Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend The Nasdaq Options Market's Pricing Schedule at Options 7, Section 1, General Provisions, and Options 7, Section 2, Nasdaq Options Market-Fees and Rebates, 22989-22996 [2021-09026]
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Federal Register / Vol. 86, No. 82 / Friday, April 30, 2021 / Notices
generate an order exposure alert per
Options 5, Section 4, and orders
transacted in the Price Improvement
Auction (‘‘PRISM’’) per Options 3,
Section 13 are not subject to Options 7,
Section 2(1) pricing, rather these orders
are subject to the pricing within Options
7, Sections 2(2), (4) and (5),
respectively, does not impose an undue
burden on competition. This
amendment is non-substantive. The
Exchange believes that this rule text will
be informative in guiding Participants to
the correct pricing within Options 7,
Section 2 which applies to a specific
transaction.
jbell on DSKJLSW7X2PROD with NOTICES
Options 7, Section 2(2)
The Exchange’s proposal to amend
the Opening Process pricing does not
impose an undue burden on
competition. During the Opening
Process, Customers would continue to
receive rebates, unlike other market
participants, except if the Customer is
contra another Customer order. Also,
unlike other Participants, Customers
would not be assessed a fee during the
Opening Process. Paying rebates to
Customers, provided they are not contra
another customer, and not assessing fees
to Customers does not impose an undue
burden on competition, because unlike
other Participants, Customer liquidity
benefits all market participants by
offering additional trading
opportunities. Additionally, Market
Makers seeking to interact with
Customer liquidity are incentivized to
tighten quote spreads to interact with
the order flow. With respect to
Customer orders during the Opening
Process that are contra other Customer
orders, the Exchange would not pay the
Customer a rebate, nor would the
Customer be assessed a fee, unlike other
Non-Customer Participants who would
pay a fee during the Opening Process.
While the Exchange desires to attract
Customer liquidity during the Opening
Process, unlike intra-day trading where
Participants have the opportunity to
interact with the order book, the
Opening Process seeks liquidity for
price discovery and therefore the
incentives are distinct from the trading
intra-day. Finally, the Exchange’s
proposal will uniformly assess all NonCustomers the same Taker Fee and pay
no Maker Rebates to these Participants
during the Opening Process.
Options 7, Section 2(5)
The Exchange’s proposal to add the
words ‘‘per Options 3, Section 13’’ at
the end of the title to Options 7, Section
2(5) does not impose an undue burden
on competition. This non-substantive
rule change simply provides the citation
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to the BX Price Improvement Auction
rule.
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 foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 41 and
paragraph (f) of Rule 19b–4
thereunder.42
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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BX–2021–015 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–BX–2021–015. 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 20549–1090, 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–BX–2021–015 and should
be submitted on or before May 21, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.43
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–09021 Filed 4–29–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91677; File No. SR–
NASDAQ–2021–021]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend The
Nasdaq Options Market’s Pricing
Schedule at Options 7, Section 1,
General Provisions, and Options 7,
Section 2, Nasdaq Options Market—
Fees and Rebates
April 26, 2021.
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 13,
2021, The Nasdaq Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III below, which Items have been
prepared by the Exchange. The
17 CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
43
15 U.S.C. 78s(b)(3)(A)(ii).
42 17 CFR 240.19b–4(f)(2).
41
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Federal Register / Vol. 86, No. 82 / Friday, April 30, 2021 / Notices
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 The
Nasdaq Options Market’s (‘‘NOM’’)
Pricing Schedule at Options 7, Section
1, General Provisions, and Options 7,
Section 2, Nasdaq Options Market—
Fees and Rebates.
The Exchange originally filed the
proposed pricing changes on April 1,
2021 (SR–NASDAQ–2021–016). On
April 9, 2021, the Exchange withdrew
SR–NASDAQ–2021–016 and filed SR–
NASDAQ–2021–019. The Exchange is
withdrawing SR–NASDAQ–2021–019
and filing this rule change on April 13,
2021.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/nasdaq/rules, 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
NOM’s Pricing Schedule at Options 7,
Section 1, General Provisions. The
Exchange proposes to relocate certain
rule text concerning equity tier
calculations from current Options 7,
Section 2(4) to Options 7, Section 1 and
add a new defined term to Options 7,
Section 1. The Exchange proposes to
amend Options 7, Section 2(1) to add
rule text to make clear the applicable
pricing and also amend the Tier 3 NOM
Market Maker Rebate to Add Liquidity
in Penny Symbols. The Exchange
proposes to amend Options 7, Section
2(2) to amend a title. Finally, the
Exchange proposes to amend Options 7,
Section 2(3) regarding Nasdaq BX Inc.’s
(‘‘BX’’) Routing Fees. Each change shall
be described below.
Options 7, Section 1
The Exchange proposes to define the
term ‘‘Non-Customer’’ within Options 7,
Section 1. The Exchange proposes to
provide, ‘‘The term ‘‘Non-Customer’’
applies to transactions for the accounts
of NOM Market Makers, Non-NOM
Market Makers, Firms, Professionals,
Broker-Dealers and JBOs.’’ This defined
term will bring greater clarity to NOM’s
Options 7 Rules. The term ‘‘NonCustomer’’ is currently utilized within
the fees for routing at Options 7, Section
2(3). The addition of this defined term
does not amend the manner in which
the Exchange currently applies the term
with respect to its Routing Fees. The
term ‘‘Customer’’ 3 is currently defined
and this term applies to Participants
that are not customers. This change
would be non-substantive.
Options 7, Section 2
Currently, the below rule text is
located within Options 7, Section 2(4).
(a) For purposes of determining equity
tier calculations under this section, any
day that the market is not open for the
entire trading day will be excluded from
such calculation.
(b) Removal of Days for Purposes of
Options Pricing Tiers:
(i)
(A) Any day that the Exchange
announces in advance that it will not be
open for trading will be excluded from
the options tier calculations set forth in
its Pricing Schedule; and (B) any day
with a scheduled early market close
(‘‘Scheduled Early Close’’) may be
excluded from the options tier
calculations only pursuant to paragraph
(iii) below.
(ii) The Exchange may exclude the
following days (‘‘Unanticipated
Events’’) from the options tier
calculations only pursuant to paragraph
(iii) below, specifically any day that: (A)
The market is not open for the entire
trading day, (B) the Exchange instructs
Participants in writing to route their
orders to other markets, (C) the
Exchange is inaccessible to Participants
during the 30-minute period before the
opening of trade due to an Exchange
system disruption, or (D) the Exchange’s
system experiences a disruption that
lasts for more than 60 minutes during
regular trading hours.
(iii) If a day is to be excluded as a
result of paragraph (i)(B) or (ii) above,
the Exchange will exclude the day from
any Participant’s monthly options tier
calculations as follows:
(A) the Exchange may exclude from
the ADV calculation any Scheduled
Early Close or Unanticipated Event; and
(B) the Exchange may exclude from
any other applicable options tier
calculation provided for in its Pricing
Schedule (together with (ii)(A), ‘‘Tier
Calculations’’) any Scheduled Early
Close or Unanticipated Event.
Provided, in each case, that the
Exchange will only remove the day for
Participants that would have a lower
Tier Calculation with the day included.
This rule text describes the equity tier
calculations when excluding certain
days. The Exchange is relocating this
rule text, without change, to Options 7,
Section 1, General Provisions. The
Exchange believes that this information
is better suited to Section 1 along with
other general information because the
rule applies to Options 7 pricing.
The Exchange proposes to amend the
qualification for the Tier 3 Rebate to
Add Liquidity in Penny Symbols. Fees
and Rebates for Execution of Contracts
on The Nasdaq Options Market are as
follows:
3 The NOM Market Maker Rebate to
Add Liquidity in Penny Symbols will be
paid per the highest tier achieved
below.
MONTHLY VOLUME
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Tier 1 ................
Tier 2 ................
Participant adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols of up to 0.10% of total industry
customer equity and ETF option average daily volume (‘‘ADV’’) contracts per day in a month.
Participant adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols above 0.10% to 0.20% of total industry customer equity and ETF option ADV contracts per day in a month.
3 The term ‘‘Customer’’ or (‘‘C’’) applies to any
transaction that is identified by a Participant for
clearing in the Customer range at The Options
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Clearing Corporation (‘‘OCC’’) which is not for the
account of broker or dealer or for the account of a
PO 00000
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‘‘Professional’’ (as that term is defined in Options
1, Section 1(a)(47)).
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22991
MONTHLY VOLUME—Continued
Tier 3 ................
Tier 4 ................
Tier 5 ................
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Tier 6 ................
Participant: (a) Adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols above 0.20% to 0.60% of
total industry customer equity and ETF option ADV contracts per day in a month: Or (b)(1) transacts in all securities
through one or more of its Nasdaq Market Center MPIDs that represent 0.70% or more of Consolidated Volume (‘‘CV’’)
which adds liquidity in the same month on The Nasdaq Stock Market, (2) transacts in Tape B securities through one or
more of its Nasdaq Market Center MPIDs that represent 0.18% or more of CV which adds liquidity in the same month on
The Nasdaq Stock Market, and (3) executes greater than 0.01% of CV via Market-on-Close/Limit-on-Close (‘‘MOC/LOC’’)
volume within The Nasdaq Stock Market Closing Cross in the same month.
Participant adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols of above 0.60% of total industry
customer equity and ETF option ADV contracts per day in a month.
Participant adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols of above 0.40% of total industry
customer equity and ETF option ADV contracts per day in a month and transacts in all securities through one or more of its
Nasdaq Market Center MPIDs that represent 0.40% or more of Consolidated Volume (‘‘CV’’) which adds liquidity in the
same month on The Nasdaq Stock Market.
Participant: (a)(1) Adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols above 0.95% of total industry customer equity and ETF option ADV contracts per day in a month, (2) executes Total Volume of 250,000 or more
contracts per day in a month, of which 30,000 or more contracts per day in a month must be removing liquidity, and (3)
adds Firm, Broker-Dealer and Non-NOM Market Maker liquidity in Non-Penny Symbols of 10,000 or more contracts per day
in a month; or (b)(1) adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols above 1.50% of total
industry customer equity and ETF option ADV contracts per day in a month, and (2) executes Total Volume of 250,000 or
more contracts per day in a month, of which 15,000 or more contracts per day in a month must be removing liquidity.
* ‘‘Total Volume’’ shall be defined as
Customer, Professional, Firm, BrokerDealer, Non-NOM Market Maker and
NOM Market Maker volume in Penny
Symbols and/or Non-Penny Symbols
which either adds or removes liquidity
on NOM.
NOM proposes to amend the
qualification for the Tier 3 Market
Maker Rebate to Add Liquidity in Penny
Symbols to require:
Participant: (a) Adds NOM Market
Maker liquidity in Penny Symbols and/
or Non-Penny Symbols above 0.20% to
0.60% of total industry customer equity
and ETF option ADV contracts per day
in a month: Or (b)(1) transacts in all
securities through one or more of its
Nasdaq Market Center MPIDs that
represent 0.80% or more of
Consolidated Volume (‘‘CV’’) which
adds liquidity in the same month on
The Nasdaq Stock Market, (2) transacts
in Tape B securities through one or
more of its Nasdaq Market Center MPIDs
that represent 0.15% or more of CV
which adds liquidity in the same month
on The Nasdaq Stock Market, and (3)
executes greater than 0.01% of CV via
Market-on-Close/Limit-on-Close
(‘‘MOC/LOC’’) volume within The
Nasdaq Stock Market Closing Cross in
the same month.
This proposal would amend the
second part of the qualification for the
Tier 3 Market Maker Rebate to Add
Liquidity in Penny Symbols at (b)(1) by
requiring Market Makers to transact in
all securities through one or more of its
Nasdaq Market Center MPIDs that
represent 0.80% or more of
Consolidated Volume (‘‘CV’’) which
adds liquidity in the same month on
The Nasdaq Stock Market, an increase
from 0.70%. Also, this proposal would
amend the second part of the
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qualification for the Tier 3 Market
Maker Rebate to Add Liquidity in Penny
Symbols at (b)(2) by requiring Market
Makers to transact in Tape B securities
through one or more of its Nasdaq
Market Center MPIDs that represent
0.15% or more of CV which adds
liquidity in the same month on The
Nasdaq Stock Market, a decrease from
0.18%. The final portion of the second
part of the qualification for the Tier 3
Market Maker Rebate to Add Liquidity
in Penny Symbols at (b)(3) 4 is not being
amended. Although the first component
of the qualification requiring Market
Makers to transact in all securities
through one or more of its Nasdaq
Market Center MPIDs is being increased
and the second component requiring
Market Makers to transact in Tape B
securities through one or more of its
Nasdaq Market Center MPIDs is being
decreased, the Exchange believes that
these amendments may incentivize
additional Market Makers to transact
greater volume on The Nasdaq Stock
Market in order to qualify for the Tier
3 Market Maker Rebate to Add Liquidity
in Penny Symbols. The Exchange
believes that Tier 3 continues to
incentivize Participants to direct
additional order flow to NOM and The
Nasdaq Stock Market.
NOM is not proposing to amend the
corresponding Tier 3 Market Maker
Rebate to Add Liquidity in Penny
Symbols.
The Exchange proposes to amend
Options 7, Section 2(1) to add rule text
after the title of Section 2(1), Fees and
4 Part
(b)(3) of the qualification for the Tier 3
Market Maker Rebate to Add Liquidity in Penny
Symbols requires that Market Makers execute
greater than 0.01% of CV via Market-on-Close/
Limit-on-Close (‘‘MOC/LOC’’) volume within The
Nasdaq Stock Market Closing Cross in the same
month.
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Rebates for Execution of Contracts on
The Nasdaq Options Market.
Specifically, the Exchange proposes to
add the following note:
Orders executed in the Opening Cross
per Options 3, Section 8 are not subject
to Options 7, Section 2(1) pricing,
instead, these orders are subject to the
pricing within Options 7, Section 2(2).
This note ‘‘*’’ will explain at the
beginning of Options 7, Section 2(1) the
pricing applicable to the transaction fees
within Section 2(1). The Exchange
believes the addition of this rule text
will bring clarity to the Section 2
pricing and make clear that the
transaction fees within Options 7,
Section 2(1) apply intra-day. This new
note ‘‘*’’ does not represent a
substantive change. The proposed new
note ‘‘*’’ is intended to serve as a
guidepost to Participants referring to the
NOM Pricing Schedule.
Currently, the Exchange’s Opening
Cross pricing is contained within
Options 7, Section 2(2). The Exchange
proposes to add a citation to the title of
Options 7, Section 2(2) to the Opening
Cross rule. Options 7, Section 2(2)
would state, ‘‘Opening Cross per
Options 3, Section 8.’’
Current Options 7, Section 2(3)
provides the Fees for routing contracts
to markets other than NOM. The
Exchange proposes to amend the BX
Routing Fees.
Currently, Non-Customers 5 are
assessed a $0.99 per contract to any
options exchange. Customers 6 are
5 As proposed within Options 7, Section 1, the
term ‘‘Non-Customer’’ applies to transactions for
the accounts of NOM Market Makers, Non-NOM
Market Makers, Firms, Professionals, Broker-Dealers
and JBOs.
6 The term ‘‘Customer’’ or (‘‘C’’) applies to any
transaction that is identified by a Participant for
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jbell on DSKJLSW7X2PROD with NOTICES
currently assessed a Routing Fee to Phlx
of $0.13 per contract (‘‘Fixed Fee’’) in
addition to the actual transaction fee
assessed. Customers are also currently
assessed a Routing Fee to BX of $0.13
per contract. In addition, as it relates to
all other options exchanges, Customers
are currently assessed a Routing Fee of
$0.23 per contract (‘‘Fixed Fee’’) in
addition to the actual transaction fee
assessed. If the away market pays a
rebate, the Routing Fee is $0.13 per
contract.
The Exchange now proposes to amend
the BX Routing Fee to include the actual
transaction fee assessed in addition to
the ‘‘Fixed Fee’’ of $0.13 per contract.
The proposed changes will align BX’s
Routing Fee with the current Phlx
Routing Fee.
The Exchange is proposing to recoup
the actual transaction fee (in addition to
the Fixed Fee) that is incurred by the
Exchange in connection with routing
orders, on behalf of its Participants, to
BX. Previously, the Exchange retained
the rebates paid by BX to recover the
costs associated with providing its
routing services, did not assess the
actual transaction fees charged by BX
for Customer orders, and only assessed
such orders the $0.13 per contract Fixed
Fee. This is because when orders are
routed to BX, such orders are
considered as removing liquidity on BX,
and BX previously assessed rebates to
Customer orders for removing liquidity.
In particular, prior to the Recent Rule
Change,7 Customer orders executed on
BX received Penny Symbol Rebates to
Remove Liquidity when trading against
a Non-Customer, Lead Market Maker,
BX Options Market Maker, Customer or
Firm that ranged from $0.00 to $0.35 per
contract,8 depending on the volume tier
achieved. Customers also previously
received Non-Penny Rebates to Remove
Liquidity of $0.80 per contract,
regardless of tier and contra-party. As
part of the Recent Rule Change, the
aforementioned rebates were removed
clearing in the Customer range at The Options
Clearing Corporation (‘‘OCC’’) which is not for the
account of broker or dealer or for the account of a
‘‘Professional’’ (as that term is defined in Options
1, Section 1(a)(47)).
7 See Securities Exchange Act Release No. 91473
(April 5, 2021), 86 FR 18562 (April 9, 2021) (SR–
BX–2021–009) (‘‘Recent Rule Change’’).
8 Participants that executed less than 0.05% of
total industry customer equity and ETF option ADV
contracts per month would receive no Penny
Symbol Rebate to Remove Liquidity in Tier 1.
Participants that execute 0.05% to less than 0.15%
of total industry customer equity and ETF option
ADV contracts per month would receive a $0.25 per
contract Penny Symbol Rebate to Remove Liquidity
in Tier 2. Participants that execute 0.15% or more
of total industry customer equity and ETF option
ADV contracts per month will receive a $0.35 per
contract Penny Symbol Rebate to Remove Liquidity
in Tier 3.
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from the BX Pricing Schedule and
replaced with a maker/taker fee
structure where market participants are
assessed a rebate or fee for adding
liquidity to the market, or charged a fee
for removing liquidity from the market.9
With this recent change in the
structure of BX’s Pricing Schedule, the
Exchange proposes to align the Routing
Fees to BX with the current Routing
Fees to Phlx. With this proposal, the
Exchange will no longer retain rebates
paid by BX as BX no longer provides
rebates for Customer orders removing
liquidity on BX and instead charges a
taker fee for such orders. The Exchange
will continue to assess the $0.13 per
contract Fixed Fee for routing Customer
orders to BX, and will propose to also
charge the actual transaction fee
assessed by BX.
Technical Amendments
The Exchange proposes to amend
Options 7, Section 2(3) to lowercase
‘‘PHLX’’ and add a space that was
missing within the Routing Fees to Phlx.
The Exchange also proposes to amend
the name of the Exchange from ‘‘BX
Options’’ to ‘‘BX’’ and add the words
‘‘per contract’’ within the Routing Fee to
all other options exchanges. This
amendment is not a substantive change,
rather it is a clarification.
Finally, the Exchange proposes to
renumber Options 7, Section 2(6),
Market Access and Routing Subsidy
(‘‘MARS’’), to Options 7, Section 2(4).
The Exchange notes that the Pricing
Schedule did not contain a Section 2(5).
Applicability to and Impact on
Participants 10
With respect to the NOM Market
Maker Tier 3 rebate within Options 7,
Section 2(1), the Exchange believes that
amending the second part of the
qualification 11 will attract greater
9 See
note 3 [sic] above.
May 21, 2019, the SEC Division of Trading
and Markets (the ‘‘Division’’) issued fee filing
guidance titled ‘‘Staff Guidance on SRO Rule
Filings Relating to Fees’’ (‘‘Guidance’’). Within the
Guidance, the Division noted, among other things,
that the purpose discussion should address ‘‘how
the fee may apply differently (e.g., additional cost
vs. additional discount) to different types of market
participants (e.g., market makers, institutional
brokers, retail brokers, vendors, etc.) and different
sizes of market participants.’’ See Guidance
(available at https://www.sec.gov/tm/staff-guidancesro-rule-filings-fees). The Guidance also suggests
that the purpose discussion should include
numerical examples. Where possible, the Exchange
is including numerical examples. In addition, the
Exchange is providing data to the Commission in
support of its arguments herein. The Guidance
covers all aspects of a fee filing, which the
Exchange has addressed throughout this filing.
11 With this proposal, the Exchange is amending
the second part of the tier qualification for the Tier
3 Market Maker Rebate to Add Liquidity in Penny
10 On
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volume to both NOM and The Nasdaq
Stock Market.12 Any NOM Market
Maker may obtain the Tier 3 rebate
provided the qualifications are met.
Furthermore, NOM Market Maker Tier 3
provides two ways to achieve the NOM
Tier 3 rebate of $0.30 per contract.13
Market Makers have certain
obligations 14 on NOM, unlike other
market participants. Market Maker [sic]
are a source of liquidity. The proposed
amendments are generally designed to
attract additional order flow to the
Exchange by incentivizing NOM Market
Makers. Greater liquidity benefits all
market participants by providing more
trading opportunities and attracting
greater participation by market makers.
An increase in the activity of these
market participants in turn facilitates
tighter spreads. These incentives are
intended to benefit all NOM market
participants who will be able to interact
with additional liquidity which this
incentive attracts to the Exchange.
Today, no NOM Market Maker has
earned the Tier 3 NOM Market Maker
Rebate to Add Liquidity in Penny
Symbols a Market Maker based on the
second part of the qualification in the
last two months. The Exchange notes
that other NOM Market Makers could
have qualified for this Tier 3 rebate,
although they have qualified for
different NOM Market Maker Rebate to
Add Liquidity in Penny Symbols. NOM
Market Maker Rebate to Add Liquidity
in Penny Symbols are paid per the
highest tier achieved, so if a NOM
Symbols at (b)(1) by requiring Market Makers to
transact in all securities through one or more of its
Nasdaq Market Center MPIDs that represent 0.80%
or more of Consolidated Volume (‘‘CV’’) which adds
liquidity in the same month on The Nasdaq Stock
Market, an increase from 0.70%. Also, the Exchange
is proposing to amend the second part of the
qualification for the Tier 3 Market Maker Rebate to
Add Liquidity in Penny Symbols at (b)(2) by
requiring Market Makers to transact in Tape B
securities through one or more of its Nasdaq Market
Center MPIDs that represent 0.15% or more of CV
which adds liquidity in the same month on The
Nasdaq Stock Market, a decrease from 0.18%.
12 All NOM Participants are required to become
members of The Nasdaq Stock Market pursuant to
General 3 Membership and Access rules.
13 NOM Participants may also add NOM Market
Maker liquidity in Penny Symbols and/or NonPenny Symbols above 0.20% to 0.60% of total
industry customer equity and ETF option ADV
contracts per day in a month to achieve the Tier 3
rebate. See Options 7, Section 2(1). Also,
Participants who achieve the Tier 3 rebate will
receive $0.40 per contract to add liquidity in the
following symbols: AAPL, SPY, QQQ, IWM, and
VXX. See Options 7, Section 2(1)
14 See Options 2, Section 5. Also, transactions of
a Market Maker in its market making capacity must
constitute a course of dealings reasonably
calculated to contribute to the maintenance of a fair
and orderly market, and Market Makers should not
make bids or offers or enter into transactions that
are inconsistent with such course of dealings. See
also Options 2, Section 4.
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Market Maker qualifies for Tiers 4–6,
that NOM Market Maker would receive
the highest rebate they qualify for even
if they qualified for Tier 3. With this
proposal, the Exchange seeks to attract
additional NOM Market Maker order
flow in Penny Symbols from
Participants that currently qualify for
NOM Market Maker Rebate to Add
Liquidity in Penny Symbols Tiers 1 and
2.
With respect to the amendments to
NOM’s Routing Fees to BX, the
Exchange notes that the proposed
Routing Fee would apply to all NOM
Participants uniformly.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,15 in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5)
of the Act,16 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among members and issuers and other
persons using any facility, and is not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers. The
proposal is also consistent with Section
11A of the Act relating to the
establishment of the national market
system for securities. Moreover, the
Exchange believes that its proposal
complies with Commission guidance on
SRO fee filings that the Commission
Staff issued on May 21, 2019.17
The Exchange’s proposed changes to
its Pricing Schedule are reasonable in
several respects. As a threshold matter,
the Exchange is subject to significant
competitive forces in the market for
options securities transaction services
that constrain its pricing determinations
in that market. The fact that this market
is competitive has long been recognized
by the courts. In NetCoalition v.
Securities and Exchange Commission,
the D.C. Circuit stated as follows: ‘‘[n]o
one disputes that competition for order
flow is ‘fierce.’ . . . As the SEC
explained, ‘[i]n the U.S. national market
system, buyers and sellers of securities,
and the broker-dealers that act as their
order-routing agents, have a wide range
of choices of where to route orders for
execution’; [and] ‘no exchange can
afford to take its market share
percentages for granted’ because ‘no
jbell on DSKJLSW7X2PROD with NOTICES
15 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
17 See Guidance, supra note 7 [sic]. Although the
Exchange believes that this filing complies with the
Guidance, the Exchange does not concede that the
standards set forth in the Guidance are consistent
with the Exchange Act and reserves its right to
challenge those standards through administrative
and judicial review, as appropriate.
16 15
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19:58 Apr 29, 2021
Jkt 253001
exchange possesses a monopoly,
regulatory or otherwise, in the execution
of order flow from broker
dealers’. . . .’’ 18
The Commission and the courts have
repeatedly expressed their preference
for competition over regulatory
intervention in determining prices,
products, and services in the securities
markets. In Regulation NMS, while
adopting a series of steps to improve the
current market model, 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.’’ 19
Numerous indicia demonstrate the
competitive nature of this market. For
example, clear substitutes to the
Exchange exist in the market for options
security transaction services. The
Exchange is only one of sixteen options
exchanges to which market participants
may direct their order flow. Within this
environment, market participants can
freely and often do shift their order flow
among the Exchange and competing
venues in response to changes in their
respective pricing schedules. As such,
the proposal represents a reasonable
attempt by the Exchange to increase its
liquidity and market share relative to its
competitors.20
Options 7, Section 1
The Exchange’s proposal to define the
term ‘‘Non-Customer’’ within Options 7,
Section 1 is reasonable, equitable and
not unfairly discriminatory as the
amendment will bring greater clarity to
NOM’s Options 7 Rules. The term ‘‘NonCustomer’’ is currently utilized within
the fees for routing at Options 7, Section
2(3). The addition of this defined term
does not amend the manner in which
the Exchange currently applies the term
with respect to its routing fees. The term
‘‘Customer’’ 21 is currently defined and
this term applies to Participants that are
18 NetCoalition v. SEC, 615 F.3d 525, 539 (D.C.
Cir. 2010) (quoting Securities Exchange Act Release
No. 59039 (December 2, 2008), 73 FR 74770, 74782–
83 (December 9, 2008) (SR–NYSEArca–2006–21)).
19 Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005)
(‘‘Regulation NMS Adopting Release’’).
20 The Exchange perceives no regulatory,
structural, or cost impediments to market
participants shifting order flow away from it as a
result of this rule change.
21 The term ‘‘Customer’’ or (‘‘C’’) applies to any
transaction that is identified by a Participant for
clearing in the Customer range at The Options
Clearing Corporation (‘‘OCC’’) which is not for the
account of broker or dealer or for the account of a
‘‘Professional’’ (as that term is defined in Options
1, Section 1(a)(47)).
PO 00000
Frm 00063
Fmt 4703
Sfmt 4703
22993
not customers. This change would be
non-substantive.
The Exchange’s proposal to relocate
the rule text relating to tier calculations
from Options 7, Section 2(4), without
change, to Options 7, Section 1, General
Provisions is reasonable, equitable and
not unfairly discriminatory. The
Exchange believes that this information
is better suited to Section 1 along with
other general information because the
rule applies to Options 7 pricing and all
Participants transacting on BX.
Options 7, Section 2
The Exchange’s proposal to amend
the qualification for the Tier 3 Market
Maker Rebate to Add Liquidity in Penny
Symbols is reasonable. Amending the
second part of the qualification for the
Tier 3 Market Maker Rebate to Add
Liquidity in Penny Symbols at (b)(1), by
requiring Market Makers to transact in
all securities through one or more of its
Nasdaq Market Center MPIDs that
represent 0.80% or more of
Consolidated Volume (‘‘CV’’) which
adds liquidity in the same month on
The Nasdaq Stock Market, is an increase
from 0.70%. Amending the second part
of the qualification for the Tier 3 Market
Maker Rebate to Add Liquidity in Penny
Symbols at (b)(2), by requiring Market
Makers to transact in Tape B securities
through one or more of its Nasdaq
Market Center MPIDs that represent
0.15% or more of CV which adds
liquidity in the same month on The
Nasdaq Stock Market, is a decrease from
0.18%.22 Although the first component
of the part (b) qualification requiring
Market Makers to transact in all
securities through one or more of its
Nasdaq Market Center MPIDs is being
increased and the second component of
the part (b) qualification requiring
Market Makers to transact in Tape B
securities through one or more of its
Nasdaq Market Center MPIDs is being
decreased, the Exchange believes that
these amendments may incentivize
additional Market Makers to qualify for
the Tier 3 Market Maker Rebate to Add
Liquidity in Penny Symbols by transact
greater volume on The Nasdaq Stock
Market. The Tier 3 qualification requires
Market Makers to qualify for either Part
(a) or (b) of the qualification. The
Exchange believes that the Tier 3 Market
Maker Rebate to Add Liquidity in Penny
Symbols will continue to incentivize
Market Makers to direct additional order
22 Part (b)(3) of the qualification for the Tier 3
Market Maker Rebate to Add Liquidity in Penny
Symbols requires that Market Makers execute
greater than 0.01% of CV via Market-on-Close/
Limit-on-Close (‘‘MOC/LOC’’) volume within The
Nasdaq Stock Market Closing Cross in the same
month is not being amended.
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jbell on DSKJLSW7X2PROD with NOTICES
flow to NOM and The Nasdaq Stock
Market and, in turn, market participants
will benefit from the opportunity to
interact with such order flow. The
Exchange notes that this proposal is
designed as a means to improve market
quality by providing Participants with
an incentive to increase their provision
of liquidity on the Exchange’s equity
and options markets. Further, any NOM
Market Maker may obtain the Tier 3
rebate provided the qualifications are
met. NOM Market Maker Tier 3
provides two ways to achieve the NOM
Tier 3 rebate of $0.30 per contract.23
These incentives are intended to benefit
all NOM market participants who will
be able to interact with additional
liquidity which this incentive attracts to
the Exchange. Market Makers have
certain obligations 24 on NOM, unlike
other market participants. Market Maker
are a source of liquidity. The proposed
amendments are generally designed to
attract additional order flow to the
Exchange by incentivizing NOM Market
Makers. Greater liquidity benefits all
market participants by providing more
trading opportunities and attracting
greater participation by market makers.
An increase in the activity of these
market participants in turn facilitates
tighter spreads.
The Exchange’s proposal to amend
the qualification for the Tier 3 Market
Maker Rebate to Add Liquidity in Penny
Symbols is equitable and not unfairly
discriminatory as the Exchange will
uniformly pay the Tier 3 Market Maker
Rebate to Add Liquidity in Penny
Symbols to any qualifying Market
Maker. NOM Market Makers add value
through continuous quoting and the
commitment of capital.25 Because NOM
Market Makers have these obligations to
the market and regulatory requirements
that normally do not apply to other
market participants, the Exchange
believes that offering these rebates to
only NOM Market Makers is equitable
and not unfairly discriminatory in light
of their obligations. Finally, encouraging
23 NOM Participants may also add NOM Market
Maker liquidity in Penny Symbols and/or NonPenny Symbols above 0.20% to 0.60% of total
industry customer equity and ETF option ADV
contracts per day in a month to achieve the Tier 3
rebate. See Options 7, Section 2(1). Also,
Participants who achieve the Tier 3 rebate will
receive $0.40 per contract to add liquidity in the
following symbols: AAPL, SPY, QQQ, IWM, and
VXX. See Options 7, Section 2(1).
24 See Options 2, Section 5. Also, transactions of
a Market Maker in its market making capacity must
constitute a course of dealings reasonably
calculated to contribute to the maintenance of a fair
and orderly market, and Market Makers should not
make bids or offers or enter into transactions that
are inconsistent with such course of dealings. See
also Options 2, Section 4.
25 See Options 2, Sections 4 and 5.
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19:58 Apr 29, 2021
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NOM Market Makers to add greater
liquidity benefits all market
participants, on both NOM and The
Nasdaq Stock Market, in the quality of
order interaction.
The Exchange’s proposal to amend
Options 7, Section 2(1) to add rule text
after the title of Section 2(1), Fees and
Rebates for Execution of Contracts on
The Nasdaq Options Market, which
explains the pricing applicable to the
transaction fees within Section 2(1) is
reasonable, equitable and not unfairly
discriminatory. The Exchange believes
the addition of this rule text will bring
clarity to the Options 7, Section 2
pricing by making clear that the
transaction fees within Options 7,
Section 2(1) apply intra-day. This new
note ‘‘*’’ does not represent a
substantive change. The proposed new
note ‘‘*’’ is intended to serve as a
guidepost to Participants referring to the
NOM Pricing Schedule.
The Exchange’s proposal to add a
citation to the title of Options 7, Section
2(2) to the Opening Cross rule is
reasonable, equitable and not unfairly
discriminatory. This amendment will
add clarity to the rule text.
The Exchange’s proposal to amend
the BX Customer Routing Fee within
Options 7, Section 2(3) to start charging
the actual transaction fee assessed by
BX in addition to the current $0.13 per
contract Fixed Fee is reasonable. As a
general matter, the Exchange notes that
use of the Exchange’s routing services is
completely voluntary. In the alternative,
member organizations may submit
orders to the Exchange as ineligible for
routing or ‘‘DNR’’ to avoid Routing
Fees.26 Furthermore, the Exchange
operates in a highly competitive market
in which market participants can
readily select between various providers
of routing services with different
pricing. In this instance, proposing to
assess the actual transaction fee, in
addition to the current Fixed Fee of
$0.13 per contract, is reasonable in light
of the Recent Rule Change described
above where BX no longer provides
rebates to Customer orders that are
routed to and executed on BX, and
instead charges them a taker fee.27 As
proposed, the Exchange would recoup
the actual transaction cost it incurs
when routing Customer orders to BX in
lieu of collecting any rebate paid by BX.
Today, the Exchange similarly assesses
orders routed to Phlx a Fixed Fee of
$0.13 per contract plus the actual
transaction fee. As such, the proposal
26 See
27 See
PO 00000
Options 5, Section 4(a)(iii)(A).
note 7 above.
Frm 00064
Fmt 4703
Sfmt 4703
would align the BX Routing Fee with
the Phlx Routing Fee.
The Exchange’s proposal to amend
the BX Customer Routing Fee within
Options 7, Section 2(3) is equitable and
not unfairly discriminatory because the
Exchange would uniformly assess the
same transaction fee assessed by BX for
the Customer order routed to BX plus a
Fixed Fee of $0.13 per contract.
The Exchange’s proposal to amend
Options 7, Section 2(3) to lowercase
‘‘PHLX,’’ add a space that was missing
within the Routing Fees to Phlx, amend
the name ‘‘BX Options’’ to ‘‘BX,’’ and
add the words ‘‘per contract’’ within the
Routing Fee to all other options
exchanges and the proposal to renumber
Options 7, Section 2(6), Market Access
and Routing Subsidy (‘‘MARS’’), to
Options 7, Section 2(4) 28 are
reasonable, equitable and not unfairly
discriminatory. These non-substantive
amendments will bring greater clarity to
the Rulebook.
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.
In terms of inter-market competition,
the Exchange notes that it operates in a
highly competitive market in which
market participants can readily favor
competing venues if they deem fee
levels at a particular venue to be
excessive, or rebate opportunities
available at other venues to be more
favorable. In such an environment, the
Exchange must continually adjust its
fees to remain competitive with other
options exchanges. Because competitors
are free to modify their own fees in
response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited. The Exchange believes that the
proposed changes will enable the
Exchange to recover the costs it incurs
to route orders to away markets,
particularly BX, while also passing
along savings realized by leveraging
Nasdaq’s infrastructure and scale to
market participants when those orders
are routed to Nasdaq-affiliated options
markets, as further discussed above.
The Exchange also does not believe its
proposal will impose an undue burden
on intra-market competition.
28 The Exchange notes that the Pricing Schedule
did not contain a Section 2(5).
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Options 7, Section 1
The Exchange’s proposal to define the
term ‘‘Non-Customer’’ within Options 7,
Section 1 does not impose an undue
burden on competition as the
amendment will bring greater clarity to
NOM’s Options 7 Rules.
The Exchange’s proposal to relocate
the rule text from Options 7, Section
2(4), without change, to Options 7,
Section 1, General Provisions does not
impose an undue burden on
competition. The Exchange believes that
this information is better suited to
Section 1 along with other general
information because the rule applies to
Options 7 pricing and all Participants
transacting on BX.
The Exchange’s proposal to amend
the qualification for the Tier 3 Market
Maker Rebate to Add Liquidity in Penny
Symbols does not impose an undue
burden on competition as the Exchange
will uniformly pay the Tier 3 Market
Maker Rebate to Add Liquidity in Penny
Symbols to any qualifying Market
Maker. NOM Market Makers add value
through continuous quoting and the
commitment of capital.29 Because NOM
Market Makers have these obligations to
the market and regulatory requirements
that normally do not apply to other
market participants, the Exchange
believes that offering these rebates to
only NOM Market Makers is equitable
and not unfairly discriminatory in light
of their obligations. Finally, encouraging
NOM Market Makers to add greater
liquidity benefits all market
participants, on both NOM and The
Nasdaq Stock Market, in the quality of
order interaction.
jbell on DSKJLSW7X2PROD with NOTICES
Options 7, Section 2
The Exchange’s proposal to amend
Options 7, Section 2(1) to add rule text
after the title of Section 2(1), Fees and
Rebates for Execution of Contracts on
The Nasdaq Options Market, which
explains the pricing applicable to the
transaction fees within Section 2(1) does
not impose an undue burden on
competition. The Exchange believes the
addition of this rule text will bring
clarity to the Section 2 pricing, which
is applicable to all Participants.
The Exchange’s proposal to add a
citation to the title of Options 7, Section
2(2) to the Opening Cross rule does not
impose an undue burden on
competition. This amendment will add
clarity to the rule text.
The Exchange’s proposal to amend
the BX Customer Routing Fee within
Options 7, Section 2(3) does not impose
an undue burden on competition. In this
29 See
Options 2, Sections 4 and 5.
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19:58 Apr 29, 2021
instance, the Exchange is proposing to
charge Customer orders that are routed
to BX the actual transaction fee assessed
by BX in addition to the current Fixed
Fee of $0.13 per contract in light of the
fee changes under the Recent Rule
Change described above where BX no
longer provides rebates to Customer
orders that are routed to and executed
on BX, and instead charges them a taker
fee.30 The proposed changes reflect the
need to recover the Exchange’s costs
associated with providing its routing
services. Furthermore, as noted above,
the use of the Exchange’s routing
services is completely voluntary and
optional, and the Exchange operates in
a highly competitive market in which
market participants can readily select
between various providers of routing
services with different pricing. As such,
it is likely that the Exchange will lose
market share as a result of the changes
proposed herein if they are unattractive
to market participants.
The Exchange also does not believe its
proposal will impose an undue burden
on intra-market competition. As
discussed above, the Exchange would
uniformly assess the same transaction
fee assessed by BX for the Customer
order routed to BX plus a Fixed Fee of
$0.13 per contract. Under this proposal,
Non-Customer orders would continue to
be assessed the $0.99 per contract
routing fee and not be assessed the
actual BX transaction fee. The Exchange
does not believe its pricing proposal
will place any market participant at a
relative disadvantage compared to other
market participants because the
proposed routing fee for Customer
orders will actually narrow the
difference between the routing fees
assessed to Customer and Non-Customer
orders routed to BX.
The Exchange’s proposal to amend
Options 7, Section 2(3) to lowercase
‘‘PHLX,’’ add a space that was missing
within the Routing Fees to Phlx, amend
the name ‘‘BX Options’’ to ‘‘BX,’’ and
add the words ‘‘per contract’’ within the
Routing Fee to all other options
exchanges and the proposal to renumber
Options 7, Section 2(6), Market Access
and Routing Subsidy (‘‘MARS’’), to
Options 7, Section 2(4) do not impose
an undue burden on competition. These
non-substantive amendments will bring
greater clarity to the Rulebook.
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.
30 See
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PO 00000
note 7 above.
Frm 00065
Fmt 4703
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act.31
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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NASDAQ–2021–021 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–2021–021. 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,
31 15
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U.S.C. 78s(b)(3)(A)(ii).
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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–2021–021, and
should be submitted on or before May
21, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.32
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–09026 Filed 4–29–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91669; File No. SR–
NYSEArca–2021–25]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To List and Trade Shares
of the iShares® Gold Trust Micro Under
NYSE Arca Rule 8.201–E (CommodityBased Trust Shares)
April 26, 2021.
jbell on DSKJLSW7X2PROD with NOTICES
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on April 15,
2021, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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 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 list and
trade shares of iShares® Gold Trust
Micro under NYSE Arca Rule 8.201–E.
The proposed rule change is available
on the Exchange’s website at
www.nyse.com, at the principal office of
32 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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19:58 Apr 29, 2021
Jkt 253001
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
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.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to list and
trade shares (‘‘Shares’’) of the iShares
Gold Trust Micro (the ‘‘Trust’’) under
NYSE Arca Rule 8.201–E.4 Under NYSE
Arca Rule 8.201–E, the Exchange may
propose to list and/or trade pursuant to
unlisted trading privileges (‘‘UTP’’)
‘‘Commodity-Based Trust Shares.’’ 5
The Trust will not be registered as an
investment company under the
Investment Company Act of 1940, as
amended.6 The Trust is not a
commodity pool for purposes of the
Commodity Exchange Act of 1936, as
amended (the ‘‘Commodity Exchange
Act’’).7
The sponsor of the Trust is iShares
Delaware Trust Sponsor LLC
(‘‘Sponsor’’). The trustee is The Bank of
New York Mellon (‘‘Trustee’’) and the
custodian is JPMorgan Chase Bank N.A.,
London branch (‘‘Custodian’’).
On December 20, 2018, the Securities
and Exchange Commission
(‘‘Commission’’) issued a notice of filing
and effectiveness of the Exchange’s
proposal to list and trade shares of the
iShares® Gold Trust Micro under NYSE
Arca Rule 8.201–E.8 On January 30,
4 The Trust has filed a registration statement on
Form S–1 under the Securities Act of 1933 (15
U.S.C. 77a), dated February 26, 2021 (File No. 333–
253614) (the ‘‘Registration Statement’’). The
description of the operation of the Trust and the
Shares herein is based, in part, on the Registration
Statement.
5 Commodity-Based Trust Shares are securities
issued by a trust that represents investors’ discrete
identifiable and undivided beneficial ownership
interest in the commodities deposited into the
Trust.
6 15 U.S.C. 80a–1.
7 17 U.S.C. 1.
8 See Securities Exchange Act Release No. 84881
(December 20, 2018), 83 FR 67400 (December 28,
2018) (SR–NYSEArca–2018–94).
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
2020, the Trust withdrew its registration
statement on Form S–1 upon which the
Exchange’s previous filing (SR–
NYSEArca–2018–94) was based.9 The
Exchange, therefore, is submitting this
proposed rule change to permit listing
and trading of the Shares based on the
Trust’s Registration Statement dated
February 26, 2021. Shares of the Trust
have not commenced trading on the
Exchange.
The Commission has previously
approved listing on the Exchange under
NYSE Arca Rules 5.2–E(j)(5) and 8.201–
E of other precious metals and goldbased commodity trusts, including the
Wilshire wShares Enhanced Gold
Trust; 10 the United States Gold and
Treasury Investment Trust; 11
GraniteShares Gold MiniBAR Trust; 12
GraniteShares Gold Trust; 13 Merk Gold
Trust; 14 ETFS Gold Trust,15 ETFS
Platinum Trust 16 and ETFS Palladium
Trust (collectively, the ‘‘ETFS
Trusts’’); 17 APMEX Physical-1 oz. Gold
Redeemable Trust; 18 Sprott Gold
Trust; 19 SPDR Gold Trust (formerly,
streetTRACKS Gold Trust); iShares
Silver Trust; 20 iShares COMEX Gold
9 See iShares® Gold Trust Micro, Request to
Withdraw Registration Statement on Form S–1
(January 30, 2020) (File No. 333–228469).
10 See Securities Exchange Act Release No. 85 FR
67401 (October 16, 2020), 83 FR 48877 (October 22,
2020) (SR–NYSEArca–2020–59) (order approving
listing and trade shares of the Wilshire wShares
Enhanced Gold Trust under NYSE Arca Rule 8.201–
E under NYSE Arca Rule 8.201–E).
11 Securities Exchange Act Release No. 84257
(September 21, 2018), 83 FR 48877 (September 27,
2018) (SR–NYSEArca–2018–55) (order approving
listing and trading shares of the GraniteShares Gold
MiniBAR Trust under NYSE Arca Equities Rule
8.201).
12 Securities Exchange Act Release No. 84257
(September 21, 2018), 83 FR 48877 (September 27,
2018) (SR–NYSEArca–2018–55) (order approving
listing and trading shares of the GraniteShares Gold
MiniBAR Trust under NYSE Arca Equities Rule
8.201).
13 Securities Exchange Act Release No. 81077
(July 5, 2017), 82 FR 24181 (July 11, 2017) (SR–
NYSEArca–2017–55) (order approving listing and
trading shares of the GraniteShares Gold Trust
under NYSE Arca Equities Rule 8.201).
14 Securities Exchange Act Release No. 71378
(January 23, 2014), 79 FR 4786 (January 29, 2014)
(SR–NYSEArca–2013–137).
15 Securities Exchange Act Release No. 59895
(May 8, 2009), 74 FR 22993 (May 15, 2009) (SR–
NYSEArca–2009–40).
16 Securities Exchange Act Release No. 61219
(December 22, 2009), 74 FR 68886 (December 29,
2009) (SR–NYSEArca–2009–95).
17 Securities Exchange Act Release No. 61220
(December 22, 2009), 74 FR 68895 (December 29,
2009) (SR–NYSEArca–2009–94).
18 Securities Exchange Act Release No 66930
(May 7, 2012), 77 FR 27817 (May 11, 2012) (SR–
NYSEArca–2012–18).
19 Securities Exchange Act Release No. 61496
(February 4, 2010), 75 FR 6758 (February 10, 2010)
(SR–NYSEArca–2009–113).
20 See Securities Exchange Act Release No. 58956
(November 14, 2008), 73 FR 71074 (November 24,
E:\FR\FM\30APN1.SGM
30APN1
]]>Agencies
[Federal Register Volume 86, Number 82 (Friday, April 30, 2021)]
[Notices]
[Pages 22989-22996]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-09026]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-91677; File No. SR-NASDAQ-2021-021]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend The Nasdaq Options Market's Pricing Schedule at Options 7,
Section 1, General Provisions, and Options 7, Section 2, Nasdaq Options
Market--Fees and Rebates
April 26, 2021.
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 13, 2021, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. The
[[Page 22990]]
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 The Nasdaq Options Market's
(``NOM'') Pricing Schedule at Options 7, Section 1, General Provisions,
and Options 7, Section 2, Nasdaq Options Market--Fees and Rebates.
The Exchange originally filed the proposed pricing changes on April
1, 2021 (SR-NASDAQ-2021-016). On April 9, 2021, the Exchange withdrew
SR-NASDAQ-2021-016 and filed SR-NASDAQ-2021-019. The Exchange is
withdrawing SR-NASDAQ-2021-019 and filing this rule change on April 13,
2021.
The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/nasdaq/rules, 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 NOM's Pricing Schedule at Options 7,
Section 1, General Provisions. The Exchange proposes to relocate
certain rule text concerning equity tier calculations from current
Options 7, Section 2(4) to Options 7, Section 1 and add a new defined
term to Options 7, Section 1. The Exchange proposes to amend Options 7,
Section 2(1) to add rule text to make clear the applicable pricing and
also amend the Tier 3 NOM Market Maker Rebate to Add Liquidity in Penny
Symbols. The Exchange proposes to amend Options 7, Section 2(2) to
amend a title. Finally, the Exchange proposes to amend Options 7,
Section 2(3) regarding Nasdaq BX Inc.'s (``BX'') Routing Fees. Each
change shall be described below.
Options 7, Section 1
The Exchange proposes to define the term ``Non-Customer'' within
Options 7, Section 1. The Exchange proposes to provide, ``The term
``Non-Customer'' applies to transactions for the accounts of NOM Market
Makers, Non-NOM Market Makers, Firms, Professionals, Broker-Dealers and
JBOs.'' This defined term will bring greater clarity to NOM's Options 7
Rules. The term ``Non-Customer'' is currently utilized within the fees
for routing at Options 7, Section 2(3). The addition of this defined
term does not amend the manner in which the Exchange currently applies
the term with respect to its Routing Fees. The term ``Customer'' \3\ is
currently defined and this term applies to Participants that are not
customers. This change would be non-substantive.
---------------------------------------------------------------------------
\3\ The term ``Customer'' or (``C'') applies to any transaction
that is identified by a Participant for clearing in the Customer
range at The Options Clearing Corporation (``OCC'') which is not for
the account of broker or dealer or for the account of a
``Professional'' (as that term is defined in Options 1, Section
1(a)(47)).
---------------------------------------------------------------------------
Options 7, Section 2
Currently, the below rule text is located within Options 7, Section
2(4).
(a) For purposes of determining equity tier calculations under this
section, any day that the market is not open for the entire trading day
will be excluded from such calculation.
(b) Removal of Days for Purposes of Options Pricing Tiers:
(i)
(A) Any day that the Exchange announces in advance that it will not
be open for trading will be excluded from the options tier calculations
set forth in its Pricing Schedule; and (B) any day with a scheduled
early market close (``Scheduled Early Close'') may be excluded from the
options tier calculations only pursuant to paragraph (iii) below.
(ii) The Exchange may exclude the following days (``Unanticipated
Events'') from the options tier calculations only pursuant to paragraph
(iii) below, specifically any day that: (A) The market is not open for
the entire trading day, (B) the Exchange instructs Participants in
writing to route their orders to other markets, (C) the Exchange is
inaccessible to Participants during the 30-minute period before the
opening of trade due to an Exchange system disruption, or (D) the
Exchange's system experiences a disruption that lasts for more than 60
minutes during regular trading hours.
(iii) If a day is to be excluded as a result of paragraph (i)(B) or
(ii) above, the Exchange will exclude the day from any Participant's
monthly options tier calculations as follows:
(A) the Exchange may exclude from the ADV calculation any Scheduled
Early Close or Unanticipated Event; and
(B) the Exchange may exclude from any other applicable options tier
calculation provided for in its Pricing Schedule (together with
(ii)(A), ``Tier Calculations'') any Scheduled Early Close or
Unanticipated Event.
Provided, in each case, that the Exchange will only remove the day
for Participants that would have a lower Tier Calculation with the day
included.
This rule text describes the equity tier calculations when
excluding certain days. The Exchange is relocating this rule text,
without change, to Options 7, Section 1, General Provisions. The
Exchange believes that this information is better suited to Section 1
along with other general information because the rule applies to
Options 7 pricing.
The Exchange proposes to amend the qualification for the Tier 3
Rebate to Add Liquidity in Penny Symbols. Fees and Rebates for
Execution of Contracts on The Nasdaq Options Market are as follows:
\3\ The NOM Market Maker Rebate to Add Liquidity in Penny Symbols
will be paid per the highest tier achieved below.
Monthly Volume
------------------------------------------------------------------------
------------------------------------------------------------------------
Tier 1................... Participant adds NOM Market Maker liquidity
in Penny Symbols and/or Non-Penny Symbols of
up to 0.10% of total industry customer
equity and ETF option average daily volume
(``ADV'') contracts per day in a month.
Tier 2................... Participant adds NOM Market Maker liquidity
in Penny Symbols and/or Non-Penny Symbols
above 0.10% to 0.20% of total industry
customer equity and ETF option ADV contracts
per day in a month.
[[Page 22991]]
Tier 3................... Participant: (a) Adds NOM Market Maker
liquidity in Penny Symbols and/or Non-Penny
Symbols above 0.20% to 0.60% of total
industry customer equity and ETF option ADV
contracts per day in a month: Or (b)(1)
transacts in all securities through one or
more of its Nasdaq Market Center MPIDs that
represent 0.70% or more of Consolidated
Volume (``CV'') which adds liquidity in the
same month on The Nasdaq Stock Market, (2)
transacts in Tape B securities through one
or more of its Nasdaq Market Center MPIDs
that represent 0.18% or more of CV which
adds liquidity in the same month on The
Nasdaq Stock Market, and (3) executes
greater than 0.01% of CV via Market-on-Close/
Limit-on-Close (``MOC/LOC'') volume within
The Nasdaq Stock Market Closing Cross in the
same month.
Tier 4................... Participant adds NOM Market Maker liquidity
in Penny Symbols and/or Non-Penny Symbols of
above 0.60% of total industry customer
equity and ETF option ADV contracts per day
in a month.
Tier 5................... Participant adds NOM Market Maker liquidity
in Penny Symbols and/or Non-Penny Symbols of
above 0.40% of total industry customer
equity and ETF option ADV contracts per day
in a month and transacts in all securities
through one or more of its Nasdaq Market
Center MPIDs that represent 0.40% or more of
Consolidated Volume (``CV'') which adds
liquidity in the same month on The Nasdaq
Stock Market.
Tier 6................... Participant: (a)(1) Adds NOM Market Maker
liquidity in Penny Symbols and/or Non-Penny
Symbols above 0.95% of total industry
customer equity and ETF option ADV contracts
per day in a month, (2) executes Total
Volume of 250,000 or more contracts per day
in a month, of which 30,000 or more
contracts per day in a month must be
removing liquidity, and (3) adds Firm,
Broker-Dealer and Non-NOM Market Maker
liquidity in Non-Penny Symbols of 10,000 or
more contracts per day in a month; or (b)(1)
adds NOM Market Maker liquidity in Penny
Symbols and/or Non-Penny Symbols above 1.50%
of total industry customer equity and ETF
option ADV contracts per day in a month, and
(2) executes Total Volume of 250,000 or more
contracts per day in a month, of which
15,000 or more contracts per day in a month
must be removing liquidity.
------------------------------------------------------------------------
* ``Total Volume'' shall be defined as Customer, Professional,
Firm, Broker-Dealer, Non-NOM Market Maker and NOM Market Maker volume
in Penny Symbols and/or Non-Penny Symbols which either adds or removes
liquidity on NOM.
NOM proposes to amend the qualification for the Tier 3 Market Maker
Rebate to Add Liquidity in Penny Symbols to require:
Participant: (a) Adds NOM Market Maker liquidity in Penny Symbols
and/or Non-Penny Symbols above 0.20% to 0.60% of total industry
customer equity and ETF option ADV contracts per day in a month: Or
(b)(1) transacts in all securities through one or more of its Nasdaq
Market Center MPIDs that represent 0.80% or more of Consolidated Volume
(``CV'') which adds liquidity in the same month on The Nasdaq Stock
Market, (2) transacts in Tape B securities through one or more of its
Nasdaq Market Center MPIDs that represent 0.15% or more of CV which
adds liquidity in the same month on The Nasdaq Stock Market, and (3)
executes greater than 0.01% of CV via Market-on-Close/Limit-on-Close
(``MOC/LOC'') volume within The Nasdaq Stock Market Closing Cross in
the same month.
This proposal would amend the second part of the qualification for
the Tier 3 Market Maker Rebate to Add Liquidity in Penny Symbols at
(b)(1) by requiring Market Makers to transact in all securities through
one or more of its Nasdaq Market Center MPIDs that represent 0.80% or
more of Consolidated Volume (``CV'') which adds liquidity in the same
month on The Nasdaq Stock Market, an increase from 0.70%. Also, this
proposal would amend the second part of the qualification for the Tier
3 Market Maker Rebate to Add Liquidity in Penny Symbols at (b)(2) by
requiring Market Makers to transact in Tape B securities through one or
more of its Nasdaq Market Center MPIDs that represent 0.15% or more of
CV which adds liquidity in the same month on The Nasdaq Stock Market, a
decrease from 0.18%. The final portion of the second part of the
qualification for the Tier 3 Market Maker Rebate to Add Liquidity in
Penny Symbols at (b)(3) \4\ is not being amended. Although the first
component of the qualification requiring Market Makers to transact in
all securities through one or more of its Nasdaq Market Center MPIDs is
being increased and the second component requiring Market Makers to
transact in Tape B securities through one or more of its Nasdaq Market
Center MPIDs is being decreased, the Exchange believes that these
amendments may incentivize additional Market Makers to transact greater
volume on The Nasdaq Stock Market in order to qualify for the Tier 3
Market Maker Rebate to Add Liquidity in Penny Symbols. The Exchange
believes that Tier 3 continues to incentivize Participants to direct
additional order flow to NOM and The Nasdaq Stock Market.
---------------------------------------------------------------------------
\4\ Part (b)(3) of the qualification for the Tier 3 Market Maker
Rebate to Add Liquidity in Penny Symbols requires that Market Makers
execute greater than 0.01% of CV via Market-on-Close/Limit-on-Close
(``MOC/LOC'') volume within The Nasdaq Stock Market Closing Cross in
the same month.
---------------------------------------------------------------------------
NOM is not proposing to amend the corresponding Tier 3 Market Maker
Rebate to Add Liquidity in Penny Symbols.
The Exchange proposes to amend Options 7, Section 2(1) to add rule
text after the title of Section 2(1), Fees and Rebates for Execution of
Contracts on The Nasdaq Options Market. Specifically, the Exchange
proposes to add the following note:
Orders executed in the Opening Cross per Options 3, Section 8 are
not subject to Options 7, Section 2(1) pricing, instead, these orders
are subject to the pricing within Options 7, Section 2(2).
This note ``*'' will explain at the beginning of Options 7, Section
2(1) the pricing applicable to the transaction fees within Section
2(1). The Exchange believes the addition of this rule text will bring
clarity to the Section 2 pricing and make clear that the transaction
fees within Options 7, Section 2(1) apply intra-day. This new note
``*'' does not represent a substantive change. The proposed new note
``*'' is intended to serve as a guidepost to Participants referring to
the NOM Pricing Schedule.
Currently, the Exchange's Opening Cross pricing is contained within
Options 7, Section 2(2). The Exchange proposes to add a citation to the
title of Options 7, Section 2(2) to the Opening Cross rule. Options 7,
Section 2(2) would state, ``Opening Cross per Options 3, Section 8.''
Current Options 7, Section 2(3) provides the Fees for routing
contracts to markets other than NOM. The Exchange proposes to amend the
BX Routing Fees.
Currently, Non-Customers \5\ are assessed a $0.99 per contract to
any options exchange. Customers \6\ are
[[Page 22992]]
currently assessed a Routing Fee to Phlx of $0.13 per contract (``Fixed
Fee'') in addition to the actual transaction fee assessed. Customers
are also currently assessed a Routing Fee to BX of $0.13 per contract.
In addition, as it relates to all other options exchanges, Customers
are currently assessed a Routing Fee of $0.23 per contract (``Fixed
Fee'') in addition to the actual transaction fee assessed. If the away
market pays a rebate, the Routing Fee is $0.13 per contract.
---------------------------------------------------------------------------
\5\ As proposed within Options 7, Section 1, the term ``Non-
Customer'' applies to transactions for the accounts of NOM Market
Makers, Non-NOM Market Makers, Firms, Professionals, Broker-Dealers
and JBOs.
\6\ The term ``Customer'' or (``C'') applies to any transaction
that is identified by a Participant for clearing in the Customer
range at The Options Clearing Corporation (``OCC'') which is not for
the account of broker or dealer or for the account of a
``Professional'' (as that term is defined in Options 1, Section
1(a)(47)).
---------------------------------------------------------------------------
The Exchange now proposes to amend the BX Routing Fee to include
the actual transaction fee assessed in addition to the ``Fixed Fee'' of
$0.13 per contract. The proposed changes will align BX's Routing Fee
with the current Phlx Routing Fee.
The Exchange is proposing to recoup the actual transaction fee (in
addition to the Fixed Fee) that is incurred by the Exchange in
connection with routing orders, on behalf of its Participants, to BX.
Previously, the Exchange retained the rebates paid by BX to recover the
costs associated with providing its routing services, did not assess
the actual transaction fees charged by BX for Customer orders, and only
assessed such orders the $0.13 per contract Fixed Fee. This is because
when orders are routed to BX, such orders are considered as removing
liquidity on BX, and BX previously assessed rebates to Customer orders
for removing liquidity. In particular, prior to the Recent Rule
Change,\7\ Customer orders executed on BX received Penny Symbol Rebates
to Remove Liquidity when trading against a Non-Customer, Lead Market
Maker, BX Options Market Maker, Customer or Firm that ranged from $0.00
to $0.35 per contract,\8\ depending on the volume tier achieved.
Customers also previously received Non-Penny Rebates to Remove
Liquidity of $0.80 per contract, regardless of tier and contra-party.
As part of the Recent Rule Change, the aforementioned rebates were
removed from the BX Pricing Schedule and replaced with a maker/taker
fee structure where market participants are assessed a rebate or fee
for adding liquidity to the market, or charged a fee for removing
liquidity from the market.\9\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 91473 (April 5,
2021), 86 FR 18562 (April 9, 2021) (SR-BX-2021-009) (``Recent Rule
Change'').
\8\ Participants that executed less than 0.05% of total industry
customer equity and ETF option ADV contracts per month would receive
no Penny Symbol Rebate to Remove Liquidity in Tier 1. Participants
that execute 0.05% to less than 0.15% of total industry customer
equity and ETF option ADV contracts per month would receive a $0.25
per contract Penny Symbol Rebate to Remove Liquidity in Tier 2.
Participants that execute 0.15% or more of total industry customer
equity and ETF option ADV contracts per month will receive a $0.35
per contract Penny Symbol Rebate to Remove Liquidity in Tier 3.
\9\ See note 3 [sic] above.
---------------------------------------------------------------------------
With this recent change in the structure of BX's Pricing Schedule,
the Exchange proposes to align the Routing Fees to BX with the current
Routing Fees to Phlx. With this proposal, the Exchange will no longer
retain rebates paid by BX as BX no longer provides rebates for Customer
orders removing liquidity on BX and instead charges a taker fee for
such orders. The Exchange will continue to assess the $0.13 per
contract Fixed Fee for routing Customer orders to BX, and will propose
to also charge the actual transaction fee assessed by BX.
Technical Amendments
The Exchange proposes to amend Options 7, Section 2(3) to lowercase
``PHLX'' and add a space that was missing within the Routing Fees to
Phlx. The Exchange also proposes to amend the name of the Exchange from
``BX Options'' to ``BX'' and add the words ``per contract'' within the
Routing Fee to all other options exchanges. This amendment is not a
substantive change, rather it is a clarification.
Finally, the Exchange proposes to renumber Options 7, Section 2(6),
Market Access and Routing Subsidy (``MARS''), to Options 7, Section
2(4). The Exchange notes that the Pricing Schedule did not contain a
Section 2(5).
Applicability to and Impact on Participants 10
---------------------------------------------------------------------------
\10\ On May 21, 2019, the SEC Division of Trading and Markets
(the ``Division'') issued fee filing guidance titled ``Staff
Guidance on SRO Rule Filings Relating to Fees'' (``Guidance'').
Within the Guidance, the Division noted, among other things, that
the purpose discussion should address ``how the fee may apply
differently (e.g., additional cost vs. additional discount) to
different types of market participants (e.g., market makers,
institutional brokers, retail brokers, vendors, etc.) and different
sizes of market participants.'' See Guidance (available at https://www.sec.gov/tm/staff-guidance-sro-rule-filings-fees). The Guidance
also suggests that the purpose discussion should include numerical
examples. Where possible, the Exchange is including numerical
examples. In addition, the Exchange is providing data to the
Commission in support of its arguments herein. The Guidance covers
all aspects of a fee filing, which the Exchange has addressed
throughout this filing.
---------------------------------------------------------------------------
With respect to the NOM Market Maker Tier 3 rebate within Options
7, Section 2(1), the Exchange believes that amending the second part of
the qualification \11\ will attract greater volume to both NOM and The
Nasdaq Stock Market.\12\ Any NOM Market Maker may obtain the Tier 3
rebate provided the qualifications are met. Furthermore, NOM Market
Maker Tier 3 provides two ways to achieve the NOM Tier 3 rebate of
$0.30 per contract.\13\
---------------------------------------------------------------------------
\11\ With this proposal, the Exchange is amending the second
part of the tier qualification for the Tier 3 Market Maker Rebate to
Add Liquidity in Penny Symbols at (b)(1) by requiring Market Makers
to transact in all securities through one or more of its Nasdaq
Market Center MPIDs that represent 0.80% or more of Consolidated
Volume (``CV'') which adds liquidity in the same month on The Nasdaq
Stock Market, an increase from 0.70%. Also, the Exchange is
proposing to amend the second part of the qualification for the Tier
3 Market Maker Rebate to Add Liquidity in Penny Symbols at (b)(2) by
requiring Market Makers to transact in Tape B securities through one
or more of its Nasdaq Market Center MPIDs that represent 0.15% or
more of CV which adds liquidity in the same month on The Nasdaq
Stock Market, a decrease from 0.18%.
\12\ All NOM Participants are required to become members of The
Nasdaq Stock Market pursuant to General 3 Membership and Access
rules.
\13\ NOM Participants may also add NOM Market Maker liquidity in
Penny Symbols and/or Non-Penny Symbols above 0.20% to 0.60% of total
industry customer equity and ETF option ADV contracts per day in a
month to achieve the Tier 3 rebate. See Options 7, Section 2(1).
Also, Participants who achieve the Tier 3 rebate will receive $0.40
per contract to add liquidity in the following symbols: AAPL, SPY,
QQQ, IWM, and VXX. See Options 7, Section 2(1)
---------------------------------------------------------------------------
Market Makers have certain obligations \14\ on NOM, unlike other
market participants. Market Maker [sic] are a source of liquidity. The
proposed amendments are generally designed to attract additional order
flow to the Exchange by incentivizing NOM Market Makers. Greater
liquidity benefits all market participants by providing more trading
opportunities and attracting greater participation by market makers. An
increase in the activity of these market participants in turn
facilitates tighter spreads. These incentives are intended to benefit
all NOM market participants who will be able to interact with
additional liquidity which this incentive attracts to the Exchange.
---------------------------------------------------------------------------
\14\ See Options 2, Section 5. Also, transactions of a Market
Maker in its market making capacity must constitute a course of
dealings reasonably calculated to contribute to the maintenance of a
fair and orderly market, and Market Makers should not make bids or
offers or enter into transactions that are inconsistent with such
course of dealings. See also Options 2, Section 4.
---------------------------------------------------------------------------
Today, no NOM Market Maker has earned the Tier 3 NOM Market Maker
Rebate to Add Liquidity in Penny Symbols a Market Maker based on the
second part of the qualification in the last two months. The Exchange
notes that other NOM Market Makers could have qualified for this Tier 3
rebate, although they have qualified for different NOM Market Maker
Rebate to Add Liquidity in Penny Symbols. NOM Market Maker Rebate to
Add Liquidity in Penny Symbols are paid per the highest tier achieved,
so if a NOM
[[Page 22993]]
Market Maker qualifies for Tiers 4-6, that NOM Market Maker would
receive the highest rebate they qualify for even if they qualified for
Tier 3. With this proposal, the Exchange seeks to attract additional
NOM Market Maker order flow in Penny Symbols from Participants that
currently qualify for NOM Market Maker Rebate to Add Liquidity in Penny
Symbols Tiers 1 and 2.
With respect to the amendments to NOM's Routing Fees to BX, the
Exchange notes that the proposed Routing Fee would apply to all NOM
Participants uniformly.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\15\ in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\16\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among members and issuers and other persons using any
facility, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. The proposal is also
consistent with Section 11A of the Act relating to the establishment of
the national market system for securities. Moreover, the Exchange
believes that its proposal complies with Commission guidance on SRO fee
filings that the Commission Staff issued on May 21, 2019.\17\
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\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(4) and (5).
\17\ See Guidance, supra note 7 [sic]. Although the Exchange
believes that this filing complies with the Guidance, the Exchange
does not concede that the standards set forth in the Guidance are
consistent with the Exchange Act and reserves its right to challenge
those standards through administrative and judicial review, as
appropriate.
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The Exchange's proposed changes to its Pricing Schedule are
reasonable in several respects. As a threshold matter, the Exchange is
subject to significant competitive forces in the market for options
securities transaction services that constrain its pricing
determinations in that market. The fact that this market is competitive
has long been recognized by the courts. In NetCoalition v. Securities
and Exchange Commission, the D.C. Circuit stated as follows: ``[n]o one
disputes that competition for order flow is `fierce.' . . . As the SEC
explained, `[i]n the U.S. national market system, buyers and sellers of
securities, and the broker-dealers that act as their order-routing
agents, have a wide range of choices of where to route orders for
execution'; [and] `no exchange can afford to take its market share
percentages for granted' because `no exchange possesses a monopoly,
regulatory or otherwise, in the execution of order flow from broker
dealers'. . . .'' \18\
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\18\ NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-
21)).
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The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, 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.'' \19\
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\19\ Securities Exchange Act Release No. 51808 (June 9, 2005),
70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
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Numerous indicia demonstrate the competitive nature of this market.
For example, clear substitutes to the Exchange exist in the market for
options security transaction services. The Exchange is only one of
sixteen options exchanges to which market participants may direct their
order flow. Within this environment, market participants can freely and
often do shift their order flow among the Exchange and competing venues
in response to changes in their respective pricing schedules. As such,
the proposal represents a reasonable attempt by the Exchange to
increase its liquidity and market share relative to its
competitors.\20\
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\20\ The Exchange perceives no regulatory, structural, or cost
impediments to market participants shifting order flow away from it
as a result of this rule change.
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Options 7, Section 1
The Exchange's proposal to define the term ``Non-Customer'' within
Options 7, Section 1 is reasonable, equitable and not unfairly
discriminatory as the amendment will bring greater clarity to NOM's
Options 7 Rules. The term ``Non-Customer'' is currently utilized within
the fees for routing at Options 7, Section 2(3). The addition of this
defined term does not amend the manner in which the Exchange currently
applies the term with respect to its routing fees. The term
``Customer'' \21\ is currently defined and this term applies to
Participants that are not customers. This change would be non-
substantive.
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\21\ The term ``Customer'' or (``C'') applies to any transaction
that is identified by a Participant for clearing in the Customer
range at The Options Clearing Corporation (``OCC'') which is not for
the account of broker or dealer or for the account of a
``Professional'' (as that term is defined in Options 1, Section
1(a)(47)).
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The Exchange's proposal to relocate the rule text relating to tier
calculations from Options 7, Section 2(4), without change, to Options
7, Section 1, General Provisions is reasonable, equitable and not
unfairly discriminatory. The Exchange believes that this information is
better suited to Section 1 along with other general information because
the rule applies to Options 7 pricing and all Participants transacting
on BX.
Options 7, Section 2
The Exchange's proposal to amend the qualification for the Tier 3
Market Maker Rebate to Add Liquidity in Penny Symbols is reasonable.
Amending the second part of the qualification for the Tier 3 Market
Maker Rebate to Add Liquidity in Penny Symbols at (b)(1), by requiring
Market Makers to transact in all securities through one or more of its
Nasdaq Market Center MPIDs that represent 0.80% or more of Consolidated
Volume (``CV'') which adds liquidity in the same month on The Nasdaq
Stock Market, is an increase from 0.70%. Amending the second part of
the qualification for the Tier 3 Market Maker Rebate to Add Liquidity
in Penny Symbols at (b)(2), by requiring Market Makers to transact in
Tape B securities through one or more of its Nasdaq Market Center MPIDs
that represent 0.15% or more of CV which adds liquidity in the same
month on The Nasdaq Stock Market, is a decrease from 0.18%.\22\
Although the first component of the part (b) qualification requiring
Market Makers to transact in all securities through one or more of its
Nasdaq Market Center MPIDs is being increased and the second component
of the part (b) qualification requiring Market Makers to transact in
Tape B securities through one or more of its Nasdaq Market Center MPIDs
is being decreased, the Exchange believes that these amendments may
incentivize additional Market Makers to qualify for the Tier 3 Market
Maker Rebate to Add Liquidity in Penny Symbols by transact greater
volume on The Nasdaq Stock Market. The Tier 3 qualification requires
Market Makers to qualify for either Part (a) or (b) of the
qualification. The Exchange believes that the Tier 3 Market Maker
Rebate to Add Liquidity in Penny Symbols will continue to incentivize
Market Makers to direct additional order
[[Page 22994]]
flow to NOM and The Nasdaq Stock Market and, in turn, market
participants will benefit from the opportunity to interact with such
order flow. The Exchange notes that this proposal is designed as a
means to improve market quality by providing Participants with an
incentive to increase their provision of liquidity on the Exchange's
equity and options markets. Further, any NOM Market Maker may obtain
the Tier 3 rebate provided the qualifications are met. NOM Market Maker
Tier 3 provides two ways to achieve the NOM Tier 3 rebate of $0.30 per
contract.\23\ These incentives are intended to benefit all NOM market
participants who will be able to interact with additional liquidity
which this incentive attracts to the Exchange. Market Makers have
certain obligations \24\ on NOM, unlike other market participants.
Market Maker are a source of liquidity. The proposed amendments are
generally designed to attract additional order flow to the Exchange by
incentivizing NOM Market Makers. Greater liquidity benefits all market
participants by providing more trading opportunities and attracting
greater participation by market makers. An increase in the activity of
these market participants in turn facilitates tighter spreads.
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\22\ Part (b)(3) of the qualification for the Tier 3 Market
Maker Rebate to Add Liquidity in Penny Symbols requires that Market
Makers execute greater than 0.01% of CV via Market-on-Close/Limit-
on-Close (``MOC/LOC'') volume within The Nasdaq Stock Market Closing
Cross in the same month is not being amended.
\23\ NOM Participants may also add NOM Market Maker liquidity in
Penny Symbols and/or Non-Penny Symbols above 0.20% to 0.60% of total
industry customer equity and ETF option ADV contracts per day in a
month to achieve the Tier 3 rebate. See Options 7, Section 2(1).
Also, Participants who achieve the Tier 3 rebate will receive $0.40
per contract to add liquidity in the following symbols: AAPL, SPY,
QQQ, IWM, and VXX. See Options 7, Section 2(1).
\24\ See Options 2, Section 5. Also, transactions of a Market
Maker in its market making capacity must constitute a course of
dealings reasonably calculated to contribute to the maintenance of a
fair and orderly market, and Market Makers should not make bids or
offers or enter into transactions that are inconsistent with such
course of dealings. See also Options 2, Section 4.
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The Exchange's proposal to amend the qualification for the Tier 3
Market Maker Rebate to Add Liquidity in Penny Symbols is equitable and
not unfairly discriminatory as the Exchange will uniformly pay the Tier
3 Market Maker Rebate to Add Liquidity in Penny Symbols to any
qualifying Market Maker. NOM Market Makers add value through continuous
quoting and the commitment of capital.\25\ Because NOM Market Makers
have these obligations to the market and regulatory requirements that
normally do not apply to other market participants, the Exchange
believes that offering these rebates to only NOM Market Makers is
equitable and not unfairly discriminatory in light of their
obligations. Finally, encouraging NOM Market Makers to add greater
liquidity benefits all market participants, on both NOM and The Nasdaq
Stock Market, in the quality of order interaction.
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\25\ See Options 2, Sections 4 and 5.
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The Exchange's proposal to amend Options 7, Section 2(1) to add
rule text after the title of Section 2(1), Fees and Rebates for
Execution of Contracts on The Nasdaq Options Market, which explains the
pricing applicable to the transaction fees within Section 2(1) is
reasonable, equitable and not unfairly discriminatory. The Exchange
believes the addition of this rule text will bring clarity to the
Options 7, Section 2 pricing by making clear that the transaction fees
within Options 7, Section 2(1) apply intra-day. This new note ``*''
does not represent a substantive change. The proposed new note ``*'' is
intended to serve as a guidepost to Participants referring to the NOM
Pricing Schedule.
The Exchange's proposal to add a citation to the title of Options
7, Section 2(2) to the Opening Cross rule is reasonable, equitable and
not unfairly discriminatory. This amendment will add clarity to the
rule text.
The Exchange's proposal to amend the BX Customer Routing Fee within
Options 7, Section 2(3) to start charging the actual transaction fee
assessed by BX in addition to the current $0.13 per contract Fixed Fee
is reasonable. As a general matter, the Exchange notes that use of the
Exchange's routing services is completely voluntary. In the
alternative, member organizations may submit orders to the Exchange as
ineligible for routing or ``DNR'' to avoid Routing Fees.\26\
Furthermore, the Exchange operates in a highly competitive market in
which market participants can readily select between various providers
of routing services with different pricing. In this instance, proposing
to assess the actual transaction fee, in addition to the current Fixed
Fee of $0.13 per contract, is reasonable in light of the Recent Rule
Change described above where BX no longer provides rebates to Customer
orders that are routed to and executed on BX, and instead charges them
a taker fee.\27\ As proposed, the Exchange would recoup the actual
transaction cost it incurs when routing Customer orders to BX in lieu
of collecting any rebate paid by BX. Today, the Exchange similarly
assesses orders routed to Phlx a Fixed Fee of $0.13 per contract plus
the actual transaction fee. As such, the proposal would align the BX
Routing Fee with the Phlx Routing Fee.
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\26\ See Options 5, Section 4(a)(iii)(A).
\27\ See note 7 above.
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The Exchange's proposal to amend the BX Customer Routing Fee within
Options 7, Section 2(3) is equitable and not unfairly discriminatory
because the Exchange would uniformly assess the same transaction fee
assessed by BX for the Customer order routed to BX plus a Fixed Fee of
$0.13 per contract.
The Exchange's proposal to amend Options 7, Section 2(3) to
lowercase ``PHLX,'' add a space that was missing within the Routing
Fees to Phlx, amend the name ``BX Options'' to ``BX,'' and add the
words ``per contract'' within the Routing Fee to all other options
exchanges and the proposal to renumber Options 7, Section 2(6), Market
Access and Routing Subsidy (``MARS''), to Options 7, Section 2(4) \28\
are reasonable, equitable and not unfairly discriminatory. These non-
substantive amendments will bring greater clarity to the Rulebook.
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\28\ The Exchange notes that the Pricing Schedule did not
contain a Section 2(5).
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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.
In terms of inter-market competition, the Exchange notes that it
operates in a highly competitive market in which market participants
can readily favor competing venues if they deem fee levels at a
particular venue to be excessive, or rebate opportunities available at
other venues to be more favorable. In such an environment, the Exchange
must continually adjust its fees to remain competitive with other
options exchanges. Because competitors are free to modify their own
fees in response, and because market participants may readily adjust
their order routing practices, the Exchange believes that the degree to
which fee changes in this market may impose any burden on competition
is extremely limited. The Exchange believes that the proposed changes
will enable the Exchange to recover the costs it incurs to route orders
to away markets, particularly BX, while also passing along savings
realized by leveraging Nasdaq's infrastructure and scale to market
participants when those orders are routed to Nasdaq-affiliated options
markets, as further discussed above.
The Exchange also does not believe its proposal will impose an
undue burden on intra-market competition.
[[Page 22995]]
Options 7, Section 1
The Exchange's proposal to define the term ``Non-Customer'' within
Options 7, Section 1 does not impose an undue burden on competition as
the amendment will bring greater clarity to NOM's Options 7 Rules.
The Exchange's proposal to relocate the rule text from Options 7,
Section 2(4), without change, to Options 7, Section 1, General
Provisions does not impose an undue burden on competition. The Exchange
believes that this information is better suited to Section 1 along with
other general information because the rule applies to Options 7 pricing
and all Participants transacting on BX.
The Exchange's proposal to amend the qualification for the Tier 3
Market Maker Rebate to Add Liquidity in Penny Symbols does not impose
an undue burden on competition as the Exchange will uniformly pay the
Tier 3 Market Maker Rebate to Add Liquidity in Penny Symbols to any
qualifying Market Maker. NOM Market Makers add value through continuous
quoting and the commitment of capital.\29\ Because NOM Market Makers
have these obligations to the market and regulatory requirements that
normally do not apply to other market participants, the Exchange
believes that offering these rebates to only NOM Market Makers is
equitable and not unfairly discriminatory in light of their
obligations. Finally, encouraging NOM Market Makers to add greater
liquidity benefits all market participants, on both NOM and The Nasdaq
Stock Market, in the quality of order interaction.
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\29\ See Options 2, Sections 4 and 5.
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Options 7, Section 2
The Exchange's proposal to amend Options 7, Section 2(1) to add
rule text after the title of Section 2(1), Fees and Rebates for
Execution of Contracts on The Nasdaq Options Market, which explains the
pricing applicable to the transaction fees within Section 2(1) does not
impose an undue burden on competition. The Exchange believes the
addition of this rule text will bring clarity to the Section 2 pricing,
which is applicable to all Participants.
The Exchange's proposal to add a citation to the title of Options
7, Section 2(2) to the Opening Cross rule does not impose an undue
burden on competition. This amendment will add clarity to the rule
text.
The Exchange's proposal to amend the BX Customer Routing Fee within
Options 7, Section 2(3) does not impose an undue burden on competition.
In this instance, the Exchange is proposing to charge Customer orders
that are routed to BX the actual transaction fee assessed by BX in
addition to the current Fixed Fee of $0.13 per contract in light of the
fee changes under the Recent Rule Change described above where BX no
longer provides rebates to Customer orders that are routed to and
executed on BX, and instead charges them a taker fee.\30\ The proposed
changes reflect the need to recover the Exchange's costs associated
with providing its routing services. Furthermore, as noted above, the
use of the Exchange's routing services is completely voluntary and
optional, and the Exchange operates in a highly competitive market in
which market participants can readily select between various providers
of routing services with different pricing. As such, it is likely that
the Exchange will lose market share as a result of the changes proposed
herein if they are unattractive to market participants.
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\30\ See note 7 above.
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The Exchange also does not believe its proposal will impose an
undue burden on intra-market competition. As discussed above, the
Exchange would uniformly assess the same transaction fee assessed by BX
for the Customer order routed to BX plus a Fixed Fee of $0.13 per
contract. Under this proposal, Non-Customer orders would continue to be
assessed the $0.99 per contract routing fee and not be assessed the
actual BX transaction fee. The Exchange does not believe its pricing
proposal will place any market participant at a relative disadvantage
compared to other market participants because the proposed routing fee
for Customer orders will actually narrow the difference between the
routing fees assessed to Customer and Non-Customer orders routed to BX.
The Exchange's proposal to amend Options 7, Section 2(3) to
lowercase ``PHLX,'' add a space that was missing within the Routing
Fees to Phlx, amend the name ``BX Options'' to ``BX,'' and add the
words ``per contract'' within the Routing Fee to all other options
exchanges and the proposal to renumber Options 7, Section 2(6), Market
Access and Routing Subsidy (``MARS''), to Options 7, Section 2(4) do
not impose an undue burden on competition. These non-substantive
amendments will bring greater clarity to the Rulebook.
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 foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\31\
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\31\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NASDAQ-2021-021 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-2021-021. 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,
[[Page 22996]]
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-2021-021, and should
be submitted on or before May 21, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
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\32\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-09026 Filed 4-29-21; 8:45 am]
BILLING CODE 8011-01-P
