Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Complex Orders, 17152-17155 [2020-06297]
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Federal Register / Vol. 85, No. 59 / Thursday, March 26, 2020 / Notices
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day for this filing
is March 21, 2020.
The Commission is extending the 45day time period for Commission action
on the proposed rule change. The
Commission finds that it is appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider the proposed rule change.
Accordingly, pursuant to Section
19(b)(2)(A)(ii)(I) of the Act 5 and for the
reasons stated above, the Commission
designates May 5, 2020, as the date by
which the Commission shall either
approve, disapprove, or institute
proceedings to determine whether to
disapprove, the proposed rule change
(File No. SR–CboeEDGA–2020–003).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–06289 Filed 3–25–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88435; File No. SR–MRX–
2020–06]
Self-Regulatory Organizations; Nasdaq
MRX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Related to Complex
Orders
March 20, 2020.
lotter on DSKBCFDHB2PROD with NOTICES
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 March 9,
2020, 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 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
Options 3, Section 7, ‘‘Types of Orders,’’
and Options 3, Section 14, ‘‘Complex
Orders’’ to permit the Exchange to
5 15
U.S.C. 78s(b)(2)(A)(ii)(I).
CFR 200.30–3(a)(31).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
6 17
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determine the availability of order types
and time-in-force provisions and to add
other existing order types to the list of
single-leg and Complex Order types.
The Exchange requests that the
Commission waive the 30-day operative
delay period contained in Exchange Act
Rule 19b–4(f)(6)(iii).3
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 Exchange proposes to amend
Options 3, Section 7, ‘‘Types of Orders,’’
and Options 3, Section 14, ‘‘Complex
Orders’’ to: (1) Provide that the
Exchange may determine which order
types and times-in-force provisions are
available on a class or system basis; and
(2) to add other existing order types to
the list of single-leg and Complex Order
types.
The Exchange proposes to add a
sentence to Options 3, Section 14,
Complex Orders, which states, ‘‘The
Exchange may determine to make
certain order types and/or times-in-force
available on a class or System basis.’’
This sentence exists today within
Nasdaq ISE, LLC (‘‘ISE’’) Options 3,
Section 7, ‘‘Types of Orders.’’ 4 This
proposed change is based on the rules
of ISE Options 3, Section 7 and the rules
of Cboe BZX Exchange, Inc. (‘‘BZX
Options’’),5 Rule 21.1, Cboe EDGX
3 17
CFR 240.19b–4(f)(6)(iii).
Securities Exchange Act Release No. 88294
(February 26, 2020), 85 FR 12629 (March 3, 2020)
(SR–ISE–2020–07).
5 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
4 See
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Exchange, Inc. (‘‘EDGX Options’’) Rule
21.1(d),6 Cboe Exchange, Inc. (‘‘Cboe’’)
Rule 5.6(a) 7 and Cboe C2 Exchange, Inc.
(‘‘C2’’) Rule 6.10(a).8
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(d) and (f), EDGX Options Rules
21.1(d) and (f), Cboe Rule 5.6(a) and C2
Rule 6.10(a), each of which provides
these exchanges with substantially the
same flexibility. This rule text is also
consistent with ISE Rules at Options 3,
Section 7.
This rule change will not permit the
Exchange to discriminate among market
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’ shall mean the period of time that the
System will hold an order, subject to the
restrictions set forth in paragraph (l) 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 or
system basis.’’
6 EDGX 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 (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.’’ EDGX 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.’’
7 Cboe Rule 5.6, Order Types, Order Instructions,
and Times-in-Force at subsection (a), Availability,
provides, ‘‘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.’’
8 C2 Rule 6.10, Availability of Orders, at
subsection (a) 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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Federal Register / Vol. 85, No. 59 / Thursday, March 26, 2020 / Notices
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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 or time-in-force unavailable,
that order type or time-in-force 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.
The Exchange also proposes to add to
Options 3, Section 7 at proposed (v)–(y)
and Options 3, Section 14(b) at
proposed (16), (17) and (18), references
to various existing order types that may
be entered into various auction
mechanisms on MRX. Specifically, the
Exchange proposes to add a reference to
both single-leg and Complex Orders
entered into the Price Improvement
Mechanism, Facilitation Mechanism
and Solicited Order Mechanism. These
order types exist today within the MRX
Rules, however, unlike other order
types, they are not mentioned within
Options 3, Sections 7 or 14, which list
the single-leg and Complex Orders,
respectively, available for trading on
MRX. Further, the Exchange also
proposes to add the Block Order type to
Options 3, Section 7 to complete the list
of available order types that may be
entered into an auction mechanism. The
Exchange proposes to add the following
rule text into Options 3, Section 7:
(v) Block Order. A Block Order is an order
entered into the Block Order Mechanism as
described in Options 3, Section 11(a).
(w) Facilitation Order. A Facilitation Order
is an order entered into the Facilitation
Mechanism as described in Options 3,
Section 11(b).
(x) SOM Order. A SOM Order is an order
entered into the Solicited Order Mechanism
as described in Options 3, Section 11(d).
(y) A PIM Order. A PIM Order is an order
entered into the Price Improvement
Mechanism as described in Options 3,
Section 13(a).
The Exchange proposes to add the
following rule text into Options 3,
Section 14:
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(16) Complex Facilitation Order. A
Complex Facilitation Order is an order
entered into the Complex Facilitation
Mechanism as described in Options 3,
Section 11(c).
(17) Complex SOM Order. A Complex
SOM Order is an order entered into the
Complex Solicited Order Mechanism as
described in Options 3, Section 11(e).
(18) Complex PIM Order. A Complex PIM
Order is an order entered into the Complex
Price Improvement Mechanism as described
in Options 3, Section 13(e).
The Exchange believes the addition of
this rule text will make clear that these
order types are available.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,9 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,10 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.11
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.
This provision was added to all 6
Nasdaq affiliated markets for the simple
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 The Exchange may also determine to
temporarily not offer an order type or a time-inforce based on a System issue.
10 15
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17153
markets 12 and therefore will ensure
consistency between the Exchange rules
and that of its affiliates and would
remove impediments to and perfect the
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
substantially the same flexibility
currently permitted on BZX Options,
EDGX Options, Cboe and C2 as well as
ISE.13 The Exchange believes that this
consistency promotes market
participants’ understanding of the rules
across the multiple Nasdaq affiliated
exchanges and promotes a fair and
orderly national options market system.
This proposal does not present any
novel or unique issues because other
exchanges have substantially similar
rules.14
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 or time-in-force unavailable,
that order type or time-in-force would
not be available for any market
participant.
The proposal to add a reference to all
existing order types that may be entered
into auctions into Options 3, Sections 7
and 14 is consistent with the Act. The
Exchange believes the addition of the
Block Order type, Facilitation Order
type, SOM Order type and PIM Order
types into Options 3, Section 7 and the
addition of the Complex Facilitation
Order type, Complex SOM Order type
and Complex PIM Order type into
Options 3, Section 14 will make clear to
market participants the various types of
single-leg order and Complex Orders
that may be transacted on MRX. The
descriptions of these order types merely
point at the existing mechanisms.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
12 See Nasdaq Phlx LLC, The Nasdaq Options
Market, LLC, Nasdaq BX, Inc., ISE, Nasdaq GEMX,
LLC and MRX Rules at Options 3, Section 7.
13 See notes 4–8 above.
14 Id.
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Federal Register / Vol. 85, No. 59 / Thursday, March 26, 2020 / Notices
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.15
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
proposal will uniformly make certain
order types and time-in-force,
respectively, available on a class or
System basis for market participants.
The proposal to add the Block Order
type, Facilitation Order type, SOM
Order type and PIM Order types into
Options 3, Section 7 and the Complex
Facilitation type, Complex SOM Order
type and Complex PIM Order type into
Options 3, Section 14b does not impose
an undue burden on competition. The
addition of these order types would
complete the list of single-leg and
Complex Order types, which are
available to all market participants, and
are merely being referenced within the
order type rules for greater
transparency.
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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 16 and Rule
19b–4(f)(6) thereunder.17 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
15 Id.
16 15
17 17
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
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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 18 and Rule 19b–4(f)(6)
thereunder.19
A proposed rule change filed under
Rule 19b–4(f)(6) 20 normally does not
become operative for 30 days after the
date of the filing. However, pursuant to
Rule 19b–4(f)(6)(iii),21 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
believes that 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, allowing the
Exchange to address the specific
characteristics of different classes and
different market conditions. According
to the Exchange, this would ensure that
the appropriate order types and timesin-force are tailored to the different class
characteristics and mitigate risks
associated with changing market
conditions. The Exchange also believes
that referencing all single-leg and
Complex Order types makes clear which
order types are available to all market
participants. Moreover, the Exchange
represents that 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, and provides the Exchange
with substantially the same flexibility as
the rules of other exchanges. Lastly, the
Exchange argues that waiver of the 30day operative delay will permit the
Exchange to immediately use this ability
to make certain order types available
and unavailable, as well as enable the
Exchange to remain competitive as
markets and market conditions evolve.
For these reasons, the Commission
believes that waiver of the 30-day
operative delay is consistent with the
protection of investors and the public
interest. Accordingly, the Commission
hereby waives the 30-day operative
18 15
U.S.C. 78s(b)(3)(A).
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.
20 17 CFR 240.19b–4(f)(6).
21 17 CFR 240.19b–4(f)(6)(iii).
19 17
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delay and designates the proposal
operative upon filing.22
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–
MRX–2020–06 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–2020–06. 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
22 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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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–MRX–2020–06, and should
be submitted on or before April 16,
2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–06297 Filed 3–25–20; 8:45 am]
BILLING CODE 8011–01–P
SOCIAL SECURITY ADMINISTRATION
[Docket No: SSA–2020–0010]
Agency Information Collection
Activities: Proposed Request and
Comment Request
The Social Security Administration
(SSA) publishes a list of information
collection packages requiring clearance
by the Office of Management and
Budget (OMB) in compliance with
Public Law 104–13, the Paperwork
Reduction Act of 1995, effective October
1, 1995. This notice includes revisions
of OMB-approved information
collections, and one new collection.
SSA is soliciting comments on the
accuracy of the agency’s burden
estimate; the need for the information;
its practical utility; ways to enhance its
quality, utility, and clarity; and ways to
minimize burden on respondents,
including the use of automated
collection techniques or other forms of
information technology. Mail, email, or
fax your comments and
recommendations on the information
collection(s) to the OMB Desk Officer
and SSA Reports Clearance Officer at
the following addresses or fax numbers.
(OMB), Office of Management and
Budget, Attn: Desk Officer for SSA,
Fax: 202–395–6974, Email address:
OIRA_Submission@omb.eop.gov.
(SSA), Social Security Administration,
OLCA, Attn: Reports Clearance
Director, 3100 West High Rise, 6401
Security Blvd., Baltimore, MD 21235,
Fax: 410–966–2830, Email address:
OR.Reports.Clearance@ssa.gov.
Or you may submit your comments
online through www.regulations.gov,
referencing Docket ID Number [SSA–
2020–0010].
I. The information collection below is
pending at SSA. SSA will submit it to
OMB within 60 days from the date of
this notice. To be sure we consider your
comments, we must receive them no
later than May 26, 2020. Individuals can
obtain copies of the collection
instrument by writing to the above
email address.
Notice to Electronic Information
Exchange Partners To Provide
Contractor List—0960–NEW. The
Federal standards Privacy Act of 1974;
E-Government Act of 2002; and the
National Institute of Standard Special
Publications 800–53–4, require SSA to
maintain oversight of the information it
provides to Electronic Information
Exchange Partners (EIEPs). EIEPs obtain
SSA data for the administration of
federally funded and state-administered
17155
programs. SSA has a responsibility to
monitor and protect the personally
identifiable information SSA shares
with other Federal and State agencies,
and private organizations through the
Computer Matching and Privacy
Protection Act, and the Information
Exchange Agreements (IEA). Under the
terms of the State Transmission
Component IEA, and agency IEA, EIEPs
agree to comply with Electronic
Information Exchange security
requirements and procedures for State
and local Agencies exchanging
electronic information with SSA. SSA’s
Technical Systems Security
Requirements document provides all
agencies using SSA data ensure SSA
information is not processed;
maintained; transmitted; or stored in
electronic devices; computers; or
computer networks located in
geographic or virtual areas not subject to
U.S. law, or stored by means of a data
communications channel. SSA conducts
tri-annual compliance reviews of all
State and local agencies, and Tribes
with whom we have an IEA, to verify
appropriate security safeguards remain
in place to protect the confidentiality of
information SSA supplies. SSA requires
any organization with an electronic data
exchange agreement, to provide the SSA
Regional Office contact a current list of
contractors, or agents, who have access
to SSA data upon request. SSA uses
Form SSA–731, Notice to Electronic
Information Exchange Partners to
Provide Contractor List to collect this.
The respondents are Federal agencies,
and state, local, or tribal agencies, who
exchange electronic information with
SSA.
Type of Request: Request for a new
information collection.
Modality of completion
Number of
respondents
Frequency of
response
Average
burden per
response
(minutes)
Estimated
total annual
burden
(hours)
Average
theoretical
hourly cost
amount
(dollars) *
Total annual
opportunity
cost
(dollars) **
SSA–731 ..................................................
300
1
20
100
$18.00 *
$1,800 **
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* We based this figure on average State, local and tribal government worker’s salaries, as reported by Bureau of Labor Statistics data.
** This figure does not represent actual costs that SSA is imposing on recipients of Social Security payments to complete this application; rather, these are theoretical opportunity costs for the additional time respondents will spend to complete the application. There is no actual charge to
respondents to complete the application.
II. SSA submitted the information
collections below to OMB for clearance.
Your comments regarding these
information collections would be most
useful if OMB and SSA receive them 30
days from the date of this publication.
To be sure we consider your comments,
we must receive them no later than
23 17
April 27, 2020. Individuals can obtain
copies of the OMB clearance packages
by writing to OR.Reports.Clearance@
ssa.gov.
1. Continuing Disability Review
Report—20 CFR 404.1589 & 416.989—
0960–0072. Sections 221(i),
1614(a)(3)(H)(ii)(I) and 1633(c)(1) of the
Social Security Act (Act) require SSA to
periodically review the cases of
individuals who receive benefits under
Title II or Title XVI, based on disability,
to determine if disability continues.
SSA uses Form SSA–454, Continuing
Disability Review Report to complete
the review for continued disability. SSA
CFR 200.30–3(a)(12), (59).
VerDate Sep<11>2014
17:20 Mar 25, 2020
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]]>Agencies
[Federal Register Volume 85, Number 59 (Thursday, March 26, 2020)]
[Notices]
[Pages 17152-17155]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06297]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88435; File No. SR-MRX-2020-06]
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Related to Complex
Orders
March 20, 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 March 9, 2020, 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 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.
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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,'' and Options 3, Section 14, ``Complex Orders'' to permit the
Exchange to determine the availability of order types and time-in-force
provisions and to add other existing order types to the list of single-
leg and Complex Order types.
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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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 Exchange proposes to amend Options 3, Section 7, ``Types of
Orders,'' and Options 3, Section 14, ``Complex Orders'' to: (1) Provide
that the Exchange may determine which order types and times-in-force
provisions are available on a class or system basis; and (2) to add
other existing order types to the list of single-leg and Complex Order
types.
The Exchange proposes to add a sentence to Options 3, Section 14,
Complex Orders, which states, ``The Exchange may determine to make
certain order types and/or times-in-force available on a class or
System basis.'' This sentence exists today within Nasdaq ISE, LLC
(``ISE'') Options 3, Section 7, ``Types of Orders.'' \4\ This proposed
change is based on the rules of ISE Options 3, Section 7 and the rules
of Cboe BZX Exchange, Inc. (``BZX Options''),\5\ Rule 21.1, Cboe EDGX
Exchange, Inc. (``EDGX Options'') Rule 21.1(d),\6\ Cboe Exchange, Inc.
(``Cboe'') Rule 5.6(a) \7\ and Cboe C2 Exchange, Inc. (``C2'') Rule
6.10(a).\8\
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\4\ See Securities Exchange Act Release No. 88294 (February 26,
2020), 85 FR 12629 (March 3, 2020) (SR-ISE-2020-07).
\5\ 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' shall
mean the period of time that the System will hold an order, subject
to the restrictions set forth in paragraph (l) 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 or system basis.''
\6\ EDGX 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 (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.'' EDGX 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.''
\7\ Cboe Rule 5.6, Order Types, Order Instructions, and Times-
in-Force at subsection (a), Availability, provides, ``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.''
\8\ C2 Rule 6.10, Availability of Orders, at subsection (a)
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 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(d) and (f), EDGX Options Rules 21.1(d) and
(f), Cboe Rule 5.6(a) and C2 Rule 6.10(a), each of which provides these
exchanges with substantially the same flexibility. This rule text is
also consistent with ISE Rules at Options 3, Section 7.
This rule change will not permit the Exchange to discriminate among
market
[[Page 17153]]
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 or time-in-force unavailable, that order type
or time-in-force 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.
The Exchange also proposes to add to Options 3, Section 7 at
proposed (v)-(y) and Options 3, Section 14(b) at proposed (16), (17)
and (18), references to various existing order types that may be
entered into various auction mechanisms on MRX. Specifically, the
Exchange proposes to add a reference to both single-leg and Complex
Orders entered into the Price Improvement Mechanism, Facilitation
Mechanism and Solicited Order Mechanism. These order types exist today
within the MRX Rules, however, unlike other order types, they are not
mentioned within Options 3, Sections 7 or 14, which list the single-leg
and Complex Orders, respectively, available for trading on MRX.
Further, the Exchange also proposes to add the Block Order type to
Options 3, Section 7 to complete the list of available order types that
may be entered into an auction mechanism. The Exchange proposes to add
the following rule text into Options 3, Section 7:
(v) Block Order. A Block Order is an order entered into the
Block Order Mechanism as described in Options 3, Section 11(a).
(w) Facilitation Order. A Facilitation Order is an order entered
into the Facilitation Mechanism as described in Options 3, Section
11(b).
(x) SOM Order. A SOM Order is an order entered into the
Solicited Order Mechanism as described in Options 3, Section 11(d).
(y) A PIM Order. A PIM Order is an order entered into the Price
Improvement Mechanism as described in Options 3, Section 13(a).
The Exchange proposes to add the following rule text into Options
3, Section 14:
(16) Complex Facilitation Order. A Complex Facilitation Order is
an order entered into the Complex Facilitation Mechanism as
described in Options 3, Section 11(c).
(17) Complex SOM Order. A Complex SOM Order is an order entered
into the Complex Solicited Order Mechanism as described in Options
3, Section 11(e).
(18) Complex PIM Order. A Complex PIM Order is an order entered
into the Complex Price Improvement Mechanism as described in Options
3, Section 13(e).
The Exchange believes the addition of this rule text will make
clear that these order types are available.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\9\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\10\ 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.\11\
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
\11\ 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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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.
This provision was added to all 6 Nasdaq affiliated markets for the
simple markets \12\ and therefore will ensure consistency between the
Exchange rules and that of its affiliates and would remove impediments
to and perfect the 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
substantially the same flexibility currently permitted on BZX Options,
EDGX Options, Cboe and C2 as well as ISE.\13\ The Exchange believes
that this consistency promotes market participants' understanding of
the rules across the multiple Nasdaq affiliated exchanges and promotes
a fair and orderly national options market system. This proposal does
not present any novel or unique issues because other exchanges have
substantially similar rules.\14\
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\12\ See Nasdaq Phlx LLC, The Nasdaq Options Market, LLC, Nasdaq
BX, Inc., ISE, Nasdaq GEMX, LLC and MRX Rules at Options 3, Section
7.
\13\ See notes 4-8 above.
\14\ Id.
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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 or time-in-force unavailable, that order type or
time-in-force would not be available for any market participant.
The proposal to add a reference to all existing order types that
may be entered into auctions into Options 3, Sections 7 and 14 is
consistent with the Act. The Exchange believes the addition of the
Block Order type, Facilitation Order type, SOM Order type and PIM Order
types into Options 3, Section 7 and the addition of the Complex
Facilitation Order type, Complex SOM Order type and Complex PIM Order
type into Options 3, Section 14 will make clear to market participants
the various types of single-leg order and Complex Orders that may be
transacted on MRX. The descriptions of these order types merely point
at the existing mechanisms.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose
[[Page 17154]]
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.\15\ 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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\15\ Id.
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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.
The proposal to add the Block Order type, Facilitation Order type,
SOM Order type and PIM Order types into Options 3, Section 7 and the
Complex Facilitation type, Complex SOM Order type and Complex PIM Order
type into Options 3, Section 14b does not impose an undue burden on
competition. The addition of these order types would complete the list
of single-leg and Complex Order types, which are available to all
market participants, and are merely being referenced within the order
type rules for greater transparency.
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 \16\ and Rule 19b-4(f)(6) thereunder.\17\
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 \18\ and Rule 19b-
4(f)(6) thereunder.\19\
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\16\ 15 U.S.C. 78s(b)(3)(A)(iii).
\17\ 17 CFR 240.19b-4(f)(6).
\18\ 15 U.S.C. 78s(b)(3)(A).
\19\ 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) \20\ normally
does not become operative for 30 days after the date of the filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\21\ 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 believes that
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, allowing the Exchange to address the
specific characteristics of different classes and different market
conditions. According to the Exchange, this would ensure that the
appropriate order types and times-in-force are tailored to the
different class characteristics and mitigate risks associated with
changing market conditions. The Exchange also believes that referencing
all single-leg and Complex Order types makes clear which order types
are available to all market participants. Moreover, the Exchange
represents that 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, and provides the Exchange with substantially the
same flexibility as the rules of other exchanges. Lastly, the Exchange
argues that waiver of the 30-day operative delay will permit the
Exchange to immediately use this ability to make certain order types
available and unavailable, as well as enable the Exchange to remain
competitive as markets and market conditions evolve. For these reasons,
the Commission believes that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest.
Accordingly, the Commission hereby waives the 30-day operative delay
and designates the proposal operative upon filing.\22\
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\20\ 17 CFR 240.19b-4(f)(6).
\21\ 17 CFR 240.19b-4(f)(6)(iii).
\22\ 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-MRX-2020-06 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-2020-06. 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
[[Page 17155]]
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-MRX-
2020-06, and should be submitted on or before April 16, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
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\23\ 17 CFR 200.30-3(a)(12), (59).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-06297 Filed 3-25-20; 8:45 am]
BILLING CODE 8011-01-P
