Self-Regulatory Organizations; Nasdaq BX, Inc.; 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, 16528-16529 [2022-06101]
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16528
Federal Register / Vol. 87, No. 56 / Wednesday, March 23, 2022 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94446; File No. SR–BX–
2022–004]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; 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, Nasdaq BX, Inc. (‘‘BX’’ 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.
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/bx/rules, at the principal office
of the Exchange, and at the
Commission’s Public Reference Room.
jspears on DSK121TN23PROD with NOTICES1
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.
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’’).
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).
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
See Phlx Options 3, Section 20(l).
Phlx Options 3, Section 20(l) for analogous
language.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,5 in general, and furthers the
objectives of Section 6(b)(5) of the Act,6
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
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
3
15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1
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20:07 Mar 22, 2022
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5
6
15 U.S.C. 78f(b).
15 U.S.C. 78f(b)(5).
E:\FR\FM\23MRN1.SGM
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Federal Register / Vol. 87, No. 56 / Wednesday, March 23, 2022 / Notices
would remove impediments to and
perfect the mechanism of a free and
open market and a national market
system.
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.
jspears on DSK121TN23PROD with NOTICES1
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 7 and
subparagraph (f)(6) of Rule 19b–4
thereunder.8
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
15 U.S.C. 78s(b)(3)(A)(iii).
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.
7
8
VerDate Sep<11>2014
20:07 Mar 22, 2022
Jkt 256001
16529
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
For the Commission, by the Division
of Trading and Markets, pursuant to
delegated authority.9
IV. Solicitation of Comments
J. Matthew DeLesDernier,
Assistant Secretary.
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:
[FR Doc. 2022–06101 Filed 3–22–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–94453; File No. SR–Phlx–
2022–10]
• 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–2022–004 on the subject line.
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Open Outcry
Options Transaction Charges
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–2022–004. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions.
You should submit only information
that you wish to make available
publicly. All submissions should refer
to File Number SR–BX–2022–004 and
should be submitted on or before April
13, 2022.
PO 00000
Frm 00077
Fmt 4703
Sfmt 4703
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 10,
2022, Nasdaq PHLX LLC (‘‘Phlx’’ 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Phlx’s Pricing Schedule at Options 7,
Section 4, ‘‘Multiply Listed Options
Fees (Includes options overlying
equities, ETFs, ETNs and indexes which
are Multiply Listed) (Excludes SPY).’’
The Exchange originally filed the
proposed pricing changes on March 1,
2022 (SR–PHLX–2022–09). On March
10, 2022, the Exchange withdrew that
filing and submitted this filing.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/phlx/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
17 CFR 200.30–3(a)(12).
15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
9
1
E:\FR\FM\23MRN1.SGM
23MRN1
Agencies
[Federal Register Volume 87, Number 56 (Wednesday, March 23, 2022)]
[Notices]
[Pages 16528-16529]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-06101]
[[Page 16528]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94446; File No. SR-BX-2022-004]
Self-Regulatory Organizations; Nasdaq BX, Inc.; 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, Nasdaq BX, Inc. (``BX'' 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/bx/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'').
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.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\5\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\6\ 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
[[Page 16529]]
would remove impediments to and perfect the mechanism of a free and
open market and a national market system.
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 \7\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\8\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 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.
---------------------------------------------------------------------------
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-BX-2022-004 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-2022-004. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change. Persons submitting
comments are cautioned that we do not redact or edit personal
identifying information from comment submissions.
You should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-BX-2022-004
and should be submitted on or before April 13, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-06101 Filed 3-22-22; 8:45 am]
BILLING CODE 8011-01-P