPR could require LCH SA to start
to wind down. This requirement could
be made while the CCP is operating
under its current governance or once it
has been put under resolution by the
4 15
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
16:41 Mar 03, 2020
Jkt 250001
PO 00000
Frm 00055
Fmt 4703
Sfmt 4703
8 Regulation (EU) No. 152/2013 of 19 December
2012, Article 2.
9 See LCH SA File No. SR–LCH SA–2019–008.
E:\FR\FM\04MRN1.SGM
04MRN1
]]>Agencies
[Federal Register Volume 85, Number 43 (Wednesday, March 4, 2020)]
[Notices]
[Pages 12811-12814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-04392]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88296; File No. SR-GEMX-2020-05]
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Options 3,
Section 7, ``Types of Orders'' To Permit the Exchange To Determine the
Availability of Order Types and Time-In-Force Provisions
February 27, 2020.
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 February 14, 2020, Nasdaq GEMX, LLC (``GEMX'' 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
[[Page 12812]]
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 amend Options 3, Section 7, ``Types of
Orders'' to permit the Exchange to determine the availability of order
types and time-in-force provisions.
The Exchange requests that the Commission waive the 30-day
operative delay period contained in Exchange Act Rule 19b-
4(f)(6)(iii).\3\
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\3\ 17 CFR 240.19b-4(f)(6)(iii).
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Options 3, Section 7, ``Types of
Orders'' to provide that the Exchange may determine which order types
and times-in-force provisions are available on a class or system basis.
This proposed change is based on the rules of Cboe BZX Exchange, Inc.
(``BZX Options''),\4\ Rule 21.1, Cboe EDGX Exchange, Inc. (``EDGX
Options'') Rule 21.1,\5\ Cboe Exchange, Inc. (``Cboe'') Rule 5.6 \6\
and Cboe C2 Exchange, Inc. (``C2'') Rule 6.10(a).\7\ The Exchange
proposes to also amend the title of the rule from ``Types of Orders''
to ``Types of Orders and Order and Quote Protocols'' to reflect the
information in the rule.
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\4\ BZX Options Rule 21.1(d), Definitions, provides ``The term
``Order Type'' shall mean the unique processing prescribed for
designated orders, subject to the restrictions set forth in
paragraph (l) below with respect to orders and bulk messages
submitted through bulk ports, that are eligible for entry into the
System. Unless otherwise specified in the Rules or the context
indicates otherwise, the Exchange determines which of the following
Order Types are available on a class or system basis.''
BZX Options Rule 21.1(f), Definitions, provides ``The term
``Time in Force'' means the period of time that the System will hold
an order, subject to the restrictions set forth in paragraph (j)
below with respect to bulk messages submitted through bulk ports,
for potential execution. Unless otherwise specified in the Rules or
the context indicates otherwise, the Exchange determines which of
the following Times-in-Force are available on a class, system, or
trading session basis. Rule 21.20 sets forth the Times-in-Force the
Exchange may make available for complex orders.''
\5\ EDGX Options Rule 21.1, Definitions, provides, ``The term
``Order Type'' shall mean the unique processing prescribed for
designated orders, subject to the restrictions set forth in
paragraph (j) below with respect to orders and bulk messages
submitted through bulk ports, that are eligible for entry into the
System. Unless otherwise specified in the Rules or the context
indicates otherwise, the Exchange determines which of the following
Order Types are available on a class, system, or trading session
basis. Rule 21.20 sets forth the Order Types the Exchange may make
available for complex orders.''
\6\ Cboe Rule 5.6, Availability of Orders, provides, ``Unless
otherwise specified in the Rules or the context indicates otherwise,
the Exchange determines which of the following order types are
available on a class-by-class and system-by-system basis.''
\7\ C2 Rule 6.10(a), Availability of Orders, provides,
``Availability. Unless otherwise specified in the Rules or the
context indicates otherwise, the Exchange determines which of the
following order types, Order Instructions, and Times-in-Force are
available on a class, system, or trading session basis. Rule 6.13
sets forth the order types, Order Instructions, and Times-in-Force
the Exchange may make available for complex orders.''
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The Exchange proposes to add rule text at the beginning of Options
3, Section 7 which states, ``The Exchange may determine to make certain
order types and time-in-force, respectively, available on a class or
System basis.'' The purpose of this rule change is to provide the
Exchange with appropriate flexibility to address different trading
characteristics, market models, and the investor base of each class, as
well as to handle any System issues that may arise and require the
Exchange to temporarily not accept certain order types. This rule is
consistent with BZX Options Rule 21.1, EDGX Options Rules 21.1(d) and
21.1(f), Cboe Rule 5.6 and C2 Rule 6.10(a), each of which provides
these exchanges with the same flexibility. The Exchange intends to file
rule changes to adopt this rule across all Nasdaq affiliated markets.
This rule change will not permit the Exchange to discriminate among
market participants when determining which order types and times-in-
force provisions are available on a class or system basis. The
Exchange's proposal allows the Exchange to make certain order types and
time-in-force, respectively, available on a class or System basis
uniformly for all market participants. For example, if the Exchange
determined to make a certain order type unavailable, that order type
would not be available for any market participant.
The Exchange would issue an Options Trader Alert to provide
notification to Participants that a change is being made to the
availability or unavailability of a certain order type or time-in-
force. The Exchange notes that in the event of System disruption, the
Exchange would notify Participants of the unavailability of any order
type and would also provide notification when that order type was
available once the disruption was resolved.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\8\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\9\ 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 proposed rule change would
provide the Exchange with the flexibility to determine the availability
of order types and times-in-force on a class and System basis. This
flexibility would remove impediments to and perfect the mechanism of a
free and open market and a national market system by allowing the
Exchange to address the specific characteristics of different classes
and different market conditions. The Exchange believes that this
proposal serves to protect investors by ensuring that the appropriate
order types and times-in-force are tailored to the different class
characteristics and by mitigating risks associated with changing market
conditions.\10\ The Exchange would issue a notification to Participants
to provide them notice that a change is being made to the availability
or unavailability of a certain order type or time-in-force before
implementing the change. In the event of a System issue, the Exchange
believes that it is consistent with the Act to temporarily not offer a
certain order type to ensure the proper executions of transactions
within the System thereby protecting investors and the public interest.
The Exchange anticipates that exercising its ability to temporarily not
offer order types would be infrequent.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ The Exchange may also determine to temporarily not offer an
order type or a time-in-force based on a System issue.
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Adding this provision on all Nasdaq affiliated markets will ensure
consistency between the Exchange rules and that of its affiliates and
would remove impediments to and perfect the
[[Page 12813]]
mechanism of a free and open market and promote just and equitable
principles of trade, as well as foster cooperation and coordination
with persons engaged in facilitating transactions in securities. The
proposed rule change provides the Exchange with the same flexibility
currently permitted on BZX Options, EDGX Options, Cboe and C2. The
Exchange believes that this consistency promotes market participants'
understanding of the rules across the multiple affiliated exchanges and
promotes a fair and orderly national options market system. The
Exchange also notes that the proposed change is reasonable and does not
affect investor protection because the proposed change does not present
any novel or unique issues, as it has previously been filed with the
Commission.
The Exchange's proposal is not unfairly discriminatory because the
Exchange will not discriminate among market participants when
determining which order types and times-in-force provisions are
available on a class or system basis. The Exchange's proposal allows
the Exchange to make certain order types and time-in-force,
respectively, available on a class or System basis uniformly for all
market participants. For example, if the Exchange determined to make a
certain order type unavailable, that order type would not be available
for any market participant.
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 that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe the proposed rule change will impose any burden on intra-market
competition, as the proposed rule change will apply in the same manner
to all order types and/or times-in-force, as the Exchange determines,
for all Participants. The Exchange does not believe the proposed rule
change will impose any burden on inter-market competition because the
proposed change provides the Exchange with substantially the same
flexibility as the rules of other exchanges.\11\ Therefore, the
Exchange believes that the proposed rule change will allow it to make
determinations regarding the availability of orders that will enable it
to remain competitive as markets and market conditions evolve.
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\11\ See notes 4-6 above.
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The Exchange's proposal does not impose an undue burden on
competition because the Exchange's proposal will uniformly make certain
order types and time-in-force, respectively, available on a class or
System basis for market participants.
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 Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \12\ and Rule 19b-4(f)(6) thereunder.\13\
Because the 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, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b-
4(f)(6) thereunder.\15\
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6).
\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\17\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposed
rule change may become operative immediately. The Exchange notes that
waiver of the operative delay will allow GEMX to exercise immediately
the same flexibility to make certain order types available or
unavailable as BZX Options, EDGX Options, Cboe, and C2. The Exchange
states that this flexibility would serve to protect investors and the
public interest by mitigating risks associated with changing market
conditions. Based on the foregoing, the Commission believes that
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest, and the Commission hereby waives the
30-day operative delay and designates the proposal operative upon
filing.\18\
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\16\ 17 CFR 240.19b-4(f)(6).
\17\ 17 CFR 240.19b-4(f)(6)(iii).
\18\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 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-GEMX-2020-05 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-GEMX-2020-05. 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
[[Page 12814]]
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 offices 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-GEMX-2020-05, and should be
submitted on or before March 25, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-04392 Filed 3-3-20; 8:45 am]
BILLING CODE 8011-01-P
