[Federal Register Volume 80, Number 134 (Tuesday, July 14, 2015)]
[Notices]
[Pages 41100-41104]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-17169]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75391; File No. SR-NASDAQ-2015-061]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Volume-Based and Multi-Trigger Thresholds

July 8, 2015.
    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 June 23, 2015, 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 NASDAQ. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    NASDAQ proposes to amend Chapter VII, Section 6, entitled ``Market 
Maker Quotations,'' of the rules governing the NASDAQ Options Market 
(``NOM'' or ``Exchange''). The Exchange proposes to adopt two new NOM 
Market Maker \3\ optional risk protections, a volume-based threshold 
and a multi-trigger threshold.\4\
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    \3\ The term ``NOM Market Maker'' means a Participant that has 
registered as a Market Maker on NOM pursuant to Chapter VII, Section 
2, and must also remain in good standing pursuant to Chapter VII, 
Section 4.
    \4\ Market Makers will be required to continue to utilize the 
Risk Monitor Mechanism in Chapter VI, Section 19, as is the case 
today.
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    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.nasdaq.cchwallstreet.com, at the principal 
office of the Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the filing is to adopt two new risk protections for 
NOM Market Maker's to monitor marketplace risk. These protections are 
intended to assist NOM Market Makers to control their trading risks.\5\ 
Quoting across many series in an option creates the possibility of 
``rapid fire'' executions that can create large, unintended principal 
positions that expose NOM Market Makers, who are required to 
continuously quote in assigned options, to potentially significant 
market risk. Today, the Exchange's rules permit NOM Market Makers to 
monitor risk arising from multiple executions across multiple options 
series of a single underlying security.\6\
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    \5\ Pursuant to NOM Rules at Chapter VII, Section 5, entitled 
``Obligations of Market Makers'', in registering as a market maker, 
an Options Participant commits himself to various obligations. 
Transactions of a NOM Market Maker 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. Further, all Market Makers are designated as 
specialists on NOM for all purposes under the Act or rules 
thereunder. See Chapter VII, Section 2.
    \6\ See NOM Chapter VI, Section 19, ``Risk Monitor Mechanism.''
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    The Exchange is proposing to offer a new volume-based and multi-
trigger threshold protection to NOM Market Makers. The Exchange 
proposes to amend NOM's Rules at Chapter VII, Section 6(f) to 
establish: (1) A threshold used to calculate each NOM Market Maker's 
total volume executed in all series of a given underlying security 
within a specified time period and compares that to a pre-determined 
threshold (``Volume-Based Threshold''), and (2) a threshold which 
measures the number of times the System has triggered \7\ based on the 
Risk Monitor Mechanism (``Percentage-Based Threshold'') pursuant to 
Chapter VI, Section 19 and Volume-Based Thresholds within a specified 
time period and compares that total to a pre-determined threshold 
(``Multi-Trigger Threshold'').
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    \7\ A trigger is defined as the event which causes the System to 
automatically remove all quotes and orders in all options series in 
an underlying issue.
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Volume-Based Threshold
    In connection with offering these two new threshold protections, a 
NOM Market Maker would provide a specified time period and volume 
threshold by which the Exchange's System would automatically remove the 
NOM Market Maker's quotes and orders in an options class, depending on 
the threshold utilized, submitted through designated NOM protocols, as 
specified by the Exchange. The Exchange counts Specialized Quote Feed 
(``SQF'') \8\ quotes and OTTO \9\ orders only in determining the number 
of contracts traded and removed by the System.\10\
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    \8\ SQF permits the receipt of quotes. SQF Auction Responses and 
market sweeps are also not included.
    \9\ OTTO immediate or cancel orders will not be included. OTTO 
provides a method for subscribers to send orders and receive status 
updates on those orders. OTTO accepts limit orders from System 
subscribers, and if there is a matching order, the orders will 
execute. Non-matching orders are added to the limit order book, a 
database of available limit orders, where they are matched.
    \10\ Financial Information Exchange (``FIX'') Orders are not 
counted in determining the number of contracts traded and removed by 
the System.
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    The Volume-Based Threshold will determine, during a specified time 
period established by the NOM Market

[[Page 41101]]

Maker not to exceeds 15 seconds (``Volume-Based Specified Time 
Period''), whether a NOM Market Maker executed a number of contracts 
which equals or exceeds the designated number of contracts specified by 
the NOM Market Maker in all series of an underlying security to 
determine whether to remove the NOM Market Maker's quotes and orders in 
all series of the underlying security.\11\ The Volume-Based Threshold 
will be based on the total number of contracts executed in the market 
in the same options series in an underlying security and will not 
offset the number of contracts executed on the opposite side of the 
market. Once the System determines that the number of contracts 
executed equals or exceeds a number established by the NOM Market Maker 
during the Volume-Based Specified Time Period, the System will remove 
the NOM Market Maker's quotes and orders. The Volume-Based Specified 
Time Period designated by the NOM Market Maker must be the same length 
of time as designated for purposes of the Percentage-Based Threshold in 
Rule 1093 [sic].\12\
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    \11\ The System counter is based on trading interest resting on 
the Exchange book.
    \12\ See proposed new Chapter VII, Section 6(f)(ii).
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    A Volume-Based Specified Time Period will commence for an option 
every time an execution occurs in any series in such option and will 
continue until the System automatically removes quotes and orders as 
described in newly proposed sections (f)(iv) or (f)(v) or the Volume-
Based Specified Time Period expires. The Volume-Based Specified Time 
Period operates on a rolling basis among all series in an option in 
that there may be multiple Volume-Based Specified Time Periods 
occurring simultaneously and such Volume-Based Specified Time Periods 
may overlap.\13\
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    \13\ Id.
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Multi-Trigger Threshold
    A NOM Market Maker or NOM Market Maker Group, which is defined as 
multiple affiliated NOM Market Makers,\14\ may provide the specified 
time period and number of allowable triggers by which the Exchange will 
automatically remove quotes and orders in all options series in all 
underlying securities issues submitted through designated NOM 
protocols, as specified by the Exchange (``Multi-Trigger Threshold''). 
During a specified time period established by the NOM Market Maker not 
to exceed 15 seconds (``Multi-Trigger Specified Time Period''), the 
number of times the System automatically removes the NOM Market Maker's 
or Group's quotes and orders in all options series will be based on the 
number of triggers of the Percentage-Based Threshold, described in 
proposed (f)(ii), as well as the Volume-Based Threshold described in 
proposed (f)(ii).\15\ For purposes of this rule, a trigger shall be 
defined as the event which causes the System to automatically remove 
quotes and orders in all options series in an underlying issue. Once 
the System determines that the number of triggers equals or exceeds a 
number established by either the NOM Market Maker or Group, during a 
Multi-Trigger Specified Time Period, the System will automatically 
remove all quotes and orders in all options series in all underlying 
issues for that NOM Market Maker or Group. A Multi-Trigger Specified 
Time Period will commence after every trigger of either the Percentage-
Based Threshold or the Volume-Based Threshold and will continue until 
the System removes quotes and orders as described in section (f)(iv) of 
the proposed rule or the Multi-Trigger Specified Time Period expires. 
Participants may configure the Multi-Trigger Threshold at the badge 
level (by NOM Market Maker) or by Group (multiple affiliated NOM Market 
Makers), but not both. This is different as compared to the Percentage-
Based Threshold in Chapter VI, Section 19 or the newly proposed Volume-
Based Thresholds that are configured only on the badge level (by NOM 
Market Maker).\16\ The System counts triggers within a Multi-Trigger 
Specified Time Period across all options for the NOM Market Maker or 
Group. A Multi-Trigger Specified Time Period operates in that there may 
be multiple Multi-Trigger Specified Time Periods occurring 
simultaneously and such Multi-Trigger Specified Time Periods may 
overlap.
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    \14\ This would be more than one NOM Market Maker, but does not 
require the aggregation of all of the Participant's Market Makers. A 
Group would be comprised of NOM Market Makers affiliated with one 
Participant. The Participant would be required to define a Group by 
providing a list of such affiliated NOM Market Makers to the 
Exchange.
    \15\ Today, ISE's functionality permits market maker quotes to 
be removed from the ISE trading system if a specified number of 
curtailment events occur across both ISE and ISE Gemini, LLC (``ISE 
Gemini''). ISE and ISE Gemini's trading systems will count the 
number of times a market maker's pre-set curtailment events occur on 
each exchange and aggregate them. Once a market maker's specified 
number of curtailment events across both markets is reached, the 
trading systems will remove the market maker's quotes in all classes 
on both ISE and ISE Gemini. ISE will then reject any quotes sent by 
the market maker after the parameters across both exchanges have 
been triggered until the market maker notifies the market operations 
staff of ISE that it is ready to come out of its curtailment. See 
Securities Exchange Release No. 73147 (September 19, 2014), 79 FR 
57639 (September 25, 2014) (SR-ISE-2014-09) (Order approving 
proposed rule change related to market maker risk parameters).
    \16\ See proposed new Chapter VII, Section 6(f)(iii).
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    The System will automatically remove quotes in all options in an 
underlying security when the Volume-Based Threshold has been reached. 
The System will automatically remove quotes in all options in all 
underlying securities when the Multi-Trigger Threshold has been 
reached.\17\ The System will send a Purge Notification Message \18\ to 
the NOM Market Maker for all affected options when the above thresholds 
have been reached.
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    \17\ The specified time period for the Volume-Based Threshold 
and the Multi-Trigger Threshold may differ. The specified time 
period for the Volume-Based Threshold must be the same as the 
Percentage-Based Threshold in Chapter VI, Section 19.
    \18\ A message entitled ``Purge Notification Message'' is 
systemically sent to the BX Marker Maker upon the removal of quotes 
due to Volume-Based Threshold or Multi-Trigger Threshold.
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    The two thresholds, Volume-Based Threshold and Multi-Trigger 
Threshold, operate independently of each other. The triggering of the 
Volume-Based Threshold would occur independently of the Multi-Trigger 
Threshold. The Multi-Trigger Threshold is somewhat dependent on the 
Volume-Based Threshold to the extent that the Volume-Based Threshold 
serves as a trigger for the Multi-Trigger Threshold. Quotes and orders 
will be automatically executed up to the NOM Market Maker's size 
regardless of whether the quote exceeds the Volume-Based threshold.\19\
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    \19\ See proposed new Chapter VII, Section 6(f)(iii).
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    If a NOM Market Maker requests the System to remove quotes and 
orders in all options series in an underlying issue, the System will 
automatically reset the Volume-Based Specified Time Period(s). The 
Multi-Trigger Specified Time Period(s) will not automatically reset for 
the Multi-Trigger Threshold.\20\
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    \20\ See proposed new Chapter VII, Section 6(f)(iv).
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    When the System removes quotes and orders as a result of the 
Volume-Based Threshold, the NOM Market Maker must send a re-entry 
indicator to re-enter the System. When the System removes quotes and 
orders as a result of the Multi-Trigger Threshold, the System will not 
accept quotes and orders through designated protocols until the NOM 
Market Maker manually requests re-entry.\21\ After quotes and orders 
are removed as a result of the Multi-Trigger Threshold, Exchange staff 
must set a re-entry indicator in this case to enable re-entry, which 
will cause the System to send a Reentry Notification Message to the NOM 
Market Maker for all options

[[Page 41102]]

series in all underlying issues.\22\ The NOM Market Maker's Clearing 
Firm will be notified regarding the trigger and re-entry into the 
System after quotes and orders are removed as a result of the Multi-
Trigger Threshold, provided the NOM Market Maker's Clearing Firm has 
requested to receive such notification.\23\ The System will then reset 
all counters to zero and re-entry and continued trading will be 
permitted. A NOM Market Maker is subject to continuous quoting 
obligations \24\ despite the removal of quotes and orders from the 
System and approval process for re-entry.
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    \21\ In the interest of maintaining fair and orderly markets, 
the Exchange believes it is important that NOM Market Makers 
communicate their readiness to Exchange staff in a non-automated 
manner, such as by email or telephone.
    \22\ See proposed new Chapter VII, Section 6(f)(v).
    \23\ NOM Rules at Chapter VI, Section 20 permits the Exchange to 
share NOM Market Maker designated risk settings in the System with 
the Clearing Firm.
    \24\ See note 5.
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    Today, the Exchange provides NOM Market Makers with the Percentage-
Based Threshold in Rule 1093 to monitor risk.\25\ The Exchange will 
continue to require NOM Market Makers to utilize the Percentage-Based 
Threshold. The Volume-Based Threshold and the Multi-Trigger Threshold 
will be optional.
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    \25\ An initial default value is set for each NOM Market Maker.
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    The Exchange reserved subsection (f)(i) for future modifications to 
this rule.
    The Exchange proposes to implement these rule changes within 30 
days of the operative day of this rule change.
    Example #1 of the Volume-Based Threshold is displayed below. 
Presume the following Order Book:

------------------------------------------------------------------------
                                                          Size on bid x
                Series of underlying XYZ                  offer for MM1
------------------------------------------------------------------------
100 Strike Call........................................        300 x 300
100 Strike Put.........................................          50 x 50
110 Strike Call........................................        200 x 200
110 Strike Put.........................................        150 x 150
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    In this example, assume the Specified Time Period designated by the 
Market Maker #1 is 10 seconds and the designated number of contracts 
permitted for the Volume-Based Threshold is 250 contracts. Assume at 
12:00:00, the Market Maker #1 executes all of his offer size, 200 
contracts, in the 110 Strike Calls. The System will initiate the 
Specified Time Period and for 10 seconds the System will count all 
volume executed in series of underlying XYZ. If at any point during 
that 10 second period, the Market Maker #1 executes additional 
contracts in any series of underlying XYZ, those contracts will be 
added to the initial execution of 200 contracts. To illustrate, assume 
at 12:00:05 the Market Maker #1 executes 60 contracts of his offer in 
the 100 Strike Calls. The total volume executed is now 260 contracts. 
Since that volume exceeds the Market Maker #1's designated number of 
contracts for the Volume-Based Threshold (250 contracts), all of his 
quotes in all series of underlying XYZ over the designated protocols 
will be removed from the System; no further quotes or orders will be 
executed until re-entry. The Volume-Based Specified Time Period will be 
reset for Market Maker #1 in underlying XYZ and Market Maker #1 will 
need to send a re-entry indicator in order to re-enter quotes in 
options series for underlying XYZ into the System.
    Example #2 of the Volume-Based Threshold: Similar to the example 
above, assume the Specified Time Period is 10 seconds and the 
designated number of contracts permitted for the Volume-Based Threshold 
is 250 contracts. Assume at 12:00:00, Market Maker #1 executes all of 
his offer size, 200 contracts, in the 110 Strike Calls. The System will 
initiate the Specified Time Period and for 10 seconds the System will 
count all volume executed in series of underlying XYZ. If at any point 
during that 10 second period, Market Maker #1 executes additional 
contracts in any series of underlying XYZ, those contracts will be 
added to the initial execution of 200 contracts. Then assume at 
12:00:05 Market Maker #1 executes 20 contracts of his offer in the 100 
Strike Calls. The total volume executed is 220 contracts which does not 
exceed the Volume-Based Threshold. This second execution initiates 
another Specified Time Period so there are two open time periods, the 
first with 5 seconds remaining and a new 10 second time period. At 
12:00:10, the first timer period expires and the initial execution of 
200 contracts is no longer counted toward the designated number of 
contracts permitted for the Volume-Based Threshold. Further assume at 
12:00:12, which is outside of the initial time period but still within 
10 seconds of the second execution of 20 contracts, another execution 
occurs with Market Maker #1 executing 230 contracts of his bid in the 
100 Strike Calls. This total volume executed toward the Volume-Based 
Threshold within the Specified Time Period is now 250 contracts which 
equals the designated number of contracts permitted causing the System 
to remove all quotes in all series of underlying XYZ over the 
designated protocols for Market Maker #1 to be removed from the System 
no further quotes or orders will be executed until re-entry. The 
Volume-Based Specified Time Period will be reset for Market Maker #1 in 
underlying XYZ and Market Maker #1 will need to send a re-entry 
indicator in order to re-enter quotes in options series for underlying 
XYZ into the System. This example displays the rolling basis in which 
the Specified Time Period operates.
    Example #3: In order to illustrate the Multi-Trigger Threshold, 
assume Example #1 and Example #2 provided above occurred in options 
series of two different underlyings rather than all in options series 
of underlying XYZ and for two separate Market Makers (MM#1 for Example 
#1 and MM#2 for Example #2) of the same member organization. Assume a 
Group is defined by the member organization and is comprised of the MM 
#1 and MM #2. Further assume the member organization has defined the 
Multi-Trigger Specified Time Period as 10 seconds and the number of 
allowable triggers as two. Based on the aforementioned examples, a 
Multi-Trigger Specified Time Period commences at 12:00:05 when MM #1 
triggers the Volume-Based Threshold. This Volume-Based Threshold 
triggers counts as the first trigger toward the Multi-Trigger Threshold 
for the Group. Another Multi-Trigger Specified Time Period is initiated 
at 12:00:12 when MM #2 triggers the Volume-Based Threshold (per Example 
#2). This Volume-Based Threshold trigger counts as the second trigger 
toward the Multi-Trigger Threshold for the Group since it is within the 
Multi-Trigger Specified Time Period of the first trigger. Since the 
member organization designated two triggers for the number of allowable 
triggers, the Group, both MM #1 and MM #2, quotes in all option series 
in all underlying issues for the Group are automatically removed from 
the System and Purge Notification Messages are sent to the Group; no 
further quotes or orders will be executed until re-entry. The member 
organization will need to contact the Exchange to request Exchange 
staff to enable re-entry into the System.
    The Exchange proposes to implement this rule within thirty (30) 
days of the operative date. The Exchange will issue an Options Trader 
Alert in advance to inform market participants of such date.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \26\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \27\ in particular, in that it is designed to 
promote just and equitable principles of

[[Page 41103]]

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, by enhancing the risk protections 
available to Exchange members. The proposal promotes policy goals of 
the Commission which has encouraged execution venues, exchange and non-
exchange alike, to enhance risk protection tools and other mechanisms 
to decrease risk and increase stability.
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    \26\ 15 U.S.C. 78f(b).
    \27\ 15 U.S.C. 78f(b)(5).
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    The individual firm benefits of enhanced risk protections flow 
downstream to counter-parties both within and without the Exchange, 
thereby increasing systemic protections as well. Additionally, because 
the Exchange offers these risk tools to NOM Market Makers, in order to 
encourage them to provide as much liquidity as possible and encourage 
market making generally, the proposal removes impediments to and 
perfects the mechanism of a free and open market and a national market 
system and protect investors and the public interest.
    With respect to permitting the Multi-Trigger Threshold to be set 
either to one NOM Market Maker or to a number of specified NOM Market 
Makers affiliated with a member, it is important to note that the risk 
to NOM Market Makers is not limited to a single series in an option but 
to all series in an option. NOM Market Makers that quote in multiple 
series of multiple options have significant exposure, requiring them to 
offset or hedge their overall positions. The proposed functionality 
will be useful for NOM Market Makers, who are required to continuously 
quote in assigned options classes on the Exchange. Quoting across many 
series in an option or multiple options creates the possibility of 
executions that can create large, unintended principal positions that 
could expose market makers to unnecessary risk. The Multi-Trigger 
Threshold functionality is intended to assist NOM Market Makers manage 
that risk at the Group level so that NOM Market Makers may provide deep 
and liquid markets to the benefit of all investors.
    The Exchange further represents that its proposal will operate 
consistently with the firm quote obligations of a broker-dealer 
pursuant to Rule 602 of Regulation NMS and that the functionality is 
not mandatory. Specifically, any interest that is executable against a 
NOM Market Maker's quotes that are received \28\ by the Exchange prior 
to the time either of these functionalities are engaged will be 
automatically executed at the price up to the NOM Market Maker's size, 
regardless of whether such execution results in executions in excess of 
the NOM Market Maker's pre-set parameters.
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    \28\ The time of receipt for an order or quote is the time such 
message is processed by the Exchange book.
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    With respect to providing risk settings to the NOM Market Maker's 
Clearing Member, each Member that transacts through a Clearing Member 
on the Exchange executes a Letter of Guarantee wherein the Clearing 
Member accepts financial responsibility for all Exchange transactions 
made by the Participant on whose behalf the Clearing Member submits the 
letter of guarantee. The Exchange believes that because Clearing 
Members guarantee all transactions on behalf of a Participant, and 
therefore, bear the risk associated with those transactions, it is 
appropriate for Clearing Members to have knowledge of what risk 
settings a NOM Market Maker may utilize within the System and receive 
and receive notice of re-entry into the System after triggering the 
Multi-Trigger Threshold.

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. Specifically, the proposal will 
not impose a burden on intra-market or inter-market competition, rather 
it provides NOM Market Makers with the opportunity to avail themselves 
of similar risk tools which are currently available on other 
exchanges.\29\ The proposal does not impose a burden on inter-market 
competition, because Participants may choose to become market makers on 
a number of other options exchanges, which may have similar but not 
identical features.\30\ The proposed rule change is meant to protect 
NOM Market Makers from inadvertent exposure to excessive risk. 
Accordingly, the proposed rule change will have no impact on 
competition.
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    \29\ See Section 8 of the 19b4.
    \30\ See BATS Rule 21.16, BOX Rules 8100 and 8110, C2 Rule 8.12, 
CBOE Rule 8.18, ISE Rule 804(g), MIAX Rule 612, NYSE MKT Rule 928NY 
and NYSE Arca Rule 6.40.
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    Further, the Exchange is proposing this rule change at the request 
of its NOM Market Makers to further reduce their risk in the event the 
NOM Market Maker is suffering from a systems issue or due to the 
occurrence of unusual or unexpected market activity. The proposed Group 
parameter for the Multi-Trigger threshold will protect NOM Market 
Makers from inadvertent exposure to excessive risk at the Group level. 
Reducing such risk will enable NOM Market Makers to enter quotations 
without any fear of inadvertent exposure to excessive risk, which in 
turn will benefit investors through increased liquidity for the 
execution of their orders. Such increased liquidity benefits investors 
because they receive better prices and because it lowers volatility in 
the options market.
    The Exchange believes that requiring NOM Market Makers to enter 
values for the Percentage-Based Threshold is not unreasonably 
burdensome because NOM Market Makers can enter an out-of-range values 
so that the Exchange-provided risk protections will not be triggered. 
Reducing risk by utilizing the proposed risk protections will enable 
NOM Market Makers to enter quotations with larger size, which in turn 
will benefit investors through increased liquidity for the execution of 
their orders. Such increased liquidity benefits investors because they 
receive better prices and because it lowers volatility in the options 
market.

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)(ii) of the Act \31\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\32\ The Exchange has 
requested that the Commission waive the thirty-day operative delay so 
that the proposal may become operative immediately. The Exchange states 
that waiving the thirty-day operative delay will enable Market Makers 
to enhance their risk controls and risk management processes without 
additional delay. The Commission believes that waiving the thirty day 
delay is consistent with the protection of investors and the public 
interest. Therefore, the Commission hereby waives the thirty-day 
operative

[[Page 41104]]

delay and designates the proposal effective upon filing.\33\
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    \31\ 15 U.S.C. 78s(b)(3)(a)(ii).
    \32\ 17 CFR 240.19b-4(f)(6).
    \33\ For purposes of waiving the 30-day operative delay, the 
Commission has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (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. The Exchange has 
provided the Commission written notice of its intent to file the 
proposed rule change, along with a brief description and text of the 
proposed rule change, at least five business days prior to the date of 
filing of the proposed rule change.

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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NASDAQ-2015-061 on the subject line.
Paper Comments
     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2015-061. 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 Web site (http://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 Web site 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; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NASDAQ-2015-061 and should 
be submitted on or before August 4, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\34\
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    \34\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-17169 Filed 7-13-15; 8:45 am]
 BILLING CODE 8011-01-P