Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Harmonize Various Processes Under Options 3, Section 20 Across the Affiliated Nasdaq Options Exchanges, 16502-16504 [2022-06088]
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16502
Federal Register / Vol. 87, No. 56 / Wednesday, March 23, 2022 / Notices
5. The Secretary shall arrange for
publication of this order in the Federal
Register.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2022–06145 Filed 3–22–22; 8:45 am]
BILLING CODE 7710–FW–P
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
POSTAL SERVICE
Product Change—Priority Mail
Negotiated Service Agreement
Postal ServiceTM.
Notice.
AGENCY:
ACTION:
(‘‘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
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: March
23, 2022.
FOR FURTHER INFORMATION CONTACT:
Sean Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on March 8, 2022,
it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Contract 737 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2022–45, CP2022–51.
SUMMARY:
Sean Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2022–06165 Filed 3–22–22; 8:45 am]
BILLING CODE 7710–12–P
The Exchange proposes to harmonize
its processes and procedures under
Options 3, Section 20 with those of its
affiliated options exchange.
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
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94447; File No. SR–
NASDAQ–2022–023]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Harmonize
Various Processes Under Options 3,
Section 20 Across the Affiliated
Nasdaq Options Exchanges
jspears on DSK121TN23PROD with NOTICES1
March 17, 2022.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b-4 thereunder,2
notice is hereby given that on March 8,
2022, The Nasdaq Stock Market LLC
1
2
15 U.S.C. 78s(b)(1).
17 CFR 240.19b–4.
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20:07 Mar 22, 2022
Jkt 256001
The Exchange proposes to harmonize
its existing processes for the review of
decisions on appeal under Options 3,
Section 20 with those of its affiliate
Nasdaq Phlx LLC (‘‘Phlx’’). The
Exchange also proposes several nonsubstantive, conforming changes in
Options 3, Section 1.
Appeal
Today, Options 3, Section 20(k)
governs the appeal process for
determinations by Exchange staff made
under this Rule, including obvious error
determinations. Specifically, a party to
a transaction affected by a decision
made under this section may appeal that
decision to the Exchange Review
Council. An appeal must be made in
writing, and must be received by the
Exchange within thirty (30) minutes
after the person making the appeal is
PO 00000
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Fmt 4703
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given the notification of the
determination being appealed.
The Exchange proposes generally to
maintain its current appeal process with
certain additions to harmonize its
process with that of its affiliate, Phlx.
First, while Phlx similarly requires the
parties to submit a request for review
within thirty (30) minutes of being
notified of the determination being
appealed, Phlx also provides parties
with additional time to submit their
request if the notification occurs later in
the trading day. In particular, if the
notification is made after 3:30 p.m.
Eastern Time, either party has until 9:30
a.m. Eastern Time on the next trading
day to submit a request for review.3
Similar to Phlx, the Exchange believes
that this flexibility will be helpful for
Participants in submitting their appeal
requests in a timely manner,
particularly where notification of the
Official’s decision was received later in
the trading day, and therefore proposes
to adopt this provision in Options 3,
Section 20(k).
Second, the Exchange proposes to add
a provision for when the Exchange
Review Council panel must render a
decision on requests for appeal to
harmonize to Phlx’s process.
Specifically, the Exchange proposes in
Options 3, Section 20(k) that the
Exchange Review Council panel shall
review the facts and render a decision
on the day of the transaction, or the next
trade day in the case where a request is
properly made after 3:30 p.m. on the
day of the transaction or where the
request is properly made the next trade
day.4
Options 3, Section 1
The Exchange proposes nonsubstantive, conforming amendments to
Options 3, Section 1 (Days and Hours of
Business). The Exchange first proposes
to amend the title from ‘‘Days and Hours
of Business’’ to ‘‘Hours of Business.’’
The Exchange recently filed to establish
General 3, Section 1030, which governs
the days the Exchange will be open for
business.5 At this time, the Exchange
also proposes to amend Options 3,
Section 1(c) which provides, ‘‘NOM
shall not be open for business on any
See Phlx Options 3, Section 20(l).
See Phlx Options 3, Section 20(l) for analogous
language.
5 See Securities Exchange Act Release No. 93675
(November 29, 2021), 86 FR 68714 (December 3,
2021) (SR–NASDAQ–2021–69) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
To Include Juneteenth National Independence Day
as a Holiday). Rule 1030 of General 3 memorialized
all current Exchange holidays and added a
provision to permit the Exchange the authority to
halt or suspend trading or close Exchange facilities
for certain unanticipated closures.
3
4
E:\FR\FM\23MRN1.SGM
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Federal Register / Vol. 87, No. 56 / Wednesday, March 23, 2022 / Notices
jspears on DSK121TN23PROD with NOTICES1
holiday observed by The Nasdaq Stock
Market, LLC.’’ The Exchange proposes
to instead provide, ‘‘NOM shall not be
open for business as provided within
General 3, Section 1030.’’ This proposed
text will make clear that while General
3, Section 1030 governs the days the
Exchange will be open for business, the
remainder of the rule addresses the
hours of operation of the System and
specific products. Finally, the Exchange
proposes to update citations to the
Options 4 rules related to ExchangeTraded Fund Shares and Index-Linked
Securities.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,6 in general, and furthers the
objectives of Section 6(b)(5) of the Act,7
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest and
because it is not designed to permit
unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes that its
proposal to amend the current appeal
process to harmonize with Phlx’s appeal
process is consistent with the Act
because it will continue to afford
Participants with due process in
connection with decisions made by
Officials under Options 3, Section 20
that the Participant may feel warrants
review. As discussed above, the
proposal would allow either party until
9:30 a.m. the next trading to submit a
request for review if notification is made
after 3:30 p.m., which the Exchange
believes will be helpful for Participants
in submitting their appeal requests in a
timely manner. Furthermore, the
proposal provides the Exchange Review
Council panel additional time and
flexibility to render decisions on
requests for appeal in cases where a
request is properly made after 3:30 p.m.
on the day of the transaction or where
the request is properly made the next
trade day, and is designed to reduce
administrative burden on the Exchange.
Ultimately, the proposed changes to
the appeal process are intended to align
certain time frames with those of its
affiliate in order to provide more
consistent rules and procedures across
the affiliated options exchanges owned
by Nasdaq, Inc. Consistent rules and
procedures, in turn, would simplify and
streamline the regulatory requirements
6 15
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Sep<11>2014
20:07 Mar 22, 2022
and increase the understanding of the
Exchange’s operations for Participants
of the Exchange that are also members
on the Exchange’s affiliated options
exchanges. Greater harmonization
across the affiliated options exchanges
will result in greater uniformity, rules
that are easier to follow and understand,
and more efficient regulatory
compliance, thereby contributing to the
protection of investors and the public
interest. As such, the proposed rule
change would foster cooperation and
coordination with persons engaged in
facilitating transactions in securities and
would remove impediments to and
perfect the mechanism of a free and
open market and a national market
system.
Lastly, the Exchange’s proposal to
amend Options 3, Section 1 (Days and
Hours of Business) as described above
will bring greater clarity, and ensure
that this Rule conforms to the changes
made in the recent filing to establish
General 3, Section 1030, which governs
the days the Exchange will be open for
business.8 The Exchange believes that
market participants would benefit from
the increased clarity, thereby reducing
potential confusion, and ensuring that
market participants and investors can
more easily navigate and understand the
Exchange’s rules.
For these reasons, the Exchange
believes that the proposal is consistent
with the Act.
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. As it relates
to the proposed changes to the appeal
process under Options 3, Section 20(k),
the changes are designed to provide
greater harmonization among similar
rules and processes across the
Exchange’s affiliated options exchanges,
resulting in more efficient regulatory
compliance for common members. For
these reasons, the Exchange believes
that the proposed rule change reflects
this competitive environment and does
not impose any undue burden on
intermarket competition.
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.
8 See
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supra note 5.
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16503
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A)(iii) of the Act 9 and
subparagraph (f)(6) of Rule 19b–4
thereunder.10
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
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–2022–023 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–2022–023. 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/
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
10 17
E:\FR\FM\23MRN1.SGM
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Federal Register / Vol. 87, No. 56 / Wednesday, March 23, 2022 / Notices
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions.
You should submit only information
that you wish to make available
publicly. All submissions should refer
to File Number SR–NASDAQ–2022–023
and should be submitted on or before
April 13, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–06088 Filed 3–22–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94455; File No. SR–C2–
2022–008]
Self-Regulatory Organizations; Cboe
C2 Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the Pilot
Period Related to the Market-Wide
Circuit Breaker in Rule 5.20.01 to April
18, 2022
jspears on DSK121TN23PROD with NOTICES1
March 17, 2022.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 17,
2022, Cboe C2 Exchange, Inc. (the
‘‘Exchange’’ or ‘‘C2’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
CFR 200.30–3(a)(12).
15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
by the Exchange. The Exchange filed the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 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
Cboe C2 Exchange, Inc. (the
‘‘Exchange’’ or ‘‘C2’’) proposes to extend
the pilot period related to the marketwide circuit breaker in Rule 5.20.01 to
April 18, 2022. The text of the proposed
rule change is provided in Exhibit 5.
The text of the proposed rule change is
provided in Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
options/regulation/rule_filings/ctwo/),
at the Exchange’s Office of the
Secretary, 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 extend the
pilot related to the market-wide circuit
breaker in Rule 5.20.01 to the close of
business on April 18, 2022.
Background
The Market-Wide Circuit Breaker
(‘‘MWCB’’) rules, including the
Exchange’s Rule 5.20.01, provide an
important, automatic mechanism that is
invoked to promote stability and
investor confidence during periods of
significant stress when cash equities
securities experience extreme marketwide declines. The MWCB rules are
designed to slow the effects of extreme
11 17
1
VerDate Sep<11>2014
20:07 Mar 22, 2022
3
4
Jkt 256001
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15 U.S.C. 78s(b)(3)(A)(iii).
17 CFR 240.19b–4(f)(6).
Frm 00052
Fmt 4703
Sfmt 4703
price declines through coordinated
trading halts across both cash equity
and equity options securities markets.
The cash equities rules governing
MWCBs were first adopted in 1988 and,
in 2012, all U.S. cash equity exchanges
and FINRA amended their cash equities
uniform rules on a pilot basis (the ‘‘Pilot
Rules’’, including Exchange Rule
5.20.01).5 The Securities and Exchange
Commission (the ‘‘Commission’’)
approved the Pilot Rules, the term of
which was to coincide with the pilot
period for the Plan to Address
Extraordinary Market Volatility
Pursuant to Rule 608 of Regulation NMS
(the ‘‘LULD Plan’’),6 including any
extensions to the pilot period for the
LULD Plan. Though the LULD Plan was
primarily designed for equity markets,
the Exchange believed it would,
indirectly, potentially impact the
options markets as well. Thus, the
Exchange has previously adopted and
amended Rule 5.20.01 (as well as other
options pilot rules) to ensure the option
markets were not harmed as a result of
the Plan’s implementation and
implemented such rule on a pilot basis
that has coincided with the pilot period
for the Plan.7 In April 2019, the
Commission approved an amendment to
the LULD Plan for it to operate on a
permanent, rather than pilot, basis.8 In
light of the proposal to make the LULD
Plan permanent, the Exchange amended
Rule 5.20.01 to untie the pilot’s
effectiveness from that of the LULD Plan
and to extend the pilot’s effectiveness to
the close of business on October 18,
2019.9 The Exchange subsequently
amended Rule 5.20.01 to extend the
5 See Securities Exchange Act Release No. 67090
(May 31, 2012), 77 FR 33531 (June 6, 2012) (SR–
BATS–2011–038; SR–BYX–2011–025; SR–BX–
2011–068; SR–CBOE–2011–087; SR–C2–2011–024;
SR–CHX–2011–30; SR–EDGA–2011–31; SR–EDGX–
2011–30; SR–FINRA–2011–054; SR–ISE–2011–61;
SR–NASDAQ–2011–131; SR–NSX–2011–11; SR–
NYSE–2011–48; SRNYSEAmex–2011–73; SR–
NYSEArca–2011–68; SR–Phlx–2011–129) (‘‘Pilot
Rules Approval Order’’).
6 See Securities Exchange Act Release No. 67091
(May 31, 2012), 77 FR 33498 (June 6, 2012). The
LULD Plan provides a mechanism to address
extraordinary market volatility in individual
securities.
7 See Securities Exchange Act Release Nos. 68769
(January 30, 2013), 78 FR 8213 (February 5, 2013)
(SR–C2–2013–006) (amending Rule 6.32.03, which
was later renumbered to Rule 5.20.01, to delay the
operative date of the pilot to coincide with the
initial date of operations of the Plan); and 85624
(April 11, 2019), 84 FR 16130 (April 17, 2019) (SR–
C2–2019–008) (proposal to extend the pilot for
certain options pilots, including Rule 5.20.01).
8 See Securities Exchange Act Release No. 85623
(April 11, 2019), 84 FR 16086 (April 17, 2019)
(Order Approving Amendment No. 18).
9 See Securities Exchange Act Release No. 85624
(April 11, 2019), 84 FR 16130 (April 17, 2019) (SR–
C2–2019–008) (proposal to extend the pilot for
certain options pilots, including Rule 5.20.01).
E:\FR\FM\23MRN1.SGM
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]]>Agencies
[Federal Register Volume 87, Number 56 (Wednesday, March 23, 2022)]
[Notices]
[Pages 16502-16504]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-06088]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94447; File No. SR-NASDAQ-2022-023]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Harmonize Various Processes Under Options 3, Section 20 Across the
Affiliated Nasdaq Options Exchanges
March 17, 2022.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 8, 2022, 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 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 harmonize its processes and procedures
under Options 3, Section 20 with those of its affiliated options
exchange.
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 harmonize its existing processes for the
review of decisions on appeal under Options 3, Section 20 with those of
its affiliate Nasdaq Phlx LLC (``Phlx''). The Exchange also proposes
several non-substantive, conforming changes in Options 3, Section 1.
Appeal
Today, Options 3, Section 20(k) governs the appeal process for
determinations by Exchange staff made under this Rule, including
obvious error determinations. Specifically, a party to a transaction
affected by a decision made under this section may appeal that decision
to the Exchange Review Council. An appeal must be made in writing, and
must be received by the Exchange within thirty (30) minutes after the
person making the appeal is given the notification of the determination
being appealed.
The Exchange proposes generally to maintain its current appeal
process with certain additions to harmonize its process with that of
its affiliate, Phlx. First, while Phlx similarly requires the parties
to submit a request for review within thirty (30) minutes of being
notified of the determination being appealed, Phlx also provides
parties with additional time to submit their request if the
notification occurs later in the trading day. In particular, if the
notification is made after 3:30 p.m. Eastern Time, either party has
until 9:30 a.m. Eastern Time on the next trading day to submit a
request for review.\3\ Similar to Phlx, the Exchange believes that this
flexibility will be helpful for Participants in submitting their appeal
requests in a timely manner, particularly where notification of the
Official's decision was received later in the trading day, and
therefore proposes to adopt this provision in Options 3, Section 20(k).
---------------------------------------------------------------------------
\3\ See Phlx Options 3, Section 20(l).
---------------------------------------------------------------------------
Second, the Exchange proposes to add a provision for when the
Exchange Review Council panel must render a decision on requests for
appeal to harmonize to Phlx's process. Specifically, the Exchange
proposes in Options 3, Section 20(k) that the Exchange Review Council
panel shall review the facts and render a decision on the day of the
transaction, or the next trade day in the case where a request is
properly made after 3:30 p.m. on the day of the transaction or where
the request is properly made the next trade day.\4\
---------------------------------------------------------------------------
\4\ See Phlx Options 3, Section 20(l) for analogous language.
---------------------------------------------------------------------------
Options 3, Section 1
The Exchange proposes non-substantive, conforming amendments to
Options 3, Section 1 (Days and Hours of Business). The Exchange first
proposes to amend the title from ``Days and Hours of Business'' to
``Hours of Business.'' The Exchange recently filed to establish General
3, Section 1030, which governs the days the Exchange will be open for
business.\5\ At this time, the Exchange also proposes to amend Options
3, Section 1(c) which provides, ``NOM shall not be open for business on
any
[[Page 16503]]
holiday observed by The Nasdaq Stock Market, LLC.'' The Exchange
proposes to instead provide, ``NOM shall not be open for business as
provided within General 3, Section 1030.'' This proposed text will make
clear that while General 3, Section 1030 governs the days the Exchange
will be open for business, the remainder of the rule addresses the
hours of operation of the System and specific products. Finally, the
Exchange proposes to update citations to the Options 4 rules related to
Exchange-Traded Fund Shares and Index-Linked Securities.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 93675 (November 29,
2021), 86 FR 68714 (December 3, 2021) (SR-NASDAQ-2021-69) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To
Include Juneteenth National Independence Day as a Holiday). Rule
1030 of General 3 memorialized all current Exchange holidays and
added a provision to permit the Exchange the authority to halt or
suspend trading or close Exchange facilities for certain
unanticipated closures.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\6\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\7\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest
and because it is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that its proposal to amend the current appeal
process to harmonize with Phlx's appeal process is consistent with the
Act because it will continue to afford Participants with due process in
connection with decisions made by Officials under Options 3, Section 20
that the Participant may feel warrants review. As discussed above, the
proposal would allow either party until 9:30 a.m. the next trading to
submit a request for review if notification is made after 3:30 p.m.,
which the Exchange believes will be helpful for Participants in
submitting their appeal requests in a timely manner. Furthermore, the
proposal provides the Exchange Review Council panel additional time and
flexibility to render decisions on requests for appeal in cases where a
request is properly made after 3:30 p.m. on the day of the transaction
or where the request is properly made the next trade day, and is
designed to reduce administrative burden on the Exchange.
Ultimately, the proposed changes to the appeal process are intended
to align certain time frames with those of its affiliate in order to
provide more consistent rules and procedures across the affiliated
options exchanges owned by Nasdaq, Inc. Consistent rules and
procedures, in turn, would simplify and streamline the regulatory
requirements and increase the understanding of the Exchange's
operations for Participants of the Exchange that are also members on
the Exchange's affiliated options exchanges. Greater harmonization
across the affiliated options exchanges will result in greater
uniformity, rules that are easier to follow and understand, and more
efficient regulatory compliance, thereby contributing to the protection
of investors and the public interest. As such, the proposed rule change
would foster cooperation and coordination with persons engaged in
facilitating transactions in securities and would remove impediments to
and perfect the mechanism of a free and open market and a national
market system.
Lastly, the Exchange's proposal to amend Options 3, Section 1 (Days
and Hours of Business) as described above will bring greater clarity,
and ensure that this Rule conforms to the changes made in the recent
filing to establish General 3, Section 1030, which governs the days the
Exchange will be open for business.\8\ The Exchange believes that
market participants would benefit from the increased clarity, thereby
reducing potential confusion, and ensuring that market participants and
investors can more easily navigate and understand the Exchange's rules.
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\8\ See supra note 5.
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For these reasons, the Exchange believes that the proposal is
consistent with the Act.
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. As it relates to the proposed
changes to the appeal process under Options 3, Section 20(k), the
changes are designed to provide greater harmonization among similar
rules and processes across the Exchange's affiliated options exchanges,
resulting in more efficient regulatory compliance for common members.
For these reasons, the Exchange believes that the proposed rule change
reflects this competitive environment and does not impose any undue
burden on intermarket competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \9\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule 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-2022-023 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-2022-023. 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/
[[Page 16504]]
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for website
viewing and printing in the Commission's Public Reference Room, 100 F
Street NE, Washington, DC 20549, on official business days between the
hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be
available for inspection and copying at the principal office of the
Exchange. All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions.
You should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-NASDAQ-2022-
023 and should be submitted on or before April 13, 2022.
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\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-06088 Filed 3-22-22; 8:45 am]
BILLING CODE 8011-01-P
