Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 4759, 20794-20796 [2020-07768]
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20794
Federal Register / Vol. 85, No. 72 / Tuesday, April 14, 2020 / Notices
outstanding orders on the Exchange’s
book and notional execution value,
rather than based simply on a notional
execution value.18 The Commission
believes that the proposed rule change
would provide an additional option for
members seeking to further tailor their
risk management capability while
transacting on the Exchange. The
Commission also believes that the
proposed rule change is reasonably
designed to provide clearing members
additional opportunity to monitor and
manage the potential risks that they
assume when clearing for members of
the Exchange, as well as to provide
clearing members with greater control
over their risk tolerance and exposure
on behalf of their correspondent
members, while also providing an alert
system designed to help ensure that
both members and clearing members are
made aware of developing issues.
The Commission notes that the
proposed Gross Credit and Net Credit
Risk Limits are optional functionalities.
The Commission reminds members
electing to use the proposed risk limits
to be mindful of their obligations to,
among other things, seek best execution
of orders they handle on an agency
basis. A broker-dealer has a legal duty
to seek to obtain best execution of
customer orders, and the decision to
utilize the proposed risk settings,
including the parameters set forth by the
member for the risk setting, must be
consistent with this duty.19 For
instance, under the proposal, members,
or their respective clearing members on
their behalf, have discretion to set the
Gross Credit Risk Limit or Net Credit
Risk Limit. While the Exchange did not
affirmatively establish minimum and
maximum permissible settings for these
limits in its proposed rule change, the
Commission expects the Exchange to
periodically assess whether the risk
limits are operating in a manner that is
consistent with the promotion of fair
and orderly markets. In addition, the
Commission expects that members will
consider their best execution obligations
when establishing the parameters for the
risk limits.20 For example, to the extent
that a member’s risk settings are set to
overly-sensitive parameters, particularly
18 See
id. See also Notice, supra note 3, at 11422.
Securities Exchange Act Release Nos.
37619A (September 6, 1996), 61 FR 48290
(September 12, 1996) (‘‘Order Handling Rules
Release’’); 51808 (June 9, 2005), 70 FR 37496,
37537–38 (June 29, 2005).
20 The Commission reminds broker-dealers that
they must examine their procedures for seeking to
obtain best execution in light of market and
technology changes and modify those practices if
necessary to enable their customers to obtain the
best reasonably available prices. See Order
Handling Rules Release, supra note 19, at 48323.
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19 See
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if a member’s order flow to the
Exchange contains agency orders, a
member should consider the effect of its
chosen settings on its ability to receive
a timely execution on marketable
agency orders that it sends to the
Exchange in various market
conditions.21 The Commission cautions
that brokers considering their best
execution obligations should be aware
that agency orders they represent may
be blocked or canceled on account of
the Gross Credit and Net Credit Risk
Limits.
Based on the foregoing, the
Commission finds that the proposed
rule change is consistent with the Act.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,22 that the
proposed rule change (SR–CboeBZX–
2020–006) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–07776 Filed 4–13–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88587; File No. SR–
NASDAQ–2020–015]
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
Rule 4759 (Data Feeds Utilized) to
include the Long-Term Stock Exchange,
Inc. (‘‘LTSE’’) in the list of proprietary
and network processor feeds that the
Exchange utilizes for the handling,
routing, and execution of orders as well
as regulatory compliance processes
related to those functions.
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaq.cchwallstreet.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
4759
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
April 8, 2020.
On May 10, 2019, the Commission
approved the Long-Term Stock
Exchange, Inc. (‘‘LTSE’’) as a national
securities exchange.3 In anticipation of
the planned launch of LTSE,4 the
Exchange proposes to amend and
update Rule 4759, which lists the
proprietary and network processor feeds
that the Exchange utilizes for the
handling, routing and execution of
orders as well as regulatory compliance
processes related to those functions.
Specifically, the Exchange proposes to
specify that LTSE will be an additional
market center source for quotation data
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 April 3,
2020, The Nasdaq Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
21 For example, a marketable agency order that
would have otherwise executed on the Exchange
might be prevented from reaching the Exchange on
account of other interest from the member that
causes it to exceed the pre-established risk limit
and thereby results in the Exchange blocking new
orders from the member.
22 15 U.S.C. 78s(b)(2).
23 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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Fmt 4703
Sfmt 4703
1. Purpose
3 See Securities Exchange Act Release No. 85828
(May 10, 2019), 84 FR 21841 (May 15, 2019) (File
No. 10–234) (Order approving LTSE application for
registration as a national securities exchange).
4 LTSE expects to launch on May 15, 2020. See
LTSE Update on adjusted phase-in schedule
published on March 18, 2020, available at: https://
longtermstockexchange.com/static/MA-2020-00614f9b362b7bd1103c9545525d246e778.pdf.
E:\FR\FM\14APN1.SGM
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Federal Register / Vol. 85, No. 72 / Tuesday, April 14, 2020 / Notices
by including LTSE in its table in Rule
4759.5
As proposed, the Exchange will use
securities information processor (‘‘SIP’’)
data, i.e., CQS SIP data, for securities
reported under the Consolidated
Quotation Services and Consolidated
Quotation Plan and UQDF SIP data for
securities reported under the Nasdaq
Unlisted Trading Privileges Plan to
obtain LTSE quotation information.6
While the Exchange currently utilizes
proprietary market data as the primary
source of quotation data for certain
markets that provide a reliable direct
feed,7 the Exchange will solely utilize
the SIP data for LTSE because LTSE will
only distribute market data using the
SIPs.8 No secondary source for LTSE
market data will be specified because
LTSE has announced that it will not
maintain a proprietary market data
feed.9
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2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,10 in general, and furthers the
objectives of Section 6(b)(5) of the Act,11
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest.
The Exchange believes that the
proposed rule change removes
impediments to and perfects the
mechanism of a free and open market
because adding LTSE to its list of
market centers for which the exchange
consumes quotation data will provide
clarity to market participants.
Additionally, it is necessary and
consistent with the public interest and
the protection of investors to add LTSE
to the Exchange’s table in Rule 4759 in
order to provide transparency with
5 A similar proposed rule change has been
proposed by one other exchange. See Securities
Exchange Act Release No. 88313 (March 3, 2020),
85 FR 13684 (March 9, 2020) (SR–IEX–2020–03).
6 The LTSE’s Market Center Originator ID on the
SIP will be ‘‘L’’. See LTSE Updated FAQ for
Exchange Operations published on February 28,
2020, available at: https://
longtermstockexchange.com/static/MA-2020-003f00ac3fc666c5521974cd55976404019.pdf.
7 The Exchange utilizes proprietary market data
as the Primary Source of quotation data for the
following markets: NYSE American, Nasdaq BX,
CBOE EDGA, CBOE EDGX, NYSE, NYSE Arca,
Nasdaq, Nasdaq PSX, CBOE BYX, and CBOE BZX.
8 See LTSE Updated FAQ for Exchange
Operations published on February 28, 2020,
available at: https://longtermstockexchange.com/
static/MA-2020-003-f00ac3fc666c5521974
cd55976404019.pdf.
9 See id.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
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respect to all the proprietary and
network processor feeds from which the
Exchange obtains market data. Further,
the Exchange also believes that it is
consistent with the Act to specify that
the Exchange will consume quotation
data for LTSE from the SIP feed, to
enhance clarity to market participants.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is not deigned to
address any competitive issue; instead,
its purpose is to enhance transparency
with respect to the operation of the
Exchange and its use of market data
feeds.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 12 and Rule 19b–
4(f)(6) thereunder.13
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
13 17
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Fmt 4703
Sfmt 4703
20795
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NASDAQ–2020–015 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2020–015. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NASDAQ–2020–015 and
should be submitted on or before May
5, 2020.
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20796
Federal Register / Vol. 85, No. 72 / Tuesday, April 14, 2020 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–07768 Filed 4–13–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88596; File No. SR–
NYSEArca–2020–29]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Modify the NYSE Arca
Options Fee Schedule
April 8, 2020.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on April 1,
2020, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the self-regulatory
organization. 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 modify the
NYSE Arca Options Fee Schedule (‘‘Fee
Schedule’’) to waive certain Floor-based
fixed fees for the month of April 2020.
The Exchange proposes to implement
the fee change effective April 1, 2020.
The proposed rule change is available
on the Exchange’s website at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
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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
self-regulatory organization 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 those statements may be examined at
the places specified in Item IV below.
14 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
The Exchange believes that all OTP
Holders that conduct business on the
Trading Floor would benefit from this
proposed fee change.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,6 in general, and
furthers the objectives of Sections
6(b)(4) and (5) of the Act,7 in particular,
because it provides for the equitable
allocation of reasonable dues, fees, and
other charges among its members,
issuers and other persons using its
facilities and does not unfairly
discriminate between customers,
issuers, brokers or dealers.
1. Purpose
The purpose of this filing is to modify
the Fee Schedule to waive certain Floorbased fixed fees for the month of April
2020. The Exchange proposes to
implement the fee change effective
April 1, 2020.
On March 18, 2020, the Exchange
announced that it would temporarily
close the Trading Floor, effective
Monday, March 23, 2020, as a
precautionary measure to prevent the
potential spread of COVID–19. Because
the Trading Floor is temporarily
unavailable, the Exchange proposes to
waive for April 2020 certain Floor-based
fixed fees. Specifically, for the month of
April 2020, the Exchange proposes to
waive fees associated with:
• Floor Booths;
• Market Maker Podia;
• Options Floor Access;
• Wire Services; and
• ISP Connection.4
The Exchange notes that these fixed
fees, which relate directly to Floor
operations, are charged only to Floor
participants and do not apply to
participants that conduct business offFloor. These fees are unrelated to
trading volume and are charged for use
of services made available to Floor
participants on the Trading Floor. This
proposed change is designed to reduce
monthly costs for Floor participants
while the Trading Floor is temporarily
closed and Floor participants are unable
to use the services associated with these
fixed fees. The Exchange believes that
this fee waiver would ease the financial
burden and allow affected participants
to reallocate funds to assist with the cost
of shifting operations from on-Floor to
off-Floor. Absent this change, such
participants may experience an
unintended increase in the cost of doing
business on the Exchange.5
4 See proposed Fee Schedule, NYSE Arca
OPTIONS: FLOOR and EQUIPMENT and CO–
LOCATION FEES. The Exchange will re-evaluate
the time limitations on this change (i.e., whether it
will need to apply to May) depending upon how
long the Trading Floor remains temporarily closed
and would file a separate proposed rule change if
an extension is warranted.
5 The Exchange will refund participants of the
Floor Broker Prepayment Program for any prepaid
April 2020 fees that are waived. See proposed Fee
Schedule, FLOOR BROKER FIXED COST
PREPAYMENT INCENTIVE PROGRAM (the ‘‘FB
Prepay Program’’) (providing that ‘‘the Exchange
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Frm 00135
Fmt 4703
Sfmt 4703
The Proposed Rule Change Is
Reasonable
The Exchange operates in a highly
competitive market. The Commission
has repeatedly expressed its preference
for competition over regulatory
intervention in determining prices,
products, and services in the securities
markets. In Regulation NMS, the
Commission highlighted the importance
of market forces in determining prices
and SRO revenues and, also, recognized
that current regulation of the market
system ‘‘has been remarkably successful
in promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 8
There are currently 16 registered
options exchanges competing for order
flow. Based on publicly-available
information, and excluding index-based
options, no single exchange has more
than 16% of the market share of
executed volume of multiply-listed
equity and ETF options trades.9
Therefore, currently no exchange
possesses significant pricing power in
the execution of multiply-listed equity &
ETF options order flow. More
specifically, in January 2020, the
Exchange had less than 10% market
share of executed volume of multiplylisted equity & ETF options trades.10
This proposed change is designed to
reduce monthly costs for Floor
will refund certain of the prepaid Eligible Fixed
costs that were waived for April 2020, per Sections
NYSE Arca OPTIONS: FLOOR and EQUIPMENT
and CO–LOCATION FEES’’).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(4) and (5).
8 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005)
(S7–10–04) (‘‘Reg NMS Adopting Release’’).
9 The OCC publishes options and futures volume
in a variety of formats, including daily and monthly
volume by exchange, available here: https://
www.theocc.com/market-data/volume/default.jsp.
10 Based on OCC data, see id., in 2019, the
Exchange’s market share in equity-based options
was 9.57% for the month of January 2019 and
9.59% for the month of January 2020.
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]]>Agencies
[Federal Register Volume 85, Number 72 (Tuesday, April 14, 2020)]
[Notices]
[Pages 20794-20796]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07768]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88587; File No. SR-NASDAQ-2020-015]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rule 4759
April 8, 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 April 3, 2020, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 4759 (Data Feeds Utilized) to
include the Long-Term Stock Exchange, Inc. (``LTSE'') in the list of
proprietary and network processor feeds that the Exchange utilizes for
the handling, routing, and execution of orders as well as regulatory
compliance processes related to those functions.
The text of the proposed rule change is available on the Exchange's
website at https://nasdaq.cchwallstreet.com, at the principal office of
the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On May 10, 2019, the Commission approved the Long-Term Stock
Exchange, Inc. (``LTSE'') as a national securities exchange.\3\ In
anticipation of the planned launch of LTSE,\4\ the Exchange proposes to
amend and update Rule 4759, which lists the proprietary and network
processor feeds that the Exchange utilizes for the handling, routing
and execution of orders as well as regulatory compliance processes
related to those functions. Specifically, the Exchange proposes to
specify that LTSE will be an additional market center source for
quotation data
[[Page 20795]]
by including LTSE in its table in Rule 4759.\5\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 85828 (May 10,
2019), 84 FR 21841 (May 15, 2019) (File No. 10-234) (Order approving
LTSE application for registration as a national securities
exchange).
\4\ LTSE expects to launch on May 15, 2020. See LTSE Update on
adjusted phase-in schedule published on March 18, 2020, available
at: https://longtermstockexchange.com/static/MA-2020-006-14f9b362b7bd1103c9545525d246e778.pdf.
\5\ A similar proposed rule change has been proposed by one
other exchange. See Securities Exchange Act Release No. 88313 (March
3, 2020), 85 FR 13684 (March 9, 2020) (SR-IEX-2020-03).
---------------------------------------------------------------------------
As proposed, the Exchange will use securities information processor
(``SIP'') data, i.e., CQS SIP data, for securities reported under the
Consolidated Quotation Services and Consolidated Quotation Plan and
UQDF SIP data for securities reported under the Nasdaq Unlisted Trading
Privileges Plan to obtain LTSE quotation information.\6\ While the
Exchange currently utilizes proprietary market data as the primary
source of quotation data for certain markets that provide a reliable
direct feed,\7\ the Exchange will solely utilize the SIP data for LTSE
because LTSE will only distribute market data using the SIPs.\8\ No
secondary source for LTSE market data will be specified because LTSE
has announced that it will not maintain a proprietary market data
feed.\9\
---------------------------------------------------------------------------
\6\ The LTSE's Market Center Originator ID on the SIP will be
``L''. See LTSE Updated FAQ for Exchange Operations published on
February 28, 2020, available at: https://longtermstockexchange.com/static/MA-2020-003-f00ac3fc666c5521974cd55976404019.pdf.
\7\ The Exchange utilizes proprietary market data as the Primary
Source of quotation data for the following markets: NYSE American,
Nasdaq BX, CBOE EDGA, CBOE EDGX, NYSE, NYSE Arca, Nasdaq, Nasdaq
PSX, CBOE BYX, and CBOE BZX.
\8\ See LTSE Updated FAQ for Exchange Operations published on
February 28, 2020, available at: https://longtermstockexchange.com/static/MA-2020-003-f00ac3fc666c5521974cd55976404019.pdf.
\9\ See id.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\10\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\11\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change removes
impediments to and perfects the mechanism of a free and open market
because adding LTSE to its list of market centers for which the
exchange consumes quotation data will provide clarity to market
participants. Additionally, it is necessary and consistent with the
public interest and the protection of investors to add LTSE to the
Exchange's table in Rule 4759 in order to provide transparency with
respect to all the proprietary and network processor feeds from which
the Exchange obtains market data. Further, the Exchange also believes
that it is consistent with the Act to specify that the Exchange will
consume quotation data for LTSE from the SIP feed, to enhance clarity
to market participants.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule change is not
deigned to address any competitive issue; instead, its purpose is to
enhance transparency with respect to the operation of the Exchange and
its use of market data feeds.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(6) thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NASDAQ-2020-015 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2020-015. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NASDAQ-2020-015 and should be submitted
on or before May 5, 2020.
[[Page 20796]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-07768 Filed 4-13-20; 8:45 am]
BILLING CODE 8011-01-P
